Table of Contents· Introduction……………………………………………………..1 · Balanced Scorecard System (BSC)……… …………………….1-2· Implementation of the Balanced Scorecard in SMEs…………….3Strategic destination…………………………………… ……….3Perspectives………… …………………………………………..3-4Measures …………………………………………………… …5-6 · Challenges encountered and possible recommendations to overcome them…………………………………………………………………7-8 · Limitations of the BSC…………… ………………………… …….8-10· Conclusion………………………………………………….......10· References……… ………………………… ………………….10-122 | P ag eIntroductionThe progression of small and medium enterprises (SMEs) has been recognized for the success of widespread development goals that include poverty alleviation, advancement of democratic societies and economic development. (Henriques nd). For a sustainable and complete environment, it is necessary for organizations to measure their functioning. The introduction of strategic performance measurement (SPM) systems has been identified as the implementation of an effective strategy that effectively measures past actions through appropriate survey and data analysis that is translate into a diversified model. strategic decisions. Traditional organizational performance measurement systems analyze the financial aspect. Due to globalization, competition has increased both in local and international markets. This provides a clear view of the organizational capacity of today's business markets. Furthermore, to succeed in this dynamic environment, it is essential that companies integrate SPM with organizational strategy. Organizations must monitor whether customer satisfaction is being met and costs are under control. SPMS improves development but creates a g...... middle of paper ......bid/117/Default.aspx12 | P ag eSenge P (1990). “The Fifth Discipline”, Doubleday Currency, USSenge P, Roberts C, Ross R, Smith B, Roth G, Kleiner A (1999). “The dance of change; The Challenges of Maintaining Momentum in Learning Organizations”, Nicholas Brealey Publishing Ltd., UKKotter J (1996). “Leading Change”, Harvard Business School Press, USHenrik, V. Andersen, G. Michael, S. 2000. The Balanced Scorecard vs. The excellent EFQMbusiness model. What is the best strategic management tool? 2GC Limited. pp1-16.Wu, C., Zhao, J., Xia, L. and Zhu, Z. 2008, "Impact of internal factors on the adoption of information technology: an empirical investigation of Chinese enterprises", Tsinghua Science & Technology, vol. 13, no. 3, pp. 318-322. Yuen, CYT (2002), "Marketing in SME's", Warwick Manufacturing Group, University of Warwick, Coventry, Master's thesis, .