Drawbacks deep range of results. However, while many

Drawbacks of the Balanced
Scorecard

A
balanced scorecard classified the business performance against a scope of any
factors. Generally, business performance was determined by financial results. However,
this gives an actual picture with a single focus. Balanced scorecards focus on
customers, process of the businesses and organizational capacity which enabling
you to boost future performance based on deep range of results. However, while many
organizations had hold tightly the balanced scorecard as a strategic planning
skills, others have found that it comes with certain weaknesses.

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The
first drawback that could show up in using balanced scorecard method is lacking
of external focus. Balanced scorecards may give you full internal focus, but
they do not give a full external picture (Finch, 2017). As a default, they
acknowledge your customers but they do not factor in other key performance indicators,
such as your rivals or changes to your business environment, for example. This
may lead to an exaggeration on internal performance and lack of awareness of
external factors that could influence your company’s movement. So, the Board of
Director of DBF should not focus on internal operation only but both internal
and external operation so that there is no complication issue arise in their
company.

 

The second drawback is it may appear too rigid on how DBF’s Director
manage it. Sometimes, changing to a Balanced Scorecard process can cause
disorientation within an organization. On a second thought of taking time to
adapt, some leaders immediately decide to give up the BSC and return to their
old ways. If DBF’s Director find these in his shoes, for example, when he is trying
to consume accurate perspective that Norton and Kaplan use while people in your
organization does not respond to those terms, the director might have the
potency to find the structure of balanced scorecard are more inconvenient than
it is worthwhile. On the other hand, if you are comfortable with your current
strategy regardless of how the management has been shaken up or there has been
a major change in strategy, that is a problem. Organizations that get stuck in
a prescribed way of conducting the Balanced Scorecard based on a book they have
read or a certification they have received will likely run into these matters.  (Jackson, 2017)

 

               Finally, one of disadvantages that can be shown when using balanced scorecard method is employee resistance. While there are many people who are strong supporters of the balanced scorecard and it is use in strategic planning and process management, not all are believers. Some employees or even managers itself may feel that it is just “in trend” and resist its implementation. This is particularly true if the implementation necessitate employees to go through exercises or invest additional time to learn about balanced scorecards and their uses. Companies that are efficient in exercising the balanced scorecard need to have great support from everyone in the organization to carry out maximum success (Richards, 2017). Therefore, DBF’s director should ensure all employees from their organization to put action on advocating and faith in utilizing BSC method in order to improve their strategy management system consequently. 

 

In conclusion, the Balanced Scorecard is therefore a
very crucial strategic management weapon which will help DBF to not only
measure the performance but also establish the strategies which are needed to
be maintain so that the long-term goals are achieved. Thus, specifically
saying, the appliance of this tool is to assure the consistency of vision and
mission which is the first step in relation to a successful organization. Further,
it is a proper implementation for DBF to ensure that the development of
competencies within an organization will help it to expand a competitive advantage
without which it could not expect to outperform its rivals.