The Role of Balanced Scorecard for Measuring Competitive Advantage of Contain...inventionjournals
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The Balanced Scorecard (BSC) is a valuable management system which is used for different companies to elucidate and translate their strategies into execution; nevertheless the BSC has not been planned for container terminals and ports users' satisfaction in a great extent. This article addresses the issue of deploying BSC as an accepted management tool for measuring competitive advantage of ports users with a focus on container terminals. Use of balanced scorecard helps port and terminal managers to understand better strategic vision as well as their own contribution to implementation of strategic goals. The BSC can be used by the companies which are responsible for handling container terminals operation in order to achieve value, controlling core competencies, satisfying the terminal's users or customers and offering bonus to the terminal's shareholders
The Relationship between balanced Scorecard and Cost Reduction: An Empirical ...AI Publications
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This research discusses and analyzes the relationship between balanced scored card and cost reduction in public sectors in Kurdistanregion.The main of this study is to examine the relationship between balanced scorecard and cost reduction in Public sectors in Kurdistan. The quantitative method used in order to analyze the present study. A random sampling was carried out in different locations in the ministry of planning in Erbil. A total of 800 questionnaires were distributed in Kurdistan, however 630 questionnaires were received and being completed properly and the data were collected through in hard copies. The findings revealed that the first research hypothesis was supported which stated that there is a positive relationship between financial perspective and cost reduction in public sectors in Kurdistan. The second research hypothesis was rejected which stated that there is a positive relationship between customer perspective and cost reduction in public sectors in Kurdistan. The third research hypothesis was supported which stated that there is a positive relationship between internal business process perspective and cost reduction in public sectors in Kurdistan, and the fourth research hypothesis was rejected which stated that there is a positive relationship between innovation and learning perspective and cost reduction in public sectors in Kurdistan.
The Role of Balanced Scorecard for Measuring Competitive Advantage of Contain...inventionjournals
Â
The Balanced Scorecard (BSC) is a valuable management system which is used for different companies to elucidate and translate their strategies into execution; nevertheless the BSC has not been planned for container terminals and ports users' satisfaction in a great extent. This article addresses the issue of deploying BSC as an accepted management tool for measuring competitive advantage of ports users with a focus on container terminals. Use of balanced scorecard helps port and terminal managers to understand better strategic vision as well as their own contribution to implementation of strategic goals. The BSC can be used by the companies which are responsible for handling container terminals operation in order to achieve value, controlling core competencies, satisfying the terminal's users or customers and offering bonus to the terminal's shareholders
The Relationship between balanced Scorecard and Cost Reduction: An Empirical ...AI Publications
Â
This research discusses and analyzes the relationship between balanced scored card and cost reduction in public sectors in Kurdistanregion.The main of this study is to examine the relationship between balanced scorecard and cost reduction in Public sectors in Kurdistan. The quantitative method used in order to analyze the present study. A random sampling was carried out in different locations in the ministry of planning in Erbil. A total of 800 questionnaires were distributed in Kurdistan, however 630 questionnaires were received and being completed properly and the data were collected through in hard copies. The findings revealed that the first research hypothesis was supported which stated that there is a positive relationship between financial perspective and cost reduction in public sectors in Kurdistan. The second research hypothesis was rejected which stated that there is a positive relationship between customer perspective and cost reduction in public sectors in Kurdistan. The third research hypothesis was supported which stated that there is a positive relationship between internal business process perspective and cost reduction in public sectors in Kurdistan, and the fourth research hypothesis was rejected which stated that there is a positive relationship between innovation and learning perspective and cost reduction in public sectors in Kurdistan.
Appendix CHR Balanced Score CardMetric(Name of Metric)Form.docxjustine1simpson78276
Â
Appendix C
HR Balanced Score Card
Metric**
(Name of Metric)Formula
(Numerator/Denominator)% Met or Exceeded*
HR Routine Metrics
1.
2.
3.
AHROP
HR Strategy Metrics
1.
2.
3.
4.
HR Organizational
Oversight Metrics
1.
2.
3.
*Leave this column blank for future calculations by staff using this form to report data
**You may add lines as need to each of the 3 categories
Journal of Management Development
The balanced scorecard: a new challenge
Meena Chavan,
Article information:
To cite this document:
Meena Chavan, (2009) "The balanced scorecard: a new challenge", Journal of Management Development,
Vol. 28 Issue: 5, pp.393-406, https://doi.org/10.1108/02621710910955930
Permanent link to this document:
https://doi.org/10.1108/02621710910955930
Downloaded on: 15 June 2018, At: 16:14 (PT)
References: this document contains references to 23 other documents.
