When used as one option to select and rank portfolio components, the balanced scorecard approach is primarily based on:

Question

Options

• Areturn on investment (ROI), net present value, estimated cost to complete, and estimated
• Bnet present value, return on investment (ROI), strategic alignment, and technical feasibility.
• Cestimated maintenance cost, ability to leverage core competencies, reward versus risk, and
• Dstrategic alignment, ability to leverage core competencies, technical feasibility, and reward versus

• A
  7% (2)
• B
  3% (1)
• D
  90% (27)

Explanation

In portfolio component selection, the balanced scorecard (BSC) approach evaluates components across four dimensions: strategic alignment (does it support organizational goals?), ability to leverage core competencies (does it use what the organization does best?), technical feasibility (can it realistically be executed?), and reward versus risk (is the return worth the exposure?). These four criteria reflect the multi-perspective philosophy of the BSC. Options A and B are more characteristic of financial scoring models that emphasize NPV and ROI. Option C partially overlaps but does not include strategic alignment, which is a cornerstone of the BSC approach.

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