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Leading change with The Balanced Scorecard
... The linking of indicators and the dissemination of strategic information is central to the success of an organization (Kaplan & Norton, 1993, 2001a; the organization's strategic plan and operational activities (Kaplan & Norton, 1992). Thus, BSC managers compare current performance to outlined or predicted performance (Kaplan & Norton, 1993, 2001a; Mooraj et al., 1999; Wong-On-Wing, Guo, Li, & Yang, 2007). ...
... The linking of indicators and the dissemination of strategic information is central to the success of an organization (Kaplan & Norton, 1993, 2001a; the organization's strategic plan and operational activities (Kaplan & Norton, 1992). Thus, BSC managers compare current performance to outlined or predicted performance (Kaplan & Norton, 1993, 2001a; Mooraj et al., 1999; Wong-On-Wing, Guo, Li, & Yang, 2007). This performance monitoring allows managers to know and realign their market positioning (Poll, 2001;Green et al., 2002;Kaplan, 2010), enabling continuous adjustment of corporate strategy (Cooper et al., 2011). ...
... Thus, BSC managers compare current performance to outlined or predicted performance (Kaplan & Norton, 1993, 2001a; Mooraj et al., 1999; Wong-On-Wing, Guo, Li, & Yang, 2007). This performance monitoring allows managers to know and realign their market positioning (Poll, 2001;Green et al., 2002;Kaplan, 2010), enabling continuous adjustment of corporate strategy (Cooper et al., 2011). In addition to measuring performance, the BSC can ensure effective communication throughout the organization (Kaplan & Norton, 1996, 2001bLima, Cavalcanti, & Ponte, 2004;Mooraj et al., 1999), making it a fundamental management tool (Frigo & Krumwiede, 2000). ...
This study aims to identify and characterize the culture of the largest exporters without the Balanced Scorecard (BSC) and with the BSC implemented. In addition, it confirms whether there are different characteristics in the type of organizational culture of the largest exporters without the BSC and with the BSC. To achieve this objective, data were collected through questionnaires sent to the 250 largest exporters in Portugal. Multivariate statistical techniques were used to validate the research hypotheses. This research shows that the Adhocracy (turbulent management) culture type prevails in organizations without BSC, while the Market (productivity) culture type prevails in organizations with BSC. The study is based on the characterization of the culture type of the organizations. This characterization is significant because organizational culture shapes and differentiates organizations’ actions, goal definitions, and strategic objectives, which can affect organizational performance. Although recent literature has addressed organizational culture and performance monitoring in isolation, not many studies have been found that link the topics of organizational culture, BSC, and performance.
... The BSC has been widely adopted by manufacturing, service, non-profit, and public organizations around the globe [42][43][44]. The term BSC reflects Kaplan and Norton's [45] attempt to provide a monitoring system that communicates both financial and nonfinancial measures using a combination of lagging and leading indicators while addressing long-term and short-term objectives [46]. BSC has emerged as a valuable tool for performance management, a tool that provides managers with the mechanisms to develop performance targets and indicators linked to strategy [42]. ...
... Ziegenfuss [48] suggests that there should be a maximum of 10 indicators, across the four perspectives, to avoid the process becoming unwieldy. By so doing, a company avoids assessing secondary indicators and can dedicate its capacities and resources on important activities [45,49]. ...
... Source: Retrieved from [41,45] and enriched from other sources, e.g., [42,49]. ...
The aim of this study is to suggest a framework for performance evaluation of smart tourism initiatives/projects implemented in tourist attractions. The suggested tool is based on the theoretical foundations of Service-Dominant Logic and the Balance Scorecard framework, an established strategic management framework that maps an organization's strategic objectives into performance indicators. The suggested template for performance evaluation was tested and validated within the context of China, and 30 interviews were conducted with managers of tourist attractions rated the highest quality level in Zhejiang Province, China. The empirical study's results indicated that (i) the crafted Balance Scorecard template is implementable and of high utility; (ii) a volume of 8 Critical Success Factors and 22 Key Performance Indicators constitute an integrated set to monitor and assess the performance in a comprehensive manner; (iii) the key factors and indicators should be the same regardless of the type of ownership and management (public or private); and (iv) technological infrastructure and services are evolving; however, the principles and tools remain the same regardless the advent of smart paradigm.
... The BSC has been widely adopted by manufacturing, service, non-profit, and public organizations around the globe [42][43][44]. The term BSC reflects Kaplan and Norton's [45] attempt to provide a monitoring system that communicates both financial and nonfinancial measures using a combination of lagging and leading indicators while addressing long-term and short-term objectives [46]. BSC has emerged as a valuable tool for performance management, a tool that provides managers with the mechanisms to develop performance targets and indicators linked to strategy [42]. ...
... Ziegenfuss [48] suggests that there should be a maximum of 10 indicators, across the four perspectives, to avoid the process becoming unwieldy. By so doing, a company avoids assessing secondary indicators and can dedicate its capacities and resources on important activities [45,49]. ...
... Source: Retrieved from [41,45] and enriched from other sources, e.g., [42,49]. ...
The aim of this study is to suggest a framework for performance evaluation of smart tourism initiatives/projects implemented in tourist attractions. The suggested tool is based on the theoretical foundations of Service-Dominant Logic and the Balance Scorecard framework, an established strategic management framework that maps an organization’s strategic objectives into performance indicators. The suggested template for performance evaluation was tested and validated within the context of China, and 30 interviews were conducted with managers of tourist attractions rated the highest quality level in Zhejiang Province, China. The empirical study’s results indicated that (i) the crafted Balance Scorecard template is implementable and of high utility; (ii) a volume of 8 Critical Success Factors and 22 Key Performance Indicators constitute an integrated set to monitor and assess the performance in a comprehensive manner; (iii) the key factors and indicators should be the same regardless of the type of ownership and management (public or private); and (iv) technological infrastructure and services are evolving; however, the principles and tools remain the same regardless the advent of smart paradigm.
