Systems Perspective of the Use of the Balanced Scorecard for Organization Development and Change

Abstract

The Balanced Scorecard (BSC) is an instrument used for intervention and strategic management that promotes Organization Development and Change (ODC). The BSC has been implemented across many industries, including business, healthcare, government, and nonprofit organizations. The BSC is used worldwide to focus operations and align goals within organizations to drive the organization’s mission, vision, and strategy. Additionally, the BSC can be helpful to enhance internal and external stakeholder communication. This paper discusses the BSC as a tool for ODC. The purpose of this study is to explore existing uses, recognize organizational needs, and evaluate current and relevant benefits for using a BSC to manage organizational expectations and drive performance. This paper, from the authors’ perspectives, concludes by analyzing the value of using a BSC for intervention and decision making by leaders within organizations and how systems theory and thinking can be used to address the limitations of the BSC. An attempt is made to answer whether the BSC is still relevant in today’s organizations.

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