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Balanced Scorecard
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Articles by David Chaudron, PhD


Balance Scorecard

David Chaudron, PhD

Organizational success cannot be measured by the bottom line alone. Instead of a short-sighted view of organizational success, organizations need a more comprehensive view such as a balanced scorecard. To read the full article click here Balance Scorecard.

Implementing the Balanced Scorecard

David Chaudron, PhD

Do you want to learn how to utilize a balance scorecard in your organization? Click here to learn more about Implementing the Balanced Scorecard.

Balanced Scorecard Videos

David Chaudron, PhD

If you would like to see a video on the balanced scorecard click here if you would like to see it in Spanish or English.



Additional Information on the Balanced Scorecard:


Asgari, S. D., Haeri, A., & Jafari, M. (2017). Integration of Balanced Scorecard and Three- stage Data Envelopment Analysis Approaches. Iranian Journal Of Management Studies, 10(2), 527-550.
These papers show the perspectives of the balanced scorecard and its indicators. The prospects of the balanced scorecard include the learning and growth, internal processes, customers, and finance. The measures for these parameters are: incentive fee, increased staff expertize and efficiency, improved and instant services, consumer satisfaction and greater attraction, improved profit margin, and growth of asset value. The merger of balanced scorecard and data envelopment analysis is used to determine appropriate indices which are the primary objective of the research paper. Different balanced scorecard perspective measures were applied as inputs and outputs in the DEA model and efficiency calculated as the primary ability score.
In their conclusion, the authors suggest that increased expertise in one stage and high-speed services in the next stage are the right indicators of efficient application of the balanced scorecard. In the successive stage consumer satisfaction is not necessarily an indicator of increased organization’s profitability. Also important to note is that customer attraction is an indicator of an appropriate measure. The authors argue that the presented approach is applicable as a valuable guideline for the management and decision makers in firms to recognize efficient means for employee motivation, internal processes empowerment, and organization’s financial growth.

Pandey, I. M. (2005). “Balanced Scorecard: Myth and Reality.” Vikalpa. 30 (1). 51-66
This paper focuses on the purpose and benefits of Balanced Scorecard as well as some of the reasons why a company might apply it. Balanced Scorecard is defined as a system which combines “financial and non-financial measures of performance in one single scorecard” and which includes performance measures for four perspectives: financial, customer, internal business processes, and learning and growth. It primarily focuses on the link between business processes, decisions, and results as it aims to improve organisations’ performance. Some of the reasons the author lists for companies to implement Balance Scorecard are the need to increase customer focus (understanding their target customers); the desire to focus on creating intangible and intellectual capital (competency building, technology, branding, etc.); enhancing growth and improving business excellence; aligning strategy to operations at all levels of the organization (as understanding strategy and linking strategic objectives to daily operations becomes easier for employees); and effectively tracking results for easy access to decide whether or not taking action is needed.

Leen Yu, May, Suraya Hamid, Mohamad Taha Ijab, and Hsaio Pei Soo (2009). “The E-Balanced Scorecard (e-BSC).Higher Education. 57 (6), 813-828.
This paper focuses on researching the viability of adopting an automated balanced scorecard for managing and measuring the performance of academic staffs in Malaysia’s higher education setting. The users of the e-BSC would include the staff –in charge on continually updating personal achievement–, appraiser –the one who would monitor the progress–, faculty dean, and system administrator. The e-BSC would automatically calculate scores and generate performance reports on departmental, individual or overall faculty performance that could be viewed and understood by the individual, the appraiser, or the dean. The authors conclude that the implementation of e-BSC can help setting objectives and understanding expectations as well as improving the communication between the staff and management. It is important to mention, nevertheless, that the e-BSC would have to be adapted according to the expectations and goals of other institutions in order to demonstrate its effectiveness outside this case study.

Auger, Nathalie and Denis A. Roy. (2004). The Balanced Scorecard: A tool for health policy decision-making. Canadian Journal of Public Health. 95 (3), 233-234.
Balance Scorecard has been widely used in public health “to summarize surveillance data which can be used by policy makers to facilitate evidence-based decision-making in the health sector. This paper points out BSC limitations and makes suggestions for its improvement by analysing the example data from the 18 health regions of Quebec published by the Quebec Public Health Institute and cross-tabulating it against 63 health indicators. The scoring was done in two ways: a visual inspection of each region in comparison to the rest of Quebec for socio-demographic / economic and hospitalisation data, and a statistical test comparing regions to the rest of Quebec for data derived from surveys.
For the purpose of the article, the authors discuss only the scores of three representative health regions: Montreal Centre, Montérégie, and Saguenay-Lac-Saint-Jean. It was found that there is an inverse relationship between health determinants and health outcomes among regions which is an example of ecological fallacy (which is a result of comparisons between population level data being made without individual level measurements). Several limitations were found in the application of Balance Scorecard: the lack of cultural diversity indicators, not addressing the effects of time on the health determinants change over time, and not making a distinction between statistically significant measures and differences that are meaningful for policy. BSC only shows performance of one region compared to another but does not disclose information on absolute performance, there is no comparison between regions outside of Quebec, the scoring is based on comparison between regions regardless of population which can affect the results, and statistical power issues are not addressed. Regardless of those limitations, the authors conclude that BSC is a tool that could potentially improve health policy as long as the above observations are taken into account.

Heribert Reisinger, Karen S. Cravens, and Nicole Tell. (2003) Prioritizing Performance Measures within the Balanced Scorecard Framework. MIR: Management International Review. 43 (4) 429-437.
In this paper, the authors propose a mechanism to prioritize measures of an organisation’s balanced scorecard through the analytic hierarchy process. Prioritisation of measures might be beneficial for managers since an average scorecard is between 20-25 measures due to its multifunctional aspects. While all the measures are “important and interrelated”, studies show that large amounts of information are difficult to process, thus, making filtering and prioritisation necessary. For this, the authors give to options: prioritise measures within each perspective, or place weights on all of the measures to allow comparison.
What are then, the steps of the analytic hierarchy process (AHP)?
1) Construction of hierarchies
2) Determination of pairwise comparisons
3) Synthesis
4) Consistency check
5) Evaluation of results
The authors conclude with some of the limitations of prioritisation that include the subjectivity to which a setting of priorities is vulnerable. Since priorities are determined by a group of decision makers, they “are subject to individual biases and influences”. They also remark that it is important for the prioritisation process to rely on the measures originally developed by managers, and that, if “the inputs to the prioritisation are flawed”, the results might not provide “an accurate assessment of the situation”. As with any strategy or methodology that requires human intervention, AHP is susceptible to biases and subjectivity.
Krawczyk, Marzena. (2015). The Use of Balanced Scorecard in Implementation of the User-Driver Innovation Concept.
Economia. Seria Management. 18 (2). http://www.management.ase.ro/reveconomia/2015-2/10.pdf
This paper aims to present the benefits of using balanced scorecard for the implementation of User-Driven Innovation. Taking into consideration both regular and targeted consumers can be a useful strategy for which BSC can be a helpful tool. Consumer-oriented thinking, observation of client’s behaviour, recognition of needs, and cooperation are some of the fields for which BSC might be used. This paper also presents other sources of information for innovation and their relevance within specific sectors such as the service and industrial. Among those sources we can mention internal (employees’ ideas and research and development facilities), market (consumers), and institutional. An important concept to take into account for market sources and specifically costumers is the need of identifying (as suggested by Eric von Hippel) Lead users whose needs anticipate the rest of the market’s future needs.
Several models of User-Innovation processes are presented and explained in this paper. The role of balanced scorecard in implementation of the UDI strategy is afterwards presented. Firstly, BSC is defined and its benefits are explained: BSC as a performance measurement framework allows organisations to approach enterprises from six basic perspectives (financial, customer, internal business, innovation, and learning), these perspectives will enable the organisation to better state strategic goals in cause-effect relationship with the enterprises they undertake. However useful, the implementation of User-Driven Innovation strategies encounters certain problems such as incomprehension, reluctance to change, lack of technology, financial capabilities or information systems, and the lack of understanding of the possible profits that can come from its implementation. To overcome these difficulties, this paper proposes the use of BSC as a means to better monitor performance and “translate customer-oriented innovation strategy on communicable objectives”.

Ayesha Farooq, Zareen Hussain. (2011). Balanced scorecard perspective on change and performance: a study of selected Indian companies.
Procedia Social and Behavioral Sciences 24. http://www.sciencedirect.com/science/article/pii/S1877042811015710
The purpose of this paper is to recognise the role of balanced scorecard and change management on organizational performance. For this, the methodology includes the development of a questionnaire and the recollection of responses from organizations segregated on the basis of public and private sector, and manufacturing and service industry. The study includes the use of statistical tools such as t-test and Correlation. A first thing to take into account is the evolution of Scorecard from a tool for performance measurement to a tool for implementing strategies and a framework for determining the alignment between organization’s human, information and organization capital. From this idea, the paper proceeds to define organizational change as the adoption of a new idea, procedure, process or behaviour.
In order to fully define BSC, the paper lists four possible perspectives: Financial, Costumer, Internal Business Process, and Learning and Growth Perspectives. After those initial definitions, we get a delimitation of the concept of change, the second concept on which this paper is based. Changed is then defined as “an empirical observation of difference in form, quality, or state over time in an organizational entity”. Once the concepts are clearly stated, the paper begins to develop the seven factors that can influence performance, among which we can include change and organizational performance; balanced scorecard and change; balanced scorecard and private and public sector; and change management and public sector. From each of these relations a Hypothesis is suggested.
Other components of the paper are research design, data analysis and hypotheses tests results, and the final conclusion. The results obtained from this process show that Indian organizations have incorporated the dimensions of BSC as a tool to measure performance and use it to generate change and improve performance. The paper also includes a number of tables and graphics that clearly show the correlations between the previously listed elements.
Hansen, E., & Schaltegger, S. (2016). The Sustainability Balanced Scorecard: A Systematic Review of Architectures. Journal Of Business Ethics,133(2), 193-221. doi:10.1007/s10551-014-2340-3
In this article they are interested in how recently there have been shortcomings in the measuring and management of corporate success and these shortcomings have resulted in increased economic risks and problems for companies, the economy, and societies. Therefore, scholars and practitioners are interested in the integrated measurement of economic, social and environmental performance by corporate sustainability performance measurement systems, in this case specifically, SBSCs. The aim of their research is to study in more detail the diversity of proposed SBSC architectures described in recent publications in order to shed light on measuring and managing sustainability-related organizational success through multidimensional performance measurement systems.
They go on to further review the literature and describe the research fields of corporate sustainability, corporate sustainability performance management systems, as well as the BSC and SBSC. This literature review shows that the integration of social, environmental and ethical issues into the BSC can be motivated by instrumental, social/political and normative theoretical perspectives.
The next question to consider as discussed in this article is how to integrate these issues into the BSC design and the authors have developed a two-dimensional typology of generic SBSC architectures that explain their fit based on contextual variables: First, the value system of the organisation specifies the design of the BSC hierarchy and thereby the nature of cause-and-effect chains or logical links between financial outcomes and various other performance perspectives and strategic objectives. Second, corporate sustainability strategy determines the extent to which sustainability-related strategic objectives are integrated into the performance perspectives and how sustainability-related strategic objectives are integrated (add-on, integration, extension).
Overall, the authors consider the SBSC to be a promising framework for integrating strategy and sustainability in businesses if the concept is not interpreted too rigidly but seen as an approach for sustainability-oriented organizational development.
The challenge of implementing the Balanced Scorecard

Molleman, Beer. The challenge of implementing the Balanced Scorecard.

