When Robert Kaplan and Thomas Johnson wrote about the fall of management accounting systems and pleaded for new perspectives and approaches to strategic process control they wrote a most relevant statement that still stands today. But as organisations are implementing performance measurement systems as applications of their business intelligence infrastructure, news risks of losing the most relevant part of strategic management arise. There is a clear need for a new, extended approach to the balanced scorecard (BSC). If you wonder what this may be, then read more.
In this article I describe the generic strategy process, compare this with the performance management process, how it is implemented in some organisations and analyze the aspects of this process related to the organization’s leadership style and thus the consequences for the balanced scorecard’s effectiveness.
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