The balanced scorecard and Hoshin Kanri are, hierarchically, high order capabilities, which are dynamic in the sense they give to the corporate level a capacity to manage and influence strategic management activities through the organization over time. An effective strategic management system provides the longer-term stability for the firm as a whole to manage and control change in the short-term. Combining the balanced scorecard with Hoshin Kanri makes this possible. The scorecard in this representation is a corporate level and longer-term component of strategic management. Hoshin Kanri, on the other hand, is used to translate corporate level strategy into short-term components across the functional levels of the firm and organization. Both Balanced Scorecard and Hoshin Kanri are powerful tools for strategic management of organizatio they focus on the vision and put an emphasis on communication and continuous organizational learning. Implementing them jointly facilitates the strategic management process in that it provides a systematic conceptual framework and structures the implementation process. With this aim, an integrated methodology is proposed where two strategy focused management tools are merged. From the literature review it is clear that the Balanced Scorecard facilitates building the strategic framework; however, it lacks details on communicating strategies, leaving this mainly to the user. This gap is supposed to be filled by the use of Hoshin Kanri. Simultaneously, the difficulty in determining the vital few objectives in Hoshin Kanri can be overcome with the help of the framework the Balanced Scorecard provides. Combining a performance oriented approach with a process oriented approach certainly creates synergy. Within this paper, the Balanced Scorecard is utilized in drawing the organization’s strategic route and Hoshin Kanri in deployment and execution of the plans and documentation of the activities. The Balanced Scorecard (BSC) is taken into account not only as a tool for measuring total performance but also as a management system with strategic approach. Also BSC has been used in many firms around the world and now its weaknesses and strengths have been revealed. For example, insufficient organizational infrastructures; weakness in defining quantitative indicators and the influence of each group of indicators in achieving objectives; subjective integration done by users about outcomes resulted from BSC are some implementation challenges in companies. In this paper, by combining BSC and Hoshin Kanri, we propose a new balanced approach which eliminates these problems and helps companies to work and produce better performance. The proposed model is implemented in Isfahan's Mobarakeh Steel Company (MSC) and the results will be analyzed. The balanced scorecard and Hoshin Kanri are core capabilities in the sense that each is an approach that is central to the strategic management of the firm. Strategic management is the overall and general management of a firm’s, or an organization’s, long-term purpose. This definition is usefully broad enough to encompass competitive firms and non-profit organizations, including public sector agencies.