Source Identification of Potential Malfunction of Balanced Scorecard System and Its Influence on System Function

The constantly increasing complexity of competitive environment emphasizes the demands on area of measurement and performance control in many companies. Number of utilized systems for measurement and performance control were criticized due to many asymmetries in the sphere of measurement and control so far. Especially their synthetic view of performance, expressive orientation to past, disconnection of strategic stem with operative, minimal emphasis on intangible assets seen as vehicles of present as well as future company success were criticized. These deficiencies are markedly eliminated by Balance Scorecard system (BSC). It is approved systemfor measurement and performance control as well as for strategy implementation for almost 20 years, and predominantly in the countries of Western Europe and USA. The BSC basis is a formulation of vision, mission and strategy that are the result of company managementconsensus. The core of the system is the way and content of file measure conceivability in a mutual balance and also casual relations that are interconnected to strategy formulation. The correct construction of measures for company strategy is to tip the strategic priorities, and by means of casual-subsequent connection it is possible to tip the way to strategy realization. Equilibrium in system is provided by implementation balance and strategy evaluation. Besides many positive responses of implemented BSC system and its contribution to effective measurements and performance control in companies, there were also observed some negative experiences that declare an insufficient contribution of the BSC, dissatisfaction with the system and failure. This view signifies that the BSC system is non-functional as well as without any contribution. The article is based on the results of a research realized in a period of 2008–2011 in two phases. The aim of the first research phase (2008–2010) was to identify the problematic areas of the BSC system implementation and to propose some possible solutions. Together with the results of the first research, there was realized the second research (2010–2011) to verify the connection of aim fall, or more precisely the decrease of performance with the BSC system, and to convey the extent of function/malfunction of the BSC system in the individual respondent conditions. In the context of the research results, there is the aim of the article – systematization of the basic BSC principles and their concretization by means of potential reasons of malfunction.