Abstract:
This paper investigates how multiple and conflicting objectives are managed within an
organization, and the role that Management Control Systems (MCS), the Balanced Scorecard
(BSC) in particular, play to enable a balance between objectives. The issue of achieving
multiple objectives, those which represent the interest of various stakeholders, has come to the
forefront of the corporate agenda as companies are seen increasingly as more than a source of
profit for shareholders, but rather as citizens playing a broader role in society. The current study
adopts an exploratory case study approach to understand how the BSC is used in the
management decision and control processes to assist with the balancing of objectives. The case
organization is a state owned electricity company, and provides a unique setting where multiple
and equally important strategic objectives exist. This research demonstrates that the BSC has the
potential to help balance objectives, although several other contingent factors are also associated
with this process. The paper provides insights into the validity of prescriptions proposed by
Kaplan and Norton (1992, 1996a, 1996b, 2001a, 2001b, 2001c) and more generally into issues
of balanced strategic management as it - based on the case analysis - discusses 'balance' in
terms of both process and outcomes.
