Boston Lyric Opera Case for Management Control

2006 Words Oct 27th, 2010 9 Pages
GRADUATION: 2011



CONTENTS

3LITTERATURE REVIEW

Introduction 3

The Cause and Effect Relationship 3

LITTERATURE REVIEW 4

Criticism 4

Modified Balanced Scorecards 4

BOSTON LYRIC OPERA CASE STUDY 5

Limitations (first draft, only bullet points for the moment) 5

CRITICISM OF THE BALANCE SCORECARD 6

_Top-down implementation 6_

_Managers responsibility in the implementation 6_

_The BSC fails to capture complexity 6_

_Adaptability 7_

_Time factor 7_

_Cost and efficiency 7_

_Conclusion 7_

RECOMMENDATIONS 8

Extra Perspectives 8

Cause-and-Effect Relationship 8

Activity Based Costing, ABC-BSC 8

BIBLIOGRAPHY 9





LITTERATURE REVIEW

INTRODUCTION

The Balanced Scorecard is a strategic management tool that combines four
…show more content…
It clarified day to day

work objectives. As a result, the performance has improved.

LIMITATIONS (FIRST DRAFT, ONLY BULLET POINTS FOR THE MOMENT)

Heavy process, even more for a non-profit organization that just want to achieve a

balanced budget. Need to evaluate every year and adjust.

Scepticism of some on the board (used to only treat financial measures, restricted action "it clarified also what not to do", non-profit "losing its soul" becoming more like a business not really performing arts anymore...)

Less room for initiatives? Mind of the staff formatted towards upon-agreed goals?



CRITICISM OF THE BALANCE SCORECARD

Accounting practices raise a lot of issues. The BSC is supposed to solve most of them: abstraction, shortsightedness, monetary orientation, oversimplification and lack of focus on intangible factors (Johanson _et al._, 2006). But things are not always perfect. According to a KPMG report cited by McCunn in 1998 (McCunn, 1998), more than 70% of scorecard implementations fail. The implementation of a balanced scorecard in a company needs certain "enablers" that companies often lack. Described by Chan (2004), these are for example: top managers' commitment, training and education, clarity of vision.

Additionally to the criticism of the way the BSC is used, we also found critical opinions about the tool itself and its usefulness today.

TOP-DOWN IMPLEMENTATION

The implementation of the BSC demands collaboration and mobilization of all employees.