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

Why a strategic plan, Most executives are related with business planning. A...

Most executives are related with business planning. A business plan is typically written every year and includes things like a marketing plan, cash flow projections, a mission stat

verify the manufacturer''s claim, A supplier of components to an electroni...

A supplier of components to an electronic industry makes a sophisticated product which sometimes fails immediately it is used. He controls his manufacturing process so that the pro

Define managerial process of crafting & executing strategy, Define Manageri...

Define Managerial Process of Crafting & Executing Strategy the managerial ins & outs of crafting & executing company strategies. Special thought is given to management's direc

Week 2 Question 1, Due Date: 24 Oct 12 by 10 a.m. Prepare an analysis of a ...

Due Date: 24 Oct 12 by 10 a.m. Prepare an analysis of a Fortune 500 company that you find interesting using the 2011 list at CNNMoney, You">http://money.cnn.com/magazines/fortune/

Mclaren Group, How has McLaren overcome the market entry barriers that are ...

How has McLaren overcome the market entry barriers that are present in the mass car market?

Production line capacities, Product Mix - Satchmo & Satchmo Electronics dev...

Product Mix - Satchmo & Satchmo Electronics developes two products that can be make on two different production lines.  Both products have their lowest production costs when produc

Management, What can middle managers do to moderate the distortions introdu...

What can middle managers do to moderate the distortions introduced by such biases?

Define global and international regional strategies, 1. What are the streng...

1. What are the strengths and weaknesses of the mission statement? Which of these statements are effective guides to decision-making within an organization? Which, if any, of th

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