Abstract

Though studies abound for large organizations where use of the Balance Scorecard is quite common, literature focused
on the uses and limitations of the Balanced Scorecard in small and medium-sized enterprises (SMEs) is difficult to find. To help fill the gap, this study was conducted using one SME that failed in its attempt to implement the Balanced Scorecard with the goal of ascertaining the cause of the failure of the Balanced Scorecard. Data was collected for this study via interviews and researcher observations. Two in-depth interviews were conducted, one with the manager-owner and one with the employee who is directly responsible for the design and implementation of the Balanced Scorecard. The researcher also observed and facilitated the design and implementation of the Balanced Scorecard in the company over the same period. The results reveal that frequent change in strategy was a major factor leading to the failure of the Balanced Scorecard in SMEs.

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