Why would a firm use a balanced scorecard in evaluating divisional performance?

A firm would use a balanced scorecard to evaluate divisional performance because it provides a comprehensive view of organizational effectiveness by incorporating multiple perspectives: financial, customer, internal processes, and learning and growth. This holistic approach allows management to align divisional goals with overall strategy, identify areas for improvement, and track performance beyond traditional financial metrics. By emphasizing non-financial indicators, firms can drive innovation and customer satisfaction while ensuring long-term sustainability and growth.