Implementation of Balance Score Card (BSC) Essay

Implementation of Balance Score Card (BSC) - Essay display caseBalance Score Card (BSC) is a framework for measuring performance on strategic direct and accounts both pecuniary and non financial measures (Banker, Chang, and Pizzini. 2011). BSC, since introduced by Kaplan and Norton in the early 1990s, has been adopted by large number of organizations. It is called BSC as it attempts to counterpoise between short and long term goals while maintaining balance between financial and non financial variable (Kalpan, 2010). Proponents of BSC claim that it has many beneficial features that makes it preferred choice such as connecting vision with strategy and activities down the hierarchy cause and center relationship of performance drivers with outcome etc (Chavan, 2009). Other feature that makes it most advocated is the fact of providing performance measurement and goal oriented guidance by combining variables or perspectives (2GC Limited, 2011). With agreement on benefits BSC offers t o organization, fact remains that due benefit from BSC can only be availed based on earmark and well thought effectuation and there has been considerable debate on the effectuation of BSC. This paper is also aimed to investigate and analyze success or failure of BSC that can be attributed to the appropriate implementation. Followed by introduction is the literature review of past academic studies done in the selected domain. Research methodology contains information cogitate to method adopted to care for the selected question. Analysis section provides analysis of the case studies selected to address the aim of this research. Finally, conclusion provides response to the question based on evidence collected in analysis section. LITERATURE REVIEW There is immense literature available on the BSC from various perspectives. This section will draw some relevant literature to BSC, its implementation with its proponents and critics. The section will also draw references related to im plementation phase and cause implementation failure. Variation in studies are present that discussed increase in the adoption BSC due to the benefits it offers while others revealed firms decision of not adopting BSC due to less benefit it offers in proportion to the efforts required to implement it (Cardinaels, Paula, and Veen-Dirks. 2010). BSC has also undergone critical evaluation of assumptions on which it is built such as managers capacity to link strategy to operational matrices in different departments and levels and issues related to designing BSC related to the respective organization etc (Geuser, Mooraj, and Oyon. 2009). Hence, discussion from various perspectives to explore possible deviation (Neely, 2005) while each aspect, directly or indirectly, referred to the factors that lead or hamper victorious implementation of BSC. PEA, for instance, suggested complete procedure to develop balance score card to meet the challenges posed by other performance measurement in procu ral organizations. It provided detailed guidance for all four perspectives including customer, financial, internal business processes and learning and growth perspective. It was also aimed to develop a model that allows comparability among various organizations along with providing a comprehensive performance measurement system (as given in image below (Procurement Executives Association, 2000). Hence, BSC shall be devised with adaptability to the nature and size of the firm (Rompho, 2011). Richardson (2004) provided six elements to be employed for the successful implementation of balance score card. These six elements include first, development of strategy second, involvement of strategic management and feedback from other management level of the new strategy third, development of balance score card and its vision while both being aligned with vision of organization fourth, implementation of balance score card performance measurement systems all around the organization and each lev el fifth, communicating and educating the objective of BSC to employees and lastly