Balanced Scorecard (BSC) is a tool for aligning business activities to strategy and monitoring performance to achieve strategic goals over time. BSC is a conceptual framework for translating an organization's vision into a set of performance indicators distributed among four perspectives: Customer, internal businesses processes, and innovation and learning, and financial.

Balanced Scorecard (BSC) is a strategic measurement based management system, which provides a method of aligning business activities to strategy and monitoring performance to achieve strategic goals over time. Robert Kaplan and David Nortan first developed the concept in early 1990s. The BSC is a set of financial and non-financial measures relating to an organization's critical success factors. BSC is a conceptual framework for translating an organization's vision into set of performance indicators distributed among four perspectives: Customer, internal businesses processes and innovation, learning and financial. The components of BSC are designed in such an integrative fashion, that they reinforce each other in indicating the current and future prospects of the organization.

Senior executives understand that their organizations measurement system strongly affects the behavior of managers and employees. Executives also understand that the traditional financial measures like return on investments and earnings per share can give misleading signals for continuous improvement and innovation activities that today's competitive environment demands. The traditional financial performance measures worked well during the industrial era, but they are out of sync with the skills and competencies companies are trying to master today.

Organizational Performance, Balanced Scorecard, business activities, Customer, internal businesses processes innovation, learning, financial, industrial era, competitive environment, financial performance, improvement and innovation activities, organizations measurement system, integrative fashion, businesses processes and innovation, learning and financial, critical success factors, strategic measurement.