BCS Foundation Certificate in Business Change Practice Exam

Question: 1 / 400

Which of the following descriptions is most suitable as a definition of the essential purpose of the Balanced Scorecard (BBS)?

The BBS shows in which features of the business we should be targeting our investments in IT

The BBS shows which features of the business are most critical to focus on for the eventual realization of strategic goals

The Balanced Scorecard (BBS) is designed to provide a framework that translates an organization's strategic objectives into a set of performance measures across multiple perspectives, including financial, customer, internal processes, and learning and growth. The essential purpose of the BBS is to ensure that all aspects of the business align with its strategic goals.

By emphasizing the most critical features of the business that need attention, the BBS allows organizations to make informed decisions about where to allocate resources effectively and which areas to prioritize in order to achieve their overall strategic vision. This comprehensive view supports strategic alignment and enhances performance measurement, making it a vital tool for executives in interpreting organizational strategy.

The other choices do touch on various functionalities of the BBS, but they do not capture its core purpose as effectively as the selected answer. The focus on critical features leads directly to strategic goal realization, underlining the BBS's role in supporting performance management and strategic execution.

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The BBS shows how Financial factors are translated into Customer factors

The BBS shows how to organise the enterprise Management Information System for best effect

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