The Implementation of BSC Into the Management of Slovak Companies

Abstract

Implementation of the Balanced Scorecard method to the management system of Slovak businesses seems to be a real problem. A large number of factors are involved in the use of this method in the business management, from theoretical concepts to practical applications. The largest, respectively the most significant problem is in the misunderstanding of the importance and benefits of this method, but also in financial difficulty of Balanced Scorecard model implementation to the life of Slovak companies. Small and medium-sized businesses in particular are concerned about this method because it is rather expensive for them and they are not convinced of its benefits and positive results. In addition, the present time is significantly affected by a lack of funds for the implementation of expensive software solutions for business management and controlling. Balanced Scorecard method, however, is an area that cannot be omitted due to lack of funds. It is the area that is important to develop in time of lack of funds, because the right setting of goals helps to overcome this problem as well. No expensive software solutions of Balanced Scorecard from IT companies are needed but healthy strategic thinking of managers of enterprises. Only those who work in the company know it the best. The benefit of this paper is to point out away of applying BSC method without application of software products of IT companies but by the initiative of managers and employees in selected Slovak companies.

Non-Financial Indicators and Their Importance I

“…Thus, we cannot accept the established hypothesis based on the received data. We agree with the authors Horváthová et al (2014), who argue that, the implementation of the Balanced Scorecard method to the management system of Slovak businesses (especially in Slovak SMEs) seems to be a real problem. Gumbus & Lussier (2006) in their article describe, why small businesses should use the BSC concept:…”

“…Business performance measurement is a topical issue in strategic management, and thus more research regarding this topic can be expected (Tizroo et al, 2017;Petera, Wagner, & Menšík, 2012;Horváthová et al, 2014;Becerra-Alonso, Androniceanu & Georgescu, 2016;Łakomy-Zinowik& Horváthová, 2016;Gumbus & Lussier, 2006). Enterprises are largely managed through financial indicators, but the current trend is showing the increasing importance of non-financial measurers, too.…”