What is the purpose of the Balanced Scorecard?

The Balanced Scorecard serves as a strategic planning and management tool that enables organizations to measure their performance from multiple perspectives. It goes beyond traditional financial metrics and provides a more comprehensive view by incorporating various critical areas such as customer satisfaction, internal processes, and learning and growth potential.

The primary goal is to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organizational performance against strategic goals. By measuring individual and organizational function, the Balanced Scorecard helps organizations assess their effectiveness in achieving objectives, thus facilitating better decision-making and resource allocation.

The other options focus on narrower areas such as employee attendance, marketing strategies, and employee satisfaction, which are important but do not capture the holistic view that the Balanced Scorecard encompasses. The emphasis on measuring a broad range of organizational functions distinguishes the Balanced Scorecard as a vital method for strategic management.