Adaptation of the balanced scorecard model to the IT functions

Abstract

The essence of keeping score about everything cannot be overemphasized. A performance measurement system may provide an early warning detection system indicating what has happened; diagnose reason for the current situation; and indicate what remedial action should be taken. Businesses rely on performance measurement systems to provide a feedback on the health of the business. The balanced scorecard (BSC) framework suggests the use of non-financial performance measures via three additional perspectives, i.e. customer, internal business process, learning and innovation to supplement traditional financial measures, believing that if used in that way, the scorecard addresses a serious deficiency in traditional management systems: their inability to link a company's long term strategy with its short term actions. This paper highlights the issues and combination of factors that influences the adaptation of the balanced scorecard model to the IT function and draws attention to cases of organisations that have attempted to implement the balanced scorecard to their IT departments, highlighting their challenges and rewards.