Minimizes the chances of suboptimization one of the advantages the balanced scorecard has over traditional control processes that rely soley on financial measures
A process or system that is inefficient or unproductive results in suboptimization, which is a decreased level of production. Suboptimization may also result from a concentration on improving a single aspect of a firm rather than its overall performance. The foundation for a connection among both organizational structure & the policies chosen is the suboptimization principle.
A manufacturing unit scheduling production to benefit its pricing structure without consideration of client requirements or the impact on other business units is an example of sub-optimization.
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