Traditional Balanced Scorecard Research Articles

Operationalization of ESG-Integrated Strategy Through the Balanced Scorecard in FMCG Companies

The increasing focus on sustainability and climate change mitigation necessitates that corporate strategies not only build competitive advantage but also contribute to the creation of sustainable operations. The purpose of the article is to present, based on the analyses of the development of the strategic targets of leading Fast-Moving Consumer Goods (FMCG) companies, a method for operationalizing an ESG-adapted corporate strategy within FMCG companies using the Balanced Scorecard (BSC). ESG, encompassing environmental, social, and governance factors, requires a shift in both strategic management theory and practice. The author explores how ESG metrics can be integrated into the traditional BSC framework alongside financial, customer, and business processes and learning and growth perspectives to align with the growing importance of sustainability. The study identifies specific measures that contribute to a successful transition toward sustainable business practices. The findings demonstrate that the BSC, when adapted to incorporate ESG considerations, is an effective tool for strategy implementation and operational management in FMCG companies. While the proposed framework focuses on the FMCG sector, it has potential applications across other industries. The article makes important theoretical contributions, though it would benefit from further empirical research, sector-specific comparisons, and a more detailed examination of external ESG factors that impact corporate strategy.

ESG Management and Corporate Sustainability Based on Balanced Scorecard

The concept of sustainable development drives companies to pursue improving the efficiency and quality of ESG management. As a management tool for corporate strategy implementation, the balanced scorecard (BSC) was developed to achieve corporate profit maximization strategy, and with the globalization of sustainable development, more and more companies are trying to achieve value creation in environmental, social and governance. However, the inherent limitation of the traditional balanced scorecard - the lack of environmental and social responsibility perspectives - does not satisfy the strategic goal of companies to enhance their ESG management capabilities and ultimately achieve sustainable development. Therefore, this paper incorporates the concept of sustainable development on top of the traditional balanced scorecard to help enterprises carry out ESG management and further realize their long-term development goals.

Digital Balanced Scorecard System as a Supporting Strategy for Digital Transformation

Reports of the high percentage of failed digital transformation ventures motivate the need to find a comprehensive framework with regulatory attributes to support these initiatives. Due to its structure, consistent strategy decomposition capabilities, and strategic map architecture, the assumption is that a customized version of the Balanced Scorecard can ensure the better overall success of digital transformation projects. The qualitative analysis methodology was applied to previous research, and this study identified critical issues and challenges related to the strategy and overall endeavor of digital transformation. Based on the methodology of the traditional Balanced Scorecard, a draft version of the Digital Balanced Scorecard was formulated. The Digital Balanced Scorecard is a comprehensive, primarily prescriptive model that is focused directly on the challenges, opportunities, and obstacles of transformation. The proposed BSC model can consistently interpret a digital strategy and assist organization leaders in successfully formulating and coordinating all necessary activities and projects to apply technologies. The Digital BSC provides the projection of financial results and improvements in sustainability after transformation. The proposed solution to support digital transformation can accelerate an organization’s development, improve efficiency, and strengthen efforts to achieve an organization’s sustainability goals.

Innovative service model of information services based on the sustainability balanced scorecard: Applied integration of the fuzzy Delphi method, Kano model, and TRIZ

Recently, considerable emphasis has been placed on environmental protection worldwide. Environmentally friendly practices have been considered basic requirements for companies. Particularly, because information services companies are more likely to sell environmentally hazardous products compared with other industries, these companies must place a stronger emphasis on environmental protection. Therefore, this study constructed an innovative service model for the information services industry based on the sustainability balanced scorecard. Grounded in traditional balanced scorecard dimensions adjusted to “learning and growth,” “internal process,” “customers,” “finance and economy,” “social performance,” and “environmental performance,” the study included an extensive literature review and 39 preliminarily compiled evaluation criteria of sustainable operations performance in the information services industry. A hybrid analytical method integrating the fuzzy Delphi method (FDM), Kano two-dimensional quality model, and theory of innovative problem solving (TRIZ) was proposed. The FDM was used to filter 26 criteria out of 36 from the consensus of 62 experts from related fields. A revised Kano quality model was then applied to examine key criteria that influence the sustainable operations of the information services industry, obtaining 22 “one-dimensional,” 3 “must-be,” and 1 “attractive” sustainable operations element(s). Furthermore, this study adopted TRIZ to conduct the fitting between engineering and service parameters. Six key service parameters (criteria) covering all three sustainable development dimensions were selected, with which a contradiction matrix of the service quality of the information services industry was constructed. Finally, corresponding to the innovative principles of a contradiction matrix, an innovative service solution was developed to serve as a reference for information services–related companies implementing innovative service in their sustainable business strategies.

