Critical Analysis of Balanced Scorecard as a Strategy Translation Tool

Abstract

The Balanced Scorecard (BSC) is a performance measurement and strategic management system. It translates an organization's mission and strategy into a balanced set of integrated performance measures. The balanced set of performance measures provides a concise yet complete picture about the achievement and performance of an organization toward its mission and goal. Organizations that have adopted this newer management tool have had varying success in the use of this performance measurement system as a motivator and form of performance feedback. This dissertation is an endeavor to conduct a critical analysis of the balanced scorecard as a strategy implementation tool. The theory and application of BSC is analyzed in corporate environments. Based upon the study, a BSC was developed and implemented in an IT firm to carry out a comparison to better understand the extent to which the BSC really cascades down the strategic vision of an organization, the reason for its success and failures and the varying levels of satisfaction.