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1 – 10 of over 7000Seyed Behnam Khakbaz and Nastaran Hajiheydari
Successful future has inspired organizations to measure long-term and non-financial measurements and key performance indicators (KPIs). Kaplan and Norton proposed balanced…
Abstract
Purpose
Successful future has inspired organizations to measure long-term and non-financial measurements and key performance indicators (KPIs). Kaplan and Norton proposed balanced scorecard (BSC) for this issue and have extended it to one of the most preferred strategic management system’s tools. However, available planning tools like BSC have some limitations, like dependency to the developer, weakness in showing time delays, and also mathematical relationships between lead and lag indicators. In this paper, the authors would present a new methodology for developing BSCs, which would be able to overcome these limitations. Therefore, the purpose of this paper is to develop an integrated framework for developing BSC with system dynamics approach (a dynamic BSC (DBSC)) which has lower limitation in compare with traditional BSC. The other purpose of this paper is developing a DBSC for an Iranian public transportation company.
Design/methodology/approach
Based on this purpose, related literature was thoroughly reviewed and the proposed methodology designed using the system dynamics and BSC concepts. This methodology is a composition of original BSC development methodology and system dynamics principles. An assumed organization has been used for showing methodology’s capability and procedure. Furthermore, a case study has been accomplished in this paper. This case study is a DBSC which has been developed for an Iranian public transportation company. The purpose of this case study is to ensure about proposed methodology implication in action.
Findings
The authors proposed a methodology which can be applied for developing BSCs. This methodology consists of six different steps which are: developing a system for organization, selecting stakeholders’ most important objectives and target, identifying organization’s objectives and their KPIs for different BSC aspects, developing strategy map, targeting, and selecting initiatives. In the proceeding of this paper, the proposed methodology and its steps would be explained in detail.
Originality/value
The system dynamic approach has precedents in business studies; however, this research makes this approach operational in BSC designing and analysis. BSCs, which developed by this methodology can show time delays between an organization’s objectives, its KPIs’ relationship and also planning for it. Selecting achievable and rational vision and objectives’ targets, change management, scenario planning and policy analysis are other values which can be achieved by DBSC deployment which need further researches. In summary, this research has shown an integrated framework for developing DBSC and then applies it to an Iranian public transportation company. Therefore, another contribution of this paper is the application of this method for an Iranian public transportation company.
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The purpose of this research is to show a preliminary examination of the effects of the development of the causal model of the strategy in the implementation of the Balanced…
Abstract
Purpose
The purpose of this research is to show a preliminary examination of the effects of the development of the causal model of the strategy in the implementation of the Balanced Scorecard. Studies on the Balanced Scorecard adoption show that many organizations that adopted the Balanced Scorecard did not develop a causal model of their strategy. The study seeks to examine the differences in Balanced Scorecard implementation of adopters who developed a causal model of their strategy and those who did not.
Design/methodology/approach
Mailed survey was used to collect the data.
Findings
It was found that Balanced Scorecard adopters who did not develop a causal model of their strategy experienced specific problems more than those who developed a causal model of their strategy. It affected the outcomes and ease of implementation of the Balanced Scorecard.
Research limitations/implications
The small number of responses obtained in this study due to the relatively recent adoption of the Balanced Scorecard in Malaysia limits the generalizability of this study. However, it does provide insights on the hypotheses to be examined in future studies.
Practical implications
The findings of this survey suggest that the successful implementation of the Balanced Scorecard requires that organizations develop and articulate a causal model of their strategy.
Originality
This study is probably the first attempt to examine the role of causal model development in effective implementation of the Balanced Scorecard.
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A number of approaches have been suggested in the literature for maintenance performance measurement, including use of the balanced scorecard (BSC). However, its application…
Abstract
Purpose
A number of approaches have been suggested in the literature for maintenance performance measurement, including use of the balanced scorecard (BSC). However, its application towards assessing maintenance contribution to business objectives is limited. Currently, a framework integrating maintenance activities in a supply chain environment is lacking in the literature. The purpose of this paper is to develop a maintenance performance measurement framework using BSC for multi echelon repair inventory systems (MERIS) comprising of modular electronic equipment. The paper also suggests a large number of performance measures/indicators (PMs/PIs) pertaining to both maintenance and supply chain components including a few BSC implementation issues for such types of supply chains.
