What is the primary purpose of a balanced scorecard in strategic management?

The balanced scorecard serves primarily as a strategic management tool that allows organizations to evaluate and measure performance through various key performance indicators (KPIs) across multiple perspectives. This framework extends beyond traditional financial metrics by integrating additional dimensions such as customer satisfaction, internal processes, and learning and growth.

By incorporating these diverse perspectives, the balanced scorecard helps managers to weigh outcomes and align business activities with the broader strategy of the organization. It provides a comprehensive view of performance and strategic alignment, enabling decision-makers to understand how different areas of the business contribute to overall success. This holistic approach facilitates better strategic planning and execution, making it crucial for organizations seeking to balance short-term operational performance with long-term strategic goals.

Other options like evaluating company culture, tracking employee attendance, or performing market analysis do not capture the essence of the balanced scorecard's function, which fundamentally centers around managing and assessing strategic performance through a structured framework that includes multiple perspectives.