Limitations of using balanced scorecard, Strategic Management

Assignment Help:

Q. Limitations of using balanced scorecard?

- Historical performance analysis is no guide to the future.

- Manipulation or 'massaging' of performance measures by management, in particular when measures are tied to bonuses.

- BSC measures may need to evolve and change quickly to reflect changes in the environment, there could be a delay in implementing changes quickly enough and the trend analysis may become distorted when new measures are introduced.

- Costly 'bespoke' information systems to collect, gather, summarise and present multiple performance measures. Expense, Management time and opportunity cost of maintaining and developing a BSC system.

- Conflict between BSC perspectives e.g. trade-off between cost of innovating and satisfying customers and loss of shareholder wealth which could create in the short-term under financial perspective.

- Too many performance measures often distort the benefits e.g. information overload.  Management may pursue BSC objectives to the detriment of everything else e.g. ignorance of other dimensions like staff and the ecological environment.


Related Discussions:- Limitations of using balanced scorecard

Management, .” Differentiate between corporate mission and strategic vision...

.” Differentiate between corporate mission and strategic vision by taking corporate illustrations

What techniques would you use, Question 1: "Sometimes conflicts escalat...

Question 1: "Sometimes conflicts escalate, the atmosphere becomes charged with anger, frustration, resentment, mistrust, hostility, and a sense of futility....in such a confli

Three ways of sustaining competitive , Three ways of sustaining competitive...

Three ways of sustaining competitive benefit are? Ans) differentiation, Price-based strategies and lock-in

Feed-forward control - prevention rather than cure, Q. Feed-forward control...

Q. Feed-forward control - prevention rather than cure? Feed-forward control would be a system that in a pre-emptive way, reacts to changes in its environment, normally to maint

Free cash-flow valuations, Q. Free cash-flow valuations? Earnings creat...

Q. Free cash-flow valuations? Earnings create dividends for shareholders. In theory the value of a company is the value of the company's future earnings, discounted at a rate,

Long-term strategic management, After reading through the articles provided...

After reading through the articles provided in your Assigned Reading and Research, Review one of the articles using the following format with the headings indicated in bold below:

Benefits of using balanced scorecard, Benefits of using balanced scorecard ...

Benefits of using balanced scorecard (BSC) - BSC encourages a long-term view of improving performance through time. - BSC considers both non-financial as well as financial m

Sm0492 - strategy and change in the global environment, 1. Using Macro & M...

1. Using Macro & Micro frameworks analyse and evaluate the external environment of your organisation from the perspective of the external context within which it operates. Summar

Why should resources be a concern in a global strategy, Why should resource...

Why should resources be a concern in a global strategy

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd