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Balanced Scorecard: Non-Financial Objectives and Financial Objectives

How does the Balanced Scorecard build the relationship between non-financial objectives and financial objectives?

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Balanced scorecard is beneficial for the firms to integrate the financial and non-financial objectives of them. BSC is used to determine the wellbeing of the business by considering their performance on the basis of four perspectives namely, customers, internal operations, financial and innovation and learning perspectives. It builds relationship between financial and non-financial objectives as it is a mechanism that is used to translate the vision and objectives of the company in above four performance measures (Pangarkar & Kirkwood, 2009). The main objective of the firms is to increase the customer and employee satisfaction and to increase the organizational profitability. Through the financial perspective of BSC, a firm identifies the financial objectives, which is wants to achieve and then link them with the corporate strategy. These objectives help the firms to focus on objectives and measure the other three perspectives.

The success of the financial objectives is completely depends upon the customer satisfaction except some cases. It is because satisfied customers ...

Solution Summary

This solution discusses the integration of financial and non-financial metrics into the measuring of objectives with the financial scorecare in 528 words with five references.