... The recent coronavirus disease 2019 pandemic has led to the need for further efficiency and effectiveness, with some calling the pandemic a do-or-die moment for many NPOs (Buckner, 2020). Through the balanced scorecard (BSC), Kaplan and Norton (2001) highlighted the multidimensional nature of performance indicators that transcend financial considerations. The BSC approach is one of the most popular performance management tools used globally (Rigby and Bilodeau, 2017) and provides various long-term benefits (Bescos et al., 2020). ...
... Generally, the BSC works best if it is used to communicate an organization's vision and strategy (Kaplan and Norton, 2001). Sharing the BSC and strategy map communicates strategic direction, identifies management priorities, and enables employees to determine their role and contribution in an overall strategy. ...
p>Purpose
This study expands the performance management literature by developing a strategy map and balanced scorecard (BSC) for a large performing arts theater (PAT).
Design/methodology/approach
First, interviews with significant stakeholders identify key success factors (KSFs). Next, a survey is administered, and a structural model is employed to determine the importance of each KSF and their interdependent causal relationships within the PAT. Each KSF's controllability and room for improvement are also measured to facilitate implementation strategies.
Findings
The results reveal that the Financial Perspective plays a critical role in the PAT's success, while significant changes can be enacted by focusing on the Internal Processes Perspective. Regarding the individual KSF, the following emerge as the most critical: excellent reputation, attendance growth, increasing sponsorship and donation, and supporting the local arts community; however, PAT managers will have to be creative to enact change through these KSF as some are difficult to control or have little perceived room for improvement.
Research limitations/implications
The data were collected prior to, or at the beginning of the coronavirus disease 2019 (COVID-19) pandemic. Post-pandemic priorities for the organization may have changed.
Practical implications
By highlighting the relationships between different KSFs, this study provides PAT managers with a frame of reference for developing their BSC and performance metrics. It also offers PAT's managers a structured and adaptable approach for prioritizing their strategic choices and developing implementation plans for improved outcomes.
Originality/value
This study exemplifies the need for applied BSC studies in various sectors, including nonprofit organizations. Specifically, this study extends the performance management literature by providing an example of a large PAT's performance measures, the inter-relationships among KSF and the resulting strategy map. The results are significant because arts management is a unique discipline based upon a specific body of knowledge (Weinstein and Bukovinsky, 2009).</p
... Although the BSC has existed for decades [54,[62][63][64], recent studies have shown that it continues to be a fundamental management tool for companies that intend to add critical value to their business [8]. This critical added value has been demonstrated in recent studies [5,25,31,65,66]. ...
... This emphasis is acknowledged to the BSC due to the fact that it covers the traditional perspective, namely the financial perspective; however, it is not limited to the same since it aggregates other non-financial indicators from the various areas that make up the organisation. Managers recognise that the support only in financial ratios that reflect the past does not guarantee future sustainability [30,63]. However, despite the interconnection between the perspectives, it is observed that the least sustained connection is the learning and growth perspective, because at its beginning it was considered as the BSC "black hole", visible in the non-rejection of H4. ...
Despite of the growing competition between organisations, this need has raised up several years ago, due to the search for strategically alignment and performance monitoring, but is nowadays even steadier. Few studies have dedicated their focus in understanding which perspectives are the most relevant, so as, if there are different importance rankings between organisations with and without Balanced Scorecard (BSC). Bearing in mind the need to shed light into this research field, of organizational performance measurement on hand of the BSC, quantitative research, to analyse the different ranking of the four perspectives, between organisations with and without BSC was performed. The sample was composed by the 107 out of 250 main export organisations of Portugal. The outcomes confirm that the second most important BSC’s perspective is the customer perspective, being unanimous in both organizations (with and without BSC), nevertheless, organizations without BSC point a meaningfully higher importance compared to organizations with BSC. The third place stands the internal perspective, for organisations without BSC, but contrary it stands just after learning and growth perspective in organisations with BSC. The third ranking for internal perspective is just given by organisation without BSC, as the third place out of the four is given to learning and growth by organisations with BSC. The perspective of learning and growth, differs in it’s ranking between organisations with and without BSC, as it shows up at third position for organizations with BSC, and at the fourth (last) position in organizations without BSC. This research has relevant outcomes for both managers and academia, as it is still a fertile ground. BSC is known and regarded as a meaningful management tool, even by managers who do not have the BSC implemented, so it has still conceivable growing possibilities, in several activity areas.
... This SQSC is based on the cognitive assessment role of SQ (Brady & Robertson, 2001), as embedded in the behavioral theory (Fishbein & Ajzen, 1975). Financial [f(x1)]- (Dutescu, Popa, & Ponorîc a, 2014;Kaplan & Norton, 1992), Customer Value [cvp(x2)]- (Oh & Kim, 2017;Parasuraman et al., 1988;Wang, Zhang, Gu, & Zhen, 2009), Internal Business [ibp(x3)]- (Kaplan & Norton, 2008), as well as the Innovation and Learning-[ial(xk)] (Kaplan & Norton, 2001b;Tsai, Lee, Shen, & Lin, 2012) perspectives. These perspectives, which consist of unique combinations of dimensions and sub-dimensions, complete this measurement instrument of 68 items. ...
The researchers sought to conceptualize models related to Service Quality (SQ), Balanced Scorecard (BSC), Customer Satisfaction (CS), and Customer Retention (CR). These models are evident within the tourism industry, but are not confirmed in business tourism. The empirical testing of a Service Quality Scorecard (SQSC) as a comprehensive SQ model, for explaining Business Tourist (BT) retention is proposed. Data was analyzed through a structural equation modeling procedure, resulting in a business tourist service quality scorecard (BT SQSC) causal model for the testing of SQ in the BT industry. Findings provide implications for business tourism practitioners to encourage business tourism performance.
