• HISTORY OF THE BALANCED SCORECARD APPROACH
• THE FOUR PERSPECTIVES
• DEVELOPING A BALANCED SCORECARD
• AVOIDING POTENTIAL PITFALLS
• FURTHER READING:

The balanced scorecard is a performance measurement tool developed in 1992 by Harvard Business School professor Robert S. Kaplan and management consultant David P. Norton. Kaplan and Norton's research led them to believe that traditional financial measures, such as return on investment, could not provide an accurate picture of a company's performance in the innovative business environment of the 1990s. But rather than forcing managers to choose between "hard" financial measures and "soft"...