Review at least 4 articles on Balanced Scorecard and compl…
Review at least 4 articles on Balanced Scorecard and complete the following activities: 1. Write annotated summary of each article. Use APA throughout. 2. As an IT professional, discuss how you will use Balanced Scorecard to manage IT resources efficiently. 3. Write 300 words.
Answer
Annotated Summary of Articles on Balanced Scorecard
1. Kaplan, R. S., & Norton, D. P. (1992). The balanced scorecard: Measures that drive performance. Harvard Business Review, 70(1), 71-79.
This article by Kaplan and Norton is considered a seminal work on the Balanced Scorecard (BSC) methodology. The authors argue that traditional financial metrics are not sufficient for evaluating organizational performance and propose a more balanced approach that incorporates additional dimensions. The BSC framework is presented as a four-perspective system that includes financial, customer, internal process, and learning and growth perspectives. The authors provide examples of how these perspectives can be translated into measurable objectives and linked to specific strategic goals. The article emphasizes the importance of aligning performance metrics with strategy and suggests ways to implement the BSC system effectively.
2. Ittner, C. D., & Larcker, D. F. (2003). Coming up short on nonfinancial performance measurement. Harvard Business Review, 81(11), 88-95.
In this article, Ittner and Larcker critically evaluate the use of nonfinancial performance measures, including the Balanced Scorecard, in practice. The authors argue that while these measures have gained popularity, they are often poorly implemented and fail to contribute to improved performance. They highlight the challenges faced by organizations in selecting appropriate nonfinancial measures and linking them to organizational goals. The article also discusses the tendency for organizations to prioritize financial metrics and provides recommendations for addressing these issues. Ittner and Larcker call for a more thoughtful and comprehensive approach to nonfinancial performance measurement.
3. Nørreklit, H., Nørreklit, L., Mitchell, F., & Jakobsen, M. (2009). Bridging the gap between Balanced Scorecard and business process management. International Journal of Productivity and Performance Management, 58(5), 386-398.
Nørreklit et al. explore the relationship between the Balanced Scorecard and business process management (BPM) in this article. The authors argue that the BSC can serve as a valuable tool for driving performance improvement through the implementation of BPM initiatives. They propose a framework that integrates both methodologies, highlighting the different roles played by each. The article discusses the alignment of BPM goals with the strategic objectives derived from the BSC and illustrates the potential benefits of their integration through a case study. Nørreklit et al. provide insights into how organizations can effectively combine BSC and BPM to achieve strategic objectives.
4. Bititci, U. S., Carrie, A. S., & McDevitt, L. (1997). Integrated performance measurement systems: A development guide. International Journal of Operations & Production Management, 17(5), 522-534.
This article focuses on the development of integrated performance measurement systems (IPMS), including the Balanced Scorecard as one of the key frameworks. Bititci et al. discuss the challenges associated with designing and implementing an IPMS and propose a four-step guide for its development. The authors highlight the importance of aligning the IPMS with organizational strategy and outline the process of selecting appropriate metrics, setting targets, and implementing the measurement system. Through case studies, Bititci et al. demonstrate the potential benefits of an integrated approach to performance measurement.