Final answer:
The Balanced Scorecard is the methodology that converts value drivers into defined metrics, aligning everyday work with strategy, setting priorities, and monitoring progress towards goals.
Step-by-step explanation:
A methodology that converts value drivers, such as customer service, innovation, operational efficiency, and financial performance, to a series of defined metrics is known as a Balanced Scorecard. Developed by Robert Kaplan and David Norton, the Balanced Scorecard is a strategic planning and management system that organizations use to:
- Communicate what they are trying to accomplish
- Align the day-to-day work that everyone is doing with strategy
- Priority setting for projects and initiatives
- Measure and monitor progress towards strategic targets
It helps organizations to translate their organizational goals into a set of performance objectives that are measured, monitored, and changed if necessary to ensure the strategic goals are met.