6 Disadvantages of a Balanced Scorecard

The balanced scorecard (BSC) has been a buzzword in performance management since Kaplan and Norton introduced it in the ’90s. But is it as flawless as it seems? Before making it part of your performance measurement and strategic plan, let’s check out some surprising downsides you need to know.

confused businessman standing on broken see-saw as metaphor for disadvantages of balanced scorecard

6 Biggest Disadvantages of Balanced Scorecards:

1. Picking the Wrong Metrics
If you get the performance indicators wrong, the balanced scorecard can completely misrepresent how your organisation is performing. Instead of driving improvement, it can lead to wasted time chasing the wrong priorities.

2. Overloading on KPIs
Choosing too many KPIs can quickly overwhelm your team. When everything is measured, nothing stands out as a priority. This can cause gridlock and make it hard to take clear action.

3. Struggling to Get Buy-In
If leadership imposes the BSC without getting input from key stakeholders like team management and employees, it’s unlikely to gain much traction. Without engagement across the organisation, it becomes just another box-ticking exercise.

4. Poor Data Quality or Gaps
The balanced scorecard relies heavily on accurate and up-to-date data. If the data is incomplete, out-of-date, or just plain wrong, it won’t give a clear or reliable picture of performance. This can lead to bad decisions.

5. Weak Links to Strategic Goals
A big disadvantage is when the metrics don’t clearly tie back to strategic objectives. When that connection is missing, it’s hard to see the value of the scorecard or use it effectively to drive progress. Luckily, the third-generation BSC model—the KPI Tree—solves this brilliantly by visually connecting every metric to specific strategic goals, making the links crystal clear and actionable.

6. Challenges in Turning Insight into Action
Even if the scorecard highlights problem areas, acting on them can be tough. Making changes often requires significant time, effort, and resources—not to mention team buy-in—to get results.

The Balanced View

While the balanced scorecard has its challenges, it’s still groundbreaking for strategic management when used wisely. By understanding its disadvantages and leveraging its strengths, you can align your goals with the right metrics for smarter organisational performance measurement.

Read our 5 advantages of the balanced scorecard and explore the three generations of BSC models to see how you can use this management system to drive customer satisfaction and deliver on your strategic plans. Give it a go—it might just be the initiative your organisation needs.