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

General electric model, what are the advantages of using tha general nine e...

what are the advantages of using tha general nine electric model

Formal strategic planning for business, LD is the owner and manager of her ...

LD is the owner and manager of her own florist business, LD Flowers. Although starting out initially as a hobby, it has developed into a sustainable business. LD's original busines

Environmental scan, Environmental scan: Arpanaa is located along the giriv...

Environmental scan: Arpanaa is located along the girivalam path of the holy city which is a favourable destination for many people who wish to stay .There are around three competi

Management decision - making case problem, Louise Nance had working on the ...

Louise Nance had working on the assembly line of the Jackson Manufacturing Company for about six months. During recent weeks, her supervisor, Ben Miller, noticed that her productio

Strategic management lies in the value of planning, Explain What still matt...

Explain What still matters in strategic management lies in the value of planning? Ans) There is an old saying that if you fail to plan, you are planning to fail. By acting on th

Limitations of time study, 1. Unions quite frequently oppose the time ...

1. Unions quite frequently oppose the time study because the accuracy of time study is overly dependent upon the skill and judgment of the time study man. The time

Groups and teams, groups and or teams will solve effectiveness and efficien...

groups and or teams will solve effectiveness and efficiency in 21st organisations.discuss

What is transfer pricing, Q. What is Transfer Pricing? A transfer price...

Q. What is Transfer Pricing? A transfer price is a price charged for goods or services provided internally between divisions or departments in the same group or company.   Tran

Explain the reliability centred maintenance approach, Question: (a) The...

Question: (a) The prevailing business environment is continuously changing with respect to the emerging complexities in the development and use of new equipment, technologies a

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