Balanced Scorecard Methodology Research Articles

Personal Strategy and Change Readiness

<p>Guidelines for developing personal strategy are based on strategic concepts for business and a framework of well-being. The notion is that effective strategy has to balance a deliberate and specific plan with an evolving strategy of change as a result of new opportunities and threats. The set of personal objectives to be prioritized are a modified version of flourishing components in positive psychology. Alternative life styles are presented based on the objectives. The building blocks of the strategy are borrowed from the Balanced Score Card methodology. The paper emphasizes the importance of personal strengths in choosing initiatives for action. The approach to change is constructed by three variables of change readiness: trigger identification, preparation for action and mode of action.</p>

Use of Balanced Indicators as a Management Tool in Nursing.

Objective: to develop a proposal for a nursing panel of indicators based on the guiding principles of Balanced Scorecard. Method: a single case study that ranked 200 medical records of patients, management reports and protocols, which are capable of generating indicators. Results: we identified 163 variables that resulted in 72 indicators; of these, 32 nursing-related: two financial indicators (patient's average revenue per day and patient's revenue per day by product used); two client indicators (overall satisfaction rate of patient with nursing care and adherence rate to the patient satisfaction survey); 23 process indicators, and five learning and growth indicators (average total hours of training, total of approved nursing professionals in the internal selection process, absenteeism rate, turnover rate and index of performance evaluation). Conclusion: although there is a limit related to the amount of data generated, the methodology of Balanced Scorecard has proved to be flexible and adaptable to incorporate nursing services. It was possible to identify indicators with adherence to more than one area. Internal processes was the area with the higher number of indicators.

Business Performance and Strategic Management Options in Hospitality: The Case of Lisbon City

This research addresses the growing hotel market phenomenon where two dominant strategic management models coexist: Hotel chains and independent hotels. In this context, this research intends to study the main strategic and operational management differences of these two business models and their differences in terms of business performance. The case study presented focuses on the city of Lisbon (Portugal) with a total sample of 114 hotels surveyed. Taking the Balanced Scorecard methodology as reference for the empirical analysis, the several associated indicators allowed us to compare and understand the differences in performance between the hotels integrated in international chains and the independent ones, or those belonging to small local hotel groups. The SPSS 20.0 version was used to carry out the research analysis. If, on the one hand, the empirical evidence points to the fact that units integrated in hotel chains have more standard operating procedures and a more complex management structure, on the other, with respect to various financial indicators (Gross Operating Profit, Room Profit and Food & Beverage Profit, etc.) there were no significant differences between the two types of hotel management model.

Post-Mergers and Acquisitions: The Motives, Success Factors and Key Success Indicators

There is a wide body of evidence showing a significant increase in the adoption of mergers and acquisitions (M&A) worldwide. Moreover, research confirms that the integration and implementation stage (post-M&A) has a major impact on the success or failure of a merger or acquisition. Therefore it has become increasingly important to explore the post-M&A phase further in order to support the management teams of organizations pursuing a merger or acquisition in meeting all their desired objectives. This paper proposes a framework to help in the successful execution of M&A. The framework contains three main elements: the motives, success factors and key success indicators (KSI). A qualitative research approach using the multiple case study methodology was conducted to test the framework. Ten case studies were selected from the industrial sector in Egypt and used to validate the research. The final version of the M&A framework was provided after applying the research results. Considering the practical implications of the M&A framework, a tool was proposed for its application in light of the balanced scorecard (BSC) methodology. The proposed M&A scorecard tool should be used in the strategic planning and execution of M&A. Both the proposed M&A framework and the M&A scorecard tool should be used to guide the implementation of M&A in order to increase the success rate enjoyed by organizations.

