An investigation of the effect of Balanced Scorecard implementation on financial performance

Abstract

In this quasi-experimental study, we investigate whether bank branches implementing the Balanced Scorecard (BSC) outperform bank branches within the same banking organization on key financial measures. Although the BSC has gained popularity among managers as a performance measurement tool, little empirical evidence exists to substantiate claims that the BSC promotes superior financial performance when compared to a traditional performance measurement system. We find evidence of superior financial performance for branches implementing the BSC when compared to non-BSC implementing branches.