Performance evaluation is a main task of each organization and as a performance management aspect that was often implemented through the use of financial indices. Over the past two decades, issues such as the organizational learning, knowledge creation and innovation capacity have been taken into account as determinants of the competitive advantage. The Balanced Scorecard (BSC) technique is among the most comprehensive approaches that have been welcomed in the present era. It monitors and controls the performance of all organizational components based on strategies, compares it with programs and objectives of organizations, and measures and evaluates the success rates, work output, and progress in achieving strategic goals. At Harvard University, Robert Kaplan and David Norton designed a model for employee performance, which used criteria with multiple perspectives instead of emphasizing financial criteria, in order to measure the employee performance. It aimed to translate the organizational strategy into the criteria that exclusively transmitted the company's vision to the organization. They called it the Balanced Scorecard model including four perspectives: financial perspective, domestic process perspective, customer perspective, and innovative and educational perspectives. The present research collected data from selected branches of Bank Melli of Yazd and its supervisory office in order to evaluate the performance of Bank Melli Branches using the Balanced Scorecard technique, desired indices and questionnaires. Research results indicated that ranking Bank Melli Branches based on financial indices was not related to their performance and it was significantly changed according to the balanced scorecard model.
