Does every organization need a balanced scorecard of some type?
Most, but not all, organizations can benefit from a balanced scorecard approach-both public and private. In general, the larger and more complex the organization, the more it will benefit. Companies that are heavily regulated also benefit, as well as companies in crisis. Both of these types of organizations can use the structured approach for more detailed reporting to those overseeing them. The amount of structure already in place is another factor. Depending on what types of teams are in existence, how they make decisions and the mechanisms in place for measuring individual performance, they may or may not benefit. Small organizations sometimes work fine without them; their entrepreneurial culture might be enough to sustain them. One example is Home Depot; as a small company, it had few measures in place until the current CEO came on board. During its early years, it was important for Home Depot to remain fluid, but as it grew, it needed more structure, which the CEO provided.