... Some 2 decades ago, Harvard Professors Johnson and Kaplan renounced conventional financial measures as the right way to control company performance in their book Relevance lost: The Rise and Fall of Management Accounting. 1 Instead, they introduced an integrated set of financial and non-financial measures, which has become known under the label of the balanced scorecard. [2][3][4] Since then, performance management in general, and the balanced scorecard (BSC) approach in particular, have risen to prominence in both the business world and in academia. Balanced scorecard concepts are now also studied in several areas of management research, such as organization studies, 5 operations management 6,7 and information systems. ...
The balanced scorecard (BSC) has become a popular concept for performance measurement. It focuses attention of management on only a few performance measures and bridges different functional areas as it includes both financial and non-financial measures. However, doubts frequently arise regarding the quality of the BSCs developed as well as the quality of the process in which this development takes place. This article describes a case study in which system dynamics (SD) modelling and simulation was used to overcome both kinds of problems. In a two-stage modelling process (qualitative causal loop diagramming followed by quantitative simulation), a BSC was developed for management of one organizational unit of a leading Dutch insurer. This research illustrates how, through their involvement in this development process, management came to understand that seemingly contradictory goals such as customer satisfaction, employee satisfaction and employee productivity were, in fact, better seen as mutually reinforcing. Also, analysis of the SD model showed how, contrary to ex ante management intuition, performance would first have to drop further before significant improvements could be realized. Finally, the quantitative modelling process also helped to evaluate several improvement initiatives that were under consideration at the time, proving some of them to have unclear benefits, others to be very promising indeed.
... Later the BSC was restructured and presented by its authors not only as a method of performance evaluation but also as a strategy management model (Kaplan & Norton, 1996a, 1996b, 1996c, 1996d. In the following decade, Kaplan and Norton (2001a, 2001b, 2001c showed the importance of motivation and the participation of all employees to the method's success. ...
This paper aims to contribute to increasing knowledge of performance evaluation methods used by the hotel industry, analysing whether there is a link between hotel characteristics and evaluation methods used. To achieve this goal we conducted surveys and interviews with financial officers of 275 four and five star hotels located in Portugal. The results support the conclusion that there is a link between hotel characteristics and performance evaluation methods used.
... The Balanced Scorecard is a popular and successful strategic management and alignment framework (Kaplan & Norton, 2001b;Salterio & Webb, 2003;Hudson, 2004;Kaplan & Norton, 2006;Huang & Hu, 2007;Van Grembergen & De Haes, 2009;Advanced Performance Institute, 2014). It has evolved over time, based on feedback from practical application (see: Kaplan & Norton, 1992, 2001a. ...
This research is undertaken in response to a perceived lack of research providing practical business/IT alignment support to help organisations improve their IT value. It investigates the issues and enterprise elements that need to be considered or managed, as well as the necessary mechanisms and tools for alignment modelling, measurement and successful implementation.
This work is based upon secondary data, including case studies, experiences and best practices. A qualitative research methodology is applied, using coding and data modelling techniques to discover and classify enterprise architecture elements from an analysis of alignment-related factors, implementation mechanisms, and value measurements. Alignment solutions are found to vary by company and there is no ‘alignment panacea’. However, there is sufficient consistency across the alignment research confirming the value of the topic and the legitimacy of a business/IT alignment framework.
This research compiles common successful business/IT alignment mechanisms and offers new findings, including: an alignment definition, alignment principles, an alignment metamodel, a generic alignment strategy map and sample alignment measures. The research draws from the well-known Balanced Scorecard, COBIT and TOGAF frameworks and also compares their coverage of the key alignment topics discovered. None of these frameworks covers the minimum requirements of an alignment framework in detail, but together they provide a basis for one.
... Later the BSC was restructured and presented by its authors not only as a method of performance evaluation but also as a strategy management model (Kaplan & Norton, 1996a, 1996b, 1996c, 1996d. In the following decade, Kaplan and Norton (2001a, 2001b, 2001c showed the importance of motivation and the participation of all employees to the method's success. ...
This paper aims to contribute to increasing knowledge of
performance evaluation methods used by the hotel industry,
analysing whether there is a link between hotel characteristics and
evaluation methods used. To achieve this goal we conducted
surveys and interviews with financial officers of 275 four and five
star hotels located in Portugal. The results support the conclusion
that there is a link between hotel characteristics and performance
evaluation methods used.
... Onnis-tuneen BSC-ohjelman tulisikin Kaplanin ja Nortonin mukaan olla muutosprojekti. (Kaplan & Norton 2001.) BSC:n kehittäjien mukaan yksi menetelmän merkittävistä ansioista on sen kyky toimia organisaation oppimisen viitekehyksenä, koska tasapainotetun mittariston avulla voidaan tuottaa systemaattisia strategisia katsauksia, saada palautetta strategiasta ja parantaa sitä. ...
... Foi alterada a última perspectiva, passando a denominar-se aprendizagem e crescimento; não foi intenção a desvalorização da inovação, esta componente passou a fazer parte da perspectiva dos processos internos. Esta segunda versão do modelo apresentada pelos autores, além de contemplar os objectivos e as medidas como na primeira versão, contempla também a definição de metas e de acções a concretizar (Kaplan e Norton, 1997, 2001a. Esta reestruturação do modelo vem mostrar que o BSC pode ser útil como meio de comunicação e implementação de uma estratégia (Tayler, 2010;Wiersma, 2009), uma vez que a sua implementação obriga a empresa a definir concretamente uma missão, uma visão e uma estratégia organizacional específica e coerente (Kaplan e Norton, 2001b, 2001c. ...
... When applied and operated correctly the Balanced Scorecard has according to many researches been proved to improve the operational performance of organisations (DeBusk and Crabtree, 2006; Barlas et al., 2003;Kaplan and Norton, 2001a). Even though the Balanced Scorecard has been called one of the most important management ideas in the last seventy-five years by the Harvard Business Review (Meyer, 2003) it has been widely criticised and limitations to the approach have been presented by the developers of the model as well as other researchers. ...
