What are the implications of balanced scorecard on budgetary systems?
The balanced scorecard, being a strategic management system, can serve as the “front end” for a performance-based budget. Its performance measures and strategic plans can provide rational guidance for budget formulation and resource allocation. In fact, some organizations have gone so far as to develop flexible strategic organizations and financial management systems that allow continuous reallocation of funds, without the need for major cyclical efforts in budgeting.