Companies that start with performance measurement systems, typically face difficulties implementing the Balanced Scorecard (BSC). Molleman works through potential solutions for these types of companies, so that they may beneficially implement this type of system within their existing enterprise.

In 1992, the BSC flourished as a revitalized method of approaching strategic management. BSC recognized the weakness of previous measurement systems and created a clear map of particular business aspects to measure in order to balance the financial perspectives. At its core, the BSC enables companies to modify business strategies. The organizations operating within a dynamic environment must change their strategy in response to shifting market conditions. Each time the strategy shifts, the BSC should make a proportional jump.

The main focus of the BSC is to act as a performance measurement tool which enables an organization to translate its mission and vision into strategy. This strategy is then applied to measuring devices within the system by breaking down the strategy into tangible performance measures. The BSC scorecard enables the organization to take a third-part perspective in analyzing the organization. The scorecard does this byy integrating the financial measures with other key performance indicators, such as: customer perspectives, internal business processes, organizational growth, and innovation. This scorecard dynamically incorporates past performance, included in the financial measure, with expected future growth. The BSC paints a complete picture of the organization from its financials to the culture.

For the organization which utilize the BSC system, the majority find the implementation to be a difficult process. Some companies may run into causation problems during implementation. The cause-and-effect relationship does not unfold clearly and the effectiveness of the system and may break down. If business operate in volatile markets the shifting measurements within the BSC system (strategy components) become difficult to define and measure.

The sharing imperative

Bala Chakravarthy
Strategy & Leadership, 2010, Vol.38(1), p.37-41

This article details four steps taken to fight the growing insularity among a firm's businesses and promote better sharing among them. The four steps are: reinforce the company's shared purpose and values; nurture boundary spanners; provide score cards that are balanced between horizontal contributions and vertical contributions; and support the informal organization by encouraging interactions, such as social events.


Benchmarking Saudi Public Schools Using a Safety
Balanced Scorecard (BSC) Approach
Turki S. Alolah, Rodney A. Stewart, Kriengsak Panuwatwanich, , Sherif Mohamed

A balanced scorecard in the safety domain was developed for Saudi Arabian schools. The statistically formulated Saudi school safety performance BSC included 5 salient perspectives: P1: Safety Management and Leadership (5 factors); P2: Safety Learning and Training (3 factors); P3: Safety Policy, Procedures and Processes (3 factors); P4: Workforce Safety Culture (3 factors); and P5: Safety Performance (3 factors).

This subsequent investigation applies the developed safety performance BSC in order to benchmark and compare 6 Saudi public schools. Comparisons were made between schools based on their gender (male and female schools), regions of Saudi Arabia, and school education level (i.e., primary, elementary and secondary). The developed safety performance BSC framework and associated benchmarking methodology applied in this study can aid Ministry of Education officers and school executives in better and more strategically monitoring and managing their respective schools by considering the influence of lead and lag indicators of safety performance.

The balanced scorecard as a strategy-evaluation tool: The effects of implementation involvement and a causal -chain focus

Tayler, W. B. (2009). The balanced scorecard as a strategy-evaluation tool: The effects of implementation involvement and a causal -chain focus.

This study uses an experiment to examine whether involvement in scorecard implementation can mitigate the effects of motivated reasoning that occur when the scorecard is framed as a causal chain rather than merely as a balanced set of measures. Psychological research on motivated reasoning suggests that managers will evaluate and interpret data in ways consistent with their preferences, increasing their tendency to arrive at conclusions that are consistent with their desired conclusions (Kunda 1990).

Consistent with that research, results of this study show that managers who are involved in selecting strategic initiatives perceive those initiatives as having been more successful than managers who are not involved in the initiative- selection process (holding constant actual scorecard performance). Results further suggest that simply framing the scorecard as a causal chain is not sufficient to mitigate these effects. However, results show that framing the scorecard as a causal chain, in conjunction with involving managers in the selection of scorecard measures, mitigates the effects of motivated reasoning tied to manager involvement in initiative selection. Finally, unlike the previous majority of the study on the balanced scorecard, this study focused on the process of using scorecard in developing and evaluating management strategy.
Constructing a strategy map for banking institutions with key performance indicators of the balanced scorecard

Wu, H. (2012). Constructing a strategy map for banking institutions with key performance indicators of the balanced scorecard. Evaluation and Program Planning, 35, 303-320.

As a result of global financial crises and the international market crash that started in 2007 numerous companies have collapsed or have been bought out by bigger companies. More specifically the financial sector and the banking industry worldwide have gone through economic melt down.
This study presents a structural evaluation methodology to link key performance indicators (KPIs) into a strategy map of balanced scorecards for banking institutions, the four perspective of the BSC is the financial perspective, customers, internal business processes as well as leaning and growth.
The overall results of the study has contributed to providing decision makers with a systematic approach for establishing a visual strategy map while considering the relationship between the KPIs. The second result is that management should pay more attention to the feedback loop that exists between all KPIs and this is the same feedback loop that is mentioned in the BSC model. The third and last results of the study suggest that sales performance, customer satisfaction and customer retention rate are the three most essential perspectives when it comes to evaluating the banking industry. It is important to note that the customer retention part belongs to the BSC model.

Strategy implementation: a role of the balanced scorecard?

Atkinson, H. (2006). Strategy implementation: a role of balanced scorecard? Management Decision. 44(10), 1441-1460.

The purpose of this study is to develop a deeper conceptual understanding of role of balanced scorecard with regards to strategy implementation. Furthermore, this article identifies the main inhibitors of successful strategy implementation. Thus far, most of the academic research has been concentrated on strategy formulation rather than strategy implementation.

Some of the practical problems that are associated with strategy implementation include communication difficulties, low skills of mid management, problems with underestimating the time needed for implementation, surfacing of unanticipated problems as well as factors in the external environment that has an adverse impact. Therefore, it is essential to be aware of these problems and have appropriate systems in place to combat these issues.

The balance scorecard focuses management attention on the “drivers” of the performance by encouraging the inclusion of “lead” as well as “lag” indicators. It is argued in this paper that balanced scorecards can address the key problems associated with strategy implementation. Balanced scorecard can provide a mechanism for addressing issues stated above by making explicit the link between strategic objectives and operational goals. This is done through identifying clear performance targets and engaging employees at all levels of the organization.

Hansen, E., & Schaltegger, S. (2016). The Sustainability Balanced Scorecard: A Systematic Review of Architectures. Journal Of Business Ethics,133(2), 193-221. doi:10.1007/s10551-014-2340-3
In this article they are interested in how recently there have been shortcomings in the measuring and management of corporate success and these shortcomings have resulted in increased economic risks and problems for companies, the economy, and societies. Therefore, scholars and practitioners are interested in the integrated measurement of economic, social and environmental performance by corporate sustainability performance measurement systems, in this case specifically, SBSCs. The aim of their research is to study in more detail the diversity of proposed SBSC architectures described in recent publications in order to shed light on measuring and managing sustainability-related organizational success through multidimensional performance measurement systems.
They go on to further review the literature and describe the research fields of corporate sustainability, corporate sustainability performance management systems, as well as the BSC and SBSC. This literature review shows that the integration of social, environmental and ethical issues into the BSC can be motivated by instrumental, social/political and normative theoretical perspectives.
The next question to consider as discussed in this article is how to integrate these issues into the BSC design and the authors have developed a two-dimensional typology of generic SBSC architectures that explain their fit based on contextual variables: First, the value system of the organisation specifies the design of the BSC hierarchy and thereby the nature of cause-and-effect chains or logical links between financial outcomes and various other performance perspectives and strategic objectives. Second, corporate sustainability strategy determines the extent to which sustainability-related strategic objectives are integrated into the performance perspectives and how sustainability-related strategic objectives are integrated (add-on, integration, extension).
Overall, the authors consider the SBSC to be a promising framework for integrating strategy and sustainability in businesses if the concept is not interpreted too rigidly but seen as an approach for sustainability-oriented organizational development.
Oparaugo, C. (2015). ISO/IEC 27001 Process Mapping to COBIT 4.1 to Derive a Balanced Scorecard for IT Governance. COBIT Focus, 1–14.
The balanced scorecard (BSC) which was developed by Kaplan and Norton is a performance management system that should allow driven strategies based on measurement and follow-up, their basic idea is that evaluation of an organization shouldn’t be restricted to a traditional financial evaluation, but should be supplemented with measures concerning customer satisfaction, internal processes and the ability to innovate. This article focuses on how a cascade of scorecards can be useful in the development of IT/business governance processes and how this hierarchy of scorecards can support the alignment of business and IT strategy, it also explains how an exercise in instituting controls can be used to establish the IT BSC, which can be linked to the business BSC and, in doing so, can support the IT/business governance and alignment processes.
The authors discuss how governance is established through compliance to standards and control objectives, in regard to the BSC it is a measurement and management system that is suitable for supporting the IT governance process and the IT-business alignment process. They also discuss the 4 perspectives that the BSC develops metrics, collects and analyzes data for and they are the financial, customer, internal business, and learning and growth perspectives.
They found that the result from linking IT goals to business goals and reviewing with the COBIT information criteria helps form a better perspective of the BSC. The BSC is a management system (not only a measurement system) that enables organizations to clarify their vision and strategy and translate those into action, and when fully deployed, the BSC transforms strategic planning from an academic exercise into the nerve center of an enterprise.

Balanced scorecard measures in executive compensation
Raili m. Pollanen kenneth kangwu xi
International journal of business and public administration, volume 12, number 1, summer 2015

This study investigates the use of balanced scorecard (BSC) measures in executive
compensation plans, particularly the relationships between organizational characteristics and BSC use. Using data from 330 companies, collected from multiple public sources, the study reveals strong associations between BSC use and several organizational characteristics. The results reveal that strategy, industry, quality focus, organizational structure, culture, and ownership structure play significant roles as determinants of BSC use, supporting the hypotheses of the study. The findings underscore the importance of organizational characteristics in the effective design and use of performance measurement and incentive systems.
Balanced Scorecard Benefits;

Insurers can use balanced scorecards to get a holistic view of operations and drive business transformation.

