Post-Implementation Benefits and Challenges of the Balanced Scorecard: Evidence from the Finance and Accounting Outsourcing Sector

Abstract

The aim of this paper is to evaluate post implementation benefits and challenges of the Balanced Scorecard (BSC) in the Finance and Accounting Outsourcing (FAO) sector in Sri Lanka. The generic idea of the BSC presented by Norton and Kaplan in the year 1992, may not be universally appropriate to all companies, and as a result there may be challenges faced throughout and after the implementation process of this tool. Hence, this study will focus on specifically examining the benefits and challenges faced by FAO companies in the post-implementation stage and discharge strategies to overcome the identified challenges. The FAO sector is selected since there is a noticeable number of entities that seem to be facing difficulties in the post implementation stage of BSC resulting in either discontinuation of it or using haphazard practices. This study followed a quantitative approach and data were collected through questionnaires and document reviews. The study found that all respondents unanimously agreed on certain benefits, prevalent challenges and strategies to overcome identified challenges, for the success of the BSC. It was noted that while the BSC proves to deliver many benefits through its use, it may only be gained through careful implementation of the same. Also, it is important to consider many challenges prior to, during and after the course of the implementation and ensure that these are overcome through carefully devised strategies.

Keywords: Balanced Scorecard, Benefits, Challenges, Strategies, Finance and Accounting Outsourcing, Sri Lanka

DOI: 10.7176/RJFA/10-22-10

Publication date: November 30^th 2019