“I often say that when you can measure what you are talking about and express it in numbers, you know something; but when you cannot measure it, when you cannot express it in numbers, your knowledge is meager and unsatisfactory. If you can't measure it, you can't improve it. – Lord Kelvin [1], an eminent British scientist, who inspired the work of Robert Kaplan and David Norton on the Balanced Scorecard. Introduction: In the rapidly changing environments facing fog industries today, organizations face intense competitive pressure to do things better, faster, and cheaper. The business environment is experiencing rapid change, characterized by much complexity and uncertainty. Markets are dynamic and organizations can no longer rely on the traditional financial approach to measure its effectiveness. Organizations must track customer preferences, technological changes, competitions that are not directly captured by financial metrics [2]. The importance of intangible assets is higher than that of physical assets and performance measures must capture this new reality. Balanced Scorecard (BSC) is one such approach to consider financial and non-financial perspectives to determine the performance level of organizations. Importance of Measuring Performance: According to Harvard Mentor Review, measuring business performance is important for the following reasons: • Improvement: By tracking performance, businesses can spot and resolve problems such as declining sales, stagnant revenue and profits, the increase in fixed and variable costs. • Planning and forecasting: Performance measurement serves as a progress check, allowing businesses to determine whether they are meeting their goals. and base their forecasts and budgets on past performance...... middle of paper...... and innovation. Financial measures do not capture early problems or opportunities with customers, employees, or product quality.2) Lagging Factors: Financial factors provide an excellent view of what has happened in the past in the organization. However, a detailed past view of finance has no predictive power for the future. Balanced Scorecard: During the 1980s, leaders across organizations were convinced that traditional financial performance measures were not allowing them to manage effectively and wanted to replace them with operational measures. Arguing that executives should track both financial and operational metrics, Robert Kaplan and David Norton suggested four sets of metrics. Balanced Scorecard – The strategic and practical performance measurement tool: relationship between the balanced scorecard and traditional financial measures.: