Balanced scorecard and controllability at the level of middle managers – the case of unintended breaches

2014 ◽  
Vol 10 (4) ◽  
pp. 516-539 ◽  
Author(s):  
Morten Jakobsen ◽  
Rainer Lueg
Keyword(s):  
Balanced Scorecard ◽  
Design Methodology ◽  
Middle Managers ◽  
Management Control ◽  
Content Type ◽  
The Balanced Scorecard ◽  
Intuitive Appeal ◽  
Ex Post ◽  
Constructivist Position ◽  
Practical Implications

Purpose – This paper aims to analyse how the inherent design of the Balanced Scorecard (BSC) violates the controllability principle. The management control literature provides convincing examples of actors who breach controllability without intention. This discussion was extended by the example of the BSC. This paper focusses on the breaches that occur when actors lack the awareness or the skills to re-enforce controllability. Design/methodology/approach – Taking a pragmatic-constructivist position, analytical and empirical evidence was included on controllability to analyse the normative literature on the BSC. Findings – It was found that the BSC causes several unintended breaches of the controllability principle at the level of middle managers, both ex ante (control rationale) and ex post (fairness rationale). These breaches are not only situational or induced by how managers in the field design a BSC. They appear to be inherent in the BSC due to the way Kaplan and Norton have conceptualised it. Practical implications – Practitioners are alerted that the intuitive appeal of popular management fashions such as the BSC covers their conceptual flaws. It was also proposed that failed implementations and dysfunctional applications can be due to the inherent characteristics of the concepts themselves. Originality/value – This paper contributes by uncovering the unintended violations of the controllability principle by the inherent characteristics. The authors suggest using our conceptual contribution to conduct empirical research on the issues of controllability and management control systems in general. Thereby, the theory-based discussion on the BSC is advanced (Nørreklit, 2000, 2003; Nørreklit et al., 2012a).

Use and abuse of the balanced scorecard

2016 ◽  
Vol 32 (7) ◽  
pp. 17-19
Keyword(s):  
Human Resources ◽  
Case Studies ◽  
Balanced Scorecard ◽  
Design Methodology ◽  
Reading Time ◽  
Cutting Edge ◽  
Content Type ◽  
The Balanced Scorecard ◽  
Pertinent Information ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Why do firms measure performance? This seems, at first, a rather trite, facile question – “to assess how much money they can make, of course!” – however, the simplicity of the question masks a much more complex suite of answers. First, are measures used for internal or external purposes? Second, if they are internal, is it about efficiency, growth or scale of outputs? Third, if it is about scale, what areas are being judged for scale – human resources (HR) or profits, for example? Research limitations/implications The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Getting the scorecard in balance

2014 ◽  
Vol 30 (6) ◽  
pp. 23-25
Keyword(s):  
Case Studies ◽  
Balanced Scorecard ◽  
Design Methodology ◽  
Reading Time ◽  
Second Generation ◽  
Content Type ◽  
The Balanced Scorecard ◽  
Initial Generation ◽  
Pertinent Information ◽  
Practical Implications

Purpose – This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach – This briefing is prepared by an independent writer who adds his own impartial comments and places the articles in context. Findings – In this study, eight subsets of the Balanced Scorecard are proposed, grouped into three generations; the first being the initial generation of scorecard, the second generation including strategy maps and the final generation which includes destination statements. Practical implications – The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value – The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and an easy-to digest format.

The fate of the balanced scorecard: alternative problematization and competing networks

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tharusha N. Gooneratne ◽  
Zahirul Hoque
Keyword(s):  
Control Systems ◽  
Balanced Scorecard ◽  
Actor Network Theory ◽  
Management Control ◽  
Sri Lankan ◽  
Specific System ◽  
Content Type ◽  
The Balanced Scorecard ◽  
Study Approach ◽  
System Data

Purpose This paper aims to report on an empirical investigation of the fate of the balanced scorecard (BSC) approach in an organization. Design/methodology/approach Building on actor-network theory and using a qualitative case study approach, this study analyses how across time certain actors attempted to build a competing network in the organization to gain support for their underlying rationales for replacing the BSC with a budgeting system. Data were collected using interviews, observations and archival data from a Sri Lankan commercial bank. Findings This paper finds that despite the enthusiastic journey with all its potentials to be a sustainable accounting innovation, the attraction towards the BSC innovation by the organization appeared to be temporary because the BSC knowledge claims that were advanced by its promoters had not been widely accepted by those involved in the practice. Such a consequence of innovation diffusion appeared to be the result of the failure of the innovation promoters in coordinating the heterogeneous interests of various actors involved in the practice. This study concludes that the BSC failed to be sustained, amid varying ideologies and interests of powerful actors across time and opponent actors’ perceived deficiencies in its adapted design attributes. Research limitations/implications Although the findings relate to a Sri Lankan case, they offer important insight into how parallel, competing networks advocating different control systems may exist in an organization, and that the sustainability of a specific system may depend upon the efforts and the relative power of the advocators of that system. Practical implications This paper sheds useful insights for practitioners on the effective implementation of accounting innovations and managing management control systems in organizations amid tensions associated with competing networks. Originality/value The outcomes enhance the knowledge of how multiple networks operating in an organization could compete with one another, with the result that one network may fall apart while another network gains prominence in the corporate landscape across time, amid varying interests of key actors, their actions and interessement devices used.

