The tyranny of the Balanced Scorecard in the innovation economy/Commentary: on Voelpel, Leibold, Eckhoff and Davenport's "The tyranny of the Balanced Scorecard in the innovation economy"

The purpose of this paper is to trace the rationale, features, development and application of the Balanced Scorecard (BSC) over the past ten years, to provide a critical review of its key problematic effects, and to suggest a future direction. The shift from the industrial to the innovation economy...

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Bibliographic Details
Published in:Journal of intellectual capital 2006-01, Vol.7 (1), p.43
Main Authors: Voelpel, Sven C, Leibold, Marius, Eckhoff, Robert A, Davenport, Thomas H
Format: Article
Language:English
Subjects:
20th century
Balanced Scorecard
Business process reengineering
Customer relationship management
Customer satisfaction
Human resource accounting
Innovations
Intangible assets
Intellectual capital
Knowledge management
Market shares
Measurement techniques
R&D
Research & development
Strategic management
Studies
Supply & demand
Value chain
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Summary:The purpose of this paper is to trace the rationale, features, development and application of the Balanced Scorecard (BSC) over the past ten years, to provide a critical review of its key problematic effects, and to suggest a future direction. The shift from the industrial to the innovation economy provides a background to identifying five major problem areas of the BSC which are then discussed with reference to selected case examples. An alternative systemic scorecard is then proposed. The tyranny of the BSC as a measurement "straightjacket" is beginning to jeopardize the survival of firms, hinders much-needed business ecosystem innovation, thereby negatively affecting customer value rejuvenation, shareholders' benefits, other stakeholders as well as societal benefits in general. A more systemic alternative is proposed.
ISSN:1469-1930
1758-7468