The balanced scorecard approach differs from traditional performance measurement approaches because it adds which of the following measures?
I. Financial measures.
II. Internal business process measures.
III. Client satisfaction measures.
IV. Innovation and learning measures.
The balanced scorecard approach differs from traditional performance measurement approaches by emphasizing not only financial measures but also non-financial measures. These include internal business process measures, client satisfaction measures, and innovation and learning measures, which are part of its four perspectives. This alignment provides a more comprehensive view of organizational performance, unlike traditional methods focusing solely on financial metrics.
The traditional approach to performance is based on information and techniques available in financial accounting, cost accounting, management accounting such as contribution margin, ROI, RI, net profit, EPS. Question asked how balance sore card differs from traditional approach.
Traditional approach to measure performance was based on Financial Performance. The balanced score card approach differs from traditional because it focuses on both financial and non financial measures - 4 categories: (1) financial measures (2) customer measures (3) internal measures (4) Learning, growth, innovation measures
Financial measures is one of the 4 pillars of BSC.