Alternative to the Balanced Scorecard  

Oleh:

Adler, Yuri ; Stasova, Galina Kueenzi

Jenis: Article from Proceeding
Dalam koleksi: 12th ANQ Congress in Singapore, 5-8 Agustus 2014, page 1-6.
Topik: Balanced Scorecard; generalized parameter of optimization; business effectiveness; business evaluation; criteria measurement
Fulltext: QP2-4.7-P0126.pdf (539.04KB)

Isi artikel

Balanced Scorecard is the system of characteristics which should describe the business from every point of view. The idea looks great but, unfortunately, this beautiful concept can’t really work and here are a few reasons for it. First of all, the authors of the Balanced Scorecard are not acquainted with Goodhart's law which says: "When a measure becomes a target, it ceases to be a good measure." When criteria become a target, it immediately becomes the object of manipulation and stops to be reliable. That is why the standard Balanced Scorecard can’t be used as a KPI. The next reason is related to the author’s deterministic way of thinking. They based the idea on interpretation of cause-effect relationship between the criteria. But it is hardly expedient for business analysis even if business is small. And finally, the authors are unfamiliar with the statistical thinking and look on the measurement result of the parameters not as on a random numbers but as a deterministic date. All of this together doubts the successes of standard Balance Scorecard implementation. But the idea of business evaluation based on balanced system of characteristics deserves a high attention. That is why we have an aspiration to find more reliable alternative to the Balanced Scorecard implementation. One of the possible directions of Balanced Scorecard development is building the generalized parameter of optimization based on the Balanced Scorecard criteria. The advantage of this approach is not only the convenience but as well the difficulty of result manipulation

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