In the 1990s Kaplan and Norton developed a new approach to strategic management based upon a multi-dimensional view of the organization. According to this approach, traditional financial measurements provide a "too little too late" snapshot of the organization, which is inadequate for companies in the new economy.

Today, efficient internal business processes, good customer relations, and long-term strategic investments in technologies and employees are what make companies successful.

The balanced scorecard proposes that companies be viewed and measured in each of four major dimensions1: