Balanced Scorecard Technique Research Articles

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

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.

The Role of the Balanced Scorecard Technique in Evaluating and Improving Strategic Performance in the Kufa Cement Factory

The Role of the Balanced Scorecard Technique in Evaluating and Improving Strategic Performance in the Kufa Cement Factory

Towards sustainable success: A framework for assessing performance of sustainable manufacturing adoption in Indian textile industry

This study aims to evaluate performance of SM adoption in textile organizations by developing a performance measurement framework. A fuzzy modified balanced scorecard technique has been used to fulfil the objective of the study. A cross-disciplinary team of fifteen experts, the delineation of performance perspectives, and classification of performance measures of SM were established. The findings reveal that environmental perspective, emerges as the most crucial criterion, trailed by social perspective, economic perspective, innovation perspective, supply chain perspective, regulatory and compliance perspective and customer perspective. Results will help managers and academicians to examine the performance of key indicators in implementing SM.

An Evaluation of E7 Countries’ Sustainable Energy Investments: A Decision-Making Approach with Spherical Fuzzy Sets

Abstract The purpose of this study is to identify important strategies to increase sustainable energy investments in emerging economies. For this situation, first, four different indicators are selected according to the dimensions of the balanced scorecard technique. The weights of these items are computed by using Quantum Spherical fuzzy DEMATEL. In the second phase, emerging seven (E7) countries are ranked regarding the performance of sustainable energy investments. In this process, Quantum Spherical fuzzy TOPSIS is taken into consideration. The main contribution of this study is that prior factors can be defined for emerging economies to increase sustainable energy investments in a more effective way. Furthermore, a novel decision-making model is developed while integrating TOPSIS and DEMATEL with Quantum theory, Spherical fuzzy sets, facial expressions of the experts, and collaborative filtering. It is concluded that competition is the most significant factor for the performance of sustainable energy investments. In addition, the ranking results denote that China and Russia are the most successful emerging economies with respect to sustainable energy investments. It is strongly recommended that emerging countries should mainly consider benchmarking the capacity of energy hubs with the aim of increasing the capacity of ongoing energy plants.

Performance-Influencing Factors and Causal Relationships of Construction Projects Using Smart Technology

With the advent of the Fourth Industrial Revolution, construction technology innovation through high-tech convergence is actively taking place, and the smart construction technology market is growing rapidly. However, as it focuses on the use of individual technologies, research into the factors that have a major impact on their intended effect is insufficient. Thus, this study investigates these factors and their mutual influences from various perspectives to promote the use of smart technology to improve construction projects. Ten performance-influencing factors were derived from four perspectives based on the balanced scorecard technique. In addition, based on a survey of projects that use smart technology, the current status of its application and performance characteristics were analyzed, and a causal relationship model among the factors was presented. This study provides a foundation for identifying major areas for the efficient use of smart technology and performance measurement, and it will contribute to the introduction and activation of smart construction technology.

Role of Balanced Scorecard in Evaluating Total Productive Maintenance Performance

In light of the general inadequacy in the performance of the economic units operating in Iraq, and the contemporary developments in all the various sciences, Iraqi economic units have become obligated to use modern technologies applied around the world. Keeping abreast of these developments is done by moving away from traditional methods of evaluating performance and applying approved and accepted methods of evaluating performance. This will lead to an increase in the efficiency and effectiveness of the activities of economic units. In addition, this drives to reduce production costs. Accordingly, this study aims to clarify the application of the balanced scorecard technique and its role in evaluating the overall performance of the economic unit and the performance of total productive maintenance in particular. The study also aims to highlight the role of the balanced scorecard technique in evaluating the performance of total productive maintenance in order to develop the Iraqi industrial sector. The research selects the sulfuric acid factory in Al-Furat Company for Chemical Industries and Pesticides as a sample for the study. The most important finding is that the application of the balanced scorecard technique, based on the measures that have an impact on the overall productive maintenance, contributes to evaluating the total performance of the economic unit and evaluating total productive maintenance activities.
 Paper type: Research paper.

