Barriers in Implementing Performance Measurement Systems Kaplan and

Norton (1996) identified four barriers to implementation of performance

measurement systems. These barriers are as follows:

 Vision and Strategy Not Actionable

This occurs when the senior management team has failed to achieve
consensus as to how the vision should be achieved. This leads to
different groups pursuing different agendas and effort is neither
coherent nor linked to strategy in an integrated way.

 Strategy Is Not Linked to Department, Team and Individual Goals

When this happens, then those concerned continue to follow the old
traditional performance criteria and thwart the introduction of thé new
strategy. This can be exacerbated by an unaligned incentive system.

 Strategy Is Not Linked to Resource Allocation

This often occurs when the long-term strategic planning process and
annual budgeting process are separated and may result in funding and
capital allocations becoming unrelated to strategic priorities.

 Feedback Is Tactical and Not Strategic

This occurs when concentrates solely on short-term results (such as
the financial measures) and little time is reserved for the review of
indicators of strategy implementation and success.