Question Review: At Least 4 Articles On Balanced Scorecard

Article 1question Review At Least 4 Articles On Balanced Scorecard A

Review at least 4 articles on Balanced Scorecard and complete the following activities: 1. Write annotated summary of each article. Use APA throughout. 2. As an IT professional, discuss how you will use Balanced Scorecard to manage IT resources efficiently.

To begin with the topic, balanced scorecard, let’s have a look at what is balanced scorecard? In general, balanced scorecard is one kind of a management concept that is developed to measure the efficiency and accuracy of the organization through various points. Generally, organizations used to measure their performances through the production and financial aspects and check the ability of the organization but there are some other aspects too which should be considered because only a financial aspect can’t let you decide the ability of the organization. Balanced scorecard gives the right measures to be analyzed in order to get the right results. The first paper analyses the use of balanced scorecard in the reporting and control of small business networks. The study shows how the network of small Italian companies gain the benefits of the balanced scorecard method using different approaches of the balanced scorecard method to evaluate the control and management of strategic and operational tools of the companies and also the financial performance and the communication of the performance reporting to the various stakeholders of the business (Aureli, S., Cardoni, A., Del Baldo, M., & Lombardi, R., 2018).

The second paper analyses the creation of the value through the use of the balanced scorecard method in the business measuring the application of the balanced scorecard and the outcomes in the business. The paper focuses on the benefits gained from the use of balanced scorecard and learning the value of investment in human resources. Generally, the workers or the employees are considered as the human assets or resources of the organization (Perramon, J., Rocafort, A., Bagur-Femenias, L., & Llach, J., 2016).

The third paper studies the outcomes of two different measures of the balanced scorecard method and determines how they are effective towards the long-term profit of an organization in a diverse decision-making environment. This experimental study shows the effects of two various aspects of balanced scorecard method on the profit performance of the organization. The two aspects are 1- casual linkages without delays and 2- casual linkages with delays (Humphreys, K. A., Gary, M. S., & Trotman, K. T., 2016).

The fourth paper studies the effects of balanced scorecard method on the performance of an organization. This study, using primary data methodology, suggests that the implementation of the balanced scorecard methods in the organization affects the overall organizational environment and performance and improves the commitment from employees and job satisfaction and dedication towards the job among the employees of the organization. It helps human resource management to better their activities (Calderón Molina, M. à., Palacios Florencio, B., Hurtado González, J. M., & Galán González, J. L., 2016).

As an IT professional, I will definitely use the balanced scorecard method for the organization as it offers the benefits of measurement from various points. It is a good way of measuring the performance of the organization not only from the financial perspectives but also from the strategic and human resources perspectives too.

Paper For Above instruction

Introduction

The Balanced Scorecard (BSC) is an influential strategic management tool that allows organizations to measure and manage performance across multiple perspectives beyond traditional financial metrics. Originally conceptualized by Kaplan and Norton in the early 1990s, the BSC emphasizes aligning business activities with strategic objectives, fostering communication, and monitoring organizational health. The core idea is to balance financial metrics with other key performance indicators (KPIs) to provide a comprehensive view of organizational performance, enabling better decision-making and strategic alignment.

Annotated Summaries of Selected Articles

1. Aureli, S., Cardoni, A., Del Baldo, M., & Lombardi, R. (2018)

This article investigates the application of the Balanced Scorecard in small business networks, specifically within Italian companies. The study highlights how implementing BSC enables these small firms to better manage strategic and operational controls. It emphasizes the importance of adapting BSC approaches to suit small organizational contexts and demonstrates improvements in financial performance and stakeholder communication. The research showcases that even small entities can leverage BSC for strategic clarity and enhanced reporting, leading to improved coordination and performance.

2. Perramon, J., Rocafort, A., Bagur-Femenias, L., & Llach, J. (2016)

This empirical study explores how the use of BSC creates value by focusing on investments in human resources. The authors argue that employees are critical intangible assets, and their development through targeted metrics can significantly impact organizational success. The paper details the mechanisms through which BSC facilitates learning and growth, leading to increased value creation, especially when human capital is strategically managed within the performance measurement system. The findings suggest that BSC adoption contributes to aligning organizational goals with employee development and engagement.

3. Humphreys, K. A., Gary, M. S., & Trotman, K. T. (2016)

This experimental research examines how different causal linkages within the BSC influence long-term profitability. Specifically, it compares causal relationships with and without delays in feedback loops, demonstrating that timely causal linkages tend to enhance organizational profitability. The study underscores the importance of accurate causal modeling to maximize the effectiveness of BSC, especially in complex decision environments. The findings advocate for attention to the dynamic nature of cause-effect relationships when designing BSC frameworks for sustained performance improvements.

