Page 67 - MS Year in Review 2017_Neat

Balanced Scorecard. As we have seen, the core idea underlying the Balanced
Scorecard is sound and was an improvement over the traditional focus upon only
financial performance. However, there are fundamental problems with the version
of the BSC proposed by Kaplan and Norton. The key problems are that: 1) Kaplan
and Norton have not provided any empirical support for their proposed four
“perspectives,” 2) There are problems with the “construct validity” of the four
perspectives,” and 3) successful applications of the approach are rare as the
Unicorn.
In part two (forthcoming) I will address how the Balanced Scorecard can be fixed
and made more useful.

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