How to individualise your balanced scorecard

Abstract

Purpose

The paper aims to explain how the balanced scorecard concept can be improved through customising the normal four perspectives.

Design/methodology/approach

An analysis of existing methods for developing a balanced scorecard reveals that the goals identified by using the approaches may not correspond to the company's mission and values. Against this background, fundamental multi‐criteria decision‐making principles are applied to design a method which helps to overcome this weakness.

Findings

Since the core idea is to derive the perspectives directly from the mission statements of a company, the method described here helps to develop an individualized balanced scorecard. A case study illustrates how the method works in practice.

Practical implications

The paper has practical relevance for the effectiveness and credibility of the balanced scorecard inside a company, particularly as it is gaining additional importance due to the fact that the concept is increasingly being used for external reporting.

Originality/value

Pointing out how an important methodical shortcoming of the balanced scorecard concept can be eliminated, the paper is especially of interest for practitioners.

Citation

Ahn, H. (2005), "How to individualise your balanced scorecard", Measuring Business Excellence, Vol. 9 No. 1, pp. 5-12. https://doi.org/10.1108/13683040510588792