To copy this document: [email protected]
The fulltext of this document has been downloaded 35909 times since 2009*
Users who downloaded this article also downloaded:
(2004),"Third-generation balanced scorecard: evolution of an effective strategic control tool", International
Journal of Productivity and Performance Management, Vol. 53 Iss 7 pp. 611-623 <a href="https://
doi.org/10.1108/17410400410561231">https://doi.org/10.1108/17410400410561231</a>
(2012),"The politics of the balanced scorecard", Journal of Accounting & Organizational
Change, Vol. 8 Iss 4 pp. 475-489 <a href="https://doi.org/10.1108/18325911211273482">https://
doi.org/10.1108/18325911211273482</a>
Access to this document was granted through an Emerald subscription provided by emerald-srm:552352 []
For Authors
If you would like to write for this, or any other Emerald publication, then please use our Emerald for
Authors service information about how to choose which publication to write for and submission guidelines
are available for all. Please visit www.emeraldinsight.com/authors for more information.
About Emerald www.emeraldinsight.com
Emerald is a global publisher linking research and practice to the benefit of society. The company
manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as
providing an extensive range of online products and additional customer resources and services.
Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee
on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive
preservation.
*Related content and download information correct at time of download.
D
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https://doi.org/10.1108/02621710910955930
https://doi.org/10.1108/02621710910955930
The balanced scorecard:
a new challenge
Meena Chavan
Business Department, Division of Economic and Financial Studies,
Macquarie University, North Ryde, Australia
Abstract
Purpose â The purpose .
Utilizing the BSC and EFQM as a Combination Framework; Scrutinizing the Possi...Waqas Tariq
Â
Increasing the competition between organizations in the field of productions and services leads them to use the samples and patterns to assess their activities and performance. Appearing this kind of needs and inefficiency of measuring systems with traditional activities assessment causes to create new models of activities assessment in organizations. These models could be divided in two groups. The first group is based on self assessment and the second group is based on measurement and improvement of business trade process. Among mentioned models, Balanced score Card (BSC) and European Foundation for Quality Management (EFQM) have had more chance to be used by many companies. Regarding the high acceptance of these two models in the world and existence many similarities between them; this study is going to present exact glance of these two models and present a comparison between them. Moreover, after recognizing the weaknesses and powers of them, the possibility of using them at the same time will be evaluated. In order to gain this goal, an automobile companyâs performance has been assessed based on BSC and EFQM and the results are analyzed with TOPSIS method.
Management Control in Contemporary Organization: Opportunities, Challenges an...Dr. Amarjeet Singh
Â
This paper deals with management control as an
important instrument for managing performances in modern
organizations. The paper indicates to the circumstances in
which classical theory of management control was created,
and describes its process of functioning, with the specifics in
large organizations. The aim is to point to some open questions
and directions of further development of the management
control, as well as to at least partially fill the gap that exists in
the domestic literature. The conclusion is that the existing
management control framework remains still valid. Open
questions can be best resolved within the concept that observes
this matter as a "package" of different control systems, not
just those that are oriented to accounting-based performance
measures.
ALL THE DETAILS ARE MENTIONED IN THE DOCUMENT RELATED TO ALL 4 PERSPECTIVES OF BSC.
-REFERRED MAINLY FOR STRATEGIC COST MANAGEMENT.
-INCLUDES ALL THE EXPLANATION WITH APPROPRIATE EXAMPLES & CASE STUDY
Performance Assessment of Agricultural Research Organisation Priority Setting...iosrjce
Â
IOSR Journal of Business and Management (IOSR-JBM) is a double blind peer reviewed International Journal that provides rapid publication (within a month) of articles in all areas of business and managemant and its applications. The journal welcomes publications of high quality papers on theoretical developments and practical applications inbusiness and management. Original research papers, state-of-the-art reviews, and high quality technical notes are invited for publications.
Appendix CHR Balanced Score CardMetric(Name of Metric)Form.docxjustine1simpson78276
Â
Appendix C
HR Balanced Score Card
Metric**
(Name of Metric)Formula
(Numerator/Denominator)% Met or Exceeded*
HR Routine Metrics
1.
