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Models of value creation that have been proposed for supporting value-based management are described and analyzed, including the Balanced Scorecard, the Baldrige Quality Award Criteria, the Deming Management Method, the Service-Profit Chain, and the Skandia Intellectual Capital Model. These models are compared, their potential for guiding the identification of value drivers and performance measures for value-based management is assessed, and management issues that must be addressed if such models are to contribute to long-run value creation are explored. These issues include causally linking value drivers to each other and to financial outcomes, the extent to which the models take a dynamic, or whole-system, view of value creation, and whether multiple value drivers should be explicitly weighted and combined to form a “value index.” Finally, the substantial body of research evidence linking intangible value drivers to financial outcomes is reviewed, and some directions for further research are offered.

The purpose of this study is to illustrate the use of the ad hoc methodology of causal mapping to support the process of quantifying the financial returns related to sustainability investments. The present study uses two methods to build causal maps, that is aggregate and congregate mapping, in order to capture managerial cognition and derive a model that reflects companies’ competitive advantages. The resulting causal map is a prerequisite and serves as a building block for the design of the organisation’s performance management systems for sustainability.

This study relies on qualitative, deductive research undertaken at the leading international pharmaceutical company Novo Nordisk. This chapter presents the results of a longitudinal study developed through an action research approach conducted at the Company over a four-year period.

This study illustrates how the described approach for developing causal maps can facilitate the elicitation of managerial tacit knowledge and the consequent identification of indicators to quantify the investments in sustainability.

This chapter proves the relevance of causal mapping as a comprehensive, articulated basis for developing and improving organisations’ strategic performance measurement systems (SPMSs).

This study’s main contribution is the triangulation of multiple qualitative methods to enhance the reliability of causal maps. This innovative approach supports the use of causal mapping to extract managerial tacit knowledge in order to identify indicators for the evaluation of investments in sustainability.

While balanced scorecards, strategy maps, and causal linkage models have been applied extensively by profit organizations over the last two decades, a similar approach to analysis, called logic models, has been increasingly applied by non-profit and other social-purpose organizations. This chapter provides a discussion of the basics of logic models and shows their application in three different settings, which include personal improvement, the social impact of business schools, and corporate governance. The chapter also provides an extensive discussion on field research and a case study of a leading international business school, wherein logic models were applied followed by social impact measurement. Finally, the chapter includes suggestions for future research that is needed to improve the applications of logic models and social impact measurement and the success of social-purpose organizations including business schools.

The prevalent practice of construction supply chain (CSC) in developing countries with a focus on Africa was presented in this chapter. Two African countries (South Africa and Ghana) were selected due to the extensive literature on the CSC emanating from the countries. The impediment to the effective management of the CSC in the two African countries was also examined in this chapter. It was discovered that the vital inhibition to the performance of CSC in developing countries is the adoption of culture from developed countries without a proper model for ensuring its implementation in developing countries. Also, no model has incorporated the principles and technologies of the fourth industrial revolution (4IR) to manage the CSC. The failure to adopt the 4IR technologies like block chain, big data and the internet of things has prevented the proper application of CSC practices in developing countries. CSC practices like collaboration, integration, lean supply chain, information sharing, financial management and communication are the primary practice in developing countries. Finally, this chapter called for the development of a model for managing the CSC in developing countries in alignment with the principles of the 4IR.

Social enterprises (SEs), part of the third sector, are hybrid organizations combining the pursuit of social scopes with commercial business solutions. In seeking for social value, they pair for-profit and non-profit features, thereby compensating for shortcomings of both the public sector and the commercial market. Therefore, the performance management of such organizations assumes a crucial relevance. Among the available tools, the balanced scorecard (BSC) aims to capture performance multidimensionality, at the same time fostering legitimacy towards stakeholders.

