What term is used to describe the approach of relying on a holistic perspective versus just one metric in performance evaluation?

The term that describes the approach of relying on a holistic perspective versus just one metric in performance evaluation is known as the Balanced Scorecard. This framework was developed to provide a more comprehensive view of organizational performance by considering multiple dimensions, including financial performance, customer satisfaction, internal processes, and learning and growth. By integrating various metrics, the Balanced Scorecard enables organizations to assess their overall health and effectiveness rather than focusing solely on financial outcomes, which can sometimes provide a limited or misleading picture of success.

In contrast, strategic analysis generally focuses on understanding the broader strategic environment and competitive landscape but does not inherently emphasize a multi-faceted performance evaluation approach. Competitive analysis is focused on assessing competitors and their strategies rather than on an organization’s internal performance metrics. Performance benchmarking involves comparing an organization’s processes and metrics to best practices from other organizations but does not necessarily incorporate multiple perspectives to evaluate overall performance comprehensively.

Through the Balanced Scorecard, organizations can align business activities to the vision and strategy, improve internal and external communications, and monitor organizational performance against strategic goals, making it a superior approach for holistic performance evaluation.