Question

Disadvantages of implementing balanced scorecards for projects.

Answer 1

ANSWER:

Meaning

Balance scorecard is a performance measurement system that include Financial Measure,customer measure,Business Process measure and learning and growth measure.It is developed by Robert Kaplan And David Norton.

Balance scorecard is a strategy in the organization which help to understand relation between internal and external measure, objective and subjective measure and performance measure and the drivers of future results. It goes beyond only financial measure like financial perspective measures such as Return on capital,operating income etc. Customer perspective measure market share in target segment ,customer satisfaction etc. Business process perspective measure cost,quality etc. Learning and growth perspective measure Employee skill set,satisfaction and retention.Each perspective includes objective to be achieved,measure,target and Initiatives.

According to above explanation disadvantages of implementing balance scorecard for project is are as follow:

1. Due to its affect on whole,the performance And encouragement of individual can be lost.
2. It take huge amount of time and financial cost in it because before implementing it organization have to look that do they have any internal expertise to understand balance score card if not so they have to hire them. All employee need to understand that how the system work for this training required that's why it include more cost and time.
3. Resistance for adaptability if all stakeholder of the company not able to understand measurement element than the system may not produce desired result.
4. Lack of lucrative data due to this company faces problem while measuring the result.

Above are the disadvantage of implementation of balance scorecard for project.