The underlying premise of the balanced scorecard is that firms weaken their future performance possibilities when financial controls are emphasized at the expense of strategic controls. Financial controls provide feedback about outcomes achieved from past actions, but do not communicate the drivers of the firm’s future performance. These drivers can promote organizational behavior that has a net effect of sacrificing the firm’s long-term value by creating potential for short-term performance gains (Hitt, Ireland & Hoskisson, 2016).
Differentiate two assessment methods of company performance, with one method being the Balanced Scorecard. View this link for more on this method of assessment:
Compare the two methods and note at least three similarities and differences. Summarize your thoughts on the value of each method.