Performance measurement systems:failures and future - a review

Purpose - The purpose of this paper is to evaluate Balanced Scorecard by listing claims made by its authors and counterclaims made by other scholars/authors; to justify further research for answering the question "how to measure" in a broad manner; and to justify further research in "dynamic performance measurement systems for global organisations". Design/methodology/approach - By referencing relevant literature, this paper first evaluates Balanced Scorecard. In its second part, the problems associated with designing and implementing performance measures are listed and lack of research in dynamic performance measurement systems for global organisations is brought to attention. The third part emphasises the need for further research to address the issues mentioned in part two. Findings - The literature reveals that Balanced Scorecard still prevails as the dominant performance measurement system. Successful implementations, however, are much less prevalent and translating Balanced Scorecard to action is still a problematic area. Research limitations/implications - A vast, multidisciplinary volume of literature is available on performance measurement. This review has referenced mostly recent (2000) 2005) literature. Practical implications - This review provides a reference for academics/ practitioners by listing and organising major claims made by authors of Balanced Scorecard and counterclaims made by other authors/scholars. This review also brings to notice the difficulties associated with designing and implementing measures, identifying opportunities for ongoing research. Originality/value - This paper forms the basis for a new research direction that considers global organisations and explores the design of a dynamic performance measurement system that operates within an integrated framework of business processes