How to Measure the Performance of Social Innovation? Case Study of Hungarian Social Cooperatives

Innovation is a key element of economic development and a key factor in social processes. Technological and economic innovations cannot respond to all social challenges. However, innovation - the search for new and innovative solutions - needs to be interpreted more broadly than before. In line with social changes, the European Union pays more attention to the context of social innovation. The social enterprises play a vital role in modern societies. The subject of our study is social cooperatives, which are a type of social enterprise. The social cooperatives offer an opportunity to improve the employment skills. However, the management of this enterprises faces several dilemmas how can build up an effective control system of a social enterprises in Central-Europe. As our questionnaire stated, the major problem of social cooperative is the quality of available labour force. This paper focuses the applicability of the traditional Balanced Scorecard system to the special needs of a social cooperative. Here one area of the Balances Scorecard will be highlighted – the Human Resource management and how the tools can be effectively adapted to the social cooperatives. A report system and a ratio analysis tool are developed to help the work of social cooperative managers. The focus of this paper research question how can improve the monitoring of Human Resource Management in social enterprises like social cooperatives. In the introduction part of this paper the importance of social innovation is emphasized, and a brief introduction to the development of controlling tools is provided. Next, part of our broader questionnaire is presented to highlight the importance of Human Resource Management in the Hungarian social cooperatives. In the discussion part a special BSC is presented which is based on Bull’s social enterprise Business Scorecard system. The Human Resouce Management should consider the regulatory requirements of granting authority, so these are briefly introduced. Finally, some indicators and tables are presented which can help the Human Resource Management in a social innovation enterprise.

Application Research of Customer Side Integrated Energy Service System Based on Machine Learning

With the emergence of Internet, big data, cloud computing, block chain technology and other high-tech technologies, the integrated energy service mode including more clean energy and micro grid technology has quietly begun. This paper defines the connotation and value of integrated energy services, and constructs the theoretical framework of comprehensive energy services evaluation system based on the traditional balanced scorecard. This paper analyzes the current situation of domestic and foreign energy markets and the scope of comprehensive services. Finally, the difficulties and challenges faced by the energy integrated service industry are analyzed, and the after tax internal rate of return is 11.2%, which provides a reference for the transformation of energy enterprises.

A Study of Green Balanced Scorecard Model

The Balanced Scorecard (BSC) is widely applied and it is playing a significant role as a tool for organizational performance evaluation and strategic management. With the increasing emphasis on the concept of green development, in addition to considering the impact of the environment on business performance and development, the BSC must also consider the impact of business performance and development on the environment. In this paper, based on the traditional BSC, I construct the Green Balanced Scorecard Model (GBSCM) with a new “environment and green” dimension, raising it to the same level as the other four dimensions. In turn, I divide the “environment and green” dimension into internal and external environments, soft and hard environments, and analyze it in terms of time and space dimensions, as well as its connotation and indicator composition. I extend the original internal processes to the outside of the organization and expand them into process dimension. Also, I extend the finance into value process and enhance it to form a sustainable GBSCM. This model can provide a thinking guidance model for green and sustainable enterprise development. In the GBSCM, the customer dimension is drawn at the top, indicating that the customer has the highest priority and that customer needs comes first. The learning and growth dimension and the environment and green dimension are at the bottom, indicating that based on the environment and green development, continuous learning and growth is the basis and foundation of sustainable development of enterprises. The process is where the business exists and the value is where the process results, so they are in the middle. Process, value, learning and growth, environment and green complement each other, so companies have their bread buttered on both sides. Enterprises learn and grow according to the concept of green environment and sustainable development. Vision and strategy pentagram points at the five dimensions of the enterprise, guiding the enterprise to maintain dynamic and balanced development in the coordinates of time and space, and then achieve the success of the five dimensions.