Measuring the Strategic Performance of Football Clubs Using the Balanced Score Card Technique

Measuring the Strategic Performance of Football Clubs Using the Balanced Score Card Technique

Neutrosophic management evaluation of insurance companies by a hybrid TODIM-BSC method: a case study in private insurance companies

PurposeIn this paper, a combined TODIM-BSC method with the neutrosophical approach for evaluating the performance of a private insurance company has been proposed. In other words, first, using the BSC technique, and identify the performance evaluation indicators, then evaluate the performance of the insurance company's agencies and rank them with the TODIM decision-making method.Design/methodology/approachThe insurance industry has a special prestige and importance in domestic and foreign trade. The evaluation of insurance companies, in addition to informing the stakeholders, increases competition, industry dynamism, sustainable and balanced development of society. The purpose of this paper is to establish a model for evaluating the performance of private insurance companies by adopting multiple-attribute decision-making and Balanced Scorecard (BSC) with single-values neutrosophic numbers (SVNNs) which will be applied by considering a set of indicators and alternatives deliberated with different viewpoints.FindingsA case study of the private insurance agencies in one of the provinces of Iran based on 26 criteria of agencies is used to confirm the practicality and effectiveness of the proposed model. Finally, there was a discussion about why the results are logical, which shows the strength and robustness of the proposed framework.Originality/valueTo the best of our knowledge, no study has been performed to evaluate the performance of a real-world problem with the integrated TODIM-BSC method in a neutrophilic environment. Therefore, this paper can be effective in bridging the existing research gap and expanding our knowledge of the discussion of evaluating the performance of organizations or companies. Besides, by using these results, the authors can help the planners of these companies as well as similar organizations in attracting satisfaction and retaining target customers.

Analyzing the circular supply chain management performance measurement framework: the modified balanced scorecard technique

Analyzing the circular supply chain management performance measurement framework: the modified balanced scorecard technique

Integrating Text-Mining and Balanced Scorecard Techniques to Investigate the Association between CEO Message of Homepage Words and Financial Status: Emphasis on Hospitals

(1) Background: The Chief Executive Officer’s (CEO’s) message on a hospital’s homepage on the Internet contains various components, such as the hospital’s future vision, promises to customers, availability of upgraded services and public activities. This statement usually includes non-financial information as well as financial information about the corporate entity owning/operating the hospital. In addition, it provides useful information about not only the company’s goals and vision, but also firm performance targets and strategies for the future. This study aims to investigate associations between the CEO’s message and the financial status of the institution. We used the balanced scorecard framework to analyze what content on the hospital’s homepage is related to the hospital’s various financial ratios. (2) Methods: We adopted a text-mining method to extract significantly repeated keywords from the CEO’s message on the hospital’s website. Then, we classified these keywords using a balanced scorecard approach. To examine the relationship between keywords in the CEO’s message and the hospital’s financial ratios, a t-test was conducted for the difference in the term frequency divided by inverse document frequency (TF-IDF) mean of the home page contents and its relationship with the views of the balanced scorecard framework. (3) Results: According to our empirical results on 65 samples collected from local hospitals, there are some significant relationships between the qualitative content of the hospital’s homepage and the quantitative financial ratios that indicate profitability, activity, leverage, liquidity, and accumulating reserves for proper business purposes. (4) Conclusions: The introduction section of a homepage is the part most accessible to customers, containing the aims and ideals of the hospital and reflecting the institution’s values and visions. In addition, in the coverage of financial status, the organization can either emphasize financial strength or focus on other areas to divert attention from any weakness shown in the financial information. This study reminds us of the importance of the hospital website’s disclosure, and what can be inferred from the financial status of the hospital. It also highlights the need for reconciliation and harmony between the quantitative data, financial statements, and qualitative data in the CEO’s message. (5) Implications: To the best of our knowledge, this paper is the first research attempting to investigate the relationship between text on the hospital’s homepage and the hospital’s financial ratios using text-mining techniques and the balanced scorecard framework. Hospitals play a crucial role in a country’s welfare and healthcare industry. Nevertheless, in many countries, hospital organizations tend to remain a source of critical fiscal deficits due to ineffective and sloppy management. We expect that the result of this paper can provide hospital managers with useful information to address that situation.

