A comprehensive evaluation of a company performance using sustainability balanced scorecard based on picture fuzzy AHP

Abstract

The Balanced Scorecard (BSC) is a performance management tool that analyzes the relationship between tangible and intangible assets. Its ability to render business strategy visible has earned it the distinction of being a strategic management model. Sustainability has become an important part of daily and business life today. With the increasing importance given by stakeholders to environmental and social issues, companies find it necessary to evaluate sustainability activities in their performance evaluations. In order to meet this need, the Sustainability Balanced Scorecard (SBSC) emerged with the addition of a sustainability perspective or parameters to BSC. The number of academic studies pertaining to the application of BSC, which numerous companies and subjects to research have utilized, is inadequate. Due to its hierarchical structure and the necessity to evaluate numerous criteria, BSC is suitable for using multi-criteria decision-making (MCDM) methods. In this paper, an integrated approach consisting of SBSC, the Picture Fuzzy Analytic Hierarchy Process (PF-AHP), and the Objective Matrix (OMAX) method is proposed for the performance measurement of companies. The PF-AHP method has been reorganized for ease of application in determining the perspectives, strategic objectives, and Key Performance Indicators (KPIs) weights within SBSC. Additionally, the OMAX method has been employed for calculating the performance scores. This proposed approach was implemented in a factory operating in the glass industry. The SBSC created for the company includes five perspectives, 16 strategic objectives, and 34 KPIs. PF-AHP method was used to determine the weights of perspectives, strategic objectives, and KPIs to be used in the performance score calculation with OMAX. The weight of financial perspective is 0.267, the weight of the customer perspective is 0.247, the weight of the internal process perspective is 0.191, the weight of the learning and development perspective is 0.161, and the weight of the sustainability perspective is 0.134. The evaluations made by the decision-makers indicate that the company's performance measurement still adheres to the traditional framework. The performance score of the company is 6.14 out of 10.