... Her kurumun ve her biriminin kendine özgü stratejik hedefleri vardır ve performans ölçüt seti bu stratejik hedeflerle ilişkili şekilde oluşturulmalıdır. (Kaplan ve Norton, 2001) Performans karnesi ile performans ölçümü yapılırken, stratejiden, değerlerden ve misyondan sapmadan, doğru şeyleri ölçmek ge-rekmektedir. Ölçütler, ulaşılmak istenen stratejik hedeflerle ilgili sonuçlar vermelidir. ...
karmak veya gelişme ola-bilecek alanları belirlemek gibi nedenlerden dolayı performans ölçümü yapmaktadır. (Parker, 2000) Performans kavramına yaklaşımlar, yıllar içinde değişim göstermiştir. İş dünyası, 1990'lı yılların başlarında performans kavramına bütüncül bir yaklaşım getirerek, performans yönetiminde önemli bir dönüm noktası olan performans karnesi (balanced scorecard) ile ta-nışmıştır. Dünya çapında kabul görmüş bir yönetim muhasebesi aracı olan performans karne-si, finansal performans ölçütlerinin yanında finansal olmayan performans ölçütlerinin de kul-lanılmasını önererek kurumsal performansın çok boyutlu olarak ölçülmesini ve kurumun stratejilerine odaklanmasını sağlamıştır. Performans karnesi, maddi varlıklar ile birlikte maddi olmayan varlıkların değerini de dikkate almakta, performans yönetim sisteminin stratejik he-defler üzerine kurulmasını sağlamaktadır. (Kaplan ve Norton, 2004 b) Performans karnesi, bir işletmenin stratejilerinin ve vizyonunun eyleme dönüşmesini sağlamaktadır. Performans karnesi sayesinde, kurumsal stratejiler birimler tarafından benim-senmekte ve kurum içi bütünlük sağlanmaktadır. Performans karnesi, tepe yönetimi tarafından hazırlanan stratejileri belirgin, anlaşılır ve odaklanmış stratejik hedefler haline dönüştürmek-tedir.
... Facilita a identificação dos factores críticos de sucesso e as iniciativas relacionadas que criam mudança. Finalmente facilita a aprendizagem em equipa.Duas palavras são fundamentais na procura da performance desejada, uma é a focalização e a outra é o alinhamento(Kaplan e Norton, 2001) As organizações bem-sucedidas na aplicação do BSC recorreram a cinco princípios da organização focada na estratégia expressos na Figura 35. ...
Vivemos um período de grandes transformações tecnológicas e as organizações encaram este conjunto de novas oportunidades de implementação de novos Sistemas e Tecnologias de Informação (SI/TI), com a convicção de que os investimentos realizados lhes permitem aumentar a produtividade e a prosperidade do negócio. No entanto, vários estudos efectuados em organizações públicas e privadas comprovaram que os investimentos efectuados em SI/TI nem sempre trouxeram o benefício que deles se esperava.
Quanto maior é a competição a nível global mais as organizações tem de actuar no limite das suas capacidades e competências. O crescente interesse pela realização de benefícios coincidiu com o incremento de complexidade dos sistemas SI/TI.
Alguns autores argumentam que os resultados de estudos que relacionam os investimentos em SI/TI e o aumento do desempenho das organizações nos últimos 30 anos são um equívoco. Outros ainda afirmam que não existe correlação directa entre os investimentos efectuados em SI/TI e o sucesso do negócio. Um ponto fundamental que se coloca na gestão dos investimentos em SI/TI, uma vez determinados os custos associados ao investimento, é a determinação dos benefícios potenciais e a garantia que estes de facto poderão ser realizados.
Pela dificuldade sistemática na determinação dos benefícios, em especial, dos benefícios intangíveis, a aplicação de métodos económico-financeiros não é evidente e portanto torna-se crucial neste contexto, que as empresas introduzam abordagens de Gestão de Benefícios. Esse foi o desafio aqui assumido, aplicado num estudo de caso.
Vivemos um período de grandes transformações tecnológicas e as organizações encaram este conjunto de novas oportunidades de implementação de novos Sistemas e Tecnologias de Informação (SI/TI), com a convicção de que os investimentos realizados lhes permitem aumentar a produtividade e a prosperidade do negócio. No entanto, vários estudos efectuados em organizações públicas e privadas comprovaram que os investimentos efectuados em SI/TI nem sempre trouxeram o benefício que deles se esperava.
Quanto maior é a competição a nível global mais as organizações tem de actuar no limite das suas capacidades e competências. O crescente interesse pela realização de benefícios coincidiu com o incremento de complexidade dos sistemas SI/TI.
Alguns autores argumentam que os resultados de estudos que relacionam os investimentos em SI/TI e o aumento do desempenho das organizações nos últimos 30 anos são um equívoco. Outros ainda afirmam que não existe correlação directa entre os investimentos efectuados em SI/TI e o sucesso do negócio. Um ponto fundamental que se coloca na gestão dos investimentos em SI/TI, uma vez determinados os custos associados ao investimento, é a determinação dos benefícios potenciais e a garantia que estes de facto poderão ser realizados.
Pela dificuldade sistemática na determinação dos benefícios, em especial, dos benefícios intangíveis, a aplicação de métodos económico-financeiros não é evidente e portanto torna-se crucial neste contexto, que as empresas introduzam abordagens de Gestão de Benefícios. Esse foi o desafio aqui assumido, aplicado num estudo de caso.
... FCMs may serve as a back end to performance scorecards (e.g. Bourne, Mills, Wilcox, Neely, & Platts, 2000;Kaplan & Norton, 2001, 1996 to provide holistic strategic performance evaluation and management. However a detailed analysis of this extension falls out of the scope of this paper. ...
This paper presents the application of a fuzzy cognitive map (FCM) based theoretical framework and its associated modeling and simulation tool to strategy maps (SMs). Existing limitations of SMs are presented in a literature survey. The need for scenario based SMs with inherited ability to change scenarios dynamically as well as the missing element of time are highlighted and discussed upon. FCMs are presented as an alternative to overcome these shortfalls with the introduction of fuzziness in their weights and the robust calculation mechanism. An FCM tool is presented that allows simulation of SMs as well as interconnection of nodes (performance measures) in different SMs which enables the creation of SM hierarchies. An augmented FCM calculation mechanism that allows this type of interlinking is also presented. The resulting methodology and tool are applied to two Banks and the results of these case studies are presented.
