Moving towards agility: the contribution of a modified balanced scorecard system

Purpose – The aim of this paper is to demonstrate how agility as a central focus of an organization can be achieved through a modified balanced scorecard (BSC) system. Design/methodology/approach – An action research approach in a single organization is used to investigate the practicality and usefulness of an agility-focused BSC. Findings – While the theory of constraints (TOC)-based approach was improving agility, it is too short-term. Using a BSC, based on agility principles, staff in the organization had their direction focused on drivers of important strategic issues and enabled a more agile environment. Practical implications – Managers using the TOC have a way forward to use the TOC system, but build a performance measurement system that leads to agility and more sustained competitive advantage. Originality/value – The role of a BSC in enabling agility in an environment using TOC has not been previously investigated.