2.
3.
AHROP
HR Strategy Metrics
1.
2.
3.
4.
HR Organizational
Oversight Metrics
1.
2.
3.
*Leave this column blank for future calculations by staff using this form to report data
**You may add lines as need to each of the 3 categories
Journal of Management Development
The balanced scorecard: a new challenge
Meena Chavan,
Article information:
To cite this document:
Meena Chavan, (2009) "The balanced scorecard: a new challenge", Journal of Management Development,
Vol. 28 Issue: 5, pp.393-406, https://doi.org/10.1108/02621710910955930
Permanent link to this document:
https://doi.org/10.1108/02621710910955930
Downloaded on: 15 June 2018, At: 16:14 (PT)
References: this document contains references to 23 other documents.
To copy this document: [email protected]
The fulltext of this document has been downloaded 35909 times since 2009*
Users who downloaded this article also downloaded:
(2004),"Third-generation balanced scorecard: evolution of an effective strategic control tool", International
Journal of Productivity and Performance Management, Vol. 53 Iss 7 pp. 611-623 <a href="https://
doi.org/10.1108/17410400410561231">https://doi.org/10.1108/17410400410561231</a>
(2012),"The politics of the balanced scorecard", Journal of Accounting & Organizational
Change, Vol. 8 Iss 4 pp. 475-489 <a href="https://doi.org/10.1108/18325911211273482">https://
doi.org/10.1108/18325911211273482</a>
Access to this document was granted through an Emerald subscription provided by emerald-srm:552352 []
For Authors
If you would like to write for this, or any other Emerald publication, then please use our Emerald for
Authors service information about how to choose which publication to write for and submission guidelines
are available for all. Please visit www.emeraldinsight.com/authors for more information.
About Emerald www.emeraldinsight.com
Emerald is a global publisher linking research and practice to the benefit of society. The company
manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as
providing an extensive range of online products and additional customer resources and services.
Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee
on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive
preservation.
*Related content and download information correct at time of download.
D
ow
nl
oa
de
d
by
W
al
de
n
U
ni
ve
rs
it
y
A
t
16
:1
4
15
J
un
e
20
18
(
P
T
)
https://doi.org/10.1108/02621710910955930
https://doi.org/10.1108/02621710910955930
The balanced scorecard:
a new challenge
Meena Chavan
Business Department, Division of Economic and Financial Studies,
Macquarie University, North Ryde, Australia
Abstract
Purpose â The purpose .
Utilizing the BSC and EFQM as a Combination Framework; Scrutinizing the Possi...Waqas Tariq
Â
Increasing the competition between organizations in the field of productions and services leads them to use the samples and patterns to assess their activities and performance. Appearing this kind of needs and inefficiency of measuring systems with traditional activities assessment causes to create new models of activities assessment in organizations. These models could be divided in two groups. The first group is based on self assessment and the second group is based on measurement and improvement of business trade process. Among mentioned models, Balanced score Card (BSC) and European Foundation for Quality Management (EFQM) have had more chance to be used by many companies. Regarding the high acceptance of these two models in the world and existence many similarities between them; this study is going to present exact glance of these two models and present a comparison between them. Moreover, after recognizing the weaknesses and powers of them, the possibility of using them at the same time will be evaluated. In order to gain this goal, an automobile companyâs performance has been assessed based on BSC and EFQM and the results are analyzed with TOPSIS method.
Management Control in Contemporary Organization: Opportunities, Challenges an...Dr. Amarjeet Singh
Â
This paper deals with management control as an
important instrument for managing performances in modern
organizations. The paper indicates to the circumstances in
which classical theory of management control was created,
and describes its process of functioning, with the specifics in
large organizations. The aim is to point to some open questions
and directions of further development of the management
control, as well as to at least partially fill the gap that exists in
the domestic literature. The conclusion is that the existing
management control framework remains still valid. Open
questions can be best resolved within the concept that observes
this matter as a "package" of different control systems, not
just those that are oriented to accounting-based performance
measures.
ALL THE DETAILS ARE MENTIONED IN THE DOCUMENT RELATED TO ALL 4 PERSPECTIVES OF BSC.
-REFERRED MAINLY FOR STRATEGIC COST MANAGEMENT.
