What is a balanced scorecard primarily used for?

A balanced scorecard is primarily used as a management tool for assessing performance because it provides a comprehensive framework that incorporates multiple perspectives beyond just financial metrics. It enables organizations to evaluate their performance through four key perspectives: financial, customer, internal business processes, and learning and growth. This multidimensional approach allows managers to gain insights into how well their strategies are being implemented and what areas need improvement.

By focusing on a broader range of factors, the balanced scorecard helps organizations align their activities with their vision and strategy, improve internal and external communications, and monitor organizational performance against strategic goals. This holistic view supports informed decision-making and helps drive success across various aspects of the business.