... Balanced scorecard is a method proposed by Kaplan and Norton (1992) that considers both financial and nonfinancial performance measures in a holistic approach. Their first article was followed by a series of others related to the use and implementation of this method in strategic management (Kaplan and Norton, 1993, 1996a, b, 2001a and in leading the change process in an organization (Kaplan and Norton, 2001c). ...
In multinational companies the alignment of worldwide actions with global strategy is a challenging task due to organizational complexity. Recent studies provide useful frameworks for performance measurement and strategic alignment, such as the balanced scorecard, the Scandia navigator and the economic value added. This paper reviews previous research, presents an integrated framework for performance measurement for multinational companies and provides directions for future studies.
... Some 2 decades ago, Harvard Professors Johnson and Kaplan renounced conventional financial measures as the right way to control company performance in their book Relevance lost: The Rise and Fall of Management Accounting. 1 Instead, they introduced an integrated set of financial and non-financial measures, which has become known under the label of the balanced scorecard. [2][3][4] Since then, performance management in general, and the balanced scorecard (BSC) approach in particular, have risen to prominence in both the business world and in academia. Balanced scorecard concepts are now also studied in several areas of management research, such as organization studies, 5 operations management 6,7 and information systems. ...
The balanced scorecard (BSC) has become a popular concept for performance measurement. It focuses attention of management on only a few performance measures and bridges different functional areas as it includes both financial and non-financial measures. However, doubts frequently arise regarding the quality of the BSCs developed as well as the quality of the process in which this development takes place. This article describes a case study in which system dynamics (SD) modelling and simulation was used to overcome both kinds of problems. In a two-stage modelling process (qualitative causal loop diagramming followed by quantitative simulation), a BSC was developed for management of one organizational unit of a leading Dutch insurer. This research illustrates how, through their involvement in this development process, management came to understand that seemingly contradictory goals such as customer satisfaction, employee satisfaction and employee productivity were, in fact, better seen as mutually reinforcing. Also, analysis of the SD model showed how, contrary to ex ante management intuition, performance would first have to drop further before significant improvements could be realized. Finally, the quantitative modelling process also helped to evaluate several improvement initiatives that were under consideration at the time, proving some of them to have unclear benefits, others to be very promising indeed.Journal of the Operational Research Society (2005) 56, 931–941. doi:10.1057/palgrave.jors.2601923 Published online 22 December 2004
... The proposed mechanism can also assist the financial performance evaluation of the enterprise on a regular basis. FCMs may serve as a back end to performance score cards (Bourne et al., 2000; Kaplan and Norton, 1996, 2001) to provide holistic strategic performance evaluation and management. However, a detailed analysis of this extension is beyond the scope of this paper. ...
This paper addresses the problem of designing a knowledge management methodology tool to act as a decision support mechanism for geographically dispersed financial enterprises. The underlying research addresses the problem of information capture and representation in financial institutions in order to provide an implementation of the virtuous cycle of knowledge flow. The proposed methodology tool utilizes the fuzzy causal characteristics of Fuzzy Cognitive Maps (FCMs) to generate a hierarchical and dynamic network of interconnected financial performance concepts. By using FCMs, the proposed mechanism simulates the operational efficiency of distributed organizational models with imprecise relationships and quantifies the impact of the geographically dispersed activities to the overall business model. Generic adaptive maps that supplement the decision-making process present a roadmap for integrating hierarchical FCMs into the business model of typical financial sector enterprises. Copyright © 2004 John Wiley & Sons, Ltd.
... Performance management, and in particular the version of it known as balanced scorecard (BSC), has become a topic of considerable interest in both the business world (Siegele 2002) and in academia (Kaplan and Norton 2001). The term and concept of the balanced scorecard originates from the field of Management Accounting, where control on the basis of purely financial criteria was found to be inadequate (Kaplan and Norton 1992). ...
The balanced scorecard (BSC) has become a popular concept for performance measurement. It focuses attention of management on only a few performance measures and bridges different functional areas as it includes both financial and non-financial measures. However, doubts frequently arise regarding the quality of the BSCs developed as well as the quality of the process in which this development takes place. This article describes a case study in which system dynamics (SD) modelling and simulation was used to overcome both kinds of problems. In a two-stage modelling process (qualitative causal loop diagramming followed by quantitative simulation), a BSC was developed for management of one organizational unit of a leading Dutch insurer. This research illustrates how, through their involvement in this development process, management came to understand that seemingly contradictory goals such as customer satisfaction, employee satisfaction and employee productivity were, in fact, better seen as mutually reinforcing. Also, analysis of the SD model showed how, contrary to ex ante management intuition, performance would first have to drop further before significant improvements could be realized. Finally, the quantitative modelling process also helped to evaluate several improvement initiatives that were under consideration at the time, proving some of them to have unclear benefits, others to be very promising indeed.
