"The Balance Scorecard:
Judgemental Effects of Common
And Unique Performance Measures"
I. Introduction
The article I decided to critique for the purpose on management accounting 2 is by Marlys Lipe and Steven Salterio. There article entitled ?The Balanced Scorecard: Judgmental Effects of Common and Unique Performance Measures' came from the July 2000 edition of the Accounting Review journal.
The Balance Scorecard (BSC) was originated by Robert Kaplan and David Norton in the early 1990's as a strategic approach, and performance management system that would enable organisations to translate a company's vision and strategy into implementation. It essentially gives managers and executives a more ?balanced' view of the company's business performance.
The reasons for choosing this topic area, revolved around the fact that I believed it is a fascinating subject area with interesting concepts, also the BSC usage in today's business world as a performance measure has increased significantly over the past decade, making BSC a very relevant topic. I also had some concerns with the aspirations and results attributable to BSC and hoped that this article would improve my understanding of the whole balance scorecard process and understand its real value to a business.
II. The Objective of this Paper
There are various motivations put forward by Lipe and Salterio (2000) to explain the objectives of this article. Firstly they wanted to evaluate and define the possible affects that common measures and unique measures may have on the BSC evaluations of a particular business unit's performance.
Secondly, they wanted to observe if unique measures are being undervalued by evaluators in favour of common measures. They wanted to address ...