How does a balanced scorecard support strategic planning?

A balanced scorecard supports strategic planning by translating organizational goals into measurable objectives across various perspectives. This approach allows organizations to align their activities to their vision and strategy, ensuring that all parts of the business are working towards common objectives. The balanced scorecard encompasses multiple dimensions—such as financial, customer, internal processes, and learning and growth—providing a more holistic view of performance. By addressing these varied aspects, organizations can assess how well they are executing their strategy and identify areas for improvement, leading to better strategic decisions and overall organizational performance.

The other options fall short as they suggest a narrow focus, either on financial outcomes or operational efficiency alone, which does not capture the comprehensive nature of strategic planning that the balanced scorecard promotes. This multi-faceted approach is what distinguishes successful organizations that use balanced scorecards effectively from those that do not.