Title:	ADVANTAGES AND LIMITATIONS OF PERFORMANCE MEASUREMENT TOOLS: THE BALANCED SCORECARD
Author(s):	Jorge Gomes, Mário Romão
ISBN:	978-989-8704-04-7
Editors:	Philip Powell, Miguel Baptista Nunes and Pedro Isaías
Year:	2014
Edition:	Single
Keywords:	Balanced Scorecard, Strategy Map, Resource-Based View, Performance Measurements, IS/IT Investments.
Type:	Full Paper
First Page:	19
Last Page:	26
Language:	English
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Full Contents:	click to dowload
Paper Abstract:	In rapidly changing environments that characterize most industries today, organizations face intense competitive pressure to do things better, faster and cheaper. The business environment of this new century has undergone rapid and accelerating change, creating more and more uncertainty and complexity. Most markets are becoming increasingly dynamic. Companies compete in this fierce environment to achieve a sustainable competitive advantage, positioning itself strategically in their industries or developing durable and distinctive firm capabilities and resources or through knowledge and innovation. Organizations can no longer rely on traditional analytical approach to understanding their industry or market, since the economic landscape is changing quickly and unexpectedly. Organizations are challenged to develop new organizational characteristics such as flexibility or expertise in order to quickly respond to changes in technology, competition and customer preferences. The use of large investments in information systems and technology (IS/IT) has been one of the solutions found by organizations to deal with these challenges. These investments, which in most cases represent a significant spending of financial resources, have failed to bring the expected benefits. Nowadays, the importance of intangible assets is higher than traditional physical assets and performance measurement tools need to capture this new reality. Balanced Scorecard (BSC) is an innovative approach that considers the financial and non- financial perspectives in determining the performance level of organization. Not only represents a measurement tool, but it is also a multi-dimensional system of performance management. Although it’s worldwide dissemination, BSC has demonstrated some inadequacy in certain circumstances, namely, in dynamic environments. The authors advocate a combination of various tools and approaches to set up and align the firm´s strategy instead of being statically hostage of an evaluation framework.
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