Editorial Staff (November, 2015). Asked and Answered, volume 13 No.9

As a performance management tool, balanced scorecards give managers a mixture of financial and non-financial metrics in order to help assess whether the organization is meeting strategic objectives. Insurance Networking News asked MetLife AVP of Business Transformation Practices Ashish Gupta, who helped develop the balanced scorecard approach within MetLife's ITG organization, how insurers can best leverage these tools.
INN: How can insurers drive operational accountability and improve service delivery by employing a balanced scorecard approach?
AG:Balanced scorecards provide detailed metrics that enable a holistic view of an entire operation. For example, in the Information Technology Group (ITG) of MetLife's Technology & Operations organization, we are currently using a balanced scorecard approach to help us assess our financial performance, as well as our key processes and our associates' success. This approach enables ITG to thoroughly evaluate its complete performance, which will help identify performance issues, conduct root cause analysis and drive data-based decision making. To complement this approach, ITG is focused on incorporating metrics to allow managers to better gauge future performance and address any forecasted challenges.
According to one of ITG's CIOs, Larry Blakeman, balanced scorecards have helped his team gain increased transparency around its operations, enabling it to quickly address challenges. In addition to helping to identify and define key performance indicators (KPI) that drive performance and cost, scorecards provide additional quantitative data, which, in conjunction with qualitative data, enable a better understanding of root causes and trends.
INN: What role does the scorecard play in performance management?
AG: By closely aligning the outcomes measured by scorecards with their vision, strategic objectives, goals and metrics, organizations can successfully leverage balanced scorecards to transform strategy into action.
Within ITG at MetLife Tech & Ops, the overall vision and strategy has been tightly linked to the KPIs and supporting metrics to help maintain focus toward the desired goal. Additionally, when performance shortfalls arise, a balanced scorecard can be used to develop key action plans to correct course. At a high level, balanced scorecards can help functions better align with enterprise-level strategies and goals.
INN: How can organizations identify KPIs that best align with value drivers and customer proposition?
AG: Organizations need to assess their internal core capabilities, processes and product offerings in order to identify their KPIs for driving value. To paint a more robust picture, organizations should evaluate their key customers' needs and wants, as well as "dissatisfiers" and exciters from their perspective. Armed with these analyses, organizations are then prepared to identify the KPIs that will both drive business performance and customer satisfaction.
Within MetLife's ITG organization, we achieved a holistic view by conducting voice of the customer (VOC) interviews and leveraging the Goal Question Metric framework to survey internal stakeholders and business partners. Through this process, we identified the KPIs to achieve our organizational goals, as well as ensured they aligned with internal and external stakeholders. However, these KPIs are flexible to adapt to future input from internal/external stakeholders.
INN: How can the balance scorecard approach drive change toward a more effective culture of accountability and responsibility?
AG: Within MetLife's ITG organization, we are focusing on four key elements of balanced scorecards to drive business transformation, and even cultural change.
* Key decision makers' KPIs provide metrics that encourage a complete assessment of performance.
* Robust, data-based, leadership decision-making processes focus on creating accountability through action planning and root cause analysis.
* Supporting communication and training programs that ensure a high level of understanding and engagement by all ITG associates.
* An intuitive user interface and agile technology provide current information based on the integration of 20-plus systems in the back-end to create a consolidated view of performances in various areas.

Competitive Strategy and Sustainable Performance: The Application of Sustainable Balanced Scorecard

Sitawati, R., Winata, L., & Mia, L. (2015). Competitive Strategy and Sustainable Performance: The Application of Sustainable Balanced Scorecard. Issues in Social & Environmental Accounting. 9/1, 51-75

The authors used the Sustainable Balanced Scorecard in order to evaluate hotel sustainable performance in Indonesia. The perspectives used were financial, customer, internal business process, learning and growth, and social and environmental in order to explore ways to improve sustainable hotel performance to keep up with the highly competitive market. The results of their investigation revealed that the relationship between hotel sustainable performance and competitive strategy was positive and significant; thus, supporting existing research that hotels moving towards a differentiation strategy have greater sustainable performance.


The balance on the balanced scorecard – A critical analysis of some of its assumptions

Norreklit, N. (2000). The balance on the balanced scorecard – A critical analysis of some of its assumptions. Management Accounting Research, (11), 65-88.

In recent years academic scholars have given increasing attention to the importance of strategic measurement systems including both non-financial and financial measures. One of the approaches adopted is that of the balanced scorecard. It is distinct from other strategic measurement systems in that it is more than an ad hoc collection of financial and non-financial measures. It contains outcome measures and the performance drivers of outcomes, linked together in cause-and-effect relationships, and thus aims to be a feed-forward control system. Furthermore, the balanced scorecard is intended not only as a strategic measurement system but also as a strategic control system, which can align departmental and personal goals to overall strategy. This paper first examines the extent to which there is a cause-and-effect relationship among the four areas of measurement suggested the financial, customer, internal-business-process and learning and growth perspectives. The paper then examines whether the balanced scorecard can link strategy to operational metrics, which managers can understand and influence. Finally, it discusses and suggests some improvements to the balanced scorecard.


The balanced scorecard as a strategy-evaluation tool: The effects of implementation involvement and a causal -chain focus

Tayler, W. B. (2009). The balanced scorecard as a strategy-evaluation tool: The effects of implementation involvement and a causal -chain focus.

This study uses an experiment to examine whether involvement in scorecard implementation can mitigate the effects of motivated reasoning that occur when the scorecard is framed as a causal chain rather than merely as a balanced set of measures. Psychological research on motivated reasoning suggests that managers will evaluate and interpret data in ways consistent with their preferences, increasing their tendency to arrive at conclusions that are consistent with their desired conclusions (Kunda 1990).

Consistent with that research, results of this study show that managers who are involved in selecting strategic initiatives perceive those initiatives as having been more successful than managers who are not involved in the initiative- selection process (holding constant actual scorecard performance). Results further suggest that simply framing the scorecard as a causal chain is not sufficient to mitigate these effects. However, results show that framing the scorecard as a causal chain, in conjunction with involving managers in the selection of scorecard measures, mitigates the effects of motivated reasoning tied to manager involvement in initiative selection. Finally, unlike the previous majority of the study on the balanced scorecard, this study focused on the process of using scorecard in developing and evaluating management strategy.


Constructing a strategy map for banking institutions with key performance indicators of the balanced scorecard

Wu, H. (2012). Constructing a strategy map for banking institutions with key performance indicators of the balanced scorecard. Evaluation and Program Planning, 35, 303-320.

As a result of global financial crises and the international market crash that started in 2007 numerous companies have collapsed or have been bought out by bigger companies. More specifically the financial sector and the banking industry worldwide have gone through economic melt down.
This study presents a structural evaluation methodology to link key performance indicators (KPIs) into a strategy map of balanced scorecards for banking institutions, the four perspective of the BSC is the financial perspective, customers, internal business processes as well as leaning and growth.
The overall results of the study has contributed to providing decision makers with a systematic approach for establishing a visual strategy map while considering the relationship between the KPIs. The second result is that management should pay more attention to the feedback loop that exists between all KPIs and this is the same feedback loop that is mentioned in the BSC model. The third and last results of the study suggest that sales performance, customer satisfaction and customer retention rate are the three most essential perspectives when it comes to evaluating the banking industry. It is important to note that the customer retention part belongs to the BSC model.


Strategy implementation: a role of the balanced scorecard?

Atkinson, H. (2006). Strategy implementation: a role of balanced scorecard? Management Decision. 44(10), 1441-1460.

The purpose of this study is to develop a deeper conceptual understanding of role of balanced scorecard with regards to strategy implementation. Furthermore, this article identifies the main inhibitors of successful strategy implementation. Thus far, most of the academic research has been concentrated on strategy formulation rather than strategy implementation.

Some of the practical problems that are associated with strategy implementation include communication difficulties, low skills of mid management, problems with underestimating the time needed for implementation, surfacing of unanticipated problems as well as factors in the external environment that has an adverse impact. Therefore, it is essential to be aware of these problems and have appropriate systems in place to combat these issues.

The balance scorecard focuses management attention on the “drivers” of the performance by encouraging the inclusion of “lead” as well as “lag” indicators. It is argued in this paper that balanced scorecards can address the key problems associated with strategy implementation. Balanced scorecard can provide a mechanism for addressing issues stated above by making explicit the link between strategic objectives and operational goals. This is done through identifying clear performance targets and engaging employees at all levels of the organization.


Does the balanced scorecard adoption enhance the levels of organizational climate, employees’ commitment, job satisfaction and job dedication?

Molina, M. A., Gonzalez J. M., Florencio, B. P., & Gonzalez, J. L. (2014). Does the balanced scorecard adoption enhance the levels of organizational climate, employees’ commitment, job satisfaction and job dedication? Management Decision. 52(5), 983-1010.

Management models have shown to have a positive influence on the improvement of employees’ perception within their organizational environment. This article illuminates the impact of implementing Balanced Scorecard (BSC) on the overall perception of the organization. Previous studies have indicated that there is a positive correlation between organizational culture and employee satisfaction after the implementation of BSC.

This study hypothesizes that the correct implementation of BSC brings about an increase in the employee’s satisfaction, improved organizational commitment, increase in employee satisfaction and job dedication. The results of this study are based on 730 employees from retail sector.

The results of the study show that after the implementation of BSC the employees are better informed about the decisions that the organizations make. From a Managerial perspective BSC helps the management team understand the behaviors that the organizations desires. This in turn will diminish the limitations that managers might face due to lack of information about he organization. BSC will improve employee satisfaction through better communication from the top down which will result in more dedicated and committed members.


The Balance on the Balanced Scorecard – a Critical analysis of some of its Assumption

Norreklit, H. (2000). The balance on the balanced scorecard a critical analysis of some of its assumptions. Management Accounting Research, 11(1), 65-88.

This illuminating article examines the extent to which there is a cause-and-effect relationship between four areas of measurement suggested by the author (the financial, customer, internal business process and learning and growth perspective). Then the author examines if the balanced scorecard can link strategy to operational metrics that managers can understand and influence. In addition, the article discusses and suggests some improvements on the balanced scorecard.

The author explains that the balanced scorecard is another model that integrates financial and non-financial strategic measures. The balanced scorecard differs from other strategic measurement systems because it contains the outcome measures and the performance drivers outcomes, linked together in cause-and-effect relationships.

The article demonstrates that the use of accounting data and financial calculus is necessary but these are not sufficient instruments when various acts and activities in the company have to be assessed. Furthermore, an evaluation system that does not integrate all relevant variables cannot be expected to show valid results. The scorecard translates the vision and strategy of a business unit into objectives and measures in four different areas. The author illustrates that the scorecard is a tool that can be used to align the strategy in actions that is being performed to the strategy mentioned in the plan. Take a look to gain some valuable knowledge about the Balanced Scorecard today!


