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

astro line, (A)    What is the optimal solution, i.e., how many units of e...

(A)    What is the optimal solution, i.e., how many units of every watch should be formed to maximize daily profits and how much daily profit will the company create? (B)    How m

BOSTON CONSULTING GROUP AND GE MATRIX, WHAT ARE THE CHARACTERISTICS OF EACH...

WHAT ARE THE CHARACTERISTICS OF EACH COMPONENT OF THE GE MATRIX?

Methods for evaluating the performance of divisions, Q. Methods for evaluat...

Q. Methods for evaluating the performance of divisions? Profit based methods for evaluating the performance of divisions Operating profit (net profit) margin  =

Knowledge audit, Commence the knowledge audit by identifying the knowledge ...

Commence the knowledge audit by identifying the knowledge gaps and blockages in the organisation, as follows: a)  Consider each of the ten checklist issues listed, and assess fr

The strategies of the functional areas of an organisation, Discuss the ways...

Discuss the ways in which the strategies of the functional areas of an organisation should support the other levels of strategy. In describing how the functional strategies sup

Strategies and actions for objectives, Strategies and actions for objective...

Strategies and actions for objectives The list of strategies and actions for business objectives are as follows: The company will open the new fitness centre in Perth which

Business strategy and operation strategy, what is the relationship between ...

what is the relationship between business strategy and operation strategy?

#title ..core competencies , a. Core competencies are the collective ____...

a. Core competencies are the collective __________ in the organization

Investment planning, Using examples, explain the differences between the pr...

Using examples, explain the differences between the primary and secondary markets for securities. Question Discuss systemic risk and any effects that it might have on investo

Targeting , targeting strtegics with live examples

targeting strtegics with live examples

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