Business Commons^™

The Balanced Scorecard And Related Systems: The Information Dimensions In Their Performance Reporting Systems, And Their Effects On Performance, Errol Iselin, Lokman Mia, John Sands

Errol Iselin

The Balanced Scorecard (BSC) and related systems have become popular in recent times due to problems associated with traditional financial systems. The BSC incorporates a multi-perspective performance reporting system that reports information about four perspectives - learning and growth, internal business processes, customer, and financials. BSC theory argues that there is a cause and effect relationship from the first perspective to the last. There are broader multi-perspective systems in practice that have two additional perspectives to these four - social and environmental. Atkinson et al. (1997) have argued that the BSC is among the most significant developments in management accounting …