Many cooperatives are facing challenges in developing business strategy. The paper advocates that as some banks in Nigeria have adopted the model, the management of such banks should be conscious of its limitation and consider adaptation of the model to take into cognizance the impact of competition, technology and other peculiar environmental factors which tends to define the Nigerian business landscape. Some of these weaknesses are: the assumption of cause-and–effect relationship using the model for multiple purposes promote multiple objectives subjectivity in assigning weight to the measures and the inherent flaws associated with the four perspectives - absence of a clear link between the measures. The paper reviewed existing literature relating to the use of balanced scorecard for performance measurement and observed that though these studies agrees that the model has gained wide acceptance among firms as it is capable of helping to overcome the deficiencies of the traditional accounting-based performance measures which includes arbitrariness of earnings as a component of accounting measures, easy manipulation, accounting profits exclude investment, earnings ignore the time value of money and, profits lead to short term focus, it however, has some inherent limitations or weaknesses. This study examines the challenges and prospects of using the balanced scorecard as a performance measurement technique.
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