Balanced Scorecard Tool Research Articles

An Overview of Effectiveness of Balanced Scorecard Performance Management System in Tanzania

This study investigated the effectiveness of Balanced Scorecard (BSC) on provision of quality services in selected public organizations in Tanzania. The objective was to investigate the effective of balanced Scorecard on quality services in selected public organizations. The study reveals that BSC tool is more effective compared to previously used tools. Also, the employee’s perception on effectiveness of BSC tool on provision of quality services is positive. The findings of ordinal logistic regression analysis show that the effectiveness of BSC tool increases the likelihood of employees to provide quality services. Further, extended regression namely structural equation modelling shows that the relationship between effectiveness of BSC tool and provision of quality services is distorted by high level of autocratic management style while not distorted by rules, policy and regulations. The study is strongly recommending that there is a need for government and private organisations to adopt BSC as an effective tool for provision of quality services; There is a need of introducing transformational and collaborative management styles in order to account for quality of services; Organizations should continuously enforce regulations, rules and policies; The study should be used by decision makers to set standards of introducing viable and vibrant performance management tools which are result oriented and further studies on uncovered areas on BSC to be undertaken in future.

Strategic Analysis from a consulting context for the Super Kinder School Institution

In the current dynamic, managers of educational institutions such as Super Kinder School seek correct decisions to enhance internal efficiency and meet organizational objectives. A strategic analysis was carried out applying the interpretivist methodology through a case design and an interview with the director of the institution. This qualitative approach has given rise to strategic matrices such as Porter's Five Forces, EFE, EFI, IE, SWOT, PEYEA, MPCE, MIC MAC, complemented by the Balanced Scorecard tool. Strategies focused on market growth, product and service development, and market penetration were identified, seeking to improve internal processes and promote the growth of Super Kinder School. The consultancy is aimed at addressing essential activities for the continuous development of Super Kinder School, requiring a deep understanding of the institution, its achievements and educational service

Strategic Analysis from a consulting context for the Super Kinder School Institution

In the current dynamic, managers of educational institutions such as Super Kinder School seek correct decisions to enhance internal efficiency and meet organizational objectives. A strategic analysis was carried out applying the interpretivist methodology through a case design and an interview with the director of the institution. This qualitative approach has given rise to strategic matrices such as Porter's Five Forces, EFE, EFI, IE, SWOT, PEYEA, MPCE, MIC MAC, complemented by the Balanced Scorecard tool. Strategies focused on market growth, product and service development, and market penetration were identified, seeking to improve internal processes and promote the growth of Super Kinder School. The consultancy is aimed at addressing essential activities for the continuous development of Super Kinder School, requiring a deep understanding of the institution, its achievements and educational service

Performance assessment of construction companies for the circular economy: A balanced scorecard approach

The construction sector and the industries comprising it are among the most significant contributors to waste generation worldwide. The recently introduced concept of the Circular Economy (CE) offers a promising opportunity to reduce construction and demolition waste (C&DW). However, potent CE strategies and tools concerning formulation and implementation are in the nascent stage of development. This study aims to create a strategic development framework to identify and select specific CE actions and measures and then employ them to address C&DW problems in the construction sector. The methodology is based on applying a “generic” balanced scorecard (BSC) for construction companies in emerging economies, using the case of Kazakhstan. First, following a review of the literature, several relevant CE measures are selected and then prioritized in terms of their importance by a sample of industry professionals. Respondents also indicate the extent to which CE practices are employed by their companies. Next, the data are analyzed to assess the perspectives of business stakeholders on CE in the construction sector. Finally, a BSC tool is developed, and feasible strategies are proposed that can be implemented to achieve a high level of circularity. The tool developed from this research initiative should be applicable for measuring C&DW performance in emerging markets similar to Kazakhstan. The practices rated as the most important are: C&DW transportation cost (Ix = 3.15), adoption of CE to decrease C&DW (Ix = 3.14), management by each contractor of their own C&DW (Ix = 3.39), accurate material estimation (Ix = 3.84), internal knowledge sharing (Ix = 3.59). Practices identified as the most frequently employed are: paying fines for improper treatment of C&DW (89 %), compliance with environmental legislation (91 %), following correct construction methods and sequence (94 %) and using prefabricated structures (94 %), and access for education, particularly, waste processing (94 %).