-INCLUDES ALL THE EXPLANATION WITH APPROPRIATE EXAMPLES & CASE STUDY
Performance Assessment of Agricultural Research Organisation Priority Setting...iosrjce
Â
IOSR Journal of Business and Management (IOSR-JBM) is a double blind peer reviewed International Journal that provides rapid publication (within a month) of articles in all areas of business and managemant and its applications. The journal welcomes publications of high quality papers on theoretical developments and practical applications inbusiness and management. Original research papers, state-of-the-art reviews, and high quality technical notes are invited for publications.
The Roman Empire A Historical Colossus.pdfkaushalkr1407
Â
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesarâs dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empireâs birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empireâs society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
Model Attribute Check Company Auto PropertyCeline George
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In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
Francesca Gottschalk - How can education support child empowerment.pptxEduSkills OECD
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Francesca Gottschalk from the OECDâs Centre for Educational Research and Innovation presents at the Ask an Expert Webinar: How can education support child empowerment?
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
Introduction to AI for Nonprofits with Tapp NetworkTechSoup
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Dive into the world of AI! Experts Jon Hill and Tareq Monaur will guide you through AI's role in enhancing nonprofit websites and basic marketing strategies, making it easy to understand and apply.
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
Acetabularia Information For Class 9 .docxvaibhavrinwa19
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Acetabularia acetabulum is a single-celled green alga that in its vegetative state is morphologically differentiated into a basal rhizoid and an axially elongated stalk, which bears whorls of branching hairs. The single diploid nucleus resides in the rhizoid.
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
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Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
⢠The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
⢠The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate âany matterâ at âany timeâ under House Rule X.
⢠The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
Biological screening of herbal drugs: Introduction and Need for
Phyto-Pharmacological Screening, New Strategies for evaluating
Natural Products, In vitro evaluation techniques for Antioxidants, Antimicrobial and Anticancer drugs. In vivo evaluation techniques
for Anti-inflammatory, Antiulcer, Anticancer, Wound healing, Antidiabetic, Hepatoprotective, Cardio protective, Diuretics and
Antifertility, Toxicity studies as per OECD guidelines
1. Research Journal of Finance and Accounting www.iiste.org
ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online)
Vol 3, No 10, 2012
7
A new model for balanced score cards (BSC)
Marwa abdel razek, senior accountant, Egypt
E.mail:Marwa_moh_mm@yahoo.com
Abstract:
This research paper aims to propose a model of a balanced scored which consists of 6 perspectives (financial,
customer, internal business process, and employee, risk management, social and environmental)
Introduction:
The balanced scorecards has been called one of the most important management innovation of the 20 th century ,
Kaplan and Norton published their first article on the balanced scorecards in the 1992 and have followed up with
several article that develop the concept , in this research paper I introduce a new model for balanced scorecard , this
study contribute to the literature in several ways , in the new model I added three key for measurement which are :
social and environmental perspective , risk management perspective , employee perspective instead of learning and
innovation perspective
The rest of the paper is illustrates as follow, section 2, the literature review, section 3 the
Proposed model, section 4, an example of the new proposed model, section 5, summary, conclusion and suggest for
research
Section2: literature review
The balanced score cards is a performance measurement and strategic management system. It translates an
organization mission and strategy into a balanced set of integrated performance measure (Chan 2004)
According to dabhilkar and bengtsson , 2004 " the balanced score cards is am multidimensional approach to
performance measurement and management control that is linked specifically to organational strategy , one of the
major strengths is the emphasis it places on linking performance measure and actions plans at all levels with business
unit strategy .
