Balanced scorecard: Today’s challenges

Abstract

In today’s global landscape organizations are pressured to develop new capabilities such as flexibility or expertise to respond to the ever-changing technology, competition, and customer preferences. Companies cannot be competitive or successful if their business and information systems and technology (IS/IT) strategies are not aligned. Nowadays, with the growing importance of intangible assets, performance measurement tools must be able to capture this new and important reality. Measuring organizational performance is a difficult and ongoing challenge for managers. Balanced Scorecard (BSC) is a powerful tool that gives a fast, but comprehensive view of the business including operational measures on customer satisfaction, organization’s innovation, activities improvement, as well as financial measurements. This study empirically examines how the BSC has been applied in practice and whether different BSC designs result in varying performance outcomes. In this paper the authors address the BSC and promote the discussion about the strengths and the limitations, underlining the latest developments and future research.