The Role of Human Resource Management Indicators in Social Enterprises with Special Regard to the Social-Cooperatives

The social enterprises play a vital role in a daily operation of smart cities. They can provide these towns with flexibility and innovation skills and help to maintain the social peace to provide work with the less competitive part of smart cities’ population. (Bartha-Bereck, 2018) This paper focuses this latter task. The social co-operatives offer an opportunity to improve the employment skills. However, the management of this enterprises faces several dilemmas how can build up an effective control system of a social enterprises in Central-Europe. As our questionnaire stated, the major problem of social cooperative is the quality of available labour force. This paper focuses the applicability of the traditional Balanced Scorecard system to the special needs of a Social Enterprises. Here one area of the Balances Scorecard will be highlighted – the Human Resource management and how the tools can be effectively adapted to the social cooperatives. A report system and a ratio analysis tool is developed to help the work of social cooperative managers.

A Modified Balanced Scorecard Based Hybrid Pythagorean Fuzzy AHP-Topsis Methodology for ATM Site Selection Problem

Researchers work on facility location problems in different structures and solve them by developing different models over the years. In this study, we focus on the automated teller machine (ATM) site selection problem for a public bank in İstanbul. Twenty-five districts, which are located at the European side of İstanbul, are designated as ATM candidate districts. The balanced scorecard (BSC) model is modified to determine the criteria according to the literature review and experts’ judgments for this problem. Internal, Customer, and Financial perspectives of the traditional BSC model are used as the main criteria and an external perspective is considered as the fourth criterion for modified balanced scorecard. The experts’ criteria evaluations are gained and consolidated by the Modified Delphi Method. The criteria weights are determined by the Pythagorean Fuzzy-AHP method using the final pairwise comparison results obtained from the Modified Delphi Method. Subsequently, the Pythagorean Fuzzy TOPSIS method is applied to determine the best alternative site among alternatives to locate the ATM according to these criteria. Finally, the results are presented and discussed by sensitivity analysis.

Sustainability Balanced Scorecard for a Brazilian agricultural and livestock company

The agricultural sector in Brazil has a noticeable impact on its wealth and a significant effect on sustainability. This study presents the corporate sustainability management through the integration of social and environmental issues in the traditional Balanced Scorecard, that is, through a Sustainability Balanced Scorecard (SBSC). It establishes causal relationships between economic, social and environmental perspectives, and highlights its potential impacts. This study relays on the Brazilian company with the largest amount of agricultural land. This company acquires, develop, exploit and commercialize rural properties that are suitable for agriculture. The main purpose of this paper is to study the company and to propose an SBSC. We present a qualitative case study based on interviews and on documental analysis. We conclude that, through this framework, sustainability can be aligned with the strategic management of the company. The implementation of an SBSC provides organizational benefits and must take into consideration the peculiarities of each organization.

Sustainability Value Creation, Survival, and Growth of the Company: A Critical Perspective in the Sustainability Balanced Scorecard (SBSC)

The issue of sustainability in company strategy has assumed crucial relevance in recent years. Many companies have implemented specific environmental and sustainability management systems such as the Sustainability Balanced Scorecard (SBSC), which integrates sustainability and the traditional Balanced Scorecard (BSC). However, environmental and sustainability aspects are often not linked to economic success, and qualitative analysis is not considered adequately by managers. Therefore, these dimensions remain unclear, because it is necessary to analyze the conditions under which the SBSC represents a suitable tool for sustainability value creation in more depth. In this context, the purpose of the study is to propose a new strategic framework to provide a way to manage critical issues connected to the SBSC. Thanks to the information obtained from a survey and interviews conducted with managers of Italian companies, we created an adjusted SBSC (ASBSC) that allows us to consider the critical aspects from a new perspective, named the critical perspective. The conceptual model is developed in five dimensions (conceptual, structural, environmental, social, and economic). Research findings suggest that considering the critical perspective makes it possible to build the ASBSC in order to achieve sustainability and economic success of the company. The proposed framework contributes to the existing literature on improving the performance of the SBSC.