Design/methodology/approach
The paper analyses a base model of a large maintenance organization and after carrying out SWOT analysis, identifies strategic themes/objectives for performance measurement. Performance measures for various objectives are identified for MERIS and implementation strategy including cascading of BSC is suggested. The developed performance measurement model is also validated using an action research (AR) based approach.
Findings
A performance measurement system (PMS) for MERIS using BSC approach has been developed and an implementation strategy suggested. AR methodology is used for developing BSC for an organization using the selected performance measures. The importance of cause‐effect relationships between various performance objectives and measures is also established.
Research limitations/implications
Quantification of each of the developed PMs/PIs and establishing an effective information system for MERIS are the limitations of the present work and may be taken up for more research.
Practical implications
The paper will be useful for practitioners in the field of MERIS of electronic repairables wherein relevant PMs/PIs can be selected for implementation as per the requirement of the application.
Originality/value
The paper is of value by being original, as no work towards performance measurement of MERIS using BSC concept (as applicable for non‐profit organizations like military, government, NGOs etc) is reported in literature so far. The paper is relevant in this context and its contribution lies in the area of performance measurement.
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Ali Anjomshoae, Adnan Hassan, Nathan Kunz, Kuan Yew Wong and Sander de Leeuw
In recent years, the balanced scorecard (BSC) has received considerable interest among practitioners for managing their organization’s performance. Unfortunately existing BSC…
Abstract
Purpose
In recent years, the balanced scorecard (BSC) has received considerable interest among practitioners for managing their organization’s performance. Unfortunately existing BSC frameworks, particularly for humanitarian supply chains, lack causal relationships among performance indicators, actions, and outcomes. They are not able to provide a dynamic perspective of the organization with factors that drive the organization’s behavior toward its mission. Lack of conceptual references seems to hinder the development of a performance measurement system toward this direction. The paper aims to discuss these issues.
Design/methodology/approach
The authors formulate the interdependencies among key performance indicators (KPIs) in terms of cause-and-effect relationships based on published case studies reported in international journals from 1996 to 2017.
Findings
This paper aims to identify the conceptual interdependencies among KPIs and represent them in the form of a conceptual model.
Research limitations/implications
The study was solely based on relevant existing literature. Therefore further practical research is needed to validate the interdependencies of performance indicators in the strategy map.
Practical implications
The proposed conceptual model provides the structure of a dynamic balanced scorecard (DBSC) in the humanitarian supply chain and should serve as a starting reference for the development of a practical DBSC model. The conceptual framework proposed in this paper aims to facilitate further research in developing a DBSC for humanitarian organizations (HOs).
Originality/value
Existing BSC frameworks do not provide a dynamic perspective of the organization. The proposed conceptual framework is a useful reference for further work in developing a DBSC for HOs.
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Belete Jember Bobe, Dessalegn Getie Mihret and Degefe Duressa Obo
The purpose of this paper is to examine adoption of the balanced scorecard (BSC) by a large public-sector health organisation in an African country, Ethiopia as part of a…
Abstract
Purpose
The purpose of this paper is to examine adoption of the balanced scorecard (BSC) by a large public-sector health organisation in an African country, Ethiopia as part of a programme to implement a unified sector-wide strategic planning and performance monitoring system. The study explains how this trans-organisational role of the BSC is constituted, and explores how it operates in practice at the sector-and organisation-levels.
Design/methodology/approach
The study employs the case-study method. Semi-structured interview data and documentary evidence are analysed by drawing on the concept of translation from actor-network theory.
Findings
The case-study organisation adopted the BSC as a part of broader public-sector reforms driven by political ideology. Through a centralised government decision, the BSC was framed as a sector-wide system aimed at: aligning the health sector’s strategic policy goals with strategic priorities and operational objectives of organisations in the sector; and unifying performance-monitoring of the sector’s organisations by enabling aggregation of performance information to a sector level in a timely manner to facilitate health sector policy implementation. While the political ideology facilitated BSC adoption for trans-organisational use, it provided little organisational discretion to integrate financial administration and human resource management practices to the BSC framework. Further, inadequate piloting of information system use for the anticipated BSC model, originating from the top-down approach followed in the BSC implementation, inhibited implementation of the BSC with a balanced emphasis between the planning and performance monitoring roles of the BSC. As a result, the BSC underwent a pragmatic shift in emphasis and was reconceptualised as a system of enhancing strategic alignment through integrated planning, compared to the balanced emphasis between the planning and performance monitoring roles initially anticipated.
