What technique is composed of four dimensions to assess performance?

The Balanced Scorecard is a strategic planning and management technique that encompasses four dimensions to assess performance: financial, customer, internal business processes, and learning and growth. Each of these perspectives provides a comprehensive view of an organization's performance, enabling organizations to not only focus on financial outcomes but also on the drivers of future performance.

The financial perspective assesses how well the organization is doing financially and whether its strategy is contributing to the bottom line. The customer perspective evaluates how customers perceive the organization and focuses on customer satisfaction and retention. The internal business processes perspective examines the internal operational goals and the efficiency of various processes. Finally, the learning and growth perspective addresses the organization’s ability to innovate, improve, and learn, which is crucial for long-term sustainability.

Incorporating these four dimensions allows organizations to create a balanced approach to performance management that considers multiple aspects of success rather than narrow financial metrics alone. This holistic view aligns organizational activities with strategic objectives, ensuring that all levels of the organization are working towards common goals.