Implementing the Balanced Scorecard to Achieve Strategic Management Objectives: The Case of the Small Engineering Consultancy

The objective of this research is to explore the relationship between the balanced scorecard framework and revenue growth among technology-driven, consulting enterprises. Consulting engineers alone are an important part of the US economy, generating about $250 billion annually in GDP, nearly 1% of the total. Moreover, they represent about 17% of the total workforce. They fight for survival in a dynamic and turbulent environment where the critical strategic resource is an individual´s ability to manage the convergence of rapidly evolving technologies. Operations are dominated by exceptions, rather than routine replications of standardized procedures. To study the application of the framework, a telephone survey of a random sample of enterprises ranked by the Zweig Letter Hot Firm List, emphasizing growth among US architecture, engineering, and environmental consulting firms, was conducted. The focus was on enterprises that changed classification, based on gross revenue between 2001 and 2004, from disadvantaged to small, and from small to medium. Statistical analyses highlight not only the advantages of pursuing a balanced approach to growth, but also the importance of client intimacy as a key to generating wealth in knowledge-driven, innovative societies.