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The following are some reasons why Balanced Scorecards sometimes fail to provide for the desired results;
• The use of non financial measures leads managers to think that they have a Balanced Scorecard already working for strategic purposes.
• Senior executives misguidedly delegate the responsibility of the Scorecard implementation to middle level managers.
• Company’s try to copy measures and strategies used by the best companies rather than developing their own measures suited for the environment under which they function.
• There are times when Balanced Scorecards are thought to be meant for reporting purposes only. This notion does not allow a Business to use the Scorecard to manage Business in a new and more effective way.
• The use of non financial measures leads managers to think that they have a Balanced Scorecard already working for strategic purposes.
• Senior executives misguidedly delegate the responsibility of the Scorecard implementation to middle level managers.
• Company’s try to copy measures and strategies used by the best companies rather than developing their own measures suited for the environment under which they function.
• There are times when Balanced Scorecards are thought to be meant for reporting purposes only. This notion does not allow a Business to use the Scorecard to manage Business in a new and more effective way.
It may be noted that the above-mentioned difficulties refer to the internal use of the Scorecard. It remains a matter of debate whether a Balanced Scorecard is applicable to external reporting. Critics argue that if the Scorecard is indeed a relevant driver of long term performance.
