FROM MANAGEMENT ACCOUNTING TO STRATEGY EXECUTION AND SYSTEMS THINKING: THE BALANCED SCORECARD (R)EVOLUTION AND NEW RESEARCH AGENDA
FROM MANAGEMENT ACCOUNTING TO STRATEGY EXECUTION AND SYSTEMS THINKING: THE BALANCED SCORECARD (R)EVOLUTION AND NEW RESEARCH AGENDA

Summary/Abstract: The Balanced Scorecard (BSC) emerged as a highly regarded management concept, witnessing rapid global adoption. It became a key driver of the performance management revolution that took place in mid 1990s and it continuously evolved from its management accounting to become a management system supporting strategy execution. However, initial promises were only partially fulfilled and the value added by implementations is under expectations. The unique characteristics of the concept - continuous evolution, confusing literature and ambiguity - make the BSC misunderstood and misused. Future research needs to clarify the nature of the BSC and its role in organisations. The assumptions made are that the BSC is a management tool, with a polyvalent role that can be integrated in various organisational management systems. Overall, the crystallizing function of the BSC is perhaps the most valuable contribution to management, as it can provide structure and clarity in the fluid and complex business environment of today. This conceptual paper explores the evolution of the BSC and proposes new directions in the area of management accounting research.

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