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

Calculate the dividend yield and total shareholder return, The following de...

The following details are available for company Z  · Share price at the beginning of the year £3.87 Share price at the end of the year £4.23 Dividend proposed and pa

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

Why should resources be a concern in a global strategy

Open communication , 1. Encourage open communication among team members to ...

1. Encourage open communication among team members to support team development 2. Demonstrate ways of resolving conflict among team members

Explain economic value added, Q. Explain Economic value added? Economic...

Q. Explain Economic value added? Economic value added was developed by Stern Stewart & Co and is a registered trademark. EVA is an estimate of economic profit, measured as Net

Macroeconomic effects of crisis, Central banks had been supplying short-ter...

Central banks had been supplying short-term funding to smooth needed adjustments in the banking sector, but that alone could not stem bank losses. So what had been addressed as a l

Internal Environment, Explain the internal environment by undertaking the i...

Explain the internal environment by undertaking the internal auditing in the form of management, marketing, accounting, operations/production research and development an management

Final Assignment, 1. Choose a concept/model in strategic management. You ca...

1. Choose a concept/model in strategic management. You can choose the concept from the ones discussed in the course or you can choose another one. Examples of concepts are: core co

How can strategies ensure organizational effectiveness, Question 1: An ...

Question 1: An organisation has to scan the external environment to identify possible opportunities and threats and the internal environment for its strengths and weaknesses be

Explain activity based management, Q. Explain Activity based management? ...

Q. Explain Activity based management? Activity based management (ABM) is about satisfying customers whilst making fewer demands on internal resources.  The aim is that once cos

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