A Balanced Scorecard becomes a means of communicating the strategy of an organization to its employees and managers. Which of the following is a downside of communicating this information?
A)The expanded set of metrics for performance evaluation will not be followed.
B)The alignment of performance measures to the objectives of an organization gets neglected.
C)Sensitive information may end up in the hands of competitors.
D)The reward system gets tied just to traditional financial measures.

Question

Quizplus · Accepted Answer

Communicating the strategy of an organization through a Balanced Scorecard can lead to sensitive information being shared with competitors. However, this can be mitigated by limiting the distribution of the Balanced Scorecard and ensuring that only necessary personnel have access to it. The other answer choices are potential downsides, but are not as directly related to the act of communicating the information.

A Balanced Scorecard Becomes a Means of Communicating the Strategy