Managing Alliances With the Balanced Scorecard

Kaplan, R. S., Norton, D. P., & Rugelsjoen, B. (2010). Managing alliances with the balanced scorecard. Harvard Business Review, 88(1-2), 114-120.

Discussed in this article are various pitfalls of business partnerships and how to avoid some of these negative aspects and therefore have successful alliances with other corporations. The article gives a real life example of an alliance that was improved using the balanced scorecard approach (Kaplan, R., Norton, D., and Ragulsjoen, B., 2010). The alliance discussed began as a minor customer/vendor relationship between two businesses and then developed progressively into a full blown alliance that significantly benefited both entities.

Detailed strategies are given regarding how corporations should employ the balance scorecard in terms of their alliance relationships to improve their success. The article discusses businesses that are looking to improve their current relationships with other businesses utilizing the balanced scorecard. The authors posit the importance of business partners being in alignment in regards to the strategic implementation of the balanced scorecard. Communication between and among partners is also emphasized by advocating for are common vision and offering incentives that motivate employees to deliver desirable results. An additional benefit of the balanced scorecard that the authors of this articulate is the framework it provides for partners to work collaboratively and productively in order to achieve goals that would be difficult to accomplish on their own.

بطاقة الأداء المتوازن(Balanced Scorecard)تناقش هذه المقالة أنواع الشراكات التجارية وكيفية تجنب السلبيات المصاحبة لهذه الشراكات، وبالتالي تكون تحالفات ناجحة مع الشركات الأخرى. تبين هذه المقالة مثالا حقيقيا لتحالف تم تحسينة باستخدام بطاقة الأداء المتوازن. بدأ التحالف عن طريق علاقة بسيطة بين بائع وعميل ثم تطورت تدريجيا إلى تحالف كامل استفاده منه بشكل كبير كلا الكيانين. يعطي الكاتب إستراتيجيات مفصلة عن طرق استخدام بطاقة الأداء المتوازن بين الشركات لتحقيق تحالف ناجح وفعال. تتناول المقالة الشركات التى تتطلع إلى تحسين تحالفاتهم مع الشركات الأخرى عن طريق تطبيق آلية الأداء المتوازن. يوضح الكاتب أهمية التوافق بين شركاء العمل فيما يخص التنفيذ الإستراتيجي لبطاقة الأداء المتوازن. التواصل بين الشركاء مهم للوصول إلى رؤية مشتركة بين الطرفين وإلى العمل على توفير حوافز مشتركة للموظفين لتقديم النتائج المرجوة. فائدة إضافية لبطاقة الأداء المتوازن وهي توفير إطار للشركاء للعمل بشكل تعاوني ومثمر من أجل تحقيق الأهداف التى من الصعب الوصول إليها من تلقاء نفسها

The Rise of the Balanced Scorecard! Relevance Regained

Norreklit, H., Norreklit, L., Mitchell, F., Bjornenak., (2012). The Rise of the Balanced Scorecard! Relevance Regained? Journal of Accounting and Organized Change, 8(4).

This illuminating article highlights the strategic management tool, known as the balanced scorecard (BSC) and how it contributes to regaining the practice relevance of research in management accounting. The article outlines a detailed design and methodology, presents interesting research findings and articulates its research limitations and implications.

This article does a through job in analyzing the nature of two of the major components of the balanced scorecard (BSC), its measurement framework and the management process of the implementation of such tool. Specific focus is placed on the features and the practice relevance to the BSC. The authors’ findings explain that the BSC is defined in a way that can provide management with a type of general overarching model.

This article further explores whether one can know if the prevalent use of the BSC increases relevance and determines to draw this parallel by researching medial scholars who work with and study this management tool. The objective of this paper is to explore whether the BSC encourages an increased scholarly methodological basis or if it is indicative of other approaches to the managerial discipline. A detailed analysis is undertaken in this piece to more deeply understand the management process with the implementation of the balanced scorecard.

بطاقة الأداء المتوازن(Balanced Scorecard)هذه الدراسة تسلط الضوء على أداة من أدوات الإدارة الإستراتيجية، المعروفة بإسم بطاقة الأداء المتوازن. تساهم بطاقة الأداء المتوازن في الدراسات والبحوثاتالمتعلقة بالمحاسبة الإدارية. تناقش الدراسة منهجية واضحة وتعرض نتائج مثيرة للإهتمام وتوضح القيود المتعلقة بهذا المجال. وتوضح هذه الدراسة ما إذا كان الإستخدام السائد لبطاقة الأداء المتوازن يزيد من أهمية البحوث المتعلقة بدراسة هذه الأداة الإدارية. الهدف من هذه الدراسة هو إكتشاف ما إذا كانت بطاقة الأداء المتوازن تشجع على زيادة البحوث المتعلقة بهذا المجال أو إذا كانت عبارة عن منهج يدل على مناهج إدارية أخرى. والهدف الأخر هو إجراء تحليل مفصل عن هذه الأداة للوصول إلى إستنتاجيات أوضح لبطاقة الأداء المتوازن

Benchmarking Saudi Public Schools Using a Safety
Balanced Scorecard (BSC) Approach
Turki S. Alolah, Rodney A. Stewart, Kriengsak Panuwatwanich, , Sherif Mohamed

A balanced scorecard in the safety domain was developed for Saudi Arabian schools. The statistically
formulated Saudi school safety performance BSC included 5 salient perspectives: P1:
Safety Management and Leadership (5 factors); P2: Safety Learning and Training (3
factors); P3: Safety Policy, Procedures and Processes (3 factors); P4: Workforce Safety
Culture (3 factors); and P5: Safety Performance (3 factors).

Citizens in newly industrialized countries are demanding higher levels of safety in their built
environments, particularly the education environments of their students. Saudi Arabia is an
example of a country that is beginning to put a microscope on its current safety practices
and performance in an attempt to reduce incident and accident rates. In the authors’ prior
research, a comprehensive safety performance evaluation framework was developed
following the principles of the well-established balanced scorecard (BSC). The statistically
formulated Saudi school safety performance BSC included 5 salient perspectives: P1:
Safety Management and Leadership (5 factors); P2: Safety Learning and Training (3
factors); P3: Safety Policy, Procedures and Processes (3 factors); P4: Workforce Safety
Culture (3 factors); and P5: Safety Performance (3 factors). This subsequent investigation
applies the developed safety performance BSC in order to benchmark and compare 6 Saudi
public schools. Comparisons were made between schools based on their gender (male and
female schools), regions of Saudi Arabia, and school education level (i.e., primary,
elementary and secondary). The developed safety performance BSC framework and
associated benchmarking methodology applied in this study can aid Ministry of Education
officers and school executives in better and more strategically monitoring and managing
their respective schools by considering the influence of lead and lag indicators of safety
performance.

The key to management: A balanced scorecard
Marks, G. (2008). The key to management: A balanced scorecard. Forbes.com

Using the balanced scorecard helps companies focus on strategy and results rather than the task at hand. The authors talks first about establishing key metrics for success. One can capture performance by focusing on key performance indicators and the metrics associated with them. He then goes to say that developing a scorecard to track the metrics one just created can gauge results for a period of time and in turn one can track effectiveness. Details of how to create are card are described.

Companies can use multiple scorecards for each aspect of the business. The scorecard layout is 2-4 strategic objectives with 1-3 metrics per objective. Therefore, the balanced scorecard should have 2-12 metrics for each card. Smaller companies can complete this process for quick wins but larger companies either higher consultants and obtain software to assess multiple areas of the business and in turn implement a detailed balanced scorecard approach.

Influences of Timeline and Perceived Strategy Effectiveness on Balanced Scorecard Performance Evaluation Judgments

Johnson, E. N., Reckers, P. M. J., & Bartlett, G. D. (2014). Influences of timeline and perceived strategy effectiveness on balanced scorecard performance evaluation judgments. Journal of Management Accounting Research, 26(1), 165-184.

The balance scorecard is a multidimensional performance evaluation system. This article focuses on variables that are often ignored; the presence or absence of an explicit timeline for strategy implementation and the evaluator’s perceptions of the effectiveness of the new strategy. The study consisted of a 32 month for successful strategy implementation. It was predicted and found that absence of an implementation was associated with fixation of lagging performance outside of the direct reports timespan of control. The results indicated that organizations can benefit from including an explicit timeline for strategy implementation. Specifically, a strategy map alongside a specific time frame can assist managers in understanding logic and causal links as well as visually depicting the interdependencies of the balance scorecard perspectives.

A critical factor in successful strategy implementation is positive support for the strategy. Support by those who are in charge of the execution of the strategy is needed in order for direct reports to believe a new initiative is likely to succeed. Therefore, it was also predicted and found that evaluator perceptions of strategy’s effectiveness were positively associated with evaluations of strategy-congruent performance.

‘Balanced Scorecard’ as an operation-level strategic planning tool for service innovation

Luo, C. A., Chang, H., & Su, C. (2012). Service Industries Journal, 32(12), 1937-1956. doi:10.1080/02642069.2011.574273

This study examines the four key perspectives of the Balanced Scorecard (BSC) as an operation-level strategic planning tool for hospital performance. Four hospital wards were investigated, and four dimensions were identified. The hospital wards included internal medicine, surgery, gynecology, and pediatrics. The dimensions of the BSC were financial, customer, internal process and learning and growth and 13 assessment indicators were used.

The results indicated that the nursing department was obligated to perform comprehensive service and specific individual service while also having its own departmental goals and tasks. This is because the nursing department represents about 50% of the human resources and employs the most interdepartmental contact then all other departments.

The findings suggest that the BSC can be implemented on a practical basis and provide results that link strategies between the organization and departments.

The sharing imperative

Bala Chakravarthy
Strategy & Leadership, 2010, Vol.38(1), p.37-41

This article details four steps taken to fight the growing insularity among a firm's businesses and promote better sharing among them. The four steps are: reinforce the company's shared purpose and values; nurture boundary spanners; provide score cards that are balanced between horizontal contributions and vertical contributions; and support the informal organization by encouraging interactions, such as social events.

The 'Balanced Scorecard' is more than just a new measurement system.(adapted from 'The Balanced Scorecard: Translating Strategy into Action')

Author:Kaplan, Robert S. ; Norton, David P.

Harvard Business Review, May-June, 1996, Vol.74(3), p.S4(3) [Peer Reviewed Journal]

This book seeks to educate business leaders on the different functions of a balance scorecard. The book focuses on four areas: financial objectives, customers, internal business processes; and learning and growth. It aims to explain how it can be used as a measuring tool and later on evolve into a management system.