Evaluation of Financial Sustainability of the Federal Health Institutions in Nigeria

The study investigated the financial sustainability of the federal health institutions in Nigeria. The population of the study comprised twenty-five (25) federal health institutions from four (4) geo-political zones and Abuja. Secondary data were sourced from Annual General Warrant from the Office of the Accountant General of the Federation and Audited Financial Statements of the Public Sector Entities. Data obtained were analyzed using Balanced Score Card techniques. The results showed that none of the sampled federal health institutions in Nigeria attained a basic standard of sustainability test, whereby the ratios of their Internally Generated Revenue to recurrent expenditure is between (40 – 60)% or 0.04 and 0.6.This indicates the inability of the institutions to generate sufficient revenue independently to cover even the operational expenses in the short-run. Also, the results equally showed the highest positive operating surplus ratios of 1%-5% of operational sustainability indicating that the health institutions heavily depended on central authority’s funding for their survival. The results further revealed that none of the federal health institutions attained both intermediate and advance standards of sustainability tests. In conclusion, federal health institutions in Nigeria are heavily dependent on central authority for sustenance. Therefore, the central authorities should roll out blueprints that will make the institutions widen their internally generated revenue capacity and reduce the reliance on central authority’s funding for survival.

The performance evaluation of banks using balanced scorecard, fuzzy AHP and fuzzy TOPSIS techniques and the offering of solutions to performance improvement of banks

The purpose of this research is to realise how the performance evaluation of banks using balanced scorecard and the offering of solutions to performance improvement of banks. Numbers of experts participating in the study were 30 persons who were interested in improving discussion. This research first summarised the evaluation indices synthesised from the literature relating to banking performance. Then, to screen these indices, 22 indices were selected for banking performance evaluation. Furthermore, the relative weights of the chosen evaluation indices were calculated by fuzzy analytic hierarchy process and fuzzy TOPSIS. As to the prioritisation of BSC's aspects, results indicated that the financial aspect or criterion stands atop the priority list followed by the criteria of customers, learning and growth and the internal process of the organisation respectively. The results obtained from fuzzy TOPSIS method indicate that private bank is more important than specialised bank and commercial bank in banking industry.

A Concept Paper of Balanced Scorecard for New Product Development

This study aims to review the concept of Balanced Scorecard (BSC) technique to develop a new product. BSC, as a strategic performance tool, has received closed attention from many organizations worldwide. However, the implementation has been limited. The globalization and economic upheaval have increased the challenges to the executive’s face and therefore need to find the right tools to overcome the challenges. The current paper focuses on the review of literature on the importance of BSC towards new product development and business performance. This paper suggests that the 4th generation balance scorecard leads the combination of the management system and performance measurement that brings up one big strategy maps, and possibly will use widely to satisfy the customer demands. This paper discusses the current issues and the emerging importance of BSC literature and suggests fruitful areas for further study.

Evaluating quantity surveying firms’ performance

PurposeThe purpose of this paper is to evaluate the performance of quantity surveying firms (QSFs) using the balanced scorecard (BSC) technique.Design/methodology/approachBased on a survey of 37 QSFs in Lagos State, Nigeria, the paper empirically assessed the performance of QSFs using the BSC technique. The targeted respondents were principal partners and quantity surveyor employees in the selected QSFs and relevant construction stakeholders, including clients, architects, builders and structural engineers, who usually have business relation with QSFs.FindingsThe findings of this paper revealed high levels of performance in non-financial measures of the BSC dimensions while low level performance is recorded in financial measure.Practical implicationsThe exemplified performance measures allow QSFs’ managers to set their own priorities and to seek out improvements along the BSC dimensions of performance measure. The high performance recorded in non-financial perspectives needs to be sustained while a lot of efforts need to be put in place in order to improve the financial performance, thereby sustaining their viability.Originality/valueThis paper contributes methodologically through the application of a balance and all-encompassing principles in assessing performance. The use of this measure enables QSFs to structure a balance assessment of their operation, to identify their strengths and weakness, and to target areas for improvement in order to reach their desired business goals.