Beras adalah komoditas yang strategis di Indonesia, baik secara ekonomi, sosial maupun politik.BULOG adalah Badan Usaha Milik Negara (BUMN) operator pangan yang ditugaskan oleh pemerintahuntuk mengelola Cadangan Beras Pemerintah (CBP) serta melakukan pengembangan industri berbasispangan dalam menjaga ketersediaan dan stabilitas harga pada tingkat produsen dan konsumen. Penelitian terdahulu menyebutkan bahwa pangsa pasar BULOG berpengaruh pada harga beras di Indonesia. Penelitian ini bertujuan untuk membuat peta strategi pengembangan keunggulan kompetitif BULOG agar dapat meningkatkan pangsa pasarnya, sehingga dapat menjadi pemimpin pasar di industri beras Indonesia. Penelitian dilakukan dengan menggunakan analisis SWOT pada empat perspektif Balance Scorecard (BSC). Berdasarkan analisis, strategi pada perspektif keuangan adalah dengan melakukan penyesuaian sistem keuangan dan akuntansi, optimasi sumber-sumber modal kerja, perbaikan struktur biaya, serta meningkatkan pendapatan perusahaan. Strategi pada perspektif pelanggan adalah dengan melakukan optimasi komunikasi dan hubungan pelanggan, optimasi pengembangan produk, merek, saluran penjualan dan layanan, serta perbaikan citra perusahaan dan produk. Strategi pada perspektif proses internal adalah pengembangan efektivitas dan efisiensi operasi sepanjang rantai pasok, pengembangan infrastruktur dan teknologi informasi, serta optimasi proses perencanaan strategis dan operasional. Strategi pada perspektif pembelajaran dan pertumbuhan adalah melakukan optimasi implementasi sistem manajemen kinerja berbasis teknologi, pengembangan budaya perusahaan berbasis ‘sosiopreneurship’, optimasi manajemeninovasi serta peningkatan kompetensi SDM.
In modern times, disruptive contexts have challenged the functioning of organisations, as shown by recent events, such as the COVID-19 pandemic and the current war in Europe. The literature highlights the role of management control practices (MCP) as resources that help to improve decision-making processes and organisational performance and competitiveness in a crisis context. In response to stakeholders’ pressures, companies are integrating Corporate Social Responsibility (CSR) issues into their measurement and control systems. The aim of this research is to examine whether companies perceive MCP as a resource to support the decision-making process and contribute to organisational performance and competitiveness in a crisis environment, as well as to ascertain the perceived role of CSR in MC. A survey by questionnaire was conducted among the 250 major exporting companies in Portugal. Results show that in a crisis context of uncertainty and unpredictability such as the COVID-19 pandemic organisations perceive MCP as having (1) a significant influence on organisational performance and on leveraging organisational competitiveness; (2) a significant link with CSR. In general terms, this study provides new insights into the perceptions of the role of MCP as a valuable resource to achieve organisational competitiveness and performance in disruptive social and economic contexts.
O artigo apresenta uma discussão sobre a avaliação da gestão de instituições de educação superior, com o objetivo de contextualizar a produção vinculada a projetos de pesquisa direcionados a tal finalidade no âmbito do Programa de Pós-Graduação em Administração Universitária da Universidade Federal de Santa catarina (PPGAU-UFSC). Inicialmente, apresenta uma síntese sobre os modelos teóricos que podem ser utilizados na avaliação estratégica e operacional de organizações. Os resultados apresentam a produção de dissertações e publicações ocorridas no período 2014-2020 por participantes dos projetos. No período analisado, ocorreram oito (8) dissertações concluídas, quatro (4) publicações em revista acadêmicas, quatro (4) capítulos de livros e vinte e três (23) publicações em eventos nacionais e internacionais no âmbito dos projetos de avaliação da gestão das instituições de educação superior registrados no programa. The article presents a discussion about the evaluation of the management of higher education institutions, with the objective of contextualizing the production linked to research projects directed to this purpose in the scope of the Graduate Program in University Administration at the Federal University of Santa Catarina (PPGAU-UFSC). Initially, it presents a synthesis of the theoretical models that can be used in the strategic and operational evaluation of organizations. The results present the production of dissertations and publications that occurred in the period 2014-2020 by project participants. In the period analyzed, there were eight (8) completed dissertations, four (4) publications in academic journals, four (4) book chapters and twenty-three (23) publications in national and international events within the scope of the projects on evaluation of the management of higher education institutions registered in the program.
Contemporary organizations need to follow their performance over a continuous period, as the short period is not enough to provide complete control. Bearing this in mind, performance measurement indicators must be reflecting the organizational strategy, not just in the short term, but also in the medium and long term. In the past, especially in industrial enterprises, a high interest in measuring organizational performance was noted. Afterward, the need for effective performance management has also gained increased recognition and interest in Higher Education Institutions (HEIs). Considering the transversal demand for management control tools, the Balanced Scorecard (BSC) gained special highlight, based on its four interlinked perspectives (financial, customer, internal processes, and learning & growth), originally developed by Kaplan and Norton. The BSC was selected for this research, as it has been already implemented by multiple HEIs, to guide managers and directors in their decisions and contribute to greater efficiency. It was, therefore, also selected for the implementation by an analyzed Portuguese higher education institution. This research aims to contribute to the empirical and practical understanding of BSC implementation in higher education, whilst providing orientation to directors and managers of HEIs. With the implementation of this tool, managers and directors can monitor the organizational performance and follow the defined strategy in the medium and long term. Based on these findings, other institutions could use this study as a guide and a benchmark.
El objetivo de este trabajo consistió en realizar una revisión documental de los postulados de planeación estratégica y particularmente del Cuadro de Mando Integral (BSC) considerando diversas críticas a dicho esquema derivadas de estudios empíricos con la finalidad de proponer mejoras al proceso de planeación estratégica de cualquier organización para luego aplicarlo en un caso real: el proceso de planeación estratégica del área de supervisión del Banco de México. Los hallazgos principales fueron que el BSC podría enriquecerse mediante (i) inclusión de una nueva perspectiva de riesgos, (ii) mejoramiento de la métrica, (iii) análisis de desperdicios y flujo continuo, (iv) empleo de analytics y minería de datos, (v) manejo de cadena de valor y (vi) nueva perspectiva de ética corporativa y ambiental, así como una propuesta de interrelación y cadena de valor de la Entidad.
Coskun, Ali (2007). Stratejik performans yönetimi ve performans karnesi. Literatür Yayinlari.
Over the past twenty years, Kaplan and Norton’s Balanced Scorecard has become a widely used management tool across many industries in the private, public and third sectors. Here we look at how Action Research has been used within a corporate setting to develop a Balanced Scorecard to aid corporate governance. An Action Research programme, of the type summarised in this article, is shown to be a feasible and desirable methodology which executive boards can apply to ensure engagement of middle and upper management in developing and implementing corporate governance policies and practices.
