Bundling and Diffusion of Management Accounting Innovations, the Case of the Balanced Scorecard in Sweden

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Bundling and diffusion of management accounting innovations, the case of the balanced scorecard in Sweden The message of the research? The study looks at the Communication, diffusion, and transformation of the balanced scorecard in Sweden from a supply side perspective. What is Balanced Scorecard (BSC)? The balanced scorecard is a strategic planning and management system that is used extensively in business and industry, government, and nonprofit organizations worldwide to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals. It was originated by Drs. Robert Kaplan (Harvard Business School) and David Norton as a performance measurement framework that added strategic non-financial performance measures to traditional financial metrics to give managers and executives a more 'balanced' view of organizational performance. In this paper we focus on the diffusion of a particular innovation namely the balanced scorecard. The authors discuss why companies demand the BSC, what it can be used for and how it should be implemented. The importance of research: * To explore the way the BSC is communicated to potential adopters in Sweden. * To identify the origin of the elements that are linked to the BSC in the communication process. * To discuss and analyze the role that these elements play in the diffusion process. Key findings in the research: In order to make BSC more attractive to a potential Swedish adopter market, there are 3 elements that the propagators of the BSC have to offer: * The BSC and non – budget management: According to Jan Wallander, former CEO and chairman of Svenska handelsbanekn: budgeting prevents management from seeing new trends, it is fault to consider it as a planning and control

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