Impact of Sustainability Balanced Scorecard Types on Environmental Investment Decision-Making

Investment decision-making based on aspects of sustainability is gaining importance among organizations around the globe. In this context, there is a need for quality investment decisions, which require sufficient knowledge among organizational managers about managing sustainability information to achieve environmental objectives that meet stakeholder expectations. This has led to the emergence of organizational performance measuring tools such as the Sustainability Balanced Scorecard, which integrates the environmental perspective into the traditional Balanced Scorecard. Using experimental research method, the objective of this study is to investigate the indirect effect of Eco-efficiency knowledge and Sustainability Balanced Scorecard knowledge as mediators influencing the relationship between Sustainability Balanced Scorecard types and their impact on environmental investment decision-making. Findings of the current research are based on 60 respondents who were randomly assigned to one of the following two types of Sustainability Balanced Scorecard architecture: (1) environmental data embedded within the traditional Balanced Scorecard perspectives; and (2) standalone environmental data as an additional fifth perspective along with the traditional Balanced Scorecard architecture. The traditional Balanced Scorecard without any information on environmental perspective is included in the experiment as the control condition. The findings indicate that the combined effect of eco-efficiency knowledge and Sustainability Balanced Scorecard knowledge has a significant positive influence on the relationship between the Balanced Scorecard type versus Sustainability Balanced Scorecard type and environmental investment decision-making.

Towards sustainability performance management system of tourism enterprises: a tourism sustainable balanced scorecard framework

This paper intends to provide the components and the process for a firm to establish, maintain and improve a culture of sustainable development in firms in the field of tourism and a framework for an effective management system, the performance of which can be monitored and verified. It is applicable to all firms in the entire tourism industry such as hotels, restaurants, tourism agents, and tour operators. The results are identified through the development of sustainable tourism performance criteria and indicators, which have been divided around four main perspectives: institutional; economic; socio cultural; and environmental. The management tool and methodology of the traditional balanced scorecard have been developed further towards the tourism sustainability balance scorecard integrating institutional, economic, socio-cultural and environmental perspectives. The tourism sustainability balanced scorecard defines the causal relation between factors of firms in order to establish priorities and targets in a rational decision-making process.

Using Sustainable Balanced Scorecard and Graph Theoretic Approach to Make Decision in Reverse Logistic

The aim of this study is to identify the decision should be made by the company to manage their reverse logistics activity. In this study, the company should decide whether the reverse logistic activity must be outsourced part of reverse logistics activity or all must be outsourced or nothing must be outsourced. The object of this study is PT. XYZ - a foreign-owned electronics company and there is four scenario for reverse logistic activity proposed by the company. This study uses a graph-theoretic approach as the method to consider interdependencies and maintaining the hierarchical relationship among attributes and sub-attributes which is important to determine the best scenario of reverse logistic. The attributes and sub-attributes were selected by combining four traditional balanced scorecard perspectives with two perspectives of sustainability, i.e. environmental and social. This research used primary data collected by distributing closed questionnaires to the management of the company. The data processing with a graph-theoretic approach generates the permanent function which is known as the outsourcing index for each scenario. The outsourcing index for first until the fourth scenario is 52.71, 70.97, 89.86, and 81.27 respectively.

The Impact of Cognitive Integration between the Traditional Balanced Scorecard and the Information Technology Balanced Scorecard on the Entrepreneurship Value of the Jordanian Public Shareholding Industrial Companies