The balanced score cards vs. other performance measurement:
According to Kaplan and Norton , the stating points for the development of the BSC concept was the idea that the
traditional performance measurement systems were adequate in an industrial â age environment but not for today "s
information ( see Kaplan &Norton 1996,a 2001 ) while competitive advantage was mainly driven by superior
management of tangible assets in the industrial age , it is driven today by managing intangible such as service ,
innovation , flexibility or knowledge ( chandler 1990, Blair 1995 , balkcom et al 1997 ). Traditional performance
measurement uses accounting model of the firm based on two important assumptions that all relevant information on
performance can be expresses through financial measure and that the value creation process can be described and
managed by a linear additive model. These assumptions are not only made in the financial accountant "s approach of
defining firm's value and profit by adding the value of tangible assets in balance sheet. They are also found in
residual income model likes on the economic value added approach; both models evaluate assets on the basis of
historical costs. The economic value added approach goes beyond the traditional financial accounting data that are
again the results of a linear additive approach; however it is much difficulty to attribute the benefit of intangible to
specific business units than the benefit of physical assets. Whereas value effect of physical assets usually can be
captured by the business units, owning assets where are value effects of fiscal assets usually can be captured by the
business unit owning the assets intangible like innovation, expertise, reputation typically imply spillovers entirely the
unit making the investment, the balance score cards is a specific approach to handling these problem using an
alternative model of the value creation
2. Research Journal of Finance and Accounting www.iiste.org
ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online)
Vol 3, No 10, 2012
8
Process, the balanced scorecards differs from other performance measurement system in that it doesn't try to attribute
financial value to intangible and it doesn't put these assets on balance âsheet. in contract to EVA approach or Lev"s
(2001) approach the balanced scorecards in a framework for describing value creating strategies that link tangible
and intangible assets , this is done by formulating strategic objectives with respect to these assets in four perspective :
financial , customer , internal business process , learning and growth (Speckbacher et al 2003 )
The benefit of the balanced score cards:
1. The process to create a balanced scorecards is at least important as the information system that derives from
what is known as scorecards , the most important benefit of the BSC creation process are :
2. They promote the systematic development of vision and strategy and therefore the understanding of how
things are going to all management levels
3. They allow the creation of business model specifying the key success factors and their interrelation
4. They minimize information overload by limited the number of measurement considered
5. They force managers to focus specifically on a small group of measurement which are critical for the
performance of the organization and the business
6. They make it possible to recognize the essential adjustment of the business and its management through
cause and effect analysis , identifying all activities that act as trigger to reach established goals and to
which it therefore convenient to allocate the company ' resource
7. The d defined measurement parameters allow one to verify whether a certain strategy has succeeded
whether or failed in the stage of projecting future business and not just when the books show the lack of
results
8. they facilities top down communication of objective and the alignment of key process to the strategy
9. the scorecards system contain a change of paradigm , the period "s cabinet and the strategy should both be
accessible to the crew , access not only allows for closing an information gap but also promote constant and
systematic dialog between the boards , the department and the employee about corporate strategy
topics( Ritter , 2003)
Models of balanced scorecards in literature:
Kaplan an Norton (1992) developed an innovative multi â dimensional corporate performance score cards known as
the balanced scorecards , it provide a framework for selecting multiple key performance indicators that supplement
traditional financial measure with operating measure of customer satisfaction , internal business process and learning
activities (anand et2005 )
The Kaplan and Norton "s balanced score cards approach
3. Research Journal of Finance and Accounting www.iiste.org
ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online)
Vol 3, No 10, 2012
9
The initial financial perspective covered by the BSC includes looking at returns on investment and sales as
determinants of whether the firm's strategic implementation and execution have truly led to improvement in business
activities. There are three constructs considered: increased return on investment and increased on return on assets as
a measure of productivity, increased profit margin as a measure of revenue growth and market share, operating cost
and material asset utilization as a measure of cost structure
Customer satisfaction in the BSC is related to the measuring of service performance from customer â response â
feedback .this perspective include three constructs: quality and functionality of product as a measure of product
attribute, customer response time and satisfaction as a measure of customer relationship and image and reputation as
a measure of firm image
The internal processes include four broad constructs: operation management measured by the quality of the
operational process and the dependability of the delivery process, customer management measured by larked
customer selection, customer acquisition, and target customer retention.
Innovation and learning measure which include such items as employee skills and expertise are focused on those
elements that facilitate continuous improvement and growth , it has been argued that a company "s innovativeness in
term of the development of new product and process is critical to achievement excellence , the innovation and
learning include 3 broad constructs :
Human capital measured by employee skills and know how, organizational capital measured by sharing of worker,
knowledge shared vision, objective and value and information capital measured by knowledge management
capabilities and accessibility of information (Chen et al 2010)
CIMA2004 introduce a strategic balanced score cards which aims to:
Assist the board, in particular the non-executive directors, in the oversight of an organization's strategic process.
Organizatio
nal strategy
Statement of
vision
Financial
perspective
Customer
perspective
Innovation and
growth
Internal process
4. Research Journal of Finance and Accounting www.iiste.org
ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online)
Vol 3, No 10, 2012
10
1) Provide an integrated and dynamic framework for dealing with strategy at board level that Focuses on the
major strategic issues facing the organization and ensures that the strategy is discussed at board level on a
regular basis.
