Devising a balanced scorecard matched to business strategy

Why do companies need a new scorecard to measure performance? Why aren't time‐honored financial measures sufficient? The answer is that in today's ultra‐competitive fast‐changing business environment, managers need a scorecard that provides a measures of how well they are creating future value. However, traditional financial measures, and even the new variations on the financial model, such as economic value‐added, reflect transactions that have already occurred.