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Academic Paper from the year 2019 in the subject Business economics - Business Management, Corporate Governance, grade: A, University of Nairobi, language: English, abstract: The current research is based on appropriateness of non-financial metrics in examining firm performance. Therefore, the paper focuses on critical analysis of BSC as a performance measurement tool. That is, the researcher intends to answer the following primary research question: To what extent does the balance scorecard (BSC) approach influence both performance appraisal and strategic management?Specifically, the paper reviews what BSC is and how it is applied in various firms. The paper also attempts to link performance appraisal and strategic management. In doing so, it answers the following study sub questions:How effective is the application of the balance scorecard?What importance does performance appraisal have to the growth of a firm?What are the consequences of not implementing non-financial measures within an organisation?To answer the questions, the researcher conducts a critical literature review of past studies and theories on performance management, strategic management and BSC. The goal of the review is to explain the impact of BSC as a firm performance management tool on the strategic success of the firm. The rest of the paper is, therefore, organized in two sections i.e. literature review and conclusion and recommendations. Literature review section presents a critical evaluation of past studies and theories on BSC and performance management and appraisal. The conclusion and recommendations section summarises the findings and make suggestions for practice and future studies.