Document Type
Article
Publication Date
Summer 2005
Publication Title
Management Accounting Quarterly
First Page
33
Last Page
44
Additional Publication URL
http://www.imanet.org/resources-publications/management-accounting-quarterly
Abstract
Many articles explain how to develop a balanced score card using groups, but the literature provides little insight about why groups are important. We gathered data from 12 groups involved in developing balanced score cards to determine how they use information suggested by their members. We found that the groups "filter" individual members' poor ideas and "carry through" their worthy ideas to the group score card--although not all poor ideas are filtered and not all good ideas are carried forward. We also found some evidence that groups create innovative ideas but to a lesser extent than filtering and carrying through ideas. Our findings suggest that the outcome of the group process depends on the quality of the potential score cardobjectives and metrics that group members bring to the discussion. As such, entities that plan to develop a balanced scorecard in a group environment should ensure that the group contains a diverse set of individuals--each with different training, skills, and perspectives--to ensure that the group considers a large pool of good ideas.
Rights
This article was archived with permission from IMA, all rights reserved. Document also available from Management Accounting Quarterly.
Recommended Citation
Hughes, S. B.; Caldwell, Craig B.; Paulson Gjerde, Kathy A.; and Rouse, Pam, "How Groups Produce Higher-Quality Balanced Scorecards than Individuals" (2005). Scholarship and Professional Work - Business. 12.
https://digitalcommons.butler.edu/cob_papers/12
