Financial Management of business is essential to the success of any company. However, the financial approach by itself has two drawbacks: it addresses past performance and does not necessarily reflect the current value of the company.
Implementing Balanced Score is to translate vision and strategy of the company in a comprehensive set of performance measures that provides the basis for a system of measurement and strategic management (Kaplan).
Managing performance is translated into 4 perspectives:
1. Financial Perspective
2. Customer Perspective
3. Business Process Perspective
4. Learning and Growth Perspective
These perspectives allow monitoring of current performance and also how the company is positioned to face the future.
