If an IT balanced scorecard's performance indicators are found not to be objectively measurable, what is the main risk?

The main risk associated with an IT balanced scorecard's performance indicators not being objectively measurable is that misleading indications of IT performance may be presented to management. When performance indicators lack objectivity, they can lead to subjective interpretations, which may not accurately reflect the true performance of IT services or projects. This can result in management making decisions based on distorted or inaccurate data, which in turn can affect strategic planning, resource allocation, and overall organizational performance.

Objective measurement is critical for ensuring that performance indicators provide clear, reliable information. When these indicators are subjective or ambiguous, they may mislead management into thinking that IT is performing satisfactorily when it is not, or vice versa. This misrepresentation can hinder the organization's ability to address actual issues, innovate, and improve service delivery, ultimately impacting the business's success.

The risk highlighted in this relevant choice emphasizes the importance of having solid, objective metrics within the balanced scorecard framework to truly reflect performance and support effective decision-making.