A dynamic sustainability Balanced Scorecard methodology as a navigator for exploring the dynamics and complexity of corporate sustainability strategy

The majority of recent empirical research regarding corporate environmental literature seeks to identify the potential relationships between environmental management practices and the financial performance of the firms. In addition, another major part of the research concerns the effect of corporate social responsibility practices on corporate financial performance. The majority of these studies focus on the effect of either social or environmental aspects on firms’ economic performance through various statistical techniques in an ex post and static base (at the end of year – annually). To contribute to this literature, this article aims at developing a dynamic sustainability Balance Scorecard methodology to investigate the evolutionary trends of the relationships among environmental, social, and economic performance of firms. The main contribution is the development of an integrated mental model in order to improve managers’ and scholars’ comprehension of corporate sustainability performance. The proposed methodology is mainly based on the corporate environmental and social management literature, system thinking, system dynamics, and Stella software. Some computational examples are also presented based on three scenarios.

An Outcomes-Based Education (Obe) Approach & Typology-Based Quality Assurance (Qa) System: A Proposed Framework And Transition Strategy For Philippine Higher Education Institution’s (HEI) Shift Towards International Standards

AbstractThis study is part of a bigger study supporting the Philippine Government’s Medium-Term Plan to institute major reforms in its educational system. The main research question of this study is how can Philippine Higher Education Institutions (HEIs) shift towards an Outcomes-Based Education (OBE) approach and typology-based Quality Assurance (QA) System that would meet international standards? Specifically, the study aimed to: 1) craft a Ten-year transition strategy (AY 2012-2022) for Philippine HEIs to become compliant to international accords 2) design a framework for an Outcomes-based Education (OBE) approach and typology-based Quality Assurance (QA) system for HEIs; and 3) on the bases of the results, design a Model academic Course Syllabus in the field of business, particularly the BS Accountancy Program that applies OBE approach and typology-based QA using an actual case of an existing HEI- La Consolacion College Manila (LCCM), Philippines. The researchers’ main motivation in undertaking this study was the specific significant contribution to LCCM-a 100-year old HEI that is in need of a transition strategy during Academic Year 2012-2022 and the benefits to national interest. The Philippines has consistently lagged behind in the World Economic Forum (WEF) Global Competitiveness Index, placing 65th worldwide and 3rd least competitive among its Southeast Asian neighbours. The conceptual framework primarily used three of the world’s most popular quality management system models – Deming’s PDCA Cycle used in ISO 9001:2008 QMS, Baldrige Framework –Education Criteria for Performance Excellence (MBNQA,2010) and Kaplan’s Balanced Scorecard (BSC) Methodology (Kaplan and Norton,2000).The methodology used was a descriptive- case analysis research design primarily using secondary data analysis technique to analyse existing publications, memorandum orders, and studies from government and private agencies. Primary data was sourced from internal records of LCCM--the sample case study. The study showed that Outcomes-based framework presupposes quality and goals anchored on the Vision-Mission-Goals and Objectives (VMGO) of HEIs. Thus, HEIs define their VMGO in response to local contexts and their assessment of institutional strengths and weaknesses, the quality goals and outcomes of HEIs necessarily differ. It can be concluded that Philippine HEIs are not differentiated along the mission and functions vis-à-vis the national goals, with specific focus (target clientele, resource requirement and competencies of graduates). Typology-based QA for HEI must therefore be classified into three types: a) Professional Institutes b) Colleges and c) Universities. The study recommends immediate implementation of the 12-year Basic education (K-12) to comply with international accords (Washington and Bologna) in view of the economic impact of the gap during the transition phase. Strategies were crafted and designed for LCCM which may be applicable to HEIs in the Philippines during the 10-year transition stage (AY2012-2022). It is recommended that HEIs should adopt OBE approach and typology-based QA to produce world class graduates with competencies in accord with international standards. Private accrediting and certifying agencies must subsequently revise criteria to conform to these new methodology and typology, and to suit to the needs of HEIs aligned with the national goals and cascaded down to its VMGO. A Proposed BS Accountancy (BSA) Course Syllabus was developed in this study that may serve as a Model for all HEIs. It is further recommended that government regulatory units such as CHED and PRC, local accrediting agencies such as PAAASCU/PACU-COA, and international certifying agencies such as SGS for ISO and MBNQA for Baldrige, must use standards on the basis of this new typology. Finally, the study recommends an 8-step Action Plan for HEIs, starting with the K-12 implementation in Basic Education to cascading the HEI’s VMGOs into Program Course objectives following the OBE approach and revised HEI typology.