The Use of the Balanced Scorecard as a Strategic Tool in Public Institutions: A Systematic Review

Strategic Planning is one of the management tools most used by institutions that seeks to translate the organization's strategy, define its strategic objectives, identify the main existing bottlenecks and anticipate changes. The indicators are allies of planning and fundamental to the control of processes, because they make it possible to monitor goals, correct problems and propose alternatives for solving possible problems. Therefore, this research consists of verifying the actions outlined in strategic planning in the public sector, using the balanced scorecard tool. For that, a systematic literature review was used as the methodological procedure as the main theme the use of the BSC as a strategic management tool in the public sector. Around 2.003 articles relevant to the proposed theme were identified, selected from 2015-2020, of which 11 deal directly with the use of the BSC. As a result, the survey found the concern that public organizations have been demonstrating in perfecting their strategic plans by adapting the BSC to the reality of the public sector so that they provide better services to society.

Leveraging the balanced scorecard – a tool for SME advancement

Learning outcomes Illustrate the typical organizational responsibility of a small, medium industry dealing with precision manufacturing products. Introduce a balanced scorecard (BSC) as a concept about the case in the context. Introduce the parameters specific to small and medium enterprise (SME) that could be considered to be part of the key performance indicators. Understand the advantages and disadvantages of using a BSC in SMEs in emerging economies. Case overview/ synopsis Gopika Rani, the recently hired Executive Assistant along with Sanjana M, the Business Development Manager of SEP India Private Ltd. (SEPI), a small medium enterprise, were finalizing a proposal for the forthcoming “India Small Business Excellence Awards 2020.” The proposal was to be considered by the Board of Directors scheduled to meet next week for approvals. Sanjana apprises Gopika on CRISIL’s policy advisory role and its annual awards scheme for SMEs in India. She also details recent modifications announced by the Government of India that had impacted SEPI and was pertinent for filling the application. Gopika understood that SEPI was well-known for the precision and durability of its component, and was poised for growth. The business catered to global suppliers (Tier-1 companies) of the Indian automotive industry that accounted for over 75% and the balance contributed to exports. SEPI’s unique products such as Starter Motor Ignition or the Fuel Vending pump (Automotive) or the non-automotive products such as arrowheads and bowstrings (sports) or the heart-valves (medical) have all the quality certifications. For new product development, customer feedback played a crucial role at all stages of development from prototype to pilot tests. SEPI’s mission “be our customers’ preferred supplier and business partner” drove their personnel and organizational objectives. Also, SEPI could get multiple benefits and be in a strong market position because of this award recognition. Gopika was, however, unclear about SEPI’s business strategies and use of appropriate performance measurement tools. Gopika desired to address the Board of Directors next week on her idea of applying a BSC as a useful “strategic planning and management tool.” The BSC methodology can be used to monitor the performance of SME firms against strategic goals. It can be successfully implemented in smaller organizations because of their simpler set-ups and tendency to arrive at a consensus quickly. However, implementation of BSC within the Indian micro, small and medium enterprises has been scant. Several studies found that the lack of ownership, resistance to change, a scarcity of training and coordination between the departments and lack of funds were among the challenges. The firms also had to make numerous changes to their strategies as business environments evolved. Gopika was convinced that the tool could blend in all the “four perspectives – customer, financial, internal business and learning and growth” and grow. The tool could demonstrate meeting all the prerequisites, “needs to have an exemplary vision, demonstrate outstanding business acumen, use best practices and create a legacy for the others to follow,” that were prerequisites for receipt of this award. Her next project would be to seek approval for the implementation of BSC, a beneficial and apt tool for SEPI. Do you agree with Gopika Rani that BSC is a suitable tool for SEPI? If yes, why? If no, why? Complexity academic level This case study titled leveraging the BSC – a tool for SME advancement is intended for use in the graduate management program (MBA) in subject electives, namely, entrepreneurship, strategy formulation, human resource management or production management. Supplementary materials Teaching Notes are available for educators only. Subject code CSS 3: Entrepreneurship. Supplementary materials Teaching Notes are available for educators only.