Standing on the shoulders of strategic management giants to advance organizational project management

Nathalie Drouin ; Kam Jugdev
International Journal of Managing Projects in Business, 2014, Vol.7(1), p.61-77
The purpose of this paper is to examine relevant issues within the strategic management domain related to concepts and terms used within the resource-based view and dynamic capabilities (DC) theory. The paper explains how these theories from strategic management can be translated for organizational project management (OPM). The paper also shares lessons learned by the co-authors as used in project management. Based on a literature review and research experience of co-authors, the paper bridges two theories from the strategic management field to OPM and demonstrates conceptual challenges experienced.The paper outlines how theories from strategic management can be adopted to OPM. Since OPM is evolving, there is merit in drawing from a solid theoretical foundation such as those found in strategic management.

When is a balanced scorecard a balanced scorecard?

Soderberg, M., Kalagnanam, S., Sheehan, N. T., & Vaidyanathan, G. (2011). International Journal of Productivity and Performance Management, 60(7), 688–708. doi:10.1108/17410401111167780

Purpose – The Balanced Scorecard (BSC) is widely applied as a performance measurement and strategy implementation tool by organizations. Research has revealed that the term “balanced scorecard” may be understood differently by managers both within as well as across organizations implying that the performance measurement systems implemented in organizations may not be similar to the construct envisioned by Kaplan and Norton. Using Kaplan and Norton's Balanced Scorecard construct as a basis, the paper aims to develop and test a five-level taxonomy to classify firms' performance measurement systems.
Design/methodology/approach – A Balanced Scorecard taxonomy is validated using a large sample of professional accountants working in Canadian organizations.Findings – The five-level taxonomy is used to categorize the performance measurement systems of 149 organizations. It is found that 111 organizations' (74.5 percent) performance measurement systems met the criteria to be classified as a Basic Level 1 BSC, while 61 (40.9 percent) organizations have structurally complete Level 3 BSCs, and 36 (24.2 percent) organizations have fully developed Level 5 BSCs. The paper also discusses differences between Level 1 and Level 5 BSC organizations.Research limitations/implications – While many researchers assume that organizations' performance measurement systems are similar in implementation level and use, the paper demonstrates that organizations are at different levels of BSC implementation and use, a factor that should be taken into consideration when designing empirical studies to test the efficacy of Kaplan and Norton's BSC.Practical implications – The five-level BSC taxonomy scheme provides managers working with Kaplan and Norton's BSC with a tool to plan their implementation steps and then benchmark their progress towards implementing a fully developed Level 5 BSC.Originality/value – In developing and empirically validating a BSC taxonomy, the paper builds on and extends previous research on BSC implementation and its potential implications.


Balanced scorecard for sustainable supply chains: Design and development guidelines

Reefke, H., & Trocchi, M. (2013). International Journal of Productivity & Performance Management, 62(8), 805-826. doi:10.1108/IJPPM-02-2013-0029

There are remarkably few guidelines in terms of principles and tools to assess performance regarding sustainable supply chain management. The advantages of supply chain management are internal low cost, high customer satisfaction, and high customer external value. Sustainability of these advantages leads the development of this conceptual paper that integrates the balanced scorecard with literature on performance measurement to create a customized scorecard design for sustainable supply chains.

In a supply chain environment, the scorecard customization includes a wider framework of competitive positioning and formation of strategy. This framework includes five systemic relationships: financial perspective, customer perspective, internal process, learning and growth, and non-market perspective. Performance measurements regarding goals and associated measures were developed and defined based on the relationships of the framework.

The article further details the development and implementation of this scorecard and provides examples to demonstrate the practicality of this approach.


When is a balanced scorecard a balanced scorecard?

Soderberg, M., Kalagnanam, S., Sheehan, N. T., & Vaidyanathan, G. (2011). International Journal of Productivity and Performance Management, 60(7), 688–708. doi:10.1108/17410401111167780

The Balanced Scorecard (BSC) is commonly used as a performance measurement and
strategy implementation tool by organizations. Research has revealed that the term “balanced
scorecard” may be misunderstood by managers meaning the performance measurement systems may not represent the construct envisioned. Using Kaplan and Norton’s Balanced Scorecard construct as a basis, the paper aimed to develop and test five-level taxonomy to classify firms’ performance measurement systems.

It was found that 74.5 percent organizations’ performance measurement systems met the criteria to be classified as a Basic Level 1 BSC, while 40.9 percent of organizations have structurally complete Level 3 BSCs, and 24.2 percent of organizations have fully developed Level 5 BSCs. The most significant difference being senior management involvement, inappropriate performance measures and/or measures not linked in cause-effect relationships, and success of the performance measurement system.


Balanced scorecard attributes: Key determinant and perceived benefits

Shutibhinyo, W. (2013). Global Journal Of Business Research, 7(2), 1-8.

Exploring the Balanced Scoreboard (BSC) Shutibhinyo, W. (2013) looked at the four BSC attributes, i.e. translating strategy into operation terms, aligning the organizational units to the strategy, communicating strategy to employees, and providing feedback and learning in Thai firms. Furthermore Kaplan and Norton (2001) introduced the Strategy-Focused-Organization (SFO) framework, which was a complete theoretical foundation of the BSC concept and its key determinant. The SFO framework includes five ideologies: four BSC traits plus top management support.

The findings supported that top management is positively and significantly associated with each BSC attribute at p< 0.01. Meaning the findings are very significant. Top management played a central role in supporting the execution of each BSC attribute. Management facilitated translating strategy into operational terms and aligning the corporate strategy to that of various business units and departments. Top management also enriched employees’ understanding of the firm’s strategy so employees could perform their tasks to achieve the firm’s goals. Also, top management supported the feedback and learning process for the strategic review.


The use of the balanced scorecard in small companies

Giannopoulos, G., et al., (2013). International Journal of Business and Management, 8(14), 1-22.

The main focus of this article was to inform the reader whether small firms in the UK and Cyprus use the Balanced Scorecard (BSC) and identify potential reasons for not implementing it.
Giannopoulos et al. (2013) sent out survey instrument to 500 companies and 40 (8%) were returned. Most of the respondents were managers (50%) followed by directors (15%), accountants, and financial controllers. They were asked to rate the importance of 10 financial (e.g., increase in sales, profits, revenue) and non-financial (e.g., customer satisfaction, employee development and satisfaction) factors in their companies.

Giannopoulos et al. (2013) found that most companies in the UK and Cyprus did not use the BSC. The small firms focused mainly on measuring financial performance and made decisions based on financial outcomes. In the UK, the increase of profit was rated as the most important in 75% of companies and the increase of sales, revenue and customer satisfaction was rated as important in 60% of companies, according to the researchers. In Cyprus, most of the respondents (55%) indicated they did not know the BSC, 45% indicated they learned about it during their formal training. There were only 2 (22%) companies that used the BSC; they used it as a performance measurement system and as a tool for clarifying their companies’ strategies. The researchers also found that companies that did not use the BSC were satisfied with other effective performance measurements. Giannopoulos et al. (2013) pointed out that a small sample size and methods for data collection were the main limitation of their study.


The moderating effects of the incentive system and performance measure on managers’ and their supervisors’ expectations about the manager’s effort

Cianci, A. M., Kaplan, S. E., & Samuels, J. A. (2013). Behavioral Research in Accounting, 25(1), 115-134.

The purpose of this research was to explore differences between a manager’s effort expectations and the effort expectations formed by the manager’s supervisor. Cianci, Kaplan, and Samuels (2013) proposed that when planning to accomplish a particular task, managers tend to increase the number of hours they plan to work, depending on either the incentives or the type of performance evaluation. Unlike the manager, the manager’s supervisors tend to accommodate a fewer number of hours to accomplish a task.

Cianci et al. (2013) invited 87 MBA students enrolled in the evening program who participated in the discussion of the use of the Balanced Score Card (BSC). The participants responded to the survey examining their familiarity with the BSC and were asked to plan an average number of hours they would need to work on a specific, explained to them project.

The independent variables included the participants’ role either as a manager or a manager’s supervisor, the company’s evaluation measures, and the various incentive programs. The dependent variables included: the total of planned hours to work on a task, the total of strategic hours, and the number of general hours. Cianci et al. (2013) collected and analyzed data from 77 participants who fully completed two assessment measures. They found that the students who took the role of a manager planned to work more total hours than their supervisors expected them to work. They also found that the incentive programs and performance measures diminished self-enhancement tendencies among managers.

Overall, Cianci et al. (2013) suggest that managers and their supervisors have different expectations when planning for number of hours for task completion. Specifically, the supervisors tend to be more conservative and expect the managers to accomplish a task in much shorter total time than the time managers plan to accomplish a given task. In addition, the researchers also found that under the strategic bonus incentive program managers tend to plan for more total hours as compared to the planning of total hours by their supervisors.


Ratify, reject or revise: Balanced scorecard and universities

Sayed, N. (2012). International Journal of Educational Management, 27, 203-220.

How useful is the Balanced Scorecard in universities? Sayed (2012) explored if and to what extent the Balanced Scorecard (BSC) was modified to include a wide range of unique university needs. Through an exploratory approach, Sayed reviewed literature on the application of the BSC in 30 universities in multiple countries.

As one of the most innovative tools in strategic management, the BSC approach utilizes financial, customer, internal processes and learning, and growth perspectives and analyzes each of them. Sayed (2012) found that the BSC is of little or no value in universities and was unable to conclude if the problem was with the BSC itself or with the way universities altered it. In some universities, the BSC was applied to only one educational program within the university rather than to the university system. In others, the BSC was applied to one strategic perspective for the faculty members. According to Sayed, one unit application is difficult to measure in the sense of success or failure. When modifying the BSC, most universities based their decisions on their university’s objectives. Sayed demonstrated how each of the BSC perspective was altered to echo the university’s environment. Some examples of perspective alterations include: customer application was replaced with “stakeholders,” learning with “teaching and learning,” financial with “resource management,” and growth perspective with “scholarship and research.”

While adopting the BSC, universities used it as either a combination of various perspectives or a measure of performance. The unique operational system in universities such as the wide range of university customers (current students, alumni, student’s parent, donor, volunteer, etc.) and the quality in education (scientists, engineers, skilled graduates, student retention, graduation rate, academic reputation, and so on) create almost impossible task of quantifying and evaluating the outcome, as it is done when using the BSC.

Sayed (2012) concluded that the BSC will only be effective in universities that are engaged in implementation process, have updated information systems, and are willing to invest financial resources. Although the current applications of the BSC needs significant improvement, it is possible to develop an effective model of the BSC for universities, the researcher pointed out.


Managing performance at local government level: The case of the city of Brisbane and the city of Melbourne

Yetano, A. (2009). The Australian Journal of Public Administration, 68, 167-181.

Using the Balanced Scorecard as a framework, Yetano (2009) analyzed ways local governments conducted performance management systems. The researcher examined the government’s objectives when implementing the structure as a way of coping with demands for improved performance, accountability, and customer care. Yetano investigated two case studies, the City of Brisbane and the City of Melbourne. These cases were selected based on successfully implemented performance management system, similar administrative culture, and similar level of government. As recommended, the researcher analyzed each local government independently.

