The document discusses and compares various performance management systems, focusing on the balanced scorecard (BSC). It summarizes criticisms of traditional accounting systems and discusses how BSC and other systems like TQM, ISO 14001, the performance pyramid, and the EFQM excellence model measure performance. The document concludes that while BSC has received criticisms, it has advantages over other systems in providing a balanced, strategic-linked approach to performance measurement. BSC's ability to incorporate social and environmental issues within a strategic framework suggests it could be useful for further research on sustainability performance measurement.
This document summarizes a research article that analyzes how Chinese companies operating in Shanghai incorporate social, environmental, and economic measures into their strategic performance measurement systems. The researchers surveyed 81 Chinese companies. Their findings show that while more companies are promoting sustainability measures as part of their long-term business strategies, the effective integration of these non-financial measures varies across companies. The researchers examine what factors determine the differences in how companies incorporate sustainability measures into their performance systems and business strategies.
Analyzing the current incorporation of social, environmental And economic mea...World-Academic Journal
We theorize about the incorporation of social, environmental and economic dimensions into strategic performance measurement systems. 81Chinese companies were surveyed for the analysis. Along with the increasing of social responsibility pressure, numbers of enterprises are promoting environmental, social and economic performance as strategic sustainability measures. Although the addition of sustainability measures to enterprise’s long term business strategy has long time been a major preoccupation of literature. Some empirical researches have examined if these nonfinancial measures are effectively incorporated into strategic performance measurement systems. In this research, we will examine why the incorporation of sustainability measures into enterprise business strategy vary across enterprises operating in Shanghai.
The document discusses the complex relationship between the implementation of management accounting systems and the adoption of knowledge management. It explores this relationship using the directed acyclic graph technique. The key points are:
1) The implementation of management accounting systems is both a cause and consequence of adopting knowledge management, but their relationship has not been fully examined.
2) Applying the directed acyclic graph method reveals that the implementation of management accounting systems influences the adoption of knowledge management first in their relationship.
3) However, adopting knowledge management then has a positive influence back on implementing management accounting systems. This provides insight into the complicated mutual relationship between the two factors.
Performance measurement systems for green supply chainsKurien G P
This document discusses using a modified balanced scorecard (BSC) integrated with analytic hierarchy process (AHP) for performance measurement of green supply chains. The traditional BSC does not adequately address environmental measures or provide weightings to indicators. AHP can help overcome these limitations by determining the relative importance and contribution of each performance indicator in achieving organizational goals. The authors propose a framework that integrates AHP with a modified BSC, which incorporates environmental measures, to facilitate effective green supply chain performance measurement.
This paper examines how managerial leadership practices can advance business-IT fusion in organizations. A study of a northeast US corporation found that horizontal integration between previously separate business units helped eliminate redundancy. The findings showed integration has begun, but more is needed at the programs level. Effective leadership at both the corporate and programs levels, addressing cultural and human aspects, can improve horizontal integration and optimize roles, governance, and relationships to better achieve business-IT fusion. Defining charters and treating business and IT as partners can also help by establishing communication and shared understanding between the units.
Ch03 - Organisation theory design and change gareth jonesAnkit Kesri
The document discusses organizational environments and how organizations manage uncertainty. It defines the specific and general environments and factors like complexity, dynamism, and richness that cause uncertainty. Organizations use strategies like developing reputations, co-optation, strategic alliances, and mergers to manage dependencies with other organizations for resources. Transaction cost theory also explains how organizations minimize costs of exchanging resources externally through various linkage mechanisms or internally.
This document summarizes a research paper that studied the enterprise architecture (EA) benefit-realization process. The paper conducted an in-depth case study to clarify how EA benefits are realized. The study found that EA benefits are realized through a long chain of intertwined activities from the initiation of the EA program when comprehensive understanding starts to form, to years later when measurable outcomes like cost savings materialize. Organizations benefit from EA through various means along this process. The paper suggests that to maximize benefits, EA programs should incorporate strategies to realize benefits at all stages of the process.
Sustaining a Competitive Advantage in these Interesting Times: An Evidence-Ba...Managementbridge
Purpose : Investigate organizational agility as an dynamic capability for sustaining a competitive advantage and identify simple yet practical activities that can be used by practicing managers to create a sustainable advantage
This document summarizes a research article that analyzes how Chinese companies operating in Shanghai incorporate social, environmental, and economic measures into their strategic performance measurement systems. The researchers surveyed 81 Chinese companies. Their findings show that while more companies are promoting sustainability measures as part of their long-term business strategies, the effective integration of these non-financial measures varies across companies. The researchers examine what factors determine the differences in how companies incorporate sustainability measures into their performance systems and business strategies.
