Strategic Performance Measurement Systems (SPMSs) have long been recognized as a crucial element for improving business performance. Maxims such as "What Gets Measured Gets Done" reflect the view that implementing appropriate SPMSs ensures that actions are aligned to strategies and objectives.

The heavy focus on traditional accounting measures within the financial services industry has been identified as the possible cause of many problems within the industry, from the cause of the Global Financial Crisis of 2007-2008 to other recent failures within the financial services sector. Poorly designed performance measurement systems that focus solely on short-term financial performance result in managers emphasising short-term financial performance metrics, in the interest of current profitability, to the detriment of endeavours that can result in long-term benefits, including new product development, process improvement, human resource development, information technology, and customer and market development. Attempting to resolve the problem by supplementing standard financial practices with additional indicators that can help a firm evaluate its long-term performance, Kaplan and Norton introduce the balanced scorecard to integrate these factors into the business performance assessment of a company.

The Purpose

To undertake a search of the relevant literature to determine what are the major issues related to the implementation of Strategic Performance Measurement Systems (SPMSs), such as the Balanced Scorecard (BSC), in the Financial Services Sector.

Task Outline

Choose one of the major banks in Australia, discuss their current1 Balanced Scorecard and provide comprehensive analysis on:

the benefits of BSC in reaching strategic objectives of that bank

the issues related to implementation of the BSC in that bank

common barriers to successful scorecard implementation in the Financial Services sector in general.