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Posted On: July 22nd 2026, 05:30 pm
5 people measures were tested against profit. The one most owners actually collect came last. Swipe for the order.
Researchers pooled 134 studies published between 1993 and 2023, covering 721,826 observations, to test whether the 4 areas of the balanced scorecard really feed each other. They found learning and growth is the cornerstone of the whole model.
Underneath that headline sits the more useful detail. Of the people measures tested against financial performance, motivation and knowledge sharing tracked it most closely. Staff satisfaction tracked it least closely.
Three caveats. That ranking is my reading of the reported figures, and the authors did not test whether the gaps between them are meaningful. The studies come mostly from corporate settings, with firm size never examined. The strength of every relationship also varied a great deal between studies, which the authors also flag themselves.
The 2 actions on slides 5 and 6 are mine, directly from the mechanism rather than tested in the paper.
Save this and open it 10 minutes before your next management meeting.
🫡
Source: Liao, Y. K., Wang, S., Vo, T. T., & Wu, W. Y. (2025). An investigation of leading and lagging indicators for balanced scorecard: A meta-analytic approach. SAGE Open, October to December 2025, 1 to 26. doi:10.1177/21582440251359833
#businessowner #leadership #smallbusinessuk #evidencebased #management
Researchers pooled 134 studies published between 1993 and 2023, covering 721,826 observations, to test whether the 4 areas of the balanced scorecard really feed each other. They found learning and growth is the cornerstone of the whole model.
Underneath that headline sits the more useful detail. Of the people measures tested against financial performance, motivation and knowledge sharing tracked it most closely. Staff satisfaction tracked it least closely.
Three caveats. That ranking is my reading of the reported figures, and the authors did not test whether the gaps between them are meaningful. The studies come mostly from corporate settings, with firm size never examined. The strength of every relationship also varied a great deal between studies, which the authors also flag themselves.
The 2 actions on slides 5 and 6 are mine, directly from the mechanism rather than tested in the paper.
Save this and open it 10 minutes before your next management meeting.
🫡
Source: Liao, Y. K., Wang, S., Vo, T. T., & Wu, W. Y. (2025). An investigation of leading and lagging indicators for balanced scorecard: A meta-analytic approach. SAGE Open, October to December 2025, 1 to 26. doi:10.1177/21582440251359833
#businessowner #leadership #smallbusinessuk #evidencebased #management
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