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

Incorporate strategic career planning, What outcomes are being assessed ...

What outcomes are being assessed 1.  Demonstrate to a prescribed acceptable industry level service skills within a tourism/hospitality operation (b) 2.  Recognise and examine

Strategic position analysis, The assignment for the module is an individual...

The assignment for the module is an individual report which contributes 25% of the module total mark. You should conduct a Strategic Position Analysis (Situation Analysis) on an or

Critically examine importance of organisational culture, Question 1: Di...

Question 1: Discuss the following business strategies giving examples, and elaborate under what circumstances these business strategies are applied. i) Forward integration

Describe the system development strategies, A customer has engaged your sof...

A customer has engaged your software development company to develop a new order-processing system. However, the time frames are very tight and inflexible for delivery of at least t

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

Quality product, An electronics firm is presently manufacturing an item tha...

An electronics firm is presently manufacturing an item that has a variable cost of $0.50 per unit and a selling price of $1.00 per unit.  Fixed costs are$14,000 per month.  present

Prepare a strategic plan for the company, Problem: You have just been n...

Problem: You have just been nominated at the head of an IT firm and your first assignment is to prepare a strategic plan for the company. a) Give a brief overview of your

Prepare a complete training plan, The M.V Star of the orient is a 14,000 to...

The M.V Star of the orient is a 14,000 ton-cruise ship that was built in 1977. The ship is Greek-registered and Hong-Kong owned. The ship spent the ten years prior to 1989 cruising

Steady state system, Consider a community dining style restaurant such as B...

Consider a community dining style restaurant such as Benihana of Tokyo. Assumptions are as follows: When you admit a customer to the bar, the customer is assured a seat in 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