The directors of Glovac Sdn Bhd are becoming increasingly aware of the need for a sound design and understanding of the use and implications of a strategic performance measurement and control system. The use of measures of divisional performance other than financial is not new. Organizations have always used a number of non-financial performance measures. One such divisional performance model which uses both financial and non-financial measures is the Balanced Scorecard (BSC) and Strategy Mapping (SM) model. The BSC and SM idea were developed by Harvard academic Robert Kaplan and consultant David Norton, based on their work with US organizations, published in the Harvard Business Review (Kaplan & Norton 1992, 1993, 1996).

Required:

Critically discuss the practical usage of balanced scorecards and strategy maps for effective divisional performance management and monitoring. The discussion should include a crisp introduction of BSC and strategy mapping(merits and demerits) and a critical evaluation.