Implementation of Balance Score Card (BSC) Essay

Implementation of Balance Score Card (BSC) - Essay casingBalance Score Card (BSC) is a framework for measuring performance on strategic direct and accounts both financial 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 come in of organizations. It is called BSC as it attempts to ease between short and long term goals while maintaining ease between financial and non financial variable (Kalpan, 2010). Proponents of BSC claim that it has many beneficial boasts that makes it preferred choice much(prenominal) as connecting slew with strategy and activities down the hierarchy cause and effect 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 take ins BSC offers to o rganization, fact remains that due benefit from BSC can only be availed found on becharm and well thought execution of instrument and there has been considerable debate on the implementation 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 tie in to method adopted to embrace the selected question. Analysis section provides compendium 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 go forth draw some relevant literature to BSC, its implementation with its proponents and critics. The section will also draw references colligate to implementation 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, direct or indirectly, referred to the factors that lead or hamper successful implementation of BSC. PEA, for instance, suggested complete procedure to kick downstairs balance prepare card to meet the challenges posed by other perfo rmance measurement in procurance 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 remains (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, inter-group communication 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 s ystems all around the organization and each level fifth, communicating and educating the objective of BSC to employees and lastly