An Integrated Approach to Evaluating the Effectiveness of Functioning of Free Economic Zone

Effective functioning of the free economic zone (FEZ) is a tool for accelerating development and increasing the region’s competitiveness, which is strategically important for a city such as Sevastopol. To quickly identify FEZ operation problems and make informed and timely management decisions, I propose balanced scorecard. The article focuses on the comprehensive assessment of the efficiency of free economic zones in the territory of the Russian Federation. I describe the main results of FEZ functioning in Sevastopol. The Balanced Scorecard (BSÐi) technique is widely used in practice and most debated in the scientific world. However, I propose to apply this method in the framework of a mechanism for managing SEZ participants and ensuring their activities for the long term. To manage the FEZ, I suggest using perspectives: «Finance», «Social efficiency», «Internal administrative processes», «Infrastructure». These perspectives differ from a traditional model. In addition to the legislatively set quantitative indicators for the annual assessment of FEZ performance, I apply qualitative indicators. These are the specific volume of investments per one created workplace; the specific amount of taxes per one created workplace; plan of the volume of proceeds from the sale of goods, works, services; the rate of implementation of the plan for the volume of investments including capital investments, implemented in accordance with the signed agreements on activities and etc. The improvement of methodological approaches to the comprehensive assessment of FEZ performance as a tool of regional government will promote the development of effective regional policy. Moreover, the introduction of the offered methods, algorithms and actions will accelerate market transformations and institutional transformations in the economy of Russian regions. The obtained results can be used both in the development and implementation of activities in regional management of FEZ. Furthermore, the research results allow to residents to directly analyze FEZ with the aim of increasing the efficiency of their activities, as well as investment attractiveness.

The Influence of Strategic Agility & Tackling Competitive Challenges toward Improving Performance among Jordanian Pharmaceutical Companies

The study has aimed To investigate the influence of four Business Scorecard Model elementsin the strategic management of Jordanian pharmaceutical organizations and to develop a strategic agility model and build its association with different strategic management elements of organizations for their improvement. The data from 9 pharmaceutical companies were collected through questionnaires, based on the Likert scale. The data has been collected from 100 managers of pharmaceutical companies. Statistical tools were used to analyze the data. A vast majority of the respondents affirmed the role of Balanced Scorecard Technique and strategic objectives in organizational performance. Additionally, most of the respondents considered strategic agility as a key factor influencing the operational strategies and improving the performance of companies. These results were in line with the expectations and corroborated existing research conducted in this regard. It is evident that the elements of Business Scorecard Model are crucial in strategic management, and the development of strategic agility model is essential for the enhancement of performance.

Exploring the status and effects of balanced scorecard adoption in the non-western context

PurposeThe purpose of this paper is to explore the status of corporate performance management (PM) in the Middle Eastern context, represented by the United Arab Emirates (UAE) and the Kingdom of Saudi Arabia (KSA). In addition, the current study investigates the effects of the adoption of the balanced scorecard (BSC) and aims to explore the impact of the BSC on workplace attitudes and behaviors, as shown by accountability, inspiration, and motivation.Design/methodology/approachDue to the limited knowledge about the subject matter and the limited number of companies adopting the BSC in the Middle East, this study has adopted a descriptive approach to verify the significance of the BSC and to explore the causal relationship amongst the performance perspectives and the different dimensions of the BSC. The sample was drawn from five major business sectors in the UAE and KSA.FindingsThe results indicate that the BSC indicators are effective tools to evaluate and reflect on corporate performance. The concept of the BSC is considered good practice in the UAE and the KSA. Because of the concept’s compatibility with the local culture and business practices, it can be used to balance shareholder and stakeholder demands.Research limitations/implicationsOne of the main limitations of this study is that the sample is drawn from only two countries from the Middle East and, hence, cannot be generalized.Originality/valueThis study is one of the first attempts to explore the status of the corporate PM systems in a non-western context using a BSC technique created and typically applied in the western world. In addition, this study is considered a valuable attempt at exploring the effects of the adoption of this technique on an organization’s performance.

