Advantages and Disadvantages of the Balanced Scorecard: Its Pros and Cons

The disadvantages out weigh advantages when assessing balanced scorecard pros and cons! Having a balance in organizational scorecards is important but a natural balance, not forced balance, is much more beneficial.

In addition, scorecards should give focus on the alignment of its performance scorecard measures to what is done when producing its product and services.  This is in contrast to the traditional balanced scorecard approach, where measures are to be in alignment with strategies that often have a wording that is hard to get one’s arm around.

Also, these strategies can change over time with new leadership and/or new thoughts for a new year, which can result in a change in scorecards that are tracked and/or given focus.

An Alternative to the Balanced Scorecard Pros and Cons Issue

An Integrated Enterprise Excellence (IEE) approach for implementing the balanced scorecard is a better alternative.  The 9-step IEE business management system is:

balanced scorecard pros and cons alternative is IEE system

The IEE value chain in step 2 aligns structurally predictive balanced scorecards with the processes that created them.  Targeted strategies are created in is step 5, while step 7 involves the work to improve strategic balanced scorecard metrics or KPIs (key performance indicators) so that the enterprise as a whole benefits.

Having balanced scorecard measures that drive performance are important characteristics of a successful business, as described in the following linked Internet-published PDF article.  With the IEE system, organizations can obtain predictive balanced scorecards that are in alignment with work that is performed in the business.  The IEE approach for balanced scorecard performance measures provides consistency in performance measurement reporting over time.


Contact Us to set up a time to discuss with Forrest Breyfogle how your organization might gain much from an IEE Business Management System Balanced Scorecard System.


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