Implementing a Balanced Scorecard Methodology in Smes

Traditional systems for performance measurement are mainly confined to monitoring financial indicators as the only relevant criteria. Various surveys conducted worldwide have shown that relying solely on financial indicators is insufficient and leads to long-term decline in the overall performance of the company. By applying a balanced scorecard list of criteria, the company is permitted to observe its business from multiple perspectives that show a comprehensive picture of enterprise performance. This methodology has proven to be very successful in large enterprises, while in small and mediumsized enterprises its use has not been sufficiently explored. In this paper, we analyze the compatibility, applicability and efficacy of the balanced scorecard methodology for performance measurement in small and medium-sized enterprises.