The balanced scorecard: comments on balanced scorecard commentaries

2012 ◽  
Vol 8 (4) ◽  
pp. 539-545 ◽  
Author(s):  
Robert S. Kaplan
Keyword(s):  
Balanced Scorecard ◽  
Strategy Execution ◽  
Personal Writing ◽  
Strategy Formulation ◽  
Content Type ◽  
The Balanced Scorecard ◽  
The Past ◽  
Personal Experiences ◽  
Practical Implications

PurposeThe purpose of this paper is to provide the author's insights about five papers written in this volume about his published work on the balanced scorecard (BSC).Design/methodology/approachThe author's comments are based on his personal writing, teaching, speaking about, and implementing the BSC during the past 20 years.FindingsThe author finds that academic commentary on the BSC often ignores its role in strategy execution.Research limitations/implicationsThe commentary is unique to the author's personal experiences and may not be generalizable to other scholars who have not shared the same experiences.Practical implicationsThe paper may help scholars better understand the role of the BSC for strategy formulation, communication and implementation. It may also aid them in teaching the BSC to students and executives.Social implicationsThe paper discusses how the BSC can be used in public sector applications, as well as for companies that want to internalize environmental, social and community objectives in their strategies.Originality/valueThe paper reflects the personal views of the author; it is original to him.

Impact of determinants on early internationalization

2019 ◽  
Vol 17 (5) ◽  
pp. 1018-1034
Author(s):  
Channappa Santhosh
Keyword(s):  
Design Methodology ◽  
Primary Data ◽  
Early Age ◽  
Exploratory Research ◽  
Content Type ◽  
Early Internationalization ◽  
Ex Post ◽  
Ex Post Facto ◽  
Internationalization Strategies ◽  
Practical Implications

Purpose The purpose of this paper is to analyze the influence of determinants on early internationalization in the context of an emerging economy, i.e. India. Design/methodology/approach The study is based on an ex post facto exploratory research using primary data collected from a sample of 102 exporting small- and medium-sized enterprises (SMEs) in Bangalore. Findings The overall results reveal that it is the proactive entrepreneurs and their previous experience that determine the early internationalization of SMEs. Further, competitive constraint was a major obstacle to enter the international market at an early age for late internationalized SMEs. Practical implications The policy initiatives should aim to develop the international orientation of the entrepreneurs in the firm as a precursor for the formulation and subsequent implementation of internationalization strategies. Originality/value Although studies have been conducted on determinants and early internationalization, these are confined to a few dimensions, and none of the studies have looked into the issues affecting the early internationalization holistically and with respect to SMEs in India.

Sustainability reporting integrated into management control systems

2015 ◽  
Vol 27 (2) ◽  
pp. 189-207 ◽  
Author(s):  
Jennifer Kerr ◽  
Paul Rouse ◽  
Charl de Villiers
Keyword(s):  
Control Systems ◽  
Balanced Scorecard ◽  
Sustainability Reporting ◽  
Management Control ◽  
Management Control Systems ◽  
Management Control System ◽  
Content Type ◽  
The Balanced Scorecard ◽  
External Reporting

Purpose – This paper aims to examine how three different organisations integrate sustainability reporting into management control systems (MCS). Design/methodology/approach – A case study examination of sustainability reporting integrated into MCS in three New Zealand organisations. Findings – The integration of sustainability reporting into MCS holds advantages for organisations to operationalise sustainability objectives, broaden stakeholder accountability as well as intensify interactions with stakeholders, formalise organisation beliefs and improve communication of sustainability measures internally. While frameworks such as the balanced scorecard (BSC) can facilitate implementation of sustainability reporting, some organisations may choose to fully integrate the latter into their management control system. Originality/value – Sustainability reporting is sometimes seen as an external reporting philosophy that can be managed as a separate project. The authors show it can be integrated into MCS, either entirely or through tools such as the BSC. The authors develop a framework that may be useful in future studies to locate our case organisations.

