Many leading firms unquestionably began to use Balanced Scorecards when they verified its significance in improving their performance by linking their executives and members in a concerted effort to achieve their goals and global objectives as well. Again, the use of balanced scoreboards methodology in knowledge management has significantly increased with changing time. Balanced scorecards refer to a strategy performance management tool utilized by managers to keep track of the performance of staff and to monitor the outcomes arising from their actions. Use of balanced scoreboards impacts knowledge creation, culture, and strategy in the following manner;
First, balanced scorecards are utilized by organizations as a measurement of knowledge creation. Regarding that, measurement is an integral part of the management process. The balanced scorecards provide managers with a comprehensive framework that translates the firm’s objectives into a coherent set of performance measures. Moreover, balanced scorecards are utilized in determining the relationship between data and information. By integrating balanced scoreboard approaches with communities of practice theory and language as well, knowledge creation, culture, and strategies can be leveraged. More importantly, by providing measurable outcomes that can be utilized by the operational staff to enhance knowledge creation, balance scorecards play an essential role in leveraging knowledge management. Lastly, balanced scoreboards impact knowledge creation, culture, and strategy by identifying change needs as well as in transforming culture and organizational strategies.
It is imperative to comprehend these important concepts within an organization since they have a direct impact on the overall performance of executives and staff as well, Moreover, Knowledge creation, culture, and strategies have a significant impact on global strategy as well as subsequent financial performance. Also, it assists the organization in better management of information. Concerning that the knowledge obtained from the impact of balanced scorecards on knowledge creation, culture, and strategy forces the firm to design key performance indicators necessary for various strategic objectives. This is vital in an organization as it ensures that it only measures what matters. Research by Yanine et al., (2020) indicates that organizations using Balanced Scorecards technique strategy tend to report a higher quality of their management information. Moreover, they tend to have increased benefits from how this information is utilized in guiding management insights as well as strategic decision making.