Balanced Scorecards were developed in response to research that found that focusing on financial measures alone could not reliably ensure the long term success of organizations. Robert S. Kaplan and David P. Norton are largely credited with originating the concept in its modern form through a series of articles published in Harvard Business Review in the early 1990s. They advised organizations to select and track performance measures in four general areas: Innovation / Learning, Internal Process, Community / Customer, and Financial. A well-designed Balances Scorecard can provide leadership, as well as the rest of the organization, with a reliable, timely reading of how the organization is performing.

The terms Balanced Scorecard and Dashboard are sometimes used interchangeably, though in a stricter interpretation, they have different purposes and are oriented to different levels of the organization and users. And, in an optimal application, they are linked by what they measure.

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