As the business environment becomes more competitive, organizations are increasingly being pressured to prove their existence and performances to management to ensure that the organization remains viable and competitive. For an organization to remain strategically viable, effective management of the business in order to gain strong comparative advantages within the industry is critical.

The 'Balanced Scorecard (BSC)' has thus become a common and standard strategic management and measurement system to ascertain an organization's performance and the effectiveness of its management systems. It is a powerful management and measurement tool that allows a company to present its strategic objectives and accompanying performance measures in a clear and concise format to provide evidence on the organization's performance and effectiveness. The BSC helps to translate the company's strategies into concrete and measurable performance measures and targets to be used for more effective management of the business. It is a structured framework to measure and communicate strategy, as well as to manage organizational and individual performance.

The BSC enables responsible operating divisions, managers and departments to be accountable for management of their performance and the achievement of corporate goals and mission. The BSC also allows for translation into other measures for different departments and divisions such as the HR Scorecard and the development of KRAs and KPIs.