Yetano (2009) performed qualitative and quantitative analysis based on data from interviews, external and internal documents as well as direct and participant observations. Initial interviews revealed that members of both case studies perceived performance management as successful.

Final analysis showed that both case studies were influenced by administrative culture of promoting performance measurement and management and needed to improve planning processes. Both had comprehensive vision statements showing what they wanted to achieve.
When translating the vision into action, the Brisbane’s model showed that the links between strategic objectives and the means to achieve them were crucial. Legal requirement significantly influenced the Melbourne planning system in this analysis.

Three areas were identified when analyzing citizens and stakeholders - communication of information, types of surveys to identify needs and levels of satisfaction, and openness to the opinion. Internal processes in both case studies were well functioning with incorporated inter-departmental groups and specific departments for performance management. Both case studies integrated the personnel into their systems by introducing Individual Performance Plan (Melbourne), signing up for outputs and outcomes (Brisbane), and carrying out training programs. To improve financial resources management, both case studies related their budgets to the objectives. Finally, Brisbane and Melbourne used outcome indicators for monitoring and planning and used technologies for efficient and effective communication.

Overall, Yetano (2009) concluded that the use of the Balanced Scorecard as a framework was useful when analyzing the government’s effort for improved public performance, customer care, decision-making, and responsiveness. Additional studies analyzing the difference between administrative cultures and initiative (successful and failed) would be beneficial.


Balanced scorecard for entrepreneurial strategic marketing in Columbia

Carvajal, S. (2012). Global Conference On Business & Finance Proceedings, 7(1), 199.

The National Learning Services System (SENA) used the balanced scorecard (BSC) as an educational interface. The BSC is used as an basis for research on how the Colombian can increase their knowledge in entrepreneur’s marketing. As the theoretical framework to interpret the entrepreneur's marketing rationale, the researcher used the Wheel of Consumer Analysis (WCA), which is often used to analyze market segments, industries and consumers. The WCA explores the following three elements: Environment (knowledge acquired from the outside); Affective/Cognitive (specialized training and procedures, formal and non-formal education obtained through technical instruction, and competences implemented); Behavior (transferring knowledge across the business areas and embed it into the final product).

SENA provides integrated education tailored to incorporate individuals in productive activities that contribute to social and economic education through technological development. This fulfills the government’s technical and social intervention to the Colombians through “116 education centers countrywide” (47). The current presence of SENA in the industry is owing to its strategic approaches and adaptability to evolve in timely manners. In order to continuously meet the challenge of our time in the industries, strategic marketing tools including BSC need to be tailored with the entrepreneur's marketing rationale and cultural background as the basis.

A survey tailored to measure WCA elements and its potential component variables was conducted on 311 small to medium sized business with technology-based entrepreneur profile. Spearman's rho coefficient correlation showed significant relationship as follows: Affective-Cognitive system vs Behavior, Behavior vs. Environment, and Environment vs. Affective-Cognitive. The researcher interpret the results as an indication that the WCA framework can be flexibly applied for different levels of analysis, and can be used in wide range of scenarios. By using the WCA framework to assist with the environment knowledge, affective and cognitive training, procedure, formal and non-formal education through eLearning, behavior can be transformed into knowledge across an organization business area and embedded into final products.


Causal relationships in the balanced scorecard: A path analysis approach

Perlman, Y. (2013). Journal of Management Strategy, 4, 70-79. doi:10.5430/jms.v4n1p70

Using path analysis, the author examined relationships between the four perspectives of the balanced scorecard (BSC); financial, customer, internal business process, and learning and growth perspectives. The performance measurement data was collected from a case study of an Israeli high-tech firm from the years 2009 to 2011. Analyses were performed to examine how the learning and growth perspective influence internal business process in the same year, and how they influence customer perspective, and financial performance perspective in the following year.

Nine hypotheses were proposed; 1) growth positively affects quality; 2) learning positively affects production efficiency; 3) growth positively affects sales; 4) production efficiency positively affects quality; 5) quality positively affects customer service; 6) production efficiency positively affects customer services; 7) customer service positively affects profit; 8) customer service positively affects sales; and 9) customer service positively affects customer satisfaction.

The results indicated supports for the hypotheses 2, 3, 4, and 7 from the years 2009 to 2011. When focusing only on the years 2010 to 2011, the hypotheses 1, 5, 6, and 9 were supported. In other words, the more investments are made in learning and in developing its human capital, the better the production efficiency and product quality will be achieved in the same year. Furthermore, improvement in the growth will be followed by the sales improvement in the one following year.


Experimental balanced scorecard research: Implications for practitioners

Upton, D. R. (2012). Management Accounting Quarterly, 13(4), 25-31.

This article explores prior balanced scorecard (BSC) research, and discusses managerial implications. Specifically, the article focused on common-measures biases, presentation of the information, and increased managerial involvement in selection of performance measures.

One of the issues for successful BSC implementation is common-measures bias, which is managers’ biased tendency to focus on the measures common across all units and neglect the measures unique to individual units. Inclusion of various measures for comprehensive evaluation is supposed to be the niche of the BSC and important for successful business strategy implementation. Research shows that the common-measures bias can be mitigated if the managers are held accountable for justifying their judgment or if the managers are given report that assures all BSC measures are relevant. Another approach is to give managers BSC training to ensure that they have good working knowledge about the theory, the structure of the BSC, and each measure’s strategic importance to the business success.

Another issue for successful BSC implementation is consistency and consensus of the decision makers’ evaluation. The managers’ judgment is indicated to be enhanced by how the presented information is organized. Research shows that when the manager is evaluating multiple units, providing tabular information in addition to the BSC enhances consistency and consensus compared with when the separate BSC measures alone are used and when graphical information is provided.

When the BSC is used for strategic management, the critical question is how much the managers should be involved. Some argue that increased involvement of the managers in selection of the measures can lead to increased “buy-in.” However, there is a concern for the involved managers’ motivated reasoning to look for the supporting evidence of the measure’s effectiveness and neglect the downplay evidence. Research indicated that this bias can be eliminated when causal linkage of the measures is provided.


Engage your people.

Frangos, C. (2013). Leadership Excellence, 30(1), 9-10.

In this article, the author notes the link between high employee engagement and a low turnover rate. Also, it discusses how leaders can achieve performance breakthroughs with employee engagement that integrates five inventions that help with the balanced scorecard. In recent “balanced scorecard research, on average 20 percent improvement in engagement yields a 50 percent reduction in turnover” (para.1). According to the author, this provides leaders with a powerful opportunity to achieve strategic benefits by being proactive in engaging their employees’. This is vital for gaining strategic traction which provides leaders with leveraging talent and teamwork to support them.

The five interventions include communicating strategy to employees, adapting the organizational culture to fit the strategy, and developing a talent management and leadership plan. The way to use these five interventions is by letting employees’ know the strategy by developing sharing the scorecard with them, which falls under the communicating strategy. This approach provides employees’ with a clear insight on the organizations goals and strategies to the level they understand. The second invention is involves driving the cultural change. This strategy evolves, bringing in new products to the market and allows culture innovation that centers around the organizations core values. The third strategy involves developing a strategic leadership and talent strategies by focusing on top leadership instead of the HR functions by “defining leadership expectations, accountability, and required competencies” (para.7). The fourth strategy is to align employee performance with rewards. Most organizations have systems in place to manage performance and rewards but they are not aligning employees’ job performance to motivate employees to stay. Lastly, the fifth intervention is to enhance employee engagement by customizing approaches to leverage your enterprise strengths.

With these five interventions an organizational leader can customize their balanced scorecard, and implement changes that aligns with their core values.


Relative weighting of common and unique balanced scorecard measures by knowledgeable decision makers

Dilla, W. N., & Steinbart, P. (2005). Behavioral Research in Accounting, 17, 43-53.

The balanced scorecard (BSC) can provide comprehensive performance measures of the organization and tight linkages with business unit strategies. Because of the link to the strategies, all measures in the BSC are important. However, the managers may only focus on the measures common to all of the business units and ignore the measures unique to individual units. Such a practice with over-reliance on common measures, called common-measures bias, will under-utilize the BSC, and waste effectiveness. This article presents an experiment to examine the approach that educates managers about the theory and structure of the BSC to ensure that adequate attention is given to unique as well as common performance measures. Prior to the experiment, the researchers provided student participants with training through lectures, readings, and projects requiring the development of BSCs for two organizations.

Results show that, with adequate training and experience, managers will incorporate unique measures in their assessment of divisional performance. The common measures, however, still carried more weight than unique measures. For this set of student participants, training and experience reduced the common-measures bias but did not eliminate it. Participants also had to assign a fixed bonus of $20,000 between the two business unit managers. Results showed that bonus allocations also incorporate both common and unique information, again with the common measures carrying more weight.

The study indicates that training on the balanced scorecard may help with more balanced use of the BSCs. However, due to the complexity and cognitive demand of the BSC, common-measures bias still poses pervasive effects.


Balanced scorecards an additional tool.

Jenkins, R. (2012). Credit Union Management, 35(2), 36-36.

In this article, Ruth Jenkins the CEO of Heritage Federal Credit Union used the balanced scoreboard to deal with changes brought about by the credit union’s rapid growth. The balanced scorecard showed a mixture of financial and non-financial measures that addressed the board’s needs and their targeted value. With their financial dashboard and their balanced scoreboard tool this gave the executives a balanced view of their organizational performance. Although the financial dashboard provided historical ratios to help determine their needs, Jenkins decided to create a “scoreboard to create a better sense of accountability in the organization” (para. 2). The scorecard had “four quadrants: financial, member satisfaction, employee satisfaction and operational efficiency” (para. 3).
Each quadrant has set goals that would determine their success in different ways. The financial quadrant addresses the financial dashboard and data. The member satisfaction quadrant measured Heritage Credit Unions commissions based on member satisfaction surveys. The credit unions goal in this quadrant was to reach “extremely satisfied ranking, it doesn’t want its members to be just “satisfied” (para. 8). In December 2007, their survey showed a 54 percent satisfaction and in 2011, they placed in the “95-98 percentile of high performing credit unions” (para. 8). Based on their score in 2007, they were able to provide quality employee training to help increase their customer service, which is essential for their credit union, which reflected their operational efficiency.
Therefore, if you embrace the scorecard, your organization will be able to stay on track in meeting their goals for each quadrant and you will be able to addresses any problems.


The management and measurement of public-private partnerships.

Grossman, S. A. (2012). Public Performance & Management Review, 35(4), 595-616.

Business centers have reorganized themselves to compete with shopping centers by “using public-private partnerships (PPPs) of business improvement districts (BIDs)” (p.596). The key to managing these public-private partnerships is by effectively evaluating their partnerships by measuring their objective. Since BIDs and local level of government has emerged with PPPs, there needs to be trust and partnership check and balances.


