Strategic Balanced Scorecard‐based budgeting and Performance Management

Corporate America is littered with examples of failed strategies, mergers and acquisitions, and bankruptcies that have left large groups of investors dismayed and perplexed. As a result, public outcry has increased for increased regulatory action and controls and reporting transparency to protect investors. Publicly traded companies now face increased disclosure and mandatory compliance with the Sarbanes-Oxley Act, one of the most far-reaching acts of its kind in recent memory. This chapter focuses on understanding why companies fail to implement their strategies (the four barriers) and the vital role of the strategy map and balanced scorecard-based budgeting.