Continuous Quality Improvement (CQI) 2025 – 400 Free Practice Questions to Pass the Exam

The balanced scorecard is a strategic planning and management tool that links an organization's vision and mission with its strategy, objectives, and performance metrics. The concept is designed to provide a comprehensive view of the organization by balancing various perspectives: financial, customer, internal business processes, and learning and growth.

By connecting directional strategies to current outputs, the balanced scorecard allows organizations to assess how well they are executing their strategic plans and achieving their goals. This approach provides a clear framework for tracking performance not only in terms of financial results but also in relation to customer satisfaction, operational efficiencies, and organizational growth and innovation.

This linkage is crucial because it helps organizations identify gaps between their strategic goals and actual performance, allowing for timely adjustments in strategy and execution. Thus, the chosen answer accurately reflects the purpose of the balanced scorecard in aligning strategic direction with operational outcomes, enabling a holistic view of organizational performance.