Balanced Scorecard

It is somewhat difficult and time-consuming to implement a comprehensive balanced scorecard system in a large organization. It will require sustained top-level support and commitment to ramp-up and put the system in place. This is where most of the difficulties and problems emerge. Do not embark on a balanced scorecard initiative unless your organization has a high-ranking champion, has adequate funding, and is ready to meet the challenges of change.

One of the main disadvantages with the Balanced Scorecard was that they
initially used too many goals in the different perspectives and thereby did
not reach the increased focus the management was after.
It was alsohard for the administrative units to develop their scorecard since they hadno actual revenue or costs.

(1) Executive support is sometimes not given to the balanced scorecard in an organisation. If it is used as part of the management process, it becomes meaningless.

(2) Many organisations just build the balanced scorecard but fail to provide sufficient training to those who use it. Therefore, users lack education on the background of the concept, implementation objectives and details.

(3) What problems will the balanced scorecard solve in the organisation?
Even this question is not addressed, the balanced scorecard concept has already gained wide approval as a management tool.

(4) Some organisations are not announcing their scorecard results or setting up management meetings to discuss them.

(5) Many organisations manage with the balanced scorecard but reward their executives on short-term financial performance. Instead, the balanced scorecard should balance short-term performance with long-term value.

(6) Organisations fail to introduce new balanced scorecard measures even more or less the same results are reported for several months.

(7) In sizeable business enterprises, balanced scorecards are sometimes developed only in some business units instead of all business units and all levels of the organisation.