The need that was felt for integrated performance measurement developed as a reaction to traditional performance-measurement systems that only take financial goals into consideration. In addition, it is known that financial targets provide information about the past, whereas the company goals are mainly directed towards the future.
Furthermore, it is claimed that the short-term pressure related to financial performance, that predominates in many companies, is dysfunctional. It encourages managers to maximise short-term profit at the expense of long-term gain. One can, for example, increase the profit of the financial year by charging high prices for lower quality with less
safety, but it goes without saying that this will soon cause the company to lose customers. The model strives to balance the targets that measure the performance of the past with those that are directed to the future. Finally, the framework of the balanced scorecard tries to find an appropriate balance between easily quantified performance and more qualitative performance.