Originality/value
The study provides a theory-based explanation of how politico-ideological contexts might facilitate the framing of novel roles for the BSC and how the roles translate into practice.
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Babajide Oyewo, Olayinka Moses and Olayinka Erin
This study aims to investigate the drivers and impact of balanced scorecard (BSC) usage on organizational effectiveness in manufacturing companies. The objectives of the paper…
Abstract
Purpose
This study aims to investigate the drivers and impact of balanced scorecard (BSC) usage on organizational effectiveness in manufacturing companies. The objectives of the paper were to assess the organizational factors affecting the usage intensity of the BSC; the relative benefits of BSC determining its adoption speed; and the extent to which BSC usage enhances organizational effectiveness.
Design/methodology/approach
The study adopted a survey research design. Data collection was through a structured questionnaire administered on senior accounting/ finance personnel of 300 manufacturing companies that are members of the Manufacturers Association of Nigeria. Binary logistic regression analysis, discriminant analysis and structural equation modeling (maximum likelihood estimation method) were used to analyze survey data obtained from 104 BSC adopters.
Findings
Result shows that the three organizational factors affecting BSC usage intensity are affiliation to a foreign entity, availability of specialist skills and business strategy (strategic pattern). The strongest predictor is, however, the availability of specialist skills. The strongest determinants of the BSC adoption speed are the need for financial stability and the importance of customer feedbacks. The impact of BSC usage on organizational effectiveness is positive, statistically significant but weak. The inability of BSC usage to contribute appreciably to organizational effectiveness is attributable to the lack of integration among the performance measures in the BSC framework and the shallow usage rate of BSC.
Practical implications
Although it is commendable that financial stability and customer satisfaction strongly drive BSC adoption speed, the low rating recorded by other factors related to product development, employee development and process improvement suggests that the performance measures in the BSC framework are not used in an integrative manner. This also confirms that the BSC, like other innovative management accounting techniques, is applied at a rudimentary level by organizations in Nigeria.
Originality/value
The current study contributes to knowledge by exposing the organizational factors and relative benefits driving BSC adoption. It provides empirical evidence on why the BSC may not deliver the optimal benefit of improving organizational effectiveness despite its popularity and potential as an integrated performance measurement (IPM) apparatus that can add value to organizations. The paper adds to the scarce literature on IPM in developing countries. Drawing from the result that availability of specialist skills is the strongest predictor of BSC usage intensity, the practice of enmeshing the management accounting function with general accounting/finance should be discouraged.
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Zehra Keser Ozmantar and Tokay Gedikoglu
The purpose of this paper is to investigate the development and implementation process of the balanced scorecard (BSC) approach in an educational institution in the context of the…
Abstract
Purpose
The purpose of this paper is to investigate the development and implementation process of the balanced scorecard (BSC) approach in an educational institution in the context of the Turkish educational system. It also aims, on the basis of the results of the applications in a particular school, to define principles through which the development of BSC could be successfully achieved.
Design/methodology/approach
The study adopts a design-based research method which provides a particularly useful approach to the solution of real problems in the field of education. The study was carried out in a private educational institution with 161 members of staff including managers, teachers and personnel of the support units. Scorecards for the institution as well as 161 members of staff were developed.
Findings
The examination of the developmental process suggests 12 design principles: willingness to change; managerial support; flexible management structure; appropriate team members; training of staff; availability of strategic planning; distinctive BSC dimensions; smart strategic objectives; balance between leading and lagging indicators; developing individual scorecards; open communication system; structured report format.
Originality/value
This is the first study that develops BSC for a school in a Turkish context. The design principles, the author believes, are particularly useful for schools that do not have a strategic performance management background. This study is also important in terms of putting forward the applicability of BSC in educational organizations in different cultures and thus gaining new insights about the developmental process of BSC.
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This paper aims to focus on the development of a “dynamic Balanced Scorecard” and to demonstrate that matching the traditional Balanced Scorecard (BSC) architecture with system…
Abstract
Purpose
This paper aims to focus on the development of a “dynamic Balanced Scorecard” and to demonstrate that matching the traditional Balanced Scorecard (BSC) architecture with system dynamics principles offers better support for strategic management decisions.
Design/methodology/approach
The paper is based on a case study related to a service‐based business. The maps, the mathematical model and the BSC developed according to system dynamics modelling principles are discussed.
