The introduction of the Balanced Scorecard framework to the
O’Reilly family business has proved beneficial to the various
stakeholders, i.e., family, directors, and managers. The BSC has
enabled the family to be assured that their expectations have
been installed as a central consideration in the development of
the business strategies and plans. The methodology of scorecard
development ensures at least recognition of the visions of key
stakeholders. The subsequent development of missions, strategic
objectives, measures and targets can then be scrutinized by
stakeholders to ascertain their consistency with these visions.
The board of directors more regularly undertakes this scrutiny on
behalf of the stakeholders in its endeavor to balance the family’s
needs with those of a business nature. The Balanced Scorecard
provides a reporting regime that reflects both these needs and,
importantly, reinforces in both the strategy formulation and
strategy implementation process, the criticality of family
business alignment. Management can then be encouraged by
the scorecard reporting requirements to focus on the operational