2) Provide strategic information in a consistent and summarized format to help directors to obtain sufficient
grasp of the material so that they can offer constructive, informed input.
3) Assist the board in dealing with strategic choice and transformational change and the attendant risks.
4) Provide assurance to the board in relation to the organization's strategic position and progress.
It is made up of four basic elements: strategic position, strategic options, strategic implementation, and strategic risks
Strategic position
This focuses on information that is required to assess the organization's current and likely future position. It covers
externally focused information such as economic and market developments and market share as well as internal issues
such as competences and resources.
Strategic options
Having set the scene with relevant background and information, the focus of the scorecard shifts towards decision
making, strategic options can be defined as those options that have the greatest potential for creating or destroying
stakeholder value.
Strategic implementation
At this point, the emphasis of the scorecard is to identify key milestones for the board and to monitor implementation
of the agreed strategy. Decisions on appropriate action may be required if things are not proceeding as planned
Strategic risks
This dimension underpins the others by focusing specifically on the major strategic risks that
Pose the greatest threat to the achievement of the organization's strategy as well as key issues Such as the
organizations risk appetite.
The particular value of the scorecard lies in the way that it brings all the high-level strategic
Information together in a summarized, but coherent form for the boardâs use within a robust
Framework.
This is supported by a strong foundation of high quality management information
Which the board can access if it is felt necessary to explore a particular issue in greater depth.
The key benefit of the scorecard is that it provides the board with the big picture. The scorecard is a very flexible
approach in that organizations can use any strategic tools and techniques to undertake their detailed strategic
planning and management for each dimension
Callaghan &Mintz 2010 proposes a re- balancing scorecards consists of 4 dimensions as showing in figure 2:
External direct dimension: how do we look to these shareholders, example profitability, liquidity, growth risk, market
share, number of customer complaints
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External indirect: how do we look to these stakeholders: comply with intent of law, regulation - global reporting
initiative, and CEO compensation? Internal adaption: how does the firm adapt, can the firm attain maintain legitimacy
Internal indirect: which key internal process must we improve, ex: manufacturing, cycle efficiency, and hours of
training per employee
Kaplan and Negal 2004, have proposed a balanced scorecard for effective governance, this bSC consists of 3 parts:
1. Enterprise governance that present the company strategy with detailed description of objectives,
performance measure, target and initiatives to be implemented by the chief executives offices and managers
throughout the organization
2. A board BSC which defines the strategic contribution of the board includes the strategic data, necessary for
the board operation and offers an instrument to monitor the structure and performance of the board and its committee
3. An executives BSC allows the board of directors and the compensation committee to evaluate the
performance of the top manager of the organization Figge ET a 2002l propose a model for a balanced scorecards for
sustainability, they added a new key for environment and social impact which called the non market perspective. The
following figure illustrates the proposed model of figge et al 2002
Choose strategic business unit
Identify environmental and social aspect
Financial
perspectiv
e
Customer
perspective
Learning and growth
perspective
Internal
business
process
Non
market
perspectiv
e
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Section 3: The new proposed model
In this section I propose a new model
The next figure represents my proposed model
Financial perspective:
The financial perspective deals with the traditional objectives and measures such as the return on investment (ROI)
and earnings per share (EPS). These measures provide a way to assess how well the company has performed in terms
of its financial goals
Customer perspective:
A business entity establishes metrics that measure the customerâs satisfaction. A satisfied customer is a loyal
customer and in turn creates more revenue for the entity
Internal business process
A business entity attempts to excel in the internal business processes to stay profitable and compete well. Businesses
have developed various metrics that measure the efficiency, effectiveness, quality, and other relevant factors
associated with profitable strategies. Efficiency and effectiveness in the business processes results in quality products,
lower costs of production, and faster delivery, which in turn results in satisfied customers, and thus higher revenues.
