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Performance measurement and control
3.3 Evaluation of the Balanced Scorecard as a performance measurement tool
Advantages
 Includes financial measures – these 
reveal the results of actions taken
 Includes non-financial measures –
these drive future financial
performance
 External as well as internal
information
 Multiple measures make it harder to 
manipulate performance
 Can change measures over time to
reflect changing priorities
 Is aligned with overall strategic
objectives and vision so should
achieve long-term success
Disadvantages
Difficult to record and process non-
financial (often qualitative) data
 Information overload
 Lack of commitment by senior
managers or poor communication to
other managers/employees
threatens its success
Conflict between measures
 Lack of some key perspectives,
e.g. CSR
 Time and cost involved
 Focus on strategic level (although
can implement at lower levels)
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