Abstract

http://ssrn.com/abstract=278939
 
 

References (54)



 
 

Citations (40)



 


 



Communicating and Controlling Strategy: An Empirical Study of the Effectiveness of the Balanced Scorecard


Mary A. Malina


University of Colorado at Denver - Business School

Frank H. Selto


University of Colorado at Boulder - Department of Accounting

April 2001


Abstract:     
This paper reports evidence on the effectiveness of the Balanced Scorecard (BSC) as a management-control and strategy communication device. This study first reviews management control and communication literatures that identify attributes of effective control and communication of strategy. Second, the study offers a model of control and communication applicable to the BSC. The study then analyzes empirical interview and archival data to model the use and assess the control and communication effectiveness of the BSC. The study includes data from multiple divisions of a large, international manufacturing company. Data are from BSC designers, administrators, and North American managers whose divisions are objects of the BSC. The study accumulates evidence regarding the challenges of designing and implementing the BSC faced by even a large, well-funded company. These findings may be generalizable to other companies adopting or considering adopting the BSC as a strategic and management control device.

Data indicate that this specific BSC, as designed and implemented, is an effective device for controlling corporate strategy. Results also indicate disagreement and tension between top and middle management regarding the appropriateness of specific aspects of the BSC as a communication, control and evaluation mechanism. Specific results include evidence of causal relations between effective management control, motivation, strategic alignment and beneficial effects of the BSC. These beneficial effects include changes in processes and improvements in both the BSC and customer-oriented services. In contrast, ineffective communication and management control cause poor motivation and conflict over the use of the BSC as an evaluation device.

Number of Pages in PDF File: 54

Keywords: Balanced scorecard; Management control; Communication; Qualitative analysis

JEL Classification: L20, M40, M46

working papers series


Download This Paper

Date posted: August 9, 2001  

Suggested Citation

Malina, Mary A. and Selto, Frank H., Communicating and Controlling Strategy: An Empirical Study of the Effectiveness of the Balanced Scorecard (April 2001). Available at SSRN: http://ssrn.com/abstract=278939 or http://dx.doi.org/10.2139/ssrn.278939

Contact Information

Mary A. Malina
University of Colorado at Denver - Business School ( email )
1250 14th St.
Denver, CO 80204
United States
Frank H. Selto (Contact Author)
University of Colorado at Boulder - Department of Accounting ( email )
419 UCB
Boulder, CO 80309-0419
United States
303-492-1549 (Phone)
303-492-5962 (Fax)
Feedback to SSRN


Paper statistics
Abstract Views: 19,849
Downloads: 7,075
Download Rank: 377
References:  54
Citations:  40

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo1 in 0.594 seconds