Third‐generation balanced scorecard: evolution of an effective strategic control tool

Abstract

The balanced scorecard is a performance management framework that became popular during the early 1990s. This paper describes changes to the definition of the framework that have occurred since then, recognising within these changes three distinct generations of balanced scorecard design. The paper relates these developments to literature concerning strategic management within organisations, observing that the changes made have improved the utility of the balanced scorecard as a strategic management tool. The paper concludes that the changes illustrate the importance of ideas of information symmetry in the understanding of strategic control processes within organisations. Suggestions of topics for further research are also made.