Which of the following is correct about Balance

Solution

Balanced scorecard is an example of a closed-loop controller or cybernetic control applied to the management of the implementation of a strategy. Closed-loop or cybernetic control is where actual performance is measured, the measured value is compared to a reference value and based on the difference between the two corrective interventions are made as required. Such control requires three things to be effective: •a choice of data to measure, •the setting of a reference value for the data •the ability to make a corrective intervention.