Balanced Scorecard and Performance Management: A literature Review

Abstract

The rapid evolution of the economy and the increasing complexity of businesses have rendered traditional performance evaluation methods obsolete. These methods, focused solely on financial results, no longer fully capture the value of a company. Thus, the integration of intangible factors such as innovation, know-how, and corporate social responsibility has become essential. The Balanced Scorecard (BSC), developed by Kaplan and Norton in 1992, marked a major turning point by proposing a multidimensional approach that evaluates performance through four key perspectives. This research aims to shed new light on the role of the balanced scorecard in measuring and managing the overall performance of the company, based on a critical review of the scientific literature devoted to this field.The rapid evolution of the economy and the increasing complexity of businesses have rendered traditional performance evaluation methods obsolete. These methods, focused solely on financial results, no longer fully capture the value of a company. Thus, the integration of intangible factors such as innovation, know-how, and corporate social responsibility has become essential. The Balanced Scorecard (BSC), developed by Kaplan and Norton in 1992, marked a major turning point by proposing a multidimensional approach that evaluates performance through four key perspectives. This research aims to shed new light on the role of the balanced scorecard in measuring and managing the overall performance of the company, based on a critical review of the scientific literature devoted to this field.