Final answer:
The Balanced Scorecard (BSC) primarily evaluates strategy based on financial criteria and may neglect softer aspects of strategic success. Companies can address this criticism by supplementing the BSC with non-financial metrics that reflect these softer aspects.
Step-by-step explanation:
The Balanced Scorecard (BSC) is a strategic performance measurement framework that evaluates a company's performance based on multiple perspectives, including financial, customer, internal processes, and learning and growth. While the BSC is a valuable tool for assessing strategy, one valid criticism is that it tends to focus primarily on financial criteria and neglects the softer aspects of strategic success.
This means that the BSC may not fully capture the intangible factors, such as employee morale, organizational culture, or customer satisfaction, which can also contribute to the overall success of a company's strategy. For example, a company may achieve strong financial results but have a disengaged workforce or dissatisfied customers.
To address this criticism, companies can supplement the financial measures in the BSC with additional non-financial metrics that reflect the softer aspects of strategic success. These may include employee engagement surveys, customer satisfaction ratings, or measures of innovation and learning. By incorporating a more balanced set of metrics, the BSC can provide a more comprehensive view of a company's performance and strategic success.