(Srivastava et al 2001)
Social impact:
Crawford and scaletta 2006 retain the environmental and social impact question that the other balanced scorecard
perspective asks: what is the financial impact on the company, what do our customer want, what to do well to
achieve this? How do we learn and grow as an organization to do this well, how do social impact and environmental
thinking our organization value to do this well, these question embed corporate social responsibility into the strategy
Organization
strategy
Organization
vision
Financial
perspective
Customer
perspectiv
e
Employee
perspective
Internal
business
process
Social
perspectiv
e
Risk
management
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and the social and environmental impact perspective within the strategy map and the balanced scorecards that is
tightly linked to the strategy (caraiani et al 2012)
Risk management:
the Sarbanes âOxley act (SOX) of 2002 has increased board and senior executives' responsibilities for risk and forced
a more top âdown approach to corporate governance. Moreover the Turnbul report and future regulatory review will
encourage similar rigor and transparency in the UK, in addition the European commission plans to strengthen
governance by requiring stronger corporate controls on financial practices m reporting and risk management (drew et
al 2006)
According to the Committee of Sponsoring Organization of the Tread-way Commission, the enterprise risk
management is a process affected by an
Entityâs board of directors, management and other personnel applied in strategy setting and across the enterprise,
designed to identify potential events that may affect the entity and manage risk to be with its risk appetite, to
provide reasonable assurance regarding the achievement of entity objectives (COSO, 2004, p. 3 as cited by Marwa,
2011)
Kaplan and Norton (1996, p. 51) indicate that, âIn general, risk management is an overlay, an additional objective that
should complement whatever expected return strategy the business unit has chosen.â Kaplan and Norton (2004)
expand this position by describing the way operating risk, technological risk and environmental risk measures could be
utilized used in a BSC. Specifically, such measures could be included into the scorecard's customer perspective or
internal perspective. However, the subject of risk comprises very little of the hundreds of pages written on the BSC,
which is understandable as the BSC has been presented as a performance measurement framework. Joseph &Scott,
(2006)
Employee perspectives
Kaplan and Norton (2004) advocate the importance of learning by devoting one of four perspectives to âLearning &
Growthâ in their Balanced Scorecard (BSC) tool. In this âLearning & Growthâ element they talk about developing
strategic competencies, strategic information, culture, leadership, alignment and teamwork (Kaplan and Norton, 2004).
According to them, it is important to identify strategic job families and then develop competency profiles detailing the
skills, knowledge and values that occupants of such jobs should have (Kaplan and Norton, 2001). Thus, through a
Balanced Scorecard, learning organizations can focus on developing the strategic capabilities of organizations and
accordingly steer people development initiatives towards achieving strategic objectives. (Archana yemeshvary, (2012)
Section 4, an example of the new model for the balance score cards:
1. The company statement:
our customer are the focus of all we do , our customer success is our success , we understand our customer
anticipating and exceeding their needs m, we seek close and durable relationship partnering for the long term âworld
wide
Moreover, we believe that people make the difference, we insist on integrity and respect for personnel value, our
success depends on incorporating different cultures and people who make learning a lifelong experience, we develop
word class people through training and education
Furthermore, we work together across title, job responsibility, organizational structure and geographic boundaries,
we leverage our resource by sharing information and expertise, we encourage openness and initiative, and we expect
participants in decision making and problem solving across all functional area and organizational levels
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Finally, we are responsible citizens involved in the committee in which we work; we strive to make our workplace
and our world a safer, better and more enjoyable place
2. Company objective:
Based on our mission and vision as illustrated in our company statement we aims to:
1) Realize growth revenue
2) Attract and retain high value from customer
3) Maximize our services quality,
4) Develop cost effective
5) Marketing and create brands
6) Satisfy our internal customer (employee)
7) Reduce risk
8) Protect our environmental protect
3. Performance measure ( 6 indicator )
Key indicator Measures
Financial perspective Return on investment (roa), return on equity (roe) , earning per share , economic value
added
Internal business process
perspective
Market share in each product , number of new product , benchmark the best
competitors , amount of errors and rework ,
Customer perspective Customer satisfaction ratio , number of incremental customer
Social and environmental
perspective
Material recycled
Waste to landfill â water emissions â compliance with law and regulation environment
Employee perspective Gross payroll , food, continuous education â training, computer skills â health and
safety , pension plan â employee turnover âemployee complaints
Risk management Cost of capital
Debt finance â debt to equity ratio â
Hedging funds -
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Section 5: summary and conclusion: This research paper aims to introduce model for balanced scorecards which
consists of 6 indicator, financial, customer , internal business process, employee, risk management , social and
environment process I suggest to implement these framework and research have to find to costs and benefit to use
this framework
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