What does the balanced scorecard approach primarily translate into performance measures?

The balanced scorecard approach is an integrated management tool that enables organizations to translate their strategic objectives into a comprehensive set of performance measures. This approach emphasizes a balanced view by incorporating both financial and non-financial metrics to provide a holistic assessment of organizational performance.

The reason why the correct answer highlights a set of performance measures across both financial and non-financial domains is that it reflects the core philosophy of the balanced scorecard. This model encourages organizations to look beyond traditional financial indicators to also include factors such as customer satisfaction, internal processes, and learning and growth metrics. By doing so, organizations can better assess their performance in a more rounded manner, ensuring that they are not only achieving financial goals but also enhancing customer experiences, improving operational efficiency, and fostering employee development.

This comprehensive measurement system helps align daily operations with long-term strategy and encourages continuous improvement, making it a foundational concept in modern strategic management practices.