The tyranny of the Balanced Scorecard in the innovation economy

Purpose - To trace the rationale, features, development and application of the Balanced Scorecard (BSC) over the past ten years, to provide a critical review of its key problematic effects, and to suggest a future direction. Design/methodology/approach - The shift from the industrial to the innovation economy provides a background to identifying five major problem areas of the BSC which are then discussed with reference to selected case examples. An alternative systemic scorecard is then proposed. Findings - The tyranny of the BSC as a measurement "straightjacket" is beginning to jeopardize the survival of firms, hinders much-needed business ecosystem innovation, thereby negatively affecting customer value rejuvenation, shareholders' benefits, other stakeholders as well as societal benefits in general. A more systemic alternative is proposed. Research limitations/implications - Future research might focus on further development of the systemic scorecard in different industries and organisational settings with detailed systemic measurement techniques. Practical implications - Rather than relying on the static BSC, it would be more effective to adopt a systemic perspective in measuring/ managing intangible assets. Originality/value - An alternative to the BSC is proposed that involves radical change in its underlying assumptions by moving to a more systemic, dynamic framework - a systemic management system, including a systemic scorecard. © Emerald Group Publishing Limited.