Balanced Scorecard's Suitability for Knowledge-Intensive Organization : Case Centre for Wireless Communications

Abstract

ABSTRACT

Äikäs, Timo. 2011. Balanced Scorecard's suitability for knowledge-intensive organization. Case Centre for Wireless Communications. Master's Thesis. Kemi-Tornio University of Applied Sciences. Business and Culture. Pages 65.

In this thesis a qualitative case study method is used. The aim of the thesis is to study if Balanced Scorecard (BSC) is a suitable instrument for performance measurement and strategic management in the case organization, Centre for Wireless Communications (CWC). In addition, the aim is to find out what CWC can accomplish by adopting BSC-framework and identify factors that may cause problems for performance measurement or to implementation process of Balanced Scorecard.

There are several advantages of implementing Balanced Scorecard framework. BSC supports CWC as an organization in achieving its strategic planning and control functions. BSC clarifies and translates strategy into action, it helps in communicating strategy through the organization and it aligns both CWC's and individual's goals to the strategy. Besides these, BSC can assists CWC's managers in evaluating capability and efficient use of resources, complete allocated tasks acceptably, prioritize the responsibilities and allocate needed resources to execute detailed strategy. The use of BSC improves management, leadership and also quality of working life, which will lead to higher performance of the employees and finally higher performance of the CWC. The primary problems that may hamper the performance measurement are related to the organizational culture, organization and managerial practices in competitive environments and lack of employee participation

The conclusion is that the Balanced Scorecard is a suitable tool for measuring the case-organization's performance and for strategic management. Improving the performance of CWC, so that it can better serve its customers, employees and stakeholders, is the definitive aim of implementing a performance measurement system.