Final answer:
The balanced scorecard is called 'balanced' because it measures both internal and external business processes, providing a comprehensive overview of an organization's performance that encompasses financial measures and other key performance indicators.
Step-by-step explanation:
The balanced scorecard method is said to be 'balanced' because it assesses both the internally focused and externally focused business processes. It does this by incorporating various perspectives on performance, which include financial, customer, internal business processes, and learning & growth. By using these different perspectives, the balanced scorecard provides a comprehensive view of the organization's performance beyond traditional financial metrics. It considers factors such as customer satisfaction, internal processes, and the ability to innovate and improve, which are essential for long-term success. These elements help to provide a balanced view because they reflect a combination of short-term and long-term objectives, as well as external and internal performance drivers.