The key to the success of a strategy depends on three major factors: a firm’s alignment with the external environment, a realistic internal view of its core competencies and sustainable competitive advantages, and careful implementation and monitoring.
Financial metrics have long been the standard for assessing the performance of a firm. The BSC supports the role of finance in establishing and monitoring specific and measurable financial strategic objectives on a coordinated, integrated basis, enabling the firm to operate efficiently and effectively
The above financial metrics help firms to implement and monitor their strategies with specific, industry-related and measurable financial objectives, strengthening the capacity of the organisation with hard-to-imitate and non-replaceable competencies. They create sustainable competitive advantages that maximise the value of a company, the main objective of all stakeholders.