The rapid development in the field of measurement methods and techniques that has taken place over recent years offers new opportunities for designers of measurement systems through the use of virtual instruments; for example, balanced scorecards.
This paper tackles two research questions: (1) how does the Balanced Scorecard (BSC) contribute to organizational performance, and (2) does it represent a new method of military resources management by applying a unique e-Budget platform (mathematical model included).
The results showed that the Balanced Scorecard application using the “utility function” will allow the Estonian Defence Forces to overcome important barriers to implementing strategy via the interrelation of military planning and budgeting processes. Moreover, the Balance Scorecard focuses on monitoring some easy-to-measure indicators that provide a traditional view of military spending.
Key words: Balanced Scorecard, e-Budget, Defence Forces, Utility Function, Performance Measurement, IT Technology, Estonia