This research aims to shed light on the model of balanced performance and its effectiveness in creating the competitive advantage. To achieve the objectives of the research, which are determining the ability of banks (sample of research) in the application of model of balanced performance and determining the level of effectiveness of the banks to achieve the competitive advantage and contributing in raising the quality of banking services using the Balanced Performance model. The problem is that the banking work is witnessing a competition and hard work to offer developed services that satisfy the customers desires, and the private banks are suffering from not having appropriate strategy in their works to go on with the great development and that makes the private banks realize the need for using the modern managerial systems and procedures in their management. One of these procedures is the model of balanced performance and its effect in achieving the competitive advantage. One of the important conclusions, is that the model of the balanced performance is one of the modern strategic devices for measuring and estimating the performance totally involving the financial and nonfinancial measurements through the important perspectives of the performance in the company. Thus it aims at putting a new plan and translating the organization strategy into operational works ,taking into consideration the three dimensions of time (past, present, and future). The research has reached to some recommendations one of them is It is necessary to adopt the model of the balanced performance as a system for measuring the banks performance through the four perspectives as it suits the principles of management of quality because of relating the banks leadership with their staffs by strategic communication in common in searching for measures of more effective performance.