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Managerial Accounting

S/F/55. Critical Evaluation of the Balanced Scorecard Model

WORDS:
2300
DATE:
2005
PRICE:
29.99 GBP

The balanced scorecard developed by two American academics Robert Kaplan and David Norton in the early 1990s has become hugely popular and has been adopted by thousands of commercial and not-for-profit organisations throughout the world. The balanced scorecard is a performance measurement and management model based on the cause-and-effect relationship between four generic perspectives: financial, customer, internal process, and learning and growth. Although immensely popular, the scorecard model has also been widely criticised. The present essay examines critically the models strong and weak points and potential gaps as well as inconsistencies. The scorecard is analysed from the point of view of its content, rationale, purpose, and the relationship between its elements. The paper also considers alternative performance measurement tools popular in business.

 

KEYWORDS: f, critical, evaluation, balanced, scorecard, model,

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