Controls amid the chaos

2017 ◽  
Vol 33 (4) ◽  
pp. 13-15
Keyword(s):  
Control Systems ◽  
Design Methodology ◽  
Reading Time ◽  
Management Control ◽  
Management Control Systems ◽  
Content Type ◽  
Digital Revolution ◽  
Time Dynamics ◽  
Pertinent Information ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Evolving industries, the digital revolution and the effect of the global economic crisis has entailed huge challenges for those seeking to implement management control systems. In her article “Organizations with changing structures: how to control?” (2016), author Eva Lechner pulls aside the curtains on a festival organizer and shows that while its time dynamics and culture are very different to most industries, the need for controls still apply, and they can be successfully applied as long as keen attention is paid to their consequences. Practical implications The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Monitoring and regulating corporate identities using the balanced scorecard

2009 ◽  
Vol 13 (2) ◽  
pp. 116-135 ◽  
Author(s):  
Jai Kim ◽  
Caroline Hatcher
Keyword(s):  
Performance Measurement ◽  
Balanced Scorecard ◽  
Identity Management ◽  
Corporate Identity ◽  
Management Control ◽  
Content Type ◽  
The Balanced Scorecard ◽  
Measurement Systems ◽  
Performance Measurement Systems ◽  
And Performance

PurposeThe purpose of this paper is to provide a parallel review of the role and processes of monitoring and regulation of corporate identities, examining both the communication and the performance measurement literature.Design/methodology/approachTwo questions are posed: Is it possible to effectively monitor and regulate corporate identities as a management control process? and, What is the relationship between corporate identity and performance measurement?FindingsCorporate identity management is positioned as a strategically complex task embracing the shaping of a range of dimensions of organisational life. The performance measurement literature likewise now emphasises organisational ability to incorporate both financial and “soft” non‐financial performance measures. Consequently, the balanced scorecard has the potential to play multiple roles in monitoring and regulating the key dimensions of corporate identities. These shifts in direction in both fields suggest that performance measurement systems, as self‐producing and self‐referencing systems, have the potential to become both organic and powerful as organisational symbols and communication tools. Through this process of understanding and mobilising the interaction of both approaches to management, it may be possible to create a less obtrusive and more subtle way to control the nature of the organisation.Originality/valueThis paper attempts the theoretical and practical fusion of disciplinary knowledge around corporate identities and performance measurement systems, potentially making a significant contribution to understanding, shaping and managing organisational identities.

Balanced scorecard and emerging strategies

2017 ◽  
Vol 33 (4) ◽  
pp. 25-27
Keyword(s):  
Balanced Scorecard ◽  
Good Deal ◽  
Content Type ◽  
The Balanced Scorecard ◽  
Business Change ◽  
Complex Organization ◽  
Pertinent Information ◽  
Multiple Levels ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings The article “Multi-level strategic alignment within a complex organisation” by Laurie et al. (2016) provides an in-depth look at how a large, complex organization was able to implement the balanced scorecard in multiple levels and phases. Such a case study can teach business change managers a good deal about the theoretical as well as the practical considerations of such an implementation, particularly in the context of the Middle East. Practical implications The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

A qualitative study of hospital clinical staff perceptions of their interactions with healthcare middle managers

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Madeleine Kendrick ◽  
Kevin B. Kendrick ◽  
Nicholas F. Taylor ◽  
Sandra G. Leggat
Keyword(s):  
Design Methodology ◽  
Middle Managers ◽  
Middle Management ◽  
Clinical Staff ◽  
Working Environment ◽  
Healthcare Staff ◽  
Structured Interviews ◽  
Staff Perceptions ◽  
Content Type ◽  
Practical Implications

PurposeThe authors explored clinical staff perceptions of their interactions with middle management and their experiences of the uncongeniality of their working environment.Design/methodology/approachSemi-structured interviews of clinical staff from an Australian public health service's Emergency, Surgery and Psychiatry departments. Volunteer interview transcripts were inductively coded using a reflexive thematic content analysis.FindingsOf 73 interviews, 66 participants discussed their interactions with management. Most clinicians considered their interactions with middle management to be negative based on a violation of their expectations of support in the workplace. Collectively, these interactions formed the basis of clinical staff perceptions of management's lack of capacity and fit for the needs of staff to perform their roles.Practical implicationsStrategies to improve management's fit with clinicians' needs may be beneficial for reducing uncongenial workplaces for healthcare staff and enhanced patient care.Originality/valueThis article is among the few papers that discuss interactions with management from the perspective of clinical staff in healthcare. How these perspectives inform the perception of workplace uncongeniality for clinicians contributes greater understanding of the factors contributing to adversarial relationships between clinicians and managers.

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