This paper tackles the reasons for Balanced Scorecard failures in the companies. The aim of the first part is to present the essence, characteristics of Balanced Scorecard as an effective tool of making decisions, that are more efficient and diverse, in companies. The further goal was to show various type of failures during Balanced Scorecard implementation. The paper pinpoints three theoretical underpinnings and the current analysis of the reasons for BSC failures from the perspective of different authors.
The article deals with the Balanced Scorecard (BSC), the system that reacted to the criticized explanatory ability of the value criteria for measuring the performance of an enterprise. The change, which was brought by this concept, was the extension and linking of performance measurements of purely financial indicators to indicators from other perspectives of enterprise's activity. Besides theoretical review of BSC, its characteristics, evolution, reasons for and benefits of the application, the author presents the results of the first exhaustive survey in Slovak firms implementing BSC and their clients – companies with deployed BSC systems. She concludes with the comparison of her findings and the research results of renowned American Balanced Scorecard Institute.
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