Winning the Knowledge Game focuses on the thinking and attitudes required to remain knowledgeable, competitive and high performing.
Since the introduction of lean principles by Toyota and publication by Womack and Jones, organizations have realized sizeable gains through lean process improvement. The spread of lean practices across organizations and industries - from manufacturing to healthcare and construction - requires adjustments of the lean process and, in the case of construction engineering, modification of the traditional lean paradigm (stationary product versus the traditional mobile product). Consequently, there is often a disconnect between key (financial and non-financial) performance measures and lean principles being implemented. This paper introduces a study that will demonstrate a methodology to combine lean principles and key performance indicators (KPIs) into a strategy map of the balanced scorecard (BSC) for lean manufacturing companies. The development of the study includes: (a) consolidation of disparate lean manufacturing performance indicators by collecting performance indicators from different BSC perspectives using historical literature, and linking it to suitable lean principles and elements; (b) using the BSC as a framework to provide a more complete picture of financial and non-financial lean performance indicators; and (c) constructing the strategy map. This is the first step toward a BSC strategy map that will serve as a decision making tool for managers in lean process improvement environments.
This paper presents the application of a Fuzzy Cognitive Map (FCM) based theoretical framework and its associated modeling and simulation tool to StrategyMaps (SMs). Existing limitations of SMs are presented in a literature survey. The need for scenario based SMs with inherited ability to change scenarios dynamically as well as the missing element of time are highlighted and discussed upon. FCMs are presented as an alternative to overcome these shortfalls with the introduction of fuzziness in their weights and the robust calculation mechanism. An FCM tool is presented that allows simulation of SMs as well as interconnection of nodes (performance measures) in different SMs which enable the creation of SM hierarchies. An augmented FCM calculation mechanism that allows this type of interlinking is also presented. The resulting methodology and tool are applied to two Banks and the results of these case studies are presented.
Purpose
– This paper aims to review the literature on the balanced scorecard (BSC) system. The BSC may well be one of the most popular performance measurement systems, but this is not synonymous with successful. The inventors of the BSC, Kaplan and Norton, actually emphasize that a BSC can only really impact the organizational performance if it is linked to the actors’ intrinsic and extrinsic incentives. As BSC has existed for more than 20 years, the authors find it relevant to survey the extant literature which elaborates on the BSC-incentives link within organizations.
Design/methodology/approach
– This paper identifies 117 empirical studies from leading academic journals published between 1992 and 2012 and then assesses 30 of these studies, which present the BSC-compensation link within the BSC literature. The authors analyze both research design (authors’ perspective) and the actual findings in the field (organizations’ perspective).
Findings
– First, it was found that only 30 of 117 empirical studies have a research design that is comprehensive enough to capture a full BSC as suggested by Kaplan and Norton, and only six of these studies elaborate on the link between the BSC and compensation. Second, extant research lacks valid constructs for the BSC and focuses too much on planning (ex-ante) with the BSC and not sufficiently on evaluation and control (ex-post). Third, the authors demonstrate that empirical BSC literature relies very strongly on field research in small and medium enterprises compared to similar research. Overall, the authors claim that the “relevance” of the BSC remains unproven.
Originality/value
– The authors synthesize the empirical BSC literature and derive a future research agenda.
Theory attributes advantages to the Balanced Scorecard as a performance evaluation method, when compared to exclusively financial measures. This study aims at analyzing Balanced Scorecard use and awareness rates amongst small and medium Portuguese industrial companies, researching factors that explain why the method is not familiar to all companies. Interviews were carried out with professionals in charge of management accounting in 58 industrial companies in eleven Portuguese districts. Evidence gathered allow us to conclude that very few enterprises use the Balanced Scorecard, and that most of the professionals interviewed are unaware of it. Research on explanatory factors allow us to conclude that awareness about this method depends on the individual characteristics of those in charge of management accounting, such as education and age; and on company characteristics, such as size.
The electronic revolution in the Malaysian banking sector has started in the 1970's. The first visible form of electronic innovation in the Malaysian banking industry was the introduction of Automated Teller Machines in 1981. Finally, on June 1, 2000, the Malaysian Central Bank gave the green light for locally owned commercial banks to offer Internet banking services. Due to the drastic changes in the business environment, it leads financial institutions to revise their marketing strategies to stress long-lasting relationships with customers. Relationships is important criteria in the selection of private bank. In many conditions, customer satisfaction mediates the relationship between antecedent's factors and marketing performance. Hence, CRM performance is about maintaining good relationship and repurchases behavior, word-of-mouth and customer retention. Trust has been studied in traditional physical commercial environments. In the marketing and management literatures, trust is strongly associated with attitudes toward products, services, and purchasing behaviors. So that, the main objective of this research paper is to investigate the role of CRM performance as the mediator in the relationship between trust and E-Banking adoption. Hence, this empirical paper confirmed the role of customer relationship management performance as the mediators in the relationship between trust and electronic banking adoption.
The needs for SMEs to measure their performance is to improve their service to customers, employees, societies and stakeholders. The purpose of the study was to investigate the implementation of Balance Score Card as the performance measurement system in SMEs. In this study, 1000 mailed questionnaires were sent to health care services in Malaysia. Out of this, only 105 responded and data collected were analyzed. Using factor analysis with varimax rotation technique, the study found four factors with eigenvalue value more than 1.0. Those factors that explained total variance of 69.346 percent, indicated the four components of BSC implemented by SMEs in Malaysian Health Care Services. Those components are as follows: learning and growth, mission and vision, customer and internal business perspective.
Purpose
The purpose of this paper is to examine an organisation‐wide restructuring exercise by investigating the effectiveness of strategy development and deployment processes in a National Health Service (NHS) Community Health Services (CHS) organisation.
Design/methodology/approach
The authors used an embedded single‐case study approach to gather and analyse rich data in order to understand how an organisation can develop and deploy its strategy, and to appreciate the key tools, techniques and issues related to this process. A range of data collection methods, including archival records, interviews, observations and questionnaires, was employed to permit triangulation of the results.
