Title

Applying the balanced scorecard for better performance of intellectual capital

Source of Publication

Journal of Intellectual Capital

Abstract

Purpose - One of the responses to criticisms of traditional forms of accounting reports for knowledge-based firms has been the development of the balanced scorecard (BSC), a strategic performance measurement framework and methodology based on a family of performance measures. This paper aims to examine the issue of measuring performance in relation to a major Australian company, The Fosters Brewing Group, where a newly appointed CEO reversed a decline in performance by adopting, among other initiatives, the balanced scorecard approach to management. Design/methodology/approach - The paper takes the form of a case study,applying the theoretical framework of the BSC to a declining business in order to achieve a turnaround. Findings - The paper discusses how a newly appointed CEO of The Fosters Brewing Group reversed a decline in performance by adopting, among other initiatives, the balanced scorecard approach to management. Research limitations/implications - The BSC is a practical framework to deal with the intangible nature of knowledge, while ensuring that such investments in knowledge and management align with and contribute to their strategic direction. Practical implications - The paper provides an example of a company using the BSC to deal with the imperative of making investments in knowledge and management skills. Originality/value - There is a growing body of literature on the limitations of traditional accounting statements that measure tangible, physical assets to capture the current and future value of knowledge. This paper illustrates a framework using the BSC to manage and measure the intangible nature of knowledge.

Document Type

Article

First Page

653

Last Page

665

Publication Date

11-7-2007

DOI

10.1108/14691930710830819

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