Applying the balanced scorecard for better performance of intellectual capital

Document Type

Article

Source of Publication

Journal of Intellectual Capital

Publication Date

11-7-2007

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.

ISSN

1469-1930

Publisher

Emerald

Volume

8

Issue

4

First Page

653

Last Page

665

Disciplines

Business

Keywords

Balanced scorecard, Company performance, Intellectual capital, Knowledge management, Performance measures

Scopus ID

35649023711

Indexed in Scopus

yes

Open Access

yes

Open Access Type

Green: A manuscript of this publication is openly available in a repository

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