PurposeThe purpose of this paper is to develop a deeper understanding of the role of the balanced scorecard in strategy implementation.Design/methodology/approachThis paper provides a review of strategy implementation literature to identify the main inhibitors of successful strategy implementation and then proceeds to critically review the balanced scorecard and evaluate the contribution it can make to strategy implementation, in particular how it may be able to mitigate the problems associated with strategy implementation.FindingsIt is argued in the paper that the balanced scorecard, subject to the adoption of suitable processes, can address the key problems associated with strategy implementation including communication, the role of middle managers and integration with existing control systems. The study raises a series of research questions and proposes avenues for further research.Practical implicationsMore than half strategies devised by organisations are never actually implemented. At a time of increasing competition and globalisation; shorter lead times and increased customer sophistication, the effectiveness of strategy implementation is even more important. The findings of this study will provide the basis for research that will improve this vital management activity.Originality/valueThe effective implementation of corporate strategy is often overlooked in strategic management literature. There is still recognition that there is a need for further research. By combining two eclectic fields of research, i.e. strategy implementation and performance measurement, it is proposed that new insights can be gained to inform future practice.

With the intention of successfully meeting the challenges of an increasingly complex competitive environment, organizations in many industries are rethinking their performance measurement systems. More effective performance measurement features identified include linking operations to strategic goals, and presenting a balance of indicators. Traditional performance measurement systems, meanwhile, typically stress the short term, focusing on past achievements while largely ignoring the drivers of future performance. Concern has been expressed that UK hotels are still focusing on these traditional performance measures – and so may be overlooking important issues, potentially leading to detrimental outcomes. This concern is supported by new empirical evidence obtained regarding the current range of performance measures used within UK hotels. This evidence suggests that although they appear to monitor performance in great detail, with few notable exceptions, UK hotels do appear to emphasize traditional measures and therefore still seem to have some considerable rethinking to do

For hospitality organizations to compete successfully in the emerging information age, with its emphasis on innovation, quality and speed, it is suggested that they must adopt more flexible, responsive and empowered management structures. However, if such developments are to prove effective, it is essential that hospitality organizations also overhaul their accounting systems, most of which were designed to support the previous industrial era’s focus on volume and productivity. Indeed, there is a concern that traditional budgeting systems – with their typical bureaucratic encouragement of internally-focused, department-centred cost minimization – may present a significant barrier to effective change. It is proposed instead that a fresh approach to the objectives of budgeting is needed, involving “alternative steering mechanisms” that promote empowerment, flexibility and knowledge-sharing. This suggestion is supported by evidence from an American hotel where such a fresh approach to budgeting has been developing, “matching” its more progressive management structure

No abstract

No abstract