Soluciones corporativas de inteligencia de negocios en las pequeñas y medianas empresas

El objetivo se basó en determinar el sistema inteligente que se ajuste a la operatividad de Comercializadora “Cordero”, ubicada en Azogues, provincia de Cañar, Ecuador. El método es de tipo no experimental y de enfoque mixto. Se descubrió que existe un número reducido de pymes que utilizan el sistema BI, y las que utilizan esta tecnología la mayoría emplea la herramienta de cuadro de mando integral, la misma que se alinea en mayor porcentaje a los compones financiero, clientes, procesos internos y aprendizaje en las organizaciones. El estudio sobre la inteligencia de negocios demuestra a la administración que esta herramienta tecnológica permite un mejor análisis de la información de forma más rápida, asimismo mejoró significativamente la calidad de la información haciendo más confiables los reportes generados a partir de ella, brindando un soporte para la toma de decisiones en las empresas.

Bibliometric Study

With the evolution of management practices, new management methods and tools were adopted in public entities in order to optimize the delivery of services to their steakholders. In this scenario, the Balanced Scorecard (BSC) offers an important tool to assist in the strategic management of public entities. Therefore, this work aims to generate a bibliometric analysis of the scientific production on the BSC tool in the public sector in the period of five years (2014-2018), to clarify the functionalities and to survey data through the Web Database of Science. The procedure to perform this review of scientific production involved, initially, access to the database, followed by research by the terms "BSC and Government" and "BSC and Public Management". Afterwards, they were exported and ordered in the matrix in order to perform the analysis of the elements obtained. The methodology used was of a descriptive and quantitative nature. The main results emphasize that the production registered in the database used is scarce, observing that only 27 publications were found in the studied temporal cutout. It also indicates that, in the range comprised, the Brazilian production was on a large scale together with the Australian and Portuguese production equated to other countries contained in the research and, finally, that there is an inconstancy in the publication of articles related to this subject. This article is structured as follows: introduction, theoretical reference, methodology, results and discussions and conclusion.

Integrated performance evaluation method study and performance based department ranking: a case study

Enterprise companies, which make future strategic plan, need to view overall performance. In this direction, monitoring decision-making unit (DMU) performances is a critical issue. Therefore, it should be fair and consistent performance evaluation and prepared open and clear reports. To handle with these requirements, this study focusses on establishing a comprehensive method of performance evaluations (PE). Five main stages exist as a framework of the study. Firstly, right PE tool are selected in terms of strategic frame of companies. In this study, we examine balanced scorecard (BSC) approach that considers not only financial but also non-financial topics to watch overall performance. BSC has key performance indicators (KPI) that show objectives and actualizations belonging to related DMU, and BSC also provides proper and summary reports including different perspectives. The next step is determination of KPI’s weights. Analytic hierarchy process (AHP) is applied to determine KPI priorities. Because BSC evaluates DMU’S separately, it does not provide satisfied comparison among different DMU’s. In here, we propose data envelopment analyses (DEA) that is linear program based non-parametric approach. However, DEA works correctly for only homogeneous DMU’s. As a third step, classification process is applied to ensure homogeneity. Then, using BSC KPI’s as outputs and DMU budgets as input, DEA model is run for each class. As a last step, we separate DMUs into categories using efficiency score obtained from fourth stage. To determine category numbers, Hierarchical Clustering Analyze (AHCA) method is used and group elements are selected with applying K-Means Clustering Analyze technique. At the end, a case study is given to show how developed model is applied within a company that uses only BSC tool for PE currently. It could be said that this integrated methodology is more efficient and reliable for decision-making process.