4. Calderón Molina, M. à., Palacios Florencio, B., Hurtado González, J. M., & Galán González, J. L. (2016)

This study assesses the impact of BSC implementation on organizational performance, particularly focusing on employee motivation and organizational climate. The results indicate that BSC integration improves job satisfaction, employee commitment, and overall organizational effectiveness. Particularly, BSC facilitates a better understanding of individual roles within strategic goals, fostering a culture of accountability and continuous improvement. The article emphasizes that BSC can be a transformative tool for human resource development and organizational health.

Use of Balanced Scorecard in Managing IT Resources

As an IT professional, integrating the Balanced Scorecard into IT management practices provides a strategic framework to align IT activities with organizational objectives while ensuring optimal resource utilization. BSC aids in translating broad strategic goals into specific, measurable IT metrics across various perspectives, including financial, customer, internal processes, and learning and growth.

In the realm of IT, BSC can facilitate better resource management through the development of KPIs related to system uptime, incident resolution time, cybersecurity metrics, and user satisfaction levels. Automated dashboards can visualize real-time data, enabling proactive decision-making and swift adjustments. Furthermore, BSC fosters communication across departments by providing a shared understanding of IT’s role in achieving organizational goals.

Effective use of BSC in managing IT resources also involves strategic planning around innovation, infrastructure investments, and capacity planning. For example, aligning IT projects with strategic KPIs ensures that investments yield measurable improvements in system performance and security. Moreover, BSC emphasizes continuous improvement, encouraging IT teams to adapt to evolving technological landscapes and business needs. It also supports risk management by tracking vulnerabilities and compliance metrics, reducing operational risks.

Overall, applying the Balanced Scorecard enables IT professionals to create a structured approach for evaluating performance, optimizing resource allocation, and supporting strategic initiatives. By integrating BSC into IT governance frameworks, organizations can enhance transparency, accountability, and agility, ultimately fostering a resilient IT environment aligned with business success.

Conclusion

The Balanced Scorecard remains a vital strategic management tool across various sectors and organizational sizes. Its multidimensional approach offers organizations the ability to monitor performance comprehensively, fostering transparency and strategic alignment. The reviewed articles collectively underscore the flexibility and value of the BSC in different contexts, including small businesses, HR development, financial performance, and organizational culture. For IT professionals, the BSC provides a means to manage IT resources efficiently by aligning technological efforts with strategic goals, enhancing decision-making, and fostering continuous improvement. As the digital landscape continues to evolve, embedding BSC principles into IT management practices will be increasingly critical for organizational success.

References

• Aureli, S., Cardoni, A., Del Baldo, M., & Lombardi, R. (2018). The balanced scorecard logic in the management control and reporting of small business company networks: A case study. Journal of Small Business Management, 56(4), 530-546.
• Perramon, J., Rocafort, A., Bagur-Femenias, L., & Llach, J. (2016). Learning to create value through the ‘balanced scorecard' model: an empirical study. Management Decision, 54(6), 1405-1422.
• Humphreys, K. A., Gary, M. S., & Trotman, K. T. (2016). Dynamic Decision Making Using the Balanced Scorecard Framework. The Accounting Review, 91(4), 1043-1070.
• Calderón Molina, M. à., Palacios Florencio, B., Hurtado González, J. M., & Galán González, J. L. (2016). Implementing the balanced scorecard: its effect on the job environment. European Management Journal, 34(2), 174-188.
• Rostami, M., Goudarzi, A., & Zaj, M. (2015). Defining balanced scorecard aspects in banking industry using FAHP approach. International Journal of Economics and Business Administration, 1(1), 25-38.
• Busco, C., & Quattrone, P. (2015). Exploring how the Balanced Scorecard engages and unfolds: Articulating the visual power of accounting inscriptions. Contemporary Accounting Research, 32(3), 987-1014.
• Harden, J. W., & Upton, D. R. (2016). An Introduction to the use of the Balanced Scorecard for performance evaluation by financial professionals. Journal of Financial Services Professionals, 70(2), 81-88.
• Nistor, C. S. (2016). Performance management and Balanced Scorecard. Management & Marketing, 11(2), 104-117.
• Kaplan, R. S., & Norton, D. P. (1992). The balanced scorecard—measures that drive performance. , 70(1), 71-79.
• Kaplan, R. S., & Norton, D. P. (1996). Using the balanced scorecard as a strategic management system. Harvard Business Review, 74(1), 75-85.