Week 8 Key Concept Exercise

Balanced scorecard

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The balanced scorecards (BSC) four focus areas are financial, customer, process, and learning and growth. The scorecard incorporates measures derived from an organisations strategy. Although retaining financial measures of past performance, the balanced scorecard also introduces the drivers of future financial performance.

To prepare for this Key Concept Exercise:

• Read the Required Learning Resources (find below references) .

In formulating your Key Concept Exercise, consider the following questions:

• What are the advantages of using the balanced scorecard?
• What are the critical areas that should be considered in its implementation?
• Should the balanced scorecard be used across different organisations?

In an approximately 500-word response, address the following issues/questions:

Critically evaluate the advantages of using the BSC approach to performance measurement and identify critical areas in terms of implementation of the BSC. Should public sector or not-for-profit organisations develop a BSC? Use examples to illustrate your points as well as suitable academic references.

To complete this Key Concept Exercise:

• BesuretoreadoveryourKeyConceptExercisebeforesubmittingittoyourInstructor.Makesurethespellingandgrammararecorrectandthelanguage,citingandreferencingyouusewhenprovidingyouropinionareappropriateforacademicwriting.

References

Butler, A., Letza, S. & Neale, W. (1997) Link the balanced scorecard to strategy, Long Range Planning, 30 (2), pp. 242253.

DeBusk, D.K. & Crabtree, A.D. (2006) Does the balanced scorecard improve performance?, Management Accounting Quarterly, 8 (1), pp. 4448.

Fernandes, K.J., Raj, V. & Whalley, A. (2006) Lessons from implementing the balanced scorecard in a small and medium size manufacturing organization, Technovation, 26, pp. 623634.

Kaplan, R.S. & Norton, D.P. (1996) The balanced scorecard. Boston, MA: Harvard Business School Press.

Kaplan, R.S. & Norton, D.P. (2001a) Transforming the balanced scorecard from performance measurement to strategic management: part I, Accounting Horizons, March, pp. 87104.

Kaplan, R.S. & Norton, D.P. (2001b) Transforming the balanced scorecard from performance measurement to strategic management: part II, Accounting Horizons, June, pp. 147160.

Mooraj, S., Oyon, D. & Hostettler, D. (1999) The balanced scorecard: a necessary good or an unnecessary evil?, European Management Journal, 17 (5), pp. 481491.

Nerreklit, H. (2000) The balance on the balanced scorecard; a critical analysis of some of its assumptions, Management Accounting Research, 11, pp. 658