Findings
A system dynamics‐based BSC, particularly if embedded into a management flight simulator, would allow exploration and understanding of features of complexity and dynamics, consideration of feedback loops rather than unidirectional causality, the use of mapping tools for a more comprehensive design of the strategy maps, the facilitation of a process of organisational learning; and support for policy design and strategic analysis performed by managers.
Originality/value
The value of this paper is two‐fold: first, it shows that by using system dynamics modelling principles it is possible to overcome positively some limitations of the original BSC framework; second, the paper provides information and suggestions that are helpful for companies that are interested in developing strategic management systems based on both BSC architecture and on system dynamics principles and simulation tools (e.g. the management flight simulator).
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Francesca Francioli and Lino Cinquini
The research aims at addressing the way in which linkages based on qualitative causality could be preferred in designing a balanced scorecard (BSC), by applying a cost-benefit…
Abstract
Purpose
The research aims at addressing the way in which linkages based on qualitative causality could be preferred in designing a balanced scorecard (BSC), by applying a cost-benefit judgment with respect to the complexity of defining strong, statistically reliable cause-and-effect relations among performance measures.
Design/methodology/approach
The authors review the way in which cause-and-effect relations across the BSC have been developed based on a case study of BSC implemented in an Italian bank collecting data by in-depth interviews and company’s internal archives.
Findings
The research reveals how the ambiguity, or “blurred nature”, of strategic linkages is recognized in the empirical setting of an bank, facing a highly uncertain and complex environment and how the orthodox tools of strategy maps and explicit cause-and-effect linkages prescribed by the theoretical literature are avoided by the human actors. Despite these omissions, the BSC is nevertheless effective. As the case shows, it generated a “democracy” where individuals and departments communicate, commit and collaborate in an effort to implement strategy. The research also shows the role of the BSC in heightening the importance and awareness of performance evaluation among the actors.
Practical implications
The research provides practitioners with insights into how to design and manage cause-and-effect relationships in BSC. In particular, evidence is provided that finality linkages in BSC may be successful in use and predictive capabilities, according with expectations and purposes of the organization’s “climate of control”, in a context in which the cost-benefit philosophy in implementing BSC is followed.
Originality/value
The paper addresses an issue of practical relevance in the implementation of BSC showing a discrepancy between theoretical and practical meaning of causality. Besides the research highlights, the extent to which linkages across the BSC perspectives (and related measures and variables) can only be based on individual assumptions about the means to an end and based on qualitative assertions (finality).
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Marvin Soderberg, Suresh Kalagnanam, Norman T. Sheehan and Ganesh Vaidyanathan
The Balanced Scorecard (BSC) is widely applied as a performance measurement and strategy implementation tool by organizations. Research has revealed that the term “balanced…
Abstract
Purpose
The Balanced Scorecard (BSC) is widely applied as a performance measurement and strategy implementation tool by organizations. Research has revealed that the term “balanced scorecard” may be understood differently by managers both within as well as across organizations implying that the performance measurement systems implemented in organizations may not be similar to the construct envisioned by Kaplan and Norton. Using Kaplan and Norton's Balanced Scorecard construct as a basis, the paper aims to develop and test a five‐level taxonomy to classify firms' performance measurement systems.
Design/methodology/approach
A Balanced Scorecard taxonomy is validated using a large sample of professional accountants working in Canadian organizations.
Findings
The five‐level taxonomy is used to categorize the performance measurement systems of 149 organizations. It is found that 111 organizations' (74.5 percent) performance measurement systems met the criteria to be classified as a Basic Level 1 BSC, while 61 (40.9 percent) organizations have structurally complete Level 3 BSCs, and 36 (24.2 percent) organizations have fully developed Level 5 BSCs. The paper also discusses differences between Level 1 and Level 5 BSC organizations.
Research limitations/implications
While many researchers assume that organizations' performance measurement systems are similar in implementation level and use, the paper demonstrates that organizations are at different levels of BSC implementation and use, a factor that should be taken into consideration when designing empirical studies to test the efficacy of Kaplan and Norton's BSC.
Practical implications
The five‐level BSC taxonomy scheme provides managers working with Kaplan and Norton's BSC with a tool to plan their implementation steps and then benchmark their progress towards implementing a fully developed Level 5 BSC.
Originality/value
In developing and empirically validating a BSC taxonomy, the paper builds on and extends previous research on BSC implementation and its potential implications.
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