Balanced Scorecard: Great Management Tool or Illusion of Success?
DOI:
https://doi.org/10.65150/EP-jefrr/V2E1/2026-01Keywords:
Balanced scorecard, management accounting, firm performance JEL Codes : M40, M49, L25Abstract
The Balanced Scorecard (BSC) is a strategic management tool that combines financial and non-financial performance measures to help companies achieve long-term goals. This study aims to assess the effectiveness of BSC in improving company performance. Using qualitative methods, the author reviews literature studies that both support and criticize its implementation. The results indicate that while BSC has been shown to help companies develop strategies and enhance performance in various industries, its implementation is also criticized. Some studies reveal a disconnect between formulated and implemented strategies and question the long-term validity of BSC. Factors such as uncertainty in the business environment, inappropriate design, and lack of management commitment are often cited as causes of failure in BSC implementation. The author concludes that while BSC can be an effective tool in performance measurement, its success relies heavily on the company's ability to tailor its use to its internal needs and conditions.
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