If you would like to know more about the balanced scorecard, there is no one that can explain it better other than the pioneers themselves, Dr. Robert Kaplan and Dr. David Norton. It was formulated in the early 1990s and its concept can be compared to the complex task of flying an airplane. Before the flight, a lot of factors have to be considered: fuel, altitude, air speed, bearing, and other indicators that can make the flight a successful one. If the pilot has taken forgranted any of these, the result can be fatal. Same can thing can happen in managing an organization. Leaders need to see to it that everything is in order. Every single detail is in accordance with the company goals and activities. The balanced scorecard can deliver just that.
Nowadays, the balanced scorecard concept is used in a lot of industries, especially in Information Technology where competition against IT companies is so stiff that products and services keep on innovating to satisfy the needs and demands of the changing market. Kaplan and Norton even discovered the major reasons why companies are using the balanced scorecard. These are the following: (a) Drive execution of strategy; (b) Define these strategies and make them operational; (c) Identify strategic initiatives for process improvement; (d) Link budget with the strategy; (e) Align company goals and objectives with the strategy; and (f) Evaluate performance reviews regularly that will serve as a basis for learning and improvement. These results came from a series of revision to the balanced scorecard concept done by Kaplan and Norton to further examine certain behaviors that drive companies do process improvement.