Findings
The research led to an understanding of how the Balanced Scorecard (BSC) and the Closed‐Loop Management System (CLMS) can be adapted to support the local CHS. In total, 17 key areas for success are presented and used to assess the current capability within the case study organisation.
Research limitations/implications
The authors’ investigation examined the potential for improved strategic development and deployment through the adaptation of the BSC and a CLMS within a NHS CHS organisation.
Practical implications
A six‐step conceptual model is presented which can be used to guide organisations. The model permits the assessment of capability in order to highlight current strengths and weaknesses.
Originality/value
As a suitably skilled workforce is required for the successful implementation of any management system, the research expanded the scope of the study by including an assessment of the organisation's readiness for adapting formal strategy deployment systems.
In response to the United Kingdom’s government’s desire to improve the performance of tourism, hospitality, and leisure small medium-sized enterprises, this article analyzes the performance measurement processes within 10 best practice organizations. Related to contemporary approaches to improving business performance in the management literature, performance measurement approaches are analyzed using the balanced scorecard framework. An exploratory case study approach using the balanced scorecard as the theoretical framework was taken to explore and elicit critical success factors in performance measurement. Results revealed that four key concepts drove measurement and performance evaluation systems across the sample. These were the exercising of budgetary control with a view to increasing total revenue, the undertaking of customer relationship management as a means of improving quality of service and customer retention, the necessity for strategic management in managing internal business processes, and collaboration (both inter and intra) to drive innovation and learning. The article also proposes a balanced scorecard template for hotels.
Purpose
– The purpose of this paper is to consider the potential utility for higher educational institutions, and in particular libraries, of the balanced scorecard (BSC) performance measurement tool, originally developed by Kaplan and Norton for use in businesses and since adapted for the public and non‐profit sectors.
Design/methodology/approach
– The relevant literature was reviewed to ascertain key aspects and functionalities of the BSC framework, survey implementations and determine perceptions of the system's effectiveness and weaknesses, and – while the BSC has as yet been put into practice only infrequently in libraries – treat its appropriateness for information service.
Findings
– The BSC supplements financial accounting with non‐financial leading indicators to link performance drivers and outcome measures in cause and effect relationships that can predict future performance and drive a single organizational strategy. Also intended as a straightforward reporting “dashboard” revealing whether improvements in one area have been at the expense of another, the BSC is considered more effective as an aid in forecasting the overall health of an organization than traditional accounting‐based models. It provides a capacity to monitor obligations to stakeholders and to produce transparent and reliable financial information, and the resulting internal control environment can promote integrity and ethical values.
Originality/value
– Academic libraries may find the BSC a useful approach in determining service value, in demonstrating fiscal responsibility, and – through metrics focused on organizational goals and strategy – in validating their role, as knowledge‐based and networked environments, in the delivery of a quality educational product to their customers.
Purpose
The purpose of this paper is to present a unique version of the balanced scorecard developed and applied by the faculty of a university division.
Design/methodology/approach
The paper uses a case study approach and uses the experiences of the faculty of a business school to describe the process and benefits of developing a custom balanced scorecard.
Findings
The unique version of the scorecard revitalized the faculty and resulted in a process model of organizational change based on the balanced scorecard that can be used in many academic divisions.
Practical implications
This unique version of the scorecard helped to establish a program of continuous improvement and facilitated the formulation of strategic initiatives. The documentation provided in the scorecard supports requests for increased budgets and grant applications.
Originality/value
University and faculty administrators can use the model developed in this paper as a basis of a change program that can help design improvement programs, facilitate strategy development, and support funding requests.
The goal of this research is to suggest a framework for developing measures of success for corporate-level Air Force acquisition initiatives. Because this research is exploratory, it focuses on only one initiative: the 2002 "Focus on results, not process." A qualitative method was used to suggest a 4-part framework. After a review of the literature, steps for creating metrics were established and recurrent characteristics of good metrics were identified. Interviews were then conducted with acquisition practitioners who have experience with the initiative. Finally, these three parts were applied to the initiative as a case study and metrics were suggested as a result. This study gives Air Force leaders clear, useable metrics that can be used as measures of success for the initiative, and it provides recommendations to improve the initiative's performance as well as that of future corporate Air Force acquisition initiatives. The study also gives leaders insight into whether or not this initiative and others like it are an appropriate and effective way to drive the changes they are meant to bring about. Finally, from a broader perspective, the framework used in this study can be used to develop metrics for other corporate-level initiatives.
A literature review of Performance Measurement Systems (PMS) in Small- and Medium-sized Enterprises (SMEs) shows that the main contributions focus on the development of theoretical models, but not on guidelines for practical implementation. In this context, an important neglected aspect is the general fitness or readiness of a SME to implement a PMS. Therefore, the aim of this paper is to determine critical prerequisites for a successful PMS implementation in SMEs. For this purpose, a case study in a German SME was conducted. The findings indicate that the existence of specific contingency factors - Corporate Strategy, software-based Enterprise Resource Planning (ERP) and Activity Based Costing (ABC) - strongly supports the successful implementation of a PMS and its later use. Hence, further research shall include these prerequisites as new variables determining the PMS process. Based on that, researchers and managers of SMEs can develop individual indicators to identify their own PMS readiness.
Although 50 percent of Fortune 1000 companies currently use a balanced scorecard (BSC), few small businesses are using a BSC. A review of the literature finds no BSC papers in leading small business/entrepreneurship journals. This article begins with a discussion of the BSC and why a small business should use it. Three small to medium-sized enterprise (SME) case studies are presented, with a copy of their BSC, to illustrate how Hyde Park Electronics, Futura Industries, and Southern Gardens Citrus use a BSC to set strategy and align operations to achieve breakthrough results. Implications are, that like large businesses, SMEs can also benefit from using a BSC. Entrepreneurs of SMEs can use the case studies to develop their own BSC to improve performance. Implications for practice and research are discussed.
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