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& Company Management Tools and Trends 2007 (Bain, 2007) reports that 66% of the respondents were using the Balanced Scorecard (BSC) as part of their strategic decision-making process. Yet fewer than 20% of companies utilising the BSC have realised measurable performance improvement (Williams, 2004). Buytendijk (2007) proposes that the perception that implementation of a BSC, in and of itself, will lead to organisational alignment is a “fairy tale.”
Bititci, Mendibil, Nudurupati, Turner, and Garengo (2004, p. 28) posit that the implementation and use of such performance measurement systems is greatly affected by organisational culture and management styles. Denton (2005) reports that 76% of firms place importance on organisational culture, but only about 37% are measuring it. Indeed, Kaplan and Norton (2004, p. 56) observed that companies with successful BSC implementations “had a culture in which people were deeply aware of and internalised the mission, vision, and core values needed to execute the company’s strategy.”
A third concept that plays a pivotal role in this relationship is Organisational Learning. Indeed, Kaplan and Norton (2001a) include Learning as the basis from which improvement in all other perspectives grows. Further, Kaplan and Norton (1996c, p. 15) refer to the BSC as a “strategic learning framework,” and outline how the BSC facilitates learning in each of the four processes of the BSC model (Kaplan and Norton, 1996b).
Kaplan and Norton (2004) report that the Learning and Growth objective appearing most frequently in BSC’s is “shaping the culture” (p. 60). They link strategy changes resulting from the BSC to changes in culture. These changes are the direct result of organisational learning vis-à-vis the BSC feedback system. Accordingly, the literature indicates that the BSC leads to performance improvement in the presence of the appropriate organisational culture. In BSC terminology, organisational learning and growth ...
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