A New Methodology for Improving Penetration, Opportunity-Visibility and Decision-Making by SMEs in EU Public Procurement

Despite over 30 years of legal harmonisation, stubbornly low levels of cross-border public procurement continue to persist in the EU. In 2016 the European Commission sought new thinking to address this long-standing problem. Drawing on a number of cross-border studies undertaken by the authors, the reasons for low level cross-border procurement penetration are identified. A new action-based framework to increase cross-border procurement is proposed, as are new ideas to make it easier to identify public contracts outside national borders. Suggestions for reforming tender evaluation practices that could encourage SMEs to overcome their aversion to ‘home bias’ are proposed, alongside a ‘balanced scorecard tool’ to guide SMEs making critical cross-border public procurement decisions. Keywords: SMEs, cross-border, EU public procurement, non-tariff-barriers, harmonisation

A Fuzzy-Based Holistic Approach for Supply Chain Risk Assessment and Aggregation Considering Risk Interdependencies

Supply chain risk management requires dealing with uncertainty, interrelations, and subjectivity inherent in the risk assessment process. This paper proposes a holistic approach for risk management that considers the impact on multiple performance objectives, the relation between risk agents, and the risk event interdependencies. An aggregated risk score is proposed to capture the cascading effects of common risk triggers and quantify the aggregated score by risk agent and objective. The approach also uses fuzzy logic to allow for the treatment of vague and ambiguity data as input parameters to the model from different domains and scales, according to knowledge and criteria nature. The integration of the balanced scorecard tool improves the analysis and prioritization of mitigation strategies in decision-making, both by risk agent and by strategic objective. A case study of a telecommunication company is presented to illustrate the applicability of the proposed approach.

Operationalising performance management in local government: The use of the balanced scorecard

Orientation: Local government forms that part of the public sector closest to citizens and therefore indispensable in its role of providing essential goods and services and developing the local area. Local government has the authority and functions necessary to provide services for the maintenance and promotion of the well-being of all people within their area and should provide access to basic services such as water, electricity and health care.Research purpose: This study examines performance management as a tool in local government effective provision service delivery. The critical question addressed in this paper was how the balanced scorecard (BSC) can be used to improve performance in the context of local government and assist in eradicating the current challenges of lack of quality services, poverty and infrastructure development.Motivation for the study: The need for continuous improvement in service delivery at local government compounded by high levels of service delivery protest requires regular review of performance management system.Research approach: To understand the current context and challenges facing local government, the applicable legislative framework including the Constitution, white paper and the National Development Plans were perused to better understand the legal environment in which local government operates. A literature review was undertaken to evaluate theory on organisational effectiveness. Semi-structured interviews were used to solicit expert opinions.Main findings/managerial implications: The BSC approach emerged as the preferred tool because the method offered the authors the opportunity to review non-financial and financial factors to arrive at a balanced conclusion. A BSC tool was developed and applied to the Joe Gqabi District Municipality as a case study.Practical implications: The BSC as a performance management tool enables organisations to clarify their vision and strategy and translate them into goal or actions.Contribution/value-add: The research findings conclude that there was acknowledgement of the importance of performance measurement instruments in the municipality, yet the municipality still experienced challenges caused by the performance review process not being transparent and not communicated to all stakeholders.