Strategic Performance Measurement Using Balanced Scorecard: A Case of Machine Tool Industry

Abstract This paper focuses on implementation, monitoring, and application of balanced scorecard (BSC) techniques in an organization involved in providing machine tool solutions to the industrial sector. The growth of the company considered in real time constituted improvements of both top and bottom lines. In the industry under consideration, it was observed that in our company, the top line was steadily growing but not the bottom line. This is when we started getting down to brass tacks and strategically focusing on growth in overall profits of the company. This included growing revenues by improving of EBITDA (earnings before interests, taxes, depreciation, and amortization) and by increasing efficiency (i.e., cutting costs). These improvements were implemented by chalking out a comprehensive BSC designed to suit the machine tool industry. The four perspectives of the management, namely, internal business process, organizational learning, financial perspective, and customer perspective, have been considered lucidly and enunciate the parameters that affect the BSC very aptly. The BSC designed considered 9 objectives and 27 relative measures of these factors to quantify the various quantitative and qualitative dimensions that affect the company’s performance. A Balanced Lean Index (BL Score) was used to measure the results for company X.

KAIZEN AS A STRATEGIC CHOICE FOR ENHANCING THE CAPABILITIES OF MANUFACTURING COMPANIES IN ETHIOPIA

ABSTRACT The success of manufacturing industries in global markets rests in large part on the degree of optimization that firms are capable of in order to produce products that are of quality, cost competitive and meet the needs of customers. After carefully examining: a)the 2004 Benchmarking model (that attempts to understand and evaluate the current position of a business in relation to industry's best practicing firms); b) the 2004 Business Process Reengineering paradigm (that calls for a drastic changes using large investment of resources and technology); and c) the 2011 Balanced Score Card Technique (i.e., centered on integrating strategic planning, implementation, performance and process assessment); a number of Ethiopian firms are vigorously exploring a redesign of their manufacturing enterprises to customize their products in line with Kaizen, the Japanese Management Strategy technique. Kaizen calls for continuous improvement through gradual upgrades in quality and productivity. It was introduced to Ethiopia in 2009 to strengthen and elevate the manufacturing industries to a higher level. To investigate the implementation of Kaizen management techniques, using observation, survey questionnaires, and interviews, three case studies of manufacturing companies in Ethiopia were studied. Specifically, data from the production department, supply & procurement department, and the marketing department of each case factory were collected and analysed. Though a longitudinal analysis was not conducted to ascertain or guarantee the sustainability of Kaizen events, a one-spot empirical analysis of data collected from the three companies reveals that the Kaizen method was acceptable and did serve to facilitate advancement in quality and productivity. Keywords Kaizen, Kaizen philosophy, manufacturing industries, quality, productivity

Development of a strategic management tool in a thermal power plant using ABC and BSC models

In today's dynamic, uncertain and highly competitive business environment, the long term success of an organization critically depends on the perceptions, choices and actions of its managers regarding their strategies. Activity based costing (ABC) and balanced scorecard (BSC) are the modern day management approaches acknowledged as reliable tools for strategy formulation and implementation in an organization. In this paper, ABC and BSC models are separately proposed and applied in the merry-go-round (MGR) department of an Indian thermal power plant. The results elicited from adoption of these two models in the said power plant provide more accurate, timely, and reliable operational and financial information at different activity levels of the organization, which would help in effective strategic and tactical decision making. Even though, there are limited published research papers related to application of ABC model in power plants, none of them has adopted ABC and BSC techniques in an Indian contextual environment. Additionally, an integrated ABC-BSC model is designed to harness the complementary synergies of both ABC and BSC models.