What is a primary benefit of using a balanced scorecard?

Using a balanced scorecard provides the significant advantage of measuring performance from multiple organizational perspectives, which is essential for a comprehensive understanding of an organization's overall health and effectiveness. This approach allows organizations to evaluate their performance not just through financial outcomes, but also through various other dimensions, such as customer satisfaction, internal processes, and learning and growth.

By incorporating these diverse perspectives, organizations can align their strategic objectives with operational activities, identify areas for improvement, and foster a more holistic view of success. It encourages balanced decision-making and prioritizes long-term performance rather than focusing narrowly on short-term financial metrics. This multifaceted evaluation helps stakeholders gain insights into how different aspects of the organization interconnect and affect one another, ultimately supporting better-informed strategic planning and execution.