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Application: Implementation of the Balanced Scorecard
The term "balanced scorecard" became part of the professional accounting vernacular in the early 1990s. This nontraditional approach to measuring strategic performance was developed by Dr. Robert Kaplan and Dr. David Norton. As the name implies, the goal of the balanced scorecard is to provide stakeholders with a balanced view of the performance of an organization.
For this Assignment, review Case 14-1, "Global Oil" in Chapter 14 of your course text and reflect on the information presented. Consider how the balanced scorecard should be implemented, including how it the results of this implementation might contribute to organizational decision making.
The Assignment:
1. Provide a critical analysis of M&R's implementation of the balanced scorecard, including an identification of the strengths and weaknesses of the program.
2. Prepare a response to the following: Was the adoption of the balanced scorecard at M&R responsible for turning around the organization's financial performance? Explain why or why not.
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