A Case Study of Balanced Scorecard Implementation in a Malaysian Company

ABSTRACT

The balanced scorecard (BSC) has attracted considerable interest among organizations seeking to improve the implementation of their strategy. Nevertheless, the success of BSC initiatives is far from certain. Some researchers argue that the BSC has its theoretical roots in management by objective (MBO). Others argue that the BSC was probably inspired by the Tableau De Bord that has been used by French companies since the 1930s. All these techniques seek to provide organizations with a basis for aligning activities and objectives. Some researchers are beginning to raise questions about BSC's effectiveness. Basing their argument on the failure of MBO and performance management programs, they argue that the BSC may also encounter similar problems. Among other things, it is argued that the effective implementation of the BSC requires the presence of human relations norms. Studies on Malaysian culture indicate that this may be more difficult to develop in Malaysian organizations. Certain characteristics of Malaysian culture may impede the development of human relations norms. Other researchers argue that there are inherent weaknesses in the BSC concept itself. These weaknesses will limit the usefulness of the BSC. This study presents the findings of a study on BSC implementation in a Malaysian telecommunication company. The findings provide some support for the concerns raised about the problems and limitations of the BSC.

KEYWORDS:

• Balanced scorecard
• MBO
• Tableau De Bord
• strategy map
• alignment
• performance measurement
• human relations norms