Organizational Alignment Strategy through Balanced Scorecard

Abstract

The development of organizational performance management in the modern era has experienced a fundamental transformation, shifting away from traditional annual reviews toward more dynamic, data-driven, and collaborative approaches. This modern concept emphasizes continuous feedback mechanisms, the application of real-time technology, and the integration of individual growth strategies with broader organizational goals. One of the most widely recognized and applied approaches is the Balanced Scorecard, originally developed by Kaplan and Norton, which functions as a strategic management system designed to translate vision and mission into measurable performance indicators. The Balanced Scorecard framework provides a holistic view of organizational performance by incorporating four interrelated perspectives: financial, customer, internal business processes, and learning and growth. This article systematically reviews contemporary literature on Balanced Scorecard implementation across various organizational sectors, drawing attention to its advantages in improving performance outcomes, strengthening strategic decision-making, enhancing transparency, and fostering effective internal communication. Employing a literature review method, the study also discusses the contextual adaptation of performance indicators as well as the opportunities and challenges of applying Balanced Scorecard within the rapidly evolving landscape of modern digital transformation.