To deal with the complexity in today's dynamic business environment caused by the existence of global players and continuous technology enhancements, the U.S authors Robert S. Kaplan and David Norton have innovated the Performance Management Tool-'The Balanced Scorecard' as a solution for the modern knowledge economy enterprises. The Balanced Scorecard (BSC) has evolved from a simple Performance Measurement System to an advanced level Performance Management System over the decades. It enables effective communication among all the stakeholders of an organization through Strategy Maps. The BSC also provides accurate information of the various activity levels of the organization, enabling the managers to monitor and control them effectively. The innovation hence acts as an effective and efficient tool for the policy makers to focus on various areas of the organization, which needs attention and strike a better balance between them.