The Evolution of Balance Scorecard and its Impact on Web Services Quality

Web services quality have become a significant part of small businesses who use it to facilitate the seamless flow of business transactions and financial growth. While previous research focused on the technological, operational and infrastructure capabilities such as; reducing the cost of application development, systems integration and increasing interoperability among heterogeneous software components, applications and platforms. Small businesses on the other hand, are often more challenged than larger firms by resource constraints such as; lack of financial capital, and technical or managerial skills. Further, they are often confronted with the reality of their business performance. “If you can't measure it, you can't manage it,” since effective performance management requires accurate performance measurement. The author applies the integrated evolved Enterprise-Define, Measure, Analyze, Improve and Control (E-DMAIC) balanced scorecard methodology to examine web services quality in a small business firm. The integrated framework applies the traditional balanced scorecard four perspectives namely; learning and growth, internal business processes, customer and financial perspectives and the nine stages of the E-DMAIC balanced scorecard approach along with quality indicators. The new approach serves three purposes; first, as a measurement system monitoring performance and the quality of their goods and services. Second, as a communication tool providing diagnostic feedback of their performance, and lastly, as a strategic management system focusing on the small business visions. The author then tests the framework via an exploratory case study and reports the findings. The findings contribute to guidelines that will inform, educate and promote small businesses on the importance of web services quality.

Percepção dos gestores sobre o processo de institucionalização do Balanced Scorecard de uma empresa de saneamento

O Balanced Scorecard (BSC) é um dos artefatos de gestão mais utilizados pelas grandes empresas, porém muitas organizações têm dificuldades em sua implementação e uso. Essa pesquisa buscou conhecer os fatores que colaboraram para a institucionalização e/ou desinstitucionalização do BSC numa grande empresa de saneamento básico. A pesquisa foi desenvolvida por meio da investigação com questionários junto aos gestores, com os quais foi possível identificar, à luz da teoria institucional, mais especificamente da nova sociologia institucional, as motivações de ordem sociológica que contribuíram para a institucionalização e/ou desinstitucionalização do BSC na organização. Concluiu-se que os efeitos conjugados da força de diversos agentes que atuaram em função de interesses próprios, a falta de formação de um ambiente técnico institucionalizado e, desde um dado momento, a falta das condições que sustentavam e mantinham os ambientes técnicos (saída da principal liderança) foram as principais causas que contribuíram para o processo de desinstitucionalização do BSC.

A Systematic Methodology to Reduce Losses in Production with the Balanced Scorecard Approach

Efficiency in the industrial production has been one of the most discussed topics over the last years. Due to the direct link between efficiency and reduction of losses, several concepts have been introduced focusing on these losses. Furthermore, the suggested optimization approach is based on the factors of production theory and combines these input factors with the stated and newly identified losses. This paper offers a methodology to reduce these losses by using the balanced scorecard methodology. A case study in the polymer industry is given showing how to identify and measure losses in a production system.

실시간 기업의 특성이 공급사슬성과에 미치는 영향

본 논문에서는 실시간 기업(Real Time Enterprise: RTE) 특성이 공급사슬성과에 미치는 영향에 대해 연구한다. 현재의 공급사슬 성과측정은 재무적, 비재무적, BSC, SCOR 측면에서 진행되고 있지만, 충분하지 못한 실정이다. 본 연구에서는 제품품질, 인도속도, 프로세스 유연성, 가격리더십으로 측정되는 조합적 경쟁역량의 측면에서 SCM 성과를 측정하고자 하였다. 본 연구는 가시성, 민첩성, 조합적 경쟁역량의 변수들을 사용하여 다음과 같은 사실을 밝혔다: (i) 가시성은 민첩성에 유의한 영향을 미친다. (ii), 가시성은 조합적 경쟁역량에 유의한 영향을 미친다. (iii) 민첩성 또한 조합적 경쟁역량에 유의한 영향을 미친다. The purpose of this study is to investigate the effect of RTE characteristics on SCM performance. Extant approaches for evaluating the SCM performance adopt financial measures, non-financial measures, Balanced Score Card (BSC) methodology and Supply Chain Operations Reference (SCOR) methodology etc., but researches on SCM performance measurement are not sufficiently reviewed. In this study, SCM performance is measured with the Combinative Capabilities which are divided into four categories of product quality, delivery speed, process flexibility, price leadership. The experimental results with the three factors of visibility, agility and combinative capabilities variables show the followings: (i) Visibility had a significant impact on agility. (ii) Visibility had a significant impact on combinative capabilities. (iii) Agility also had a significant impact on combinative capabilities.

