Bose, Sanjoy and Thomas, Keith (2007) Applying the balanced scorecard for better performance of intellectual capital. Journal of Intellectual Capital, 8 (4). pp. 653-665. ISSN 1469-1930

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.

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