Analyzing the current incorporation of social, environmental And economic mea...World-Academic Journal
We theorize about the incorporation of social, environmental and economic dimensions into strategic performance measurement systems. 81Chinese companies were surveyed for the analysis. Along with the increasing of social responsibility pressure, numbers of enterprises are promoting environmental, social and economic performance as strategic sustainability measures. Although the addition of sustainability measures to enterprise’s long term business strategy has long time been a major preoccupation of literature. Some empirical researches have examined if these nonfinancial measures are effectively incorporated into strategic performance measurement systems. In this research, we will examine why the incorporation of sustainability measures into enterprise business strategy vary across enterprises operating in Shanghai.
The document discusses the complex relationship between the implementation of management accounting systems and the adoption of knowledge management. It explores this relationship using the directed acyclic graph technique. The key points are:
1) The implementation of management accounting systems is both a cause and consequence of adopting knowledge management, but their relationship has not been fully examined.
2) Applying the directed acyclic graph method reveals that the implementation of management accounting systems influences the adoption of knowledge management first in their relationship.
3) However, adopting knowledge management then has a positive influence back on implementing management accounting systems. This provides insight into the complicated mutual relationship between the two factors.
Performance measurement systems for green supply chainsKurien G P
This document discusses using a modified balanced scorecard (BSC) integrated with analytic hierarchy process (AHP) for performance measurement of green supply chains. The traditional BSC does not adequately address environmental measures or provide weightings to indicators. AHP can help overcome these limitations by determining the relative importance and contribution of each performance indicator in achieving organizational goals. The authors propose a framework that integrates AHP with a modified BSC, which incorporates environmental measures, to facilitate effective green supply chain performance measurement.
This paper examines how managerial leadership practices can advance business-IT fusion in organizations. A study of a northeast US corporation found that horizontal integration between previously separate business units helped eliminate redundancy. The findings showed integration has begun, but more is needed at the programs level. Effective leadership at both the corporate and programs levels, addressing cultural and human aspects, can improve horizontal integration and optimize roles, governance, and relationships to better achieve business-IT fusion. Defining charters and treating business and IT as partners can also help by establishing communication and shared understanding between the units.
Ch03 - Organisation theory design and change gareth jonesAnkit Kesri
The document discusses organizational environments and how organizations manage uncertainty. It defines the specific and general environments and factors like complexity, dynamism, and richness that cause uncertainty. Organizations use strategies like developing reputations, co-optation, strategic alliances, and mergers to manage dependencies with other organizations for resources. Transaction cost theory also explains how organizations minimize costs of exchanging resources externally through various linkage mechanisms or internally.
This document summarizes a research paper that studied the enterprise architecture (EA) benefit-realization process. The paper conducted an in-depth case study to clarify how EA benefits are realized. The study found that EA benefits are realized through a long chain of intertwined activities from the initiation of the EA program when comprehensive understanding starts to form, to years later when measurable outcomes like cost savings materialize. Organizations benefit from EA through various means along this process. The paper suggests that to maximize benefits, EA programs should incorporate strategies to realize benefits at all stages of the process.
Sustaining a Competitive Advantage in these Interesting Times: An Evidence-Ba...Managementbridge
Purpose : Investigate organizational agility as an dynamic capability for sustaining a competitive advantage and identify simple yet practical activities that can be used by practicing managers to create a sustainable advantage
American Express operates in the financial services industry providing credit cards, travel services, and risk management solutions. It targets high earning customers and charges merchants a fee on credit card transactions. The environment American Express operates in is characterized by:
1. High complexity due to operating globally in a niche premium market segment.
2. High dynamism as it seeks to expand its merchant acceptance while facing challenges from competitors offering lower fees.
3. High richness with opportunities to capture more corporate travel customers and transactions.
The multiple forces American Express must deal with across different environments and its goal of market expansion results in a highly uncertain operating environment.
Ch12 - Organisation theory design and change gareth jonesAnkit Kesri
The document discusses various models of organizational decision making including the rational model, Carnegie model, incrementalist model, unstructured model, and garbage can model. It also covers organizational learning, knowledge management, factors affecting learning such as cognitive biases, and strategies to improve decision making like using devil's advocates and dialectical inquiry.
11.vol 0003www.iiste.org call for paper no 1 pp 26-44Alexander Decker
This study examines the level of compliance with key Indonesian accounting regulations (IARC) for inventory, fixed assets, and depreciation by analyzing 160 listed Indonesian companies' 2006 annual reports. The study finds a high level of compliance, at 71.63% for inventory, 51.13% for fixed assets, and 99.69% for depreciation. Through statistical analysis, the study investigates factors that influence compliance levels, such as firm size, ownership concentration, