Implementing a balanced scorecard at a software development company

Abstract

In this paper, the authors develop a specific balanced scorecard (BSC) model, and present the experiences from its real-life implementation at a large software development company. The proposed approach is based on the Kaplan-Norton model, and takes into account the particularities of the software industry. Via the discussion of the actual implementation in a technology driven and oriented company, they illustrate the effect that the dynamic environment and the increased concerns about intellectual capital have on business strategy and the performance metrics inherent in the BSC model. In this context, the authors also identify and evaluate some critical success factors and shortcomings of the particular project in order to derive guidelines for similar implementations.