Avaliação de Programa de Responsabilidade social Empresarial com Aplicação do Balanced Scorecard: Um Estudo de Caso da Cooperárvore da FIAT Automóveis

This article sets out to assess Cooperarvore, FIAT Automobiles’ labour corporative project within its “Arvore da Vida” Corporate Social Responsibility Programme, in the city of Betim, in the State of Minas Gerais. This is a descriptive case study whose overall aim is to measure the scope of the automaker’s social actions promoting the development of Jardim Teresopolis neighbourhood, by way of job and income generation, reduction of social vulnerability and economic and human development. Its specific objective is to present an evaluation and monitoring pattern of a social responsibility project by application of the Balanced Scorecard tool (BSC), in order to allow for improving management and inspire other corporate social initiatives. In the theoretical framework, the importance of corporate social responsibility has been studied in sustainable development, as well as concepts and models of evaluation of social projects. The survey was conducted based on documents related to Arvore da Vida and on interviews involving the programme’s managers and beneficiaries, in a qualitative perspective. From data analysis, positive results with significant advances in the beneficiaries and community development can be noticed. However, at some points it can be seen that the cooperative is not yet able to sustain itself, mainly due to its market limitations, depending on financial contributions and participation of the current sponsor in its management. This requires the management team to adopt some strategic definitions in order to implement short and medium term solutions to broaden the cooperative market to ensure their autonomy and sustainability.

The development of strategic balanced scorecard tool (SBST) for Malaysian automotive industry

In the world of information technology, business process requires a decision-making tool that is effective and systematic in measuring and assessing the current performance of the organization and enhances its competitive edge. In this study, the development of strategic balanced scorecard tool (SBST) for the Malaysian automotive industry was developed using the Analytic Hierarchy Process (AHP) methodology, which involves building a hierarchy of SBST, calculating relative weights of SBST by pairwise comparison, rating SBST measures, calculating performance scores, and ranking companies based on their scores. Further to that, an Excel-based tool was developed for automating the calculation of SBST for automotive industry. These SBSTs contribute to assist practitioners to evaluate internal performance, vendor performance, and in decision-making process to select the suppliers or reward the best supplier.

Environmental Impediments in the Adoption of Balanced Scorecard in Pakistan

The status of adoption of balanced scorecard (BSC) in Pakistan is still blurry and keeping different adoption, diffusion and strategic theories in mind, a theoretical framework and four hypotheses were proposed. The target population was organisations of all types and 268 organisations listed in the Karachi Stock Exchange were selected randomly. All constructs were measured through a questionnaire. The results suggest that environmental complexity, competition and consultancy institutions were serving as barriers in the adoption of BSC. However, the factor network personality, a part of the environmental factors, was not significant and was not a barrier. The managers of consultancy institutions can view this study as a benchmark because by reviewing the result they can decide whether it is time to launch a campaign to exert the pressure for adoption of BSC or not to propagate the significance of the BSC tool by stopping further allocation of resources.

Evaluating the role of ecosystem services in participatory land use planning: proposing a balanced score card

The application of the ecosystem services (ES) concept in land use planning has great potential to enhance the awareness of planning actors on their interactions. At the same time it can contribute to improve the linkage between the role of land use patterns and the understanding of land system functioning and its contribution to human well-being. The concept should be developed in a way that can be applicable in socio-ecological systems where nature and society are capable of enhancing their roles mutually. The objective of this paper is to suggest a standardized scheme and generalizable criteria to assess how successful the application of the ES concept contributed to facilitate participatory planning. We consider three potential advantages and three critical aspects for how to improve the applicability and relevance of the ES concept in planning. Hereon based, we present a balanced score card tool for which we broke down to advantages and risks into concrete questions. We illustrate the application of this approach with two case studies, representatives of two major governance schemes in relation to land use planning. We demonstrate that the balanced score card approach helps to reveal potential imbalances regarding the consideration of different ES groups. It supports testing the potential of the ES concept to enhance or not interactions of local and regional actors. We conclude that the framework should be reconsidered after a set of case studies to be developed into a monitoring tool for supporting planning practices.

