Describe three (3) challenges in implementing the BSC.

1. Describe three (3) challenges in implementing the BSC.

Please provide a response to the following student:
The balanced scorecard is a very popular tool used by many organizations. It provides a framework for focusing on the organization’s
best assets that are usually best seen in their staff, network systems, and the way they create on a daily basis (Murby & Gould, 2005). It is a measuring tool that provides a view of many aspects of an organization at the same time (Walston, 2018). Each organization’s
success comes from accomplishing the objectives to reach goals and from learning from their mistakes. This tool is very useful for
facilitating success but can also create challenges when it is implemented. Some critics claim that there may be a lack of validity to the
process of how it tracks and measures the performance of the company (Murby & Gould, 2005). The systematic measurement of the
scorecard may also disregard the way strategies are linked to how well the company performs and financial formulas are not used to
measure financial progress (Murby & Gould, 2005). Another challenge occurs when management uses the scorecard as a checklist
instead of a comprehensive assessment of how the company has performed over a period of time. Organizations should do frequent
assessments but also improve on what has been done over a period of time so as not to repeat previous mistakes (Murby & Gould, 2005). It is often seen as an obstacle when organizations use the scorecard and each area of the organization is seen separately rather than
seen as a whole entity (Walston, 2018).

Murby, L., Gould, S. (2005). Effective Performance Management with the Balanced Scorecard Technical Report. The Chartered Institute of Management Accountants.

Walston, S. L. (2018). Strategic Healthcare Management: Planning and Execution. Health Administration Press.

Last Completed Projects