A BALANCED INFORMATIONAL DIET: CAN THE BALANCED SCORECARD ACT TO MITIGATE HIDDEN PROFILES EFFECTS?

Nathan L. Steele Leonard Branson Chung-Hsien Sung

University of Illinois Springfield

ABSTRACT

Hidden profiles effects (e.g., Greitemeyer, Shulz-Hardt, Brodbeck, & Fry, 2006) are a condition wherein a superior decision alternative may be obscured by the poor sharing of information within decision making groups. These groups have all the information needed to identify the superior alternative, but that information is contained within isolated pockets of the group rather than distributed amongst its members. Various tactics have been implemented throughout the literature to attempt to overcome the deleterious effects of hidden profiles on decision making to little success. One area in which there is a lengthy history of groups making decisions that differ from their members and do not impound all the information possessed by their members is performance evaluation (Branson, Steele, & Sung, 2010a; 2010b).

The present study explores the use of balanced scorecard information presentation as an adjunct to group decision making. While results suggest that groups are significantly less prey to hidden profiles effects, some differentiation of the mitigating effect was seen when the unshared information included elements relevant to financial performance and customer service. When unshared information included process improvement and learning and growth perspectives (interestingly the most important category of information according the balanced scorecard’s originators; Kaplan & Norton, 2000A) groups were more prey to hidden profiles effects. Implications and limitations are discussed.