PFMP · Question #220
The balanced scorecard approach uses a scoring process based on:
The correct answer is D. financial and non-financial component benefits. The balanced scorecard evaluates portfolio components across both financial and non-financial performance dimensions, providing a multi-perspective view of value and strategic contribution.
Question
The balanced scorecard approach uses a scoring process based on:
Options
- Areturn on investment and net present value.
- Balignment to company strategy and financial benefits.
- Cresource constraints and alignment to company strategy.
- Dfinancial and non-financial component benefits.
How the community answered
(16 responses)- B6% (1)
- C6% (1)
- D88% (14)
Why each option
The balanced scorecard evaluates portfolio components across both financial and non-financial performance dimensions, providing a multi-perspective view of value and strategic contribution.
Return on investment and NPV are exclusively financial metrics; using only these would contradict the balanced scorecard's defining characteristic of incorporating non-financial measures.
Strategic alignment and financial benefits represent only two dimensions of the balanced scorecard and do not capture its full multi-perspective scoring methodology.
Resource constraints and strategic alignment are not the defining axes of the balanced scorecard; the framework is built on financial versus non-financial performance perspectives, not resource limitations.
The balanced scorecard framework, developed by Kaplan and Norton, scores components across financial and non-financial dimensions - including customer value, internal business processes, and organizational learning and growth - ensuring a holistic assessment that goes beyond purely monetary metrics.
Concept tested: Balanced scorecard financial and non-financial evaluation framework
Source: https://hbr.org/1992/01/the-balanced-scorecard-measures-that-drive-performance-2
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