Robert S. Kaplan and David P. Norton introduced the balanced scorecard in 1990s,to measure the performances of organization’s strategy. They believed that “the ability to execute strategy was more important than the strategy itself”(Measures that matters. Ernst&Young, 1998.9). Therefore, the implementation of strategy is more significant factor that leads to a successful achievement of organization’s mission. In order to measure the strategy performances, financial measurement was used to keep a record on tangible asset in order to determine revenues and profits from those tangibles in previous decades. Since the increasing number of knowledge-based organization aroused, it is necessary to have knowledge-based intangible asset’s performance measurement to indicate the organization’s capability and success. Balanced Scorecard is an efficient measurement system consists both financial and non-financial factors. Because “ the balanced scorecard is a performances measurement system that identifies and reports on performances measures for each key strategies area of business” (textbook).
In respect of the majority organizations, The balanced scorecard has four basic perspectives-financial perspective, customer perspective, internal business and learning and growth, in terms of translate organization’s mission to their strategy, and structure their implementation. However, once the organization’s mission varies, the order and contains of these perspectives may vary. .
Financial perspective includes all elements, which may show the finance ability of organization, i.e. profit and loss statement, cash flow statement, balance sheet. From an overview of these factors, shareholders may identify the successfulness of organization. When their appearance is that more economic value added, the goal is achieved. But this may not be the case for a non-profit organization; by