What is a widely used method for combining strategic and financial objectives, tracking their achievement, and giving management a balanced view of organizational performance?

• A. Balanced scorecard
• B. Performance dashboard
• C. Strategic alignment model
• D. Scorecard method

Answer: (A)

The main idea being tested is a measurement system that links strategy to performance across multiple dimensions so management can see how well the strategy is being implemented. The balanced scorecard does this by translating strategic objectives into a set of performance measures across four perspectives: financial, customer, internal processes, and learning and growth. This structure ensures financial results are evaluated together with non-financial indicators, giving a complete view of how well the strategy is being executed. By tying these measures to a strategy map and targets, it aligns daily actions with long-term goals and makes progress easy to track, report, and manage.

Other options don’t fit as neatly. A performance dashboard can display metrics but isn’t inherently a framework that links strategy to measurement across multiple balanced perspectives. The strategic alignment model focuses on aligning strategy with organizational or IT structures rather than providing a comprehensive performance measurement system. The scorecard method is a broader term that lacks the specific, integrated framework of the balanced scorecard.