Page 316 - PM Integrated Workbook 2018-19
P. 316

Chapter 11




               3.3  Evaluation of the Balanced Scorecard as a performance measurement tool


                               Advantages                                Disadvantages



                    Includes financial measures – these          Difficult to record and process non-
                     reveal the results of actions taken           financial (often qualitative) data


                    Includes non-financial measures –            Information overload
                     these drive future financial
                     performance                                  Lack of commitment by senior
                                                                   managers or poor communication to
                    External as well as internal                  other managers/employees
                     information                                   threatens its success

                    Multiple measures make it harder to          Conflict between measures
                     manipulate performance
                                                                  Lack of some key perspectives,
                    Can change measures over time to              e.g. CSR
                     reflect changing priorities
                                                                  Time and cost involved
                    Is aligned with overall strategic
                     objectives and vision so should              Focus on strategic level (although
                     achieve long-term success                     can implement at lower levels)







































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