Balanced Scorecard Implementation: Why Does It Fail - Research Paper Example

Change facilitation may be incomplete thereby creating a sense of discomfort through sections of the company. Human relations are an important factor to ensure success that may remain ignored. Though the strategy is well planned in the boardroom among a few members of the management team, there are certain factors that must be considered before announcing the initiative. The factors necessary to aid effective implementation and achievement of goals are a part of this study. Besides, the objectives must be revisited for relevance.

Support systems necessary to aid a strategy process must be incorporated. Executives who are drawn upon to implement strategic directives must receive guidance and organizational support. Companies choose to adopt the balanced scorecard approach out of a sense of commitment to the vision and strategy that is envisaged. Communication is carried out and key executives are given the responsibility of carrying out the necessary activities. Regular meetings are held in order to measure the parameters as decided at the start of the financial year.

Despite doing the right things, there are a large number of failures to implement the balanced scorecard. The scorecard was designed to help companies focus on strategy since strategy implementation efforts were failing on a wide scale. The objective of this research is to highlight the factors that led to the failure of scorecard implementation and tries to find ways to bridge the identified gaps. Why do organizations fail in the implementation of the balanced scorecard? What is the scope of responsibility of the implementing managers in aiding the initiative?