Which component of the balanced scorecard deals with process efficiency?

The component of the balanced scorecard that focuses on process efficiency is internal business process. This aspect examines the internal operations of an organization to identify areas where efficiency can be improved. It emphasizes the importance of optimizing processes to deliver value to customers while also controlling costs. By monitoring and enhancing internal processes, organizations can increase productivity and efficiency, ultimately leading to better overall performance.

The internal business process perspective typically includes measures that evaluate the effectiveness and efficiency of key operational processes, which may cover aspects like production efficiency, cycle time, and quality control. This perspective helps organizations understand how well their internal systems and processes are supporting their objectives and strategies.

In contrast, other components of the balanced scorecard address different focus areas. For instance, customer satisfaction looks at external perceptions and relationships, financial ratios relate to financial performance and health, and innovation and learning focus on the development of skills and knowledge that facilitate future growth and adaptability.