The Effect of KM implementation on organizational performance with balanced scorecard methodology

The Effect of KM implementation on organizational performance with balanced scorecard methodology

Supporting Causal-Oriented Performance Management by a Dynamized Balanced Scorecard

The claim of performance management systems is to enhance managers’ knowledge about the events, circumstances and processes, which constitute organisational performance. Performance management systems serve as instruments to reconstruct the complexity of the value creation process. Thereby, modern companies, especially service companies, are confronted with a highly dynamic environment. Against this background, a performance management system is conceptualized as continuous process of redesigning performance management systems. Against this background, the suitability of the Balanced Scorecard for causal-oriented performance management is discussed. On this basis, the benefits of integrating a time dimension into BSC-methodology are evaluated from a design-theoretical point of view. Based on the developed design-framework and deficiencies of the standard Balanced Scorecard-methodology, a dynamic BSC is modelled. The aim of this model is to support managers understanding of the complex causal system, which constitutes the value creation process. Concerning the needs of causal performance management, the opportunities and limitations of dynamic models are discussed.

The implementation of the balanced scorecard in a school district

PurposeThe purpose of this paper is to investigate the benefits, obstacles and challenges in implementing the balanced scorecard (BSC) in non‐higher education public schools, more specifically, in a Portuguese school district.Design/methodology/approachAn action research approach was used to develop a BSC, help to implement changes and reflect about the outcomes.FindingsThe paper presents the BSC for the school district and discusses five benefits, two obstacles and three challenges that emerged from the study. While some findings are in line with those found in other levels of education, others seem to be context‐specific.Research limitations/implicationsThe results refer to a single intervention in Portugal and the methodology used precludes any generalization attempts.Practical implicationsThe findings are particularly relevant to the Portuguese context, providing evidence that the BSC can overcome some weaknesses of schools in the area of strategic management, as identified by the literature. They also raise implications for the wider field of the BSC's use in non‐higher education public schools, suggesting reasons why things may go wrong. The results may be of value to practitioners wishing to make the implementation of the BSC more effective.Originality/valueThis paper contributes to the scarce body of literature on the application of the BSC to non‐profit organizations by providing an understanding of its possible benefits, obstacles and challenges in non‐higher education public schools. It shows how the BSC methodology can be adapted to fit the specific requirements of a school district. This is one of the first papers to discuss an application of the BSC to non‐higher education public schools.

The Major Perspectives Weighted Model for Balanced Scorecard System in the Case of Auto Industries

The Balanced Scorecard methodology is a comprehensive approach that analyzes an organization's overall performance in at least four ways. Based on the idea that assessing performance through financial returns only provides information about how well the organization did prior to the assessment, so that future performance can be predicted and proper actions taken to create the desired future. The present study tried to point out the major perspectives weighted model for the Balance Scorecard Systems through setting weight for each perspective of a Balance Scorecard which especially can be used in Iranian auto industries. Fuzzy AHP was employed as one of the important items regarding multi-criteria decision making. Regarding results of Fuzzy AHP Organization's Innovation and Learning is the most important perspective and then are Customer Satisfaction, Financial Measures and Internal Processes. It should be noticed that in effectiveness Balance Scorecard, all the perspectives are of not the same importance and a better Balance Scorecard system that makes suitable will tend support for higher performance.

The BSCBAS: a Balanced Scorecard‐based appraisal system for improving the performance of software organizations

AbstractPerformance appraisals are most commonly undertaken to let an employee know how his/her performance compares to the supervisor's expectations and to identify areas that require training or development. Generally, developing an appraisal system that accurately reflects employee performance is a difficult task. In software companies, such a task is more difficult because software engineering is, by its nature, innovative work. To measure software engineers’ performance, the challenge is in having tangible key performance indicators that reflect that performance. In this paper, we present a framework for an appraisal system for software engineers using the Balanced Scorecard methodology. This framework was applied and its influence on the software engineers’ performance and the overall performance of the organization was investigated. Copyright © 2012 John Wiley & Sons, Ltd.

