Organizational Culture: An Additional Perspective to the Balanced Scorecard

Abstract

By using a modified Balanced Scorecard tool with an additional focus on organizational culture as a fifth perspective, companies can gain or maintain a competitive advantage in today’s marketspace. This chapter presents a consistent and holistic framework, which is flexible enough to help focus on changes originating from the marketspace or within the organization. It explains why the modified tool should be used in constantly changing environments. This idea emerges from a thorough literary review and a case study conducted by TUV Rheinland India Pvt. Ltd. The findings of the case study have been conceptualized for this chapter resulting in an academic introduction to the modified Balanced Scorecard. The Balanced Scorecard with its systematic approach toward strategy development and implementation is widely used and rightly supported among practitioners. However, to stay competitive in today’s market, it is important to understand that an organization’s employees are an integral part of success, especially when considering that talent is becoming scarcer across the world. The modified Balanced Scorecard gives insight into how the additional perspective organizational culture makes a positive impact on the overall business performance. Even though several modifications of the Balanced Scorecard model exist, they have not incorporated aspects of organizational culture in the Balanced Scorecard insofar as to dedicate it a new perspective. Hence, the suggested modified tool can be seen as a pioneer in organizational development.