But first we need to start with a little background on balanced scorecards. You’ll read about 1) steps to create a balanced scorecard, 2) common measurements, and 3) some pitfalls to avoid. There are a number of typical problems that a company’s strategist faces when implementing the Balanced Scorecard framework. Expensive and Time Consuming Some managers say that despite the effectiveness of the balancer scorecard to measure performance and as a strategic planning tool, it also has drawbacks and two of these are cost and time. The Balanced Scorecard framework is one of the most recognized strategy execution frameworks with a long record of successful implementation. “Translating strategy into action” was the tag line to the first balanced scorecard book. In doing so though, there are a number of potential pitfalls that organizations need to avoid, which this blog details. STEPS TO CREATE A BALANCED SCORECARD Before going into the steps, it is worth pointing out that the execution of a BSC should, at all times, be arranged as a separate project of management system development. Even the best business systems need to be revised and updated regularly. Use the checklist below to audit your Balanced Scorecard, find possible problems, and fix them during the early stages before they result in bigger issues.. Why Strategic Planning Fails – Part 3. List of Cons of Balanced Scorecard. Jun 4, 2020 - Explore bscdesigner's board "Balanced Scorecard", followed by 451 people on Pinterest. Mitchell F, Jacobsen M, Norreklit H. Pitfalls in Using the Balanced Scorecard. 1. If you are looking for a disciplined way to articulate and execute your strategy, then it should be in your business toolkit. Journal of Corporate Accounting & Finance. “Putting the balanced scorecard to work” By 1993 Norton (with some others) had formed Renaissance Worldwide to use the balanced scorecard as a vehicle to help companies translate strategy into action. This is the third installment in a blog series that discusses potential pitfalls that could hold you back from being fully successful in your strategic planning efforts. Thinking an IT balanced scorecard is a substitute for hard work. What are three important pitfalls to avoid when implementing a balanced scorecard? See more ideas about Strategy map, Balance, Kpi.