According to Grossman (2012) the key to effective performance management is to establish professional management capability by building trust. The “effective approach to addressing the gap in performance criteria for PPPs is to use an integrated, balanced scorecard approach” (p.596). This will help build trust and increase productivity in a partnership. The balanced scorecard “embraces both strategic planning and a futuristorientation (where are we going?), integrating this with performance measurement (where are we?) and performance management (how do we get there?)”(p.607). According to Grossman (2012), the balance in the scorecard comes from merging “economic/private and social/public measurements, and scoring the results to get a snapshot of how well the organization is doing in meeting its strategic objectives, promises, and vision of the future” (p.607). The concept of the scorecard is to gain an honest approach to performance management.


The key to the balance scorecard and integrity performance management is an agreement and a promise between the PPPs and the BIDs to adhere to integrity of their performance reviews. The balance scorecard emphasizes four perspectives, which are financial, customer, internal processes, innovation and learning. These tests evaluate can evaluate performance management with accurate data collected to provide effective measurements that determines the strategic outlook and goal of a business partnership. Therefore, partnership needs a clear understanding of the context and trust.

The balanced scorecard as a management tool for assessing and monitoring strategy implementation in health care organizations

Bisbe, J. & Barrubés, J. (In Press). Revista Española de Cardiología

The article describes the evolution of Balanced Scorecards (BSC), and discusses issues of BSC adoption in health care organizations. In the mid-1990s, the BSC gained some popularity as measurement/monitoring tool, contributing strategy implementation. Health care industry started using it in late-1990s. One of the pioneering large scale use included areas of clinical management and outcomes, patient perception of the hospital, financial performance, and system integration and change. Today, a number of organizations in Spanish health care sector use BSCs for strategic planning and performance monitoring.

Unlike the traditional form of measurement system that focused almost exclusively on financial indicators, the first generation of BSC aim to graphically outline multidimensional objectives and indicators from the perspectives of 1) financial; 2) clients or users; 3) internal processes; and 4) learning and resource development. However, this first generation did not fully focus on the driver of organizational success or strategic objectives. Therefore, the second generation introduced strategy map, a graphical representation of the strategy narratively illustrated in a series of logical cause-effect relationships between objectives.

In order to effectively utilize BSC, it has to be adopted for the specific content validity in the reality of the given sector or the organization. The authors discussed the issues specific to the health care sector. One of the frequently used adaptations is extension of generically pure financial perspective to sector/organization specific perspective like economic performance and improvement in population health. The other adaptations include inclusion of an additional perspective or replacement for one of the four perspectives by clinical management/outcome.

The authors argue that the organizations need to determine which of the two BSC versions should be appropriate for the situation. If causality between the objectives is complex and non-unidirectional, the first generation of BSC may be more suitable than the second generation with hierarchically organized causal relationships between the objectives. If the second generation of BSC is implemented, the organization should carefully weigh the hierarchy of the objectives to develop the strategy map unique to the organization.


Come on, David, admit we failed

Lawson, N. (2012). New Statesman, 141(5093), 14.

In this article, Lawson, describes his reaction to David Milibrad’s article that was written on February 6, 2012. David Milibrad’s article proclaimed that Labor should “insist that the list of grains far outstripped the mistakes. After all, David Cameron said on coming that Britain was better in 2010 than in 1997” (p.14). This reaction is based on Miliband’s idea “that we judge a government’s record on some balanced scorecard, rather than overall success or failure” (p.14). So, based on this statement, what defines success?

Lawson argues even if we take the most modest definition of the New Labor project, of neoliberalism, it will not change the address the current situation, because of the soaring unemployment rates and the budget cuts that are affecting their healthcare industry and their education system. Also, he believes if the Labor party recognizes their failure, they would be able to change their future.

The relationship between balanced scorecard characteristics and managers’ job satisfaction

Burney, L., Swanson, N. (2010). Journal of Managerial Issues, 22(2), 166-181.

The authors of the article attempt to discover the relationship between balanced scorecard characteristic and a managers’ job satisfaction. This study, based on survey data collected from accounting managers in Balances Scorecard Firms (BSC) firms, focused on the BSC’s effect on an individual manager’s job satisfaction and increased the understanding of the BSC’s effectiveness within firms. Specifically, the study extended the BSC research by investigating whether two BSC characteristics—the perspective framework and the strategy link—influence managers’ behavior. Results from this study showed a strong, positive relation between job satisfaction and managers’ perceptions of the strength of the linkage between performance measures and organizational strategy.

Knowledge management and balanced scorecard outcomes: Exploring the importance of interpretation, learning and internationality

Gonzalez-Padron, T. L., Chabowski, B. R., Hult, G. M., & Ketchen, D. r. (2010). British Journal Of Management, 21(4), 967-982.

In a recent study, researchers set out to use balanced scorecards as a foundation for assessing how organizational learning and sense making influence actions related to global marketing strategies and subsequent financial performance. Using data from 169 multinational corporations (MNC’s), findings indicated that a certain set of knowledge actives (e.g. customer performance, innovation and learning performance, and internal process performance) are directly related to balanced scorecard outcomes. A hierarchal regression was used to test the 5 hypotheses as well as post hoc analysis. The “importance of customer” performance was determined to be the only balanced scorecard outcome significantly related to financial performance. Overall, these findings suggest that organizations can improve their competitive advantage by systematically emphasizing the use of a balance scorecard when assessing performance.


The balanced scorecard: the evolution of the concept and its effects on change in organizational management

Saraiva, H. I. B. (2011). EBS Review, 28, 53-66.

The author argues that the Balanced Scorecard (BSC) has evolved along with the evolution of its applications and use. Over time, the BSC has been used to probe into different levels of depth and breadth. It served as measuring system, communication system, overall and individual evaluation system, strategic management system for organization and management systems, and strategic alliance management system. Saraiva suggests that the use of the BSC led to three major types of change in management practices and management accounting practices. Specifically, first, changes were induced in management accounting as the BSC, intended as a non-financial measure for management practice system, could explain how financial results should evolve. Second, there have been changes in the level of management science as it was one of the non-financial measures including Total Quality Management, Activity Based Costing systems, and Just in Time, which has been added in textbooks, training and educational programs, and research. Finally, changes have been indicated in the organizations that applied the BSC as it can be used as a way to induce internal changes and adaptations in the organization.


Balanced scorecard attributes: Key determinant and the perceived benefits

Shutibhinyo, W. (2012). Global Conference on Business & Finance Proceedings, 7, 748-754.

“This study sheds some light on Balanced scorecard (BSC) by exploring BSC attributes, key determinant and the perceived benefits. BSC consists of four attributes – translating strategy into operation terms, aligning the organizational units to the strategy, communicating strategy to employees and providing feedback and learning. Regarding determinant study, based on data collected by survey from 81 Thai listed companies, this paper finds that top management support is positively associated with each BSC attribute. Top management support is a vital factor facilitating the implementation of each BSC attribute. Moreover, for 37 BSC users, all BSC attributes are the sources of perceived benefits in various aspects – overall benefits, planning, control and communication” (Abstract).


Product diversification: The need for innovation and the role of a balanced scorecard

N. S. Jarrar & M. Smith (2011). Journal Of Applied Management Accounting Research, 9(2), 43-60.

Jarrar and Smith examined the benefits of balanced scorecard (BSC) as a performance measurement system in product diversification. Structural equation modeling (SEM) was used to examine BSC’s relationship with product diversification, organizational innovation, innovative management initiatives of total quality management (TQM), just in time (JIT), and performance. The data was collected from randomly sampled out of 1000 lists of organizations from Australian manufacturing industries. Given low response rate (10.5%), 105 responses were collected via self-report survey. All of the constructs were measured in a 5-point scale. Absence of non-response bias was supported. The study hypothesized: The degree of product diversification is positively associated with the use of the BSC (H1); the use of the BSC is positively associated with innovation (H2a); the use of the BSC is positively associated with the use of TQM (H2b); the use of the BSC is positively associated with the use of JIT (H2c); the use of the BSC is positively associated with performance (H3).

Correlational analysis showed that all of the proposed hypotheses were supported. The degree of product diversification showed a small positive correlation with the use of BSC. The use of BSC showed medium positive correlations with TQM and JIT, and large positive correlations with innovation and performance. The degree of product diversification did not show significant associations with any other constructs than the use of BSC. There were significant inter-correlations among TQM, JIT, innovation, and performance at α level of .01. Structural equation modeling indicated that the degree of product diversification predicts the use of BSC with a small coefficient; and the use of BSC predicts the other constructs with large coefficients. However, note that the correlational design of this study does not determine the causal directions among the variables.


The balanced scorecard as a strategy-evaluation tool: The effects of implementation involvement and a causal-chain focus

W. B. Taylor

When you are making decision, your motivation may be clouding your judgment. Maybe you are too emotionally involved with the particular strategy to maintain unbiased reasoning ability. Effective use of the balanced scorecard (BSC) may as well be hindered by your motivated reasoning. BSC can be tied to causal chain of performance to aid strategy evaluation. However, that is not enough to counter your bias. Watch out!

Click here to read the full article


Balancing multiple competing objectives with a balanced scorecard

H. Sundin, M. Granlund, & D. A. Brown

Sundin, Granlund, and Brown conducted a case study to investigate how the balanced scorecard (BSC) plays a role to balance multiple organizational objectives. The results indicated that the BSC could help management decision making in balancing objectives. However, it cannot act in isolation. There are certain required elements for its successful implementation.

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The Judgmental Effects of Strategy Maps in Balanced ScorecardPerformance Evaluations

R. D. Banker, H. Chang, & M. Pizzini

You may find balanced scorecard (BSC) too complex because you have difficulties picturing where you are going with it. Strategy map may be the helpful tool when you implement BSC. That is causal diagram depicting the relations between the matrix of BSC and the strategic objectives. The results of the study indicated that use of strategy map improve the comprehension of BSC, and help weighting the evaluations.

Click here to read the full article


High performers down under: lessons from Australia’s winning companies

G. Cocks

For a very long time, the field of organizational development has set out to find the best way to conduct business. Evidence of how the best companies thrive are often viewed as case studies that don’t necessarily transfer to other organizations. This study takes a very extensive look at the commonalities between 11 of Australia’s most successful companies. By using a balance scorecard perspective, the research was able to evaluate where the success lies within these exceptional organizations.

Read on to find out more about what successes were uncovered:


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

H. Huang

Knowledge-based system (KBS) is a problem processing model that retrieves information from a knowledge system for decision-making to bring desirable results. Analytic hierarchy process (AHP) method is a decision making process model that describes the process to set priority to help decision making. The author combined these two with balanced scorecard (BSC), and introduced Balanced scorecard knowledge-based system (BSCKBS) as a strategic planning system. The author provides a description of the four steps to implement BSCKBS.

