Balance scorecard | Business & Finance homework help
For example, when setting financial objectives such as increasing revenues or reducing costs, organizations can also set corresponding non-financial objectives based on customer satisfaction ratings, employee engagement metrics, etc. This helps them ensure that they are not only providing value to shareholders but also creating a positive environment for employees and customers alike which could result in greater profitability over time. Additionally, the Balanced Scorecard allows management teams to track progress against each objective individually so they can make more informed decisions about where resources should be allocated.
By building this relationship between financial and non-financial elements, organizations are better equipped to align their strategies with their core values which can lead to improved outcomes for everyone involved. The Balanced Scorecard provides a comprehensive picture of performance allowing managers and executives gain greater insight into how their initiatives are actually impacting results and helping them make more informed decisions moving forward.