In general terms, the BSC has the limit to follow a linear and static logic of construction and functioning. For this reason, scholars combine it with system dynamics (SD) to create dynamic balanced scorecards (DBSCs). However, literature seems to devote scarce attention to the adoption of such analytic tools in the third sector, particularly in SEs. This chapter wants to contribute to bridging this gap by proposing a tailored application in the context of a social cooperative, active in the clothing recycle and in the re-integration of disadvantaged social categories. By referring to previous literature about DBSC, two modelling strategies are identified: the BSC-driven and the SD-driven. The latter, based on inductive reasoning, is the one privileged for the study because of its wider flexibility. The modelling outputs consider different perspectives than the ones within traditional BSCs, contain elements of circular causality and show how financial and non-financial performances interplay and co-determine each other. Insights from the proposed model can be useful to support both decision-making and stakeholder engagement.

This article looks at the alignment of performance management system with the strategy, structure, and organizational outcome in Canadian health care organizations. In this study, balanced scorecard is the framework adopted for assessing the health care organization's performance management system (PMS) and outcome. CEO and clinical unit managers were surveyed for their perceptions on their organization's strategy, autonomy structure, PMS, and organizational performance. Path analysis was the methodology used in examining the relationship about the above organizational variables. The results indicate that patient satisfaction is the primary and most significant perspective of the depicted balanced scorecard in organizational performance. Patient satisfaction and research criteria, on the other hand, are the significant perspectives of a balanced scorecard in an organization's PMS, which are linked to strategy, autonomy structure, and organizational performance. Moreover, the results show that the strategy/structure links operated as suggested. Surprisingly, strategy on service innovation has a negative impact on the organizational outcome of patient satisfaction. Uncertainty from continuous development and organizational change in pursuing service innovation and cost-cutting measures in response to fiscal constraints are plausible explanations of the adverse impact reported.

There is a relationship between the organizations’ strategic objectives and their corporate communications. The latter is an important feature of organizational performance. Organizational leaders are continuously facing the challenge of communicating their strategic goals to their stakeholders. Very often, they are adopting performance management tools to meet this challenge. Consequently, this chapter explains that the Balanced Scorecard (BSC) can be used to evaluate and measure the firms’ corporate communications and their organizational performance. This tool has been widely recognized by academics and managers as it is capable of aligning organizational strategies (including their missions and visions), strategic indicators (leading and lagging indicators) and stakeholder management. A review of the relevant literature review suggests that many practitioners are becoming strategic in their corporate communications. In this light, this chapter clarifies that the BSC approach can be used to support them in their stakeholder engagement. This contribution is useful for both academics and practitioners as it aligns the corporate communication practices with organizational strategy and performance management in the digital era.

This experimental study examined whether sustainability performance measures matter in managerial appraisal and bonus decisions. Participants received financial and non-financial information about four branch managers of a commercial bank, with different combinations of sustainability and financial performance. Participants perceived sustainability measures as being less important than financial ones; still, the experiment revealed that sustainability performance had some impact on appraisal and bonus decisions (albeit it mattered less than financial performance). Evaluators seemed to penalize inferior sustainability performance less than they penalized inferior financial performance. They also seemed to reward sustainability success less than financial success. These findings have practical implications for the implementation of sustainability measures in managerial evaluation systems. The experimental results indicated that incorporating these measures in evaluations does not necessarily mean they will have a sizable effect in decision-making. Results from a companion experiment suggested that organizations using a sustainability balanced scorecard for appraisal and bonus purposes might benefit from an increased emphasis on communication and evaluator training, with a focus on how sustainability performance impacts the attainment of strategic objectives.

The balanced scorecard (BSC) is the most popular toll for business performance management. It can be used by managers belonging to every kind of (public or private) organization to keep track of the execution of activities and to monitor the consequences arising from the improvements projects. The (financial, customer, internal business processes, and learning/growth) perspectives of the BSC allow to plan and control the company strategy in a holistic way. Starting from its theoretical bases, this chapter describes the BSC measurement perspectives and how to build a strategy map. The chapter closes with some suggestions for ensuring the success of the BSC.