Click here to read the full article


Corporates need to hard sell strategy to their people

D. Ganguly

Many will agree that the front-line employees, those who do the work at the core of the business, are what make a company what it is. For these employees to make the organization great, they must also be aligned to the overall strategy that comes from the top of the organization. Using a Balanced Scorecard method to successfully implement your strategies can help keep track of every level’s progress towards the organizational goals. Find out why the Balanced Scorecard has stood the test of time in this article from The Economic Times.
Read on to find out more about using the Balanced Scorecard to your advantage:


An integrated implementation model of strategic planning, BSC and Hoshin management

C. Yang & T. Yeh

Strategic planning and Hoshin management have been widely practiced as strategic management tools. Balanced score card has also gained popularity as a performance improving tool. As each of these tools have its strengths and weakness, it is tempting to implement them simultaneously in order to achieve more comprehensive strategic management. However, such practice can become confusing and problematic without proper integration with guidance. Yang and Yeh contrast the differences between strategic planning, Hoshin management, and balanced scorecard, and present the case study of the best implementation of the integrated model.

Click here to read the full article



Multidimensional evaluation of performance with experimental application of balanced scorecard

S. Lupi, A. Verzola, G. Carandina, M. Salani, P. Antonioli & P. Gregorio

Health-care is a complex system that endures pressures from a great number of stakeholders, and maintaining a successful health-care organization is a situation that some of us may take for granted. When we need help, we expect to be properly cared for by our hospital. Behind the scenes, hospitals are similar to other organizations in that they must grow and develop to remain efficient and apply best practices. Using a balanced scorecard can help them also be at the top of their game, and the public depends on them being at their best so we can be at our's. This case study finds that utilizing a balanced scorecard in a hospital setting is a good option for measuring performance, while uncovering similarities and differences across other industries' use of the method.
Click here to find out more



Financial versus non-financial information: The impact of information organization and presentation in a Balanced Scorecard

E. Cardinaels & P. M. G. van Veen-Dirks

Balanced scorecard is originally meant for performance evaluation in balanced fashion, avoiding disproportionate focus on financial measures over non-financial performance measures. The findings of this paper indicate how a balanced scorecard should be implemented to achieve such a balance. Cardinaels and Van Veen-Dirks conducted two experiments to examine how performance measure is organized and presented would affect how evaluators weight the importance of financial and non-financial categories in performance evaluation. The results suggest that when measures are organized in balanced scorecard format, evaluators tend to emphasize financial measures more than when using an unformatted scorecard. On the other hand, non-financial measures show no difference in performance evaluation between a balanced Scorecard and an unformatted scorecard. These impacts are contradictory to some firms’ intent to emphasize non-financial measures by the use of balanced scorecard. However, when performance markers are placed on the scores (+ for above, _ for below, and = for on the target performance), evaluators tend to emphasize any category of performance difference more in a balanced scorecard than in an unformatted scorecard. This suggests that performance markers may be essential for the balanced scorecard to achieve balanced evaluation.
Click here to read the full article



Balanced Scorecard and Dashboards

D. L. Galloway

This article examines the relationship between the balanced scorecard and dashboards. Specifically, are there specific metrics that one needs to identify in order to achieve the goals and objectives stated in a sales organization? It is not surprising that the balanced scorecard varies within each organization because each organization has individual differences. However, the article points out that the balanced scorecard has a spectrum of measurement. One measurement style is measuring operational performance often within a dashboard. The other side of the spectrum is a planning, management and system of communication. The second measurement is about strategy. The objective of the sales organization is to focus on their customers and identify core competencies yet the author postulates that the both spectrums of measurement need to be align and thus identifying competencies can be part of the dashboard use when implemented.

Did the author’s idea work? Did the author identify specific metrics and use the dashboard? Read this article to find out


Managing the Modern Office

M. Keen & C. Evans

Using the balanced scorecard is not a win all be all. This is not a tool where implementation is. This tool is not an easy fix to an existing problem nor is it a band-aid to cover the symptoms of an underlying problem. Managers must have a series of meetings with careful analysis and thought process to create goals and objectives. Strategy is important and clear objectives are to align with performance metrics. Overall, the balanced scorecard is only effective when an organization has a ‘comprehensive’ strategy to drive it.
The great advantage of the balanced scorecard is that you can check the overall health of short, medium, and long-term objectives. So how do we check the overall health using this approach?
To find out read the full article by clicking here .

Using the balanced scorecard in operationlising FM strategies

H. Rasilia, J. Alho & S. Nenonen

A case study was conducted on a research institution that already implements the balanced scorecard for its core strategic process. What the organization wanted was to take their existing facilities management (FM) and revamp them using the balanced scorecard. This result being a strategy that aligns with the strategy of the entire organization. The findings were “exemplary.”

A great take away from this 10 page article is the development of measure cards. In order for a task to be completed it needs to measurable. This card provides: 1) the measure 2) the meaning 3) the goal 4) the formula 5) the frequency 6) the owner 7) the data 8) the development plan.
To see an example of the card and how it was developed please read the article by clicking here.



How to Transition from Assessing Performance to Enhancing Performance with Balanced Scorecard Goal Action Plans

T. L. Albright, C. M. Burgess, A. R. Hibbets & M. L. Roberts

Assessing and enhancing performance are two sides of the same coin. On one hand, the balance scorecard is used to assess the present state of the organization while on the other hand goal action plans are formulated to create a desired future state of the organization—performance enhancement. Therefore, how does one get from this present state to their desired future state?

This article outlines a five step process to do just that; successful implementation of goal action plans to produce the desired result of performance enhancement.
To find out what these five steps are please read the full article by clicking here .


Knowledge Management and Balanced Scorecard Outcomes: Exploring the Importance of Interpretation, Learning and Internationality

T. L. Gonzalez-Padron, B. R. Chabowski, G. T. M. Hult and D. J. Ketchen Jr

169 multinational corporations were studied and data extrapolated resulting in a specific set of “knowledge activities” related to outcomes of the balanced scorecard. These activities are customer performance, innovation and learning performance, and internal process performance. The article defines these variables and explains how these outcomes effect the global marketing context.
Click here to read the full article .



Adoption and Implementation of Balanced Scorecard in Malaysia

T. S. Ong; B. H. Te; C. K. Lau & S. L. S. Wong


The findings suggest that the Balanced Scorecard (BSC) is statistically significant with the sequential manner in which it was used. The positive perception among the organization is that is it useful in performance appraisal and benchmarking. The findings also reported how it will convert initiatives and resources. To find out how this is completed reading the full article would be beneficial.
To continue reading this article click here .



An integration of balanced scorecards and data envelopment analysis for firm's benchmarking management

C.Chwan-Yi & L. Binshan


There must be over 100 different ways to measure management performance. This article talks about combining the balanced scorecard with data envelope analysis. Forget for a moment that you didn't ask your self “what data envelope analysis mean”. By combining these two methods you can create a system where you can actually benchmark for companies based on the BSCs appropriate outputs of performance.

To understand data envelope analysis and how it is so helpful in combination with the balanced scorecard please read this article to find out .



The Relationship between Balanced Scorecard Characteristics and Manager's Job Satisfaction

L. L. Burney & N. J. Swanson

The authors investigate two major characteristics of the balanced scorecard and the impact these characteristics have on manager's job satisfaction. Strategy links and performance measures were assessed. Specifically, managers reported increased job satisfaction when the organizational strategy is linked to objectives and when decisions are based on long term measures of success. The results suggest that an organization's short term goals should be aligned with long term goals in an effort to maximize manager performance and thus job satisfaction.

Do you agree? Read the article to find out what scales they used and how manager job satisfaction was assessed given the relationship between these two characteristics of the balanced scorecard.
Click here to read the full article.



Four Steps to Simplify Multimeasure Performance Evaluations Using the Balanced Scorecard

Thomas L. Albright, Christopher M. Burgess, Aleecia R. Hibbets, & Michael L. Roberts

Humans have limited capacity for processing many pieces of information. Since the balanced scorecard can have as many as 24 or more measures to be evaluated, the authors present a 4-step process to simplify this seemingly difficult task.
Click here to read the full article.


The Balanced Scorecard: A New Challenge

Meena Chavan


The article explores issues that organizations face in building and implementing scorecard systems, and sharing lessons learned from Australian organizations that have taken the balanced scorecard journey.
Click here to read the article.


Implementing Balance Scorecard for Performance Measurement

The Icfai University Press.

Implementing a balance scorecard can be complex and involves a lot of subjectivity. This article serves to breakdown the process and offers nine steps to success when implementing a balance scorecard.
*Click here to read more

How Balanced is the Balanced Scorecard?

Global Journal of Flexible Systems Management

The balanced scorecard uses four perspectives of the strategic management system; however, there are a number of other areas that require further balancing. Areas that require further attention by the balanced scorecard are enterprise factors, continuity and change, proactive and reactive drivers, and internal and external factors of execution.
To read the full article that address these salient factors please click here.



Driving Focus and Alignment with the Balanced Scorecard

P. R. Niven

This article explains why organizations need a balanced scorecard in order to help them connect and measure their strategies to their visions. Click here to learn more about Why Organizations Need A Balanced Scorecard.

Corporate Performance Efficiency Investigated by Data Envelopment Analysis and Balanced Scorecard

J. Wang

This research study was conducted on Acer Incorporated to determine whether Data Envelopment Analysis (DEA) and the Balance Scorecard were effective performance measurement tools. The results indicated that both the DEA and Balance Scorecard provided beneficial information about performance.

To read more about this article click here

The Balanced Scorecard’s Lesson for Managers

Harvard Management Update

Balance Scorecard is not only a performance measurement tool but also a strategic management system that can be used by managers. The balance Scorecard can help managers to gauge how well their department is doing in regards to customer service, improving processes within the department, and helping to build capabilities for the future.

Click here to read the full article

Using the Balanced Scorecard as a Strategic Management System

R. S. Kaplan & D. P. Norton

The Balanced Scorecard can be used as a strategic management system. The scorecard links long-term strategic plans with short term actions. The balance scorecard provides a framework that clearly lays out the vision and strategies so that everyone is on board.

Click here to read the full article external image pdf.png Using Balanced Scorecard as SMS.pdf

The Balancing Act

P. Cameron

Many organizations, both public and private sectors, are using the balance scorecard in order to improve their organizational effectiveness.

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Balancing Dilemmas of the Balanced Scorecard

U. Johanson; M. Skoog; A. Backlund & R. Almqvist

The balanced scorecard, is it useful, relevant, does it take into account intangible resources? The article speaks about the critical dilemmas that often arise when trying to implement the idea of the balanced scorecard, not to mention the actual use of the balanced scorecard itself. Like with any tool, focusing on measurement and action will provide success. However, a problem appears regarding the most adequate measures being used or taken. The article explains in more detail some drawbacks and how they can be overcome. The authors state that this is not a one size fits all assessment tool and one who uses it should be prepared to make adjustments according to the client.

Click here to read the full article .


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