10 Advantages and Disadvantages of Balanced Scorecard

The balanced scorecard (BSC) is a strategic management tool that enables organizations to measure and manage performance across various perspectives. It provides a framework for setting and tracking strategic planning goals, incorporating financial and non-financial measures.

While the BSC approach offers several advantages, it also has some drawbacks that organizations should consider. This article discusses the advantages and disadvantages of using the balanced scorecard in organizational performance measurement.

Advantages and Disadvantages of Balanced Scorecard
Written by
Table of Contents

Advantages of Balanced Scorecard

Disadvantages of Balanced Scorecard

Conclusion of Advantages and Disadvantages of the Balance Scorecard

The balanced scorecard offers numerous advantages, including comprehensive measurement, strategic alignment, improved decision-making, and stakeholder communication.

However, organizations must be aware of the implementation challenges, potential resistance to change, resource requirements, and the need to maintain a strategic focus.

By carefully considering the pros and cons, organizations can effectively utilize the balanced scorecard approach to enhance their performance measurement and management systems.

More about Business Planning