One of the key ideas in the Balanced Scorecard (BSC) is the development of a causal model of the strategy (Norreklit, 2003). This model is supposed to describe thecause-effect relationship of an organization’s strategy (Bourguignon et al., 2004). The development of the strategy map and subsequently the scorecard is supposed to be based on this causal model. This model represents the business hypothesis of the strategy.
BSC and causal model
Causal model of strategy
Evidence on BSC implementation