Establishing an evaluation performance measurement model for the financial service sector

The study employs a multiple criteria decision making (MCDM) approach to evaluate the performance of wealth management (WM) banking. We first apply the balanced scorecard methodology to build a framework for WM banking and then provide a framework for the sub-criteria by applying the Delphi method. The empirical results reveal that the performance of WM banks in Taiwan is evaluated by applying the analytic network process (ANP) and grey relational analysis (GRA). Importantly, the proposed model can assist the banking sector in assessing the performance of WM banks, making it highly applicable for bank managers engaged in decision-making as well as financial sector analysts. Key words: Wealth management, balanced scorecard, analytic network process (ANP), grey relational analysis (GRA).

Using Balanced Scorecard (BSC) approach to improve ergonomics programs

The purpose of this paper is to propose foundations for a theory of using the Balanced Scorecard (BSC) methodology to improve the strategic view of ergonomics inside the organizations. This approach may help to promote a better understanding of investing on an ergonomic program to obtain good results in quality and production, as well as health maintenance. It is explained the basics of balanced scorecard, and how ergonomists could use this to work with strategic enterprises demand. Implications of this viewpoint for the development of a new methodology for ergonomics strategy views are offered.

Benefits and Limitations of the Balanced Scorecard Method when Evaluating Organizational Results in Education, Development & Training<Br>Http://Dx.Doi.Org/10.5585/Riae.V10i1.1695

This is an exploratory study, aiming to examine the adequacy of the Balanced Scorecard (BSC) method, insofar as to evaluate the activities of Education, Training and Development (ETD). This article is structured as follows: after reviewing the background body of literature on the theme; we present the BSC methodology; its main benefits and limitations; a background literature review on ETD evaluation; and then, we address a case study on the BSC implementation within an organization. In conclusion, the main benefit of using the BSC is the possibility of obtaining a strategic alignment between training and organizational goals. On the other hand, BSC’s main limitation is the lack of scientific literature to back up the cause-and-effect relationship between ETD actions and the BSC’s perspectives. Finally, we present an agenda to tackle future research.

Strategy and Performance Implementation of the Balanced Scorecard Methodology to the Interprofessional Health Development Supporting Group

Strategy and Performance Implementation of the Balanced Scorecard Methodology to the Interprofessional Health Development Supporting Group

Strategic performance measurement in a healthcare organisation: A multiple criteria approach based on balanced scorecard

The Balanced Scorecard (BSC) methodology focuses on major critical issues of modern business organisations: the effective measurement of corporate performance and the evaluation of the successful implementation of corporate strategy. Despite the increased adoption of the BSC methodology by numerous business organisations during the last decade, limited case studies concern non-profit organisations (e.g. public sector, educational institutions, healthcare organisations, etc.). The main aim of this study is to present the development of a performance measurement system for public health care organisations, in the context of BSC methodology. The proposed approach considers the distinguished characteristics of the aforementioned sector (e.g. lack of competition, social character of organisations, etc.). The proposed measurement system contains the most important financial performance indicators, as well as non-financial performance indicators that are able to examine the quality of the provided services, the satisfaction of internal and external customers, the self-improvement system of the organisation and the ability of the organisation to adapt and change. These indicators play the role of Key Performance Indicators (KPIs), in the context of BSC methodology. The presented analysis is based on a MCDA approach, where the UTASTAR method is used in order to aggregate the marginal performance of KPIs. This approach is able to take into account the preferences of the management of the organisation regarding the achievement of the defined strategic objectives. The main results of the proposed approach refer to the evaluation of the overall scores for each one of the main dimensions of the BSC methodology (i.e. financial, customer, internal business process, and innovation-learning). These results are able to help the organisation to evaluate and revise its strategy, and generally to adopt modern management approaches in every day practise.