Evaluating municipal solid waste management performance in regions with strong seasonal variability

The evaluation of municipal solid waste (MSW) services using management systems (ISO 9001, ISO 14001, and OHSAS 18001) is important for improving the quality of such services. In this study, we prioritize and select performance indicators (PIs) for MSW service evaluation and organize them in a Balanced Scorecard (BSC) tool. The tool is applied for the period 2008–2011 to the public administration organization responsible for waste management in Loulé Municipality, Portugal, a region characterized by strong tourist seasonality. MSW management priorities are well established through EU directives and the application of PIs should allow service objectives to be quantified, including reducing the production of waste, increasing the quantity of recyclables, improving clients’ satisfaction with the service, improving workers’ motivation, decreasing the quantities of waste in landfills, and reducing service costs. The results indicate that the use of indicators and BSC tool can assess the strategic objectives of the organization and monitor its performance over time. The overall BSC assessment ratings were 51.7%, 66.1%, and 70.1% for 2009, 2010, and 2011, respectively, indicating an improvement in overall service performance over time. The results demonstrate that monitoring seasonal variations of PIs in tourist regions is important since these variations can help to explain annual changes in the factors affecting waste services management, their impacts on overall service quality, and the best time for measures to be applied. Based on this case study, the BSC can effectively contribute to improvements in the quality and cost of MSW services in areas characterized by strong seasonal variations in population and waste.

Strategic planning in Iranian educational organizations

Balanced Scorecard (BSC) is one of the performance measurement tools that determine intangible assets of the organization. This system is more frequently used in a Strategic Planning than performance assessment. Due to the long domination of traditional management approaches in Iranian educational systems, seldom do they use a balanced performance measurement tool. The author shows how a Strategy Map is planned for educational organizations and how necessary data are gathered with interviews held with managers who had planned strategies for their organizations and who had not, by Using BSC tool.

Abstract No. 279 EE: Implementing the Balanced Scorecard Strategic Assessment Tool in Interventional Radiology

To introduce the balanced scorecard as a strategic assessment tool at an academic medical center. The balanced scorecard is a strategic assessment and planning tool used to align professional activities with a defined strategy. Its use can help improve internal and external communications and monitor a division/group's performance against strategic goals. Scorecards should address four key elements: learning and growth, business processes, customer, and financial. Each practice must define strategic goals prior to considering components of their scorecard. Subsequent metrics should be simple and directly address the defined strategy. HI-IQ software can be used to monitor and collect the data, which can then be easily exported to a spreadsheet program. Learning and growth can be tracked via diligent measurement of complications and near misses. Procedural and process improvements can be input for each patient following relevant cases. Procedure time and inventory management are important factors easily gleaned. Patient and referring physician surveys can be monitored on HI-IQ with reminders for office staff conducting the phone or mail questionnaires. Financial metrics regarding inventory management can be obtained using the program and should be a part of the financial strategy. 1) The balanced scorecard can help interventional radiology practices align ongoing learning, business processes, customer satisfaction, and financial metrics with their strategic goals. 2) HI-IQ can be an effective tool to help monitor and track key metrics. 3) Care must be taken to keep the process simple with overly complicated measurements detracting from the beauty of the balanced scorecard tool.

Designing a knowledge-based system for strategic planning: A balanced scorecard perspective

First developed by Kaplan and Norton [Kaplan R. S., & Norton D. P. (1992). The balance scorecard - measures that drive performance. Harvard Business Review, 70(1), 71-79], balanced scorecard (BSC) provides an integrated view of overall organizational performance and strategic objectives. BSC integrates financial measures with other key performance indicators to create a perspective that incorporates both financial and non-financial aspects. BSC has proven a powerful tool for strategic planning and communicating strategy that assists in strategy implementation. Successful strategy implementation is based on effective strategic planning. Owing to the strategic planning being a virtual necessity in business, this work proposes an integrated approach for the balanced scorecard tool and knowledge-based system using the analytic hierarchy process (AHP) method, and then develops an intellectual BSC knowledge-based system for strategic planning that sets or selects firm management or operational strategies based on the following perspectives: learning and growth, internal/business process, customer, and financial performance. This system can help determine specific strategy weights. The intellectual BSC knowledge-based system facilities efficient automated strategic planning.