Due to the increased competition between the various industrial companies at the local and international levels, there became a need to adopt modern and effective methods and tools that enable such companies to acquire and maintain competitive advantages that help them choose, apply and assess the strategies adopted. One of the most important tools is the Balanced scorecard according to the leadership concept and the decisions of the COBIT committee; this tool had a great concern and attention by researchers or businessmen; applying it led to a remarkable success in some companies, which made it move from a mere tool of management to an integrated system of strategic management. The method of measuring the balanced scorecard according to the COBIT committee helps the industrial companies’ measure their strategic performance wisely and even goes further in helping formulate the companies' industrial strategies in a pioneer method, translate them into strategic goals, translate these objectives into strategic measurements achieving a follow-up and finally assess the industrial strategy locally and globally. Accordingly, the study aimed at shedding light on the impact of the cognitive integration among the dimensions of the traditional balanced scorecard and the IT balanced scorecard on the Entrepreneurship value in the industrial companies. The study community consisted of all the public shareholding industrial companies listed on Amman Stock Exchange by the end of (2015) amounting to (63) (Annual Report of Amman Stock Exchange, 2016). (56) Companies were randomly selected to form the study sample. One of the most important results of the study is that the effectiveness of measuring the quality of applying the traditional Balanced Scorecard and the IT Balanced Scorecard will create the Entrepreneurship value of the industrial companies, thus contributing to achieving the company's strategic objectives. The study recommended the need that the industrial companies follow up the local and international issues linked with the IT related to applying the balanced scorecard to reach for the institutional leadership with the need that such companies encourage innovation processes, accepting new ideas and motivating employees to provide innovative ideas.

An efficient resource allocation in strategic management using a novel hybrid method

Purpose– The purpose of this paper is to suggest a novel hybrid method by integrating a decision sciences approach with balanced scorecard (BSC) in order to scientifically enable the efficient strategic management of an organization under limited resources. The proposed research model endeavors to improve critical basis deficiencies of the original BSC as well as formerly improved forms of BSC by appropriately integrating three disparate methods: BSC, analytic network process (ANP), and zero-one goal programming (ZOGP).Design/methodology/approach– The designed approach is separated into three major parts. At first, the traditional BSC, concentrating on both financial and intellectual capital, was adopted as the strategic management framework, and then priorities as well as the importance of tactical drivers derived from BSC application were consecutively identified by the application of ANP. Finally, the study further applied the obtained results of integrated BSC and ANP to ZOGP in order to scientifically identify the optimal strategic investment under simulated constraints of the considered organization.Findings– An application of BSC, ANP, and ZOGP with a case study of an academic institution provided an improved strategic management approach for optimally and scientifically utilizing the limited resources of the organization. The suggested results indicated that only 11 of the 23 strategic projects should be executed. Moreover, the selected tactical tasks would efficiently use less than 36 percent of the strategic expenses of the traditional management approach.Originality/value– Based on the intensive literature reviews, the proposed method could be determined as a novel hybrid approach. It newly conveyed the practical management approach by innovatively including the proper decision sciences method to BSC. This improvement scientifically considered on the resource allocation process that has never been studied before in formerly improved BSC.

Outsourcing decisions in reverse logistics: Sustainable balanced scorecard and graph theoretic approach

Reverse logistics has become an important issue for most of the organizations due to increased flow of product returns and growing concern for the environment, legislation, and corporate social responsibility. Reverse logistics activities include product collection, inspection and sorting, disposition (reuse, repair, remanufacture or recycle), and redistribution of products. One of the important decisions is whether such activities must be outsourced partly or all must be outsourced or nothing must be outsourced. The articles on the selection of third party reverse logistics service providers are abundant but the articles on outsourcing reverse logistics fully or partly are very limited. The proposed study develops a framework for outsourcing decisions in reverse logistics by using graph theoretic approach. The ability of graph theoretic approach to consider interdependencies and maintaining hierarchical relationship among attributes and sub-attributes makes it an attractive approach. The attributes and sub-attributes were selected by combining four traditional balanced scorecard perspectives i.e. stakeholder, internal business process, learning and growth, and finance with triple bottom line aspects of sustainability known as sustainable balanced scorecard. By considering sustainable balanced scorecard based attributes and sub-attributes, organizations can ensure their contribution toward sustainability even after outsourcing the reverse logistics activities. The proposed framework is illustrated by case example of a mobile manufacturing firm. Scenario based alternatives were developed and “outsourcing index” were calculated for all the alternatives by evaluating permanent function using graph theoretic approach. The best alternative was selected based on the “outsourcing index”. The proposed framework will help managers and practitioners in outsourcing reverse logistics decisions.

