An Empirical Study of the Balanced Scorecard Model

Abstract

Today, the effective use of the Balance Scorecard (BSC) model can bring in a holistic approach to performance measurement and break the traditional use of financial indicators alone to measure the performance of any service-sector organization. As such, the aim of this paper is to examine the underlying hypotheses of the BSC model and how they can be used for performance evaluation by focusing on the banking sector of Bangladesh. Results indicate a positive correlation among the BSC perspectives at a statistically significant level and in a sequential way for the selected banks. Findings of the study particularly highlights that banks which have experienced improvements in their selected financial indicators like ROA, ROE, etc had evidently increased their efforts towards the characteristics under the learning and growth, internal business process and customer perspectives. These findings thus clearly have a number of important implications for bank managers in the context of Bangladesh.