Importance of “Balanced Scorecard” and its strategic use in modern business management accounting

The developments in the capital market and the new financial avenues, new challenges, risk & return management, performance evaluation in turbulent, unpredictable and volatile traditional financial environment have made the life challenging for the leaders of financial services entities and placed the financial manager in a situation to develop effective and efficient tools and techniques with regular updating of knowledge and skills. To answer the present challenging environment, financial managers of high breed organization have adopted Balance Scorecard (BSC) framework as an effective tool to assess and evaluate the performance of a firm. The ‘BSC’ framework measure whether the smaller scale operational activities of a company are aligned with its larger scale objectives in terms of vision and strategy. It comprise strategy map of core strategic objectives and score card of accompanying metrics, target and initiatives. It gives prompt overview about the company's profile, its working and view of the customers. It defines and determines the virtual strengths and opportunities for development, innovation, growth, improvement, excellence for efficient survival and effective expansion of an organization. Thus the present study is a judicious attempt to explore the various dimensions of ‘BSC’ and its various applications. Further, an attempt is also been made to judge the implications and impacts of BSC in Indian context. The study produce the finding that by focusing on future potential success it becomes a dynamic management system that is able to reinforce, implement and drive corporate strategy forward.