The Balanced Scorecard and its Application as a Strategic Decision-making Tool

This paper reviews the various aspects of the Balanced Scorecard, which is a strategy implementation tool based on defining and monitoring the key factors important for the business; and also its application in the new product development process and the goal-driven measurement methodology. The product mix of jobbing type of industries is very important from the point of view of their long-term profitability. The study discusses the importance of the critical success factors (both internal and external to the firm) that holistically define the attractiveness of products / market segments, and then suggests modification and extension of the Balanced Scorecard so that it can be used as an objective strategic decision-making tool for product portfolio management.