Issues in the Balanced Scorecard Implementation: A Vietnamese Case Study

Abstract

      This case study examines the issues in the Balanced Scorecard (BSC) implemen- tation in a business unit of a branch of an international accounting firm in Vietnam. The study described the process of the BSC system implemented a Vietnam-based international audit firm, and used Kasurinen (2002)'s model of barriers to account- ing change to analyse barriers that caused the system ineffective. The study revealed that despite a very sound implementation process, several issues were found. They are low awareness of the system among staff and seniors, and the fail- ure to use the system to align the firm's strategy with individuals' development plan. The reasons for these issues were classified into confusers, frustrators and delay- ers. Confusers were the lack of understanding about the system, weak sponsorship process from seniors and managers, and different views on the use of the system among managers. Frustrators were the preference for indirect communication and routine of using personal relationship in allocating staff into jobs. These were found to be culture-related and task-related barriers. Delaying factors were the inade- quate education and training process, the human resource constraint, and the gap between intended and actual uses of a component in the BSC system. The study sug- gests that the inadequate of training for staff about the system seems to be the main cause of all issues; therefore, a better focus on training for staff may help to improve the effectiveness of the system.