The Role of the Balanced Scorecard in Strategic Cost Management and Strategic Performance Evaluation (An Applied Study in the Middle East Investment Bank)

Abstract

The balanced score card technique is among the modern strategic techniques in the field of cost and administration that aims to evaluate the strategic performance of economic units due to their reliance on financial and non-financial indicators. Therefore, this research aims to highlight the role of the balanced scorecard technique in evaluating strategic performance compared to the traditional systems that are used in this field, as the latter rely on financial indicators only. The research reached a number of conclusions, the most important of which is that the balanced scorecard technique plays a major role in evaluating strategic performance, surpassing the performance evaluation process that is carried out under traditional systems related to this matter, whose scope of work is narrow because it relies only on financial indicators. Therefore, the most important recommendations of the research indicate the importance of the balanced score card technique in evaluating strategic performance in light of the developments taking place in business. The Iraqi economic units suffer from a lack of interest in applying modern techniques related to cost and administrative accounting, including the balanced score card.