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A Critical Analysis of the Balanced Scorecard: Towards a More Dialogic Approach

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Pioneers of Critical Accounting

Abstract

The Balanced Scorecard (BSC) is a very influential performance measurement system (PMS). Such systems institutionalize certain ways of looking at, and understanding, the nature of management and organization. We provide a critical analysis that integrates a technical and social view of the BSC. This allows an analysis of the core assumptions of the BSC: the value of strategy and strategizing, the nature of stakeholder interests, the modeling of organization, and the role of language, particularly the effects of quantification. We argue that the assumptions of technical approaches to the BSC encourage mechanical, partisan, quantified and hierarchical approaches to management. We call for greater dialogue within an organization between those who contribute to an organization’s success. A more dialogic approach seeks a better balance between acting and thinking, between discussions about organizational ends and means of achieving those ends and the possible integration of social and technical understandings. A commitment democratic deliberation should lead to a more equitable scorecard, and enhanced organizational performance.

We acknowledge the financial support of the Social Science and Humanities Research Council. We thank the late Norman Macintosh for encouraging us to collaborate. Earlier versions were presented at the University of Alberta, the European Accounting Association Congress, the ‘Governing by Numbers’ conference at the University of Edinburgh and at the University of Strathclyde. We appreciate the research assistance of Olio Muchinsky and discussions with Barbara Townley, Sandy Qu and Daniel Martinez. We benefitted also from comments by Wai-Fong Chua, Niels Dechow, Ken Euske, the late Anthony Hopwood, Megan McDugauld, Andrea Mennicken, Paolo Quattrone, and Keith Robson.

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Author information

Authors and Affiliations

  1. School of Business, University of Alberta, Edmonton, Alberta, Canada

    David J. Cooper

  2. Cardiff Business School, University of Cardiff, Cardiff, Wales

    Mahmoud Ezzamel

  3. IE Business School, Madrid, Spain

    Mahmoud Ezzamel

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  1. David J. Cooper
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  2. Mahmoud Ezzamel
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Editor information

Editors and Affiliations

  1. University of Sheffield, Edinburgh, United Kingdom

    Jim Haslam

  2. University of Essex, Basildon, United Kingdom

    Prem Sikka

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Cooper, D.J., Ezzamel, M. (2016). A Critical Analysis of the Balanced Scorecard: Towards a More Dialogic Approach. In: Haslam, J., Sikka, P. (eds) Pioneers of Critical Accounting. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-137-54212-0_11

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  • DOI: https://doi.org/10.1057/978-1-137-54212-0_11

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