Proposing a basic methodology for developing balanced scorecard by system dynamics approach

Purpose – Successful future has inspired organizations to measure long-term and non-financial measurements and key performance indicators (KPIs). Kaplan and Norton proposed balanced scorecard (BSC) for this issue and have extended it to one of the most preferred strategic management system’s tools. However, available planning tools like BSC have some limitations, like dependency to the developer, weakness in showing time delays, and also mathematical relationships between lead and lag indicators. In this paper, the authors would present a new methodology for developing BSCs, which would be able to overcome these limitations. Therefore, the purpose of this paper is to develop an integrated framework for developing BSC with system dynamics approach (a dynamic BSC (DBSC)) which has lower limitation in compare with traditional BSC. The other purpose of this paper is developing a DBSC for an Iranian public transportation company. Design/methodology/approach – Based on this purpose, related literature was thoroughly reviewed and the proposed methodology designed using the system dynamics and BSC concepts. This methodology is a composition of original BSC development methodology and system dynamics principles. An assumed organization has been used for showing methodology’s capability and procedure. Furthermore, a case study has been accomplished in this paper. This case study is a DBSC which has been developed for an Iranian public transportation company. The purpose of this case study is to ensure about proposed methodology implication in action. Findings – The authors proposed a methodology which can be applied for developing BSCs. This methodology consists of six different steps which are: developing a system for organization, selecting stakeholders’ most important objectives and target, identifying organization’s objectives and their KPIs for different BSC aspects, developing strategy map, targeting, and selecting initiatives. In the proceeding of this paper, the proposed methodology and its steps would be explained in detail. Originality/value – The system dynamic approach has precedents in business studies; however, this research makes this approach operational in BSC designing and analysis. BSCs, which developed by this methodology can show time delays between an organization’s objectives, its KPIs’ relationship and also planning for it. Selecting achievable and rational vision and objectives’ targets, change management, scenario planning and policy analysis are other values which can be achieved by DBSC deployment which need further researches. In summary, this research has shown an integrated framework for developing DBSC and then applies it to an Iranian public transportation company. Therefore, another contribution of this paper is the application of this method for an Iranian public transportation company.

The Balanced Scorecard and the Strategic Learning Process: A System Dynamics Modeling Approach

The main purpose of this paper is to improve on the conceptual as well as the methodological aspects of BSC as a quantitative model by combining elements from traditional balanced scorecard (BSC) thinking with the Systems Thinking. This is done by combining short and long term aspects of measurements. The result is then used to build and construct a balanced scorecard model for strategic learning with the specific aim to maintain satisfied customers and motivated employees. Strategic planning, operational execution, feedback, and learning are some of the most important key features of any performance measurement model. This paper aims to address not only the conceptual domain related to BSC, that is, learning and system dynamics causality and feedback, but also the methodological domain concept of precision solved by differential equations. Our results show how a potential move from a static strategic vision map to a linked and dynamic understanding may be not fully realistic but very useful for learning purposes. The new knowledge obtained from the learning feedbacks fertilizes both decision discussion and decision-making and what may be required in order to move to the next level of BSC and system dynamics integration.

IT balanced scorecard - new way of IT and business strategy integration

The balanced scorecard (BSC) originated by Kaplan and Norton is known as a strategy performance management tool. The most significant role of the BSC is ability to translate corporate strategy and mission into measurable and tangible objectives, focusing on the most meaningful measures. It is a popular management system which is used to clarify the organisations' strategy, vision and translate them into action. Therefore, it enables executives to accomplish their strategy in effective way. The traditional BSC has evolved since its developing to a full strategic management system. In 1997, was adopted by Van Grembergen and Van Bruggen for a use by a corporate IT department. They proposed modification of traditional BSC, creating the IT balanced scorecard (IT BSC) consisting of four new perspectives: corporate contribution, customer (user) orientation, operational excellence, and future orientation. The paper presents the idea of IT BSC, its history, the stages of development, current drivers and use of today's IT BSC. The main aim of this article is the verification of the hypothesis that IT BSC is some new way of IT and business strategy integration, important component of modern organisation. As a result of the analyses of this issue, the authors try to show the meaning of this tool in the nearest future.