Balance scorecard is primarily used for performance analysis and measurement.It is a performance management tool that holistically captures an organization’s performance from several vantage points (e.g., sales results vs. inventory levels) on a single page.
Balanced Scorecard is based on the stakeholder approach. According to the Balanced Scorecard, if a business is to be considered successful, it must satisfy the requirements of three stakeholders - investors, customers and employees.
The investors want financial performance, measured by economic profitability, market value and cash flow.
The customers, who use the products or services of the firm, want quality products, measured by market share, customer commitment, customer retention, etc.
The employees of a firm want a good working condition.