“I often say that when you can measure what you're talking about, and express it in numbers, you know something about it; but when you cannot measure it, when you cannot express it in numbers, your knowledge is poor and unsatisfactory. If you can't measure it, you can't improve it." –Lord Kelvin [1], an eminent British scientist, who inspired the work of Robert Kaplan and David Norton on Balanced Scorecard. Introduction: In the rapidly changing environments faced by today's cloud industries, organizations face intense competitive pressure to do things better, faster and cheaper. The business environment is undergoing rapid changes with much complexity and uncertainty. Markets are dynamic and organizations can no longer rely on the traditional financial approach to measure their effectiveness. Organizations need to track customer preferences, technological changes, and competition that are not directly captured by financial measures [2]. The importance of intangible resources is greater than that of physical resources and performance measures must capture this new reality. Balanced Scorecard (BSC) is one such approach to consider financial and non-financial perspectives in determining the performance level of organizations. Importance of Performance Measurement: According to Harvard Mentor Review, measuring company performance is important for the following reasons: • Improvement: By monitoring performance, companies can identify and address problems such as declining sales, flattening revenues and profits, increasing fixed and variable costs. • Planning and forecasting: Performance measurement serves as a progress check, allowing companies to determine whether they are achieving their goals and base their forecasts and budgets on past results… middle of the paper… and innovation . Financial metrics do not capture early problems or opportunities with customers, employees, or product quality. 2) Lagging Factors: Financial factors provide excellent insight into what has happened in the organization in the past. However, the detailed view of the past on finance has no predictive power for the future. Balanced Scorecard: During the 1980s, executives across organizations were convinced that traditional measures of financial performance did not allow them to manage effectively and wanted to replace them with operational measures. Arguing that executives should track both financial and operational metrics, Robert Kaplan and David Norton suggested four sets of metrics. Balanced Scorecard – The practical and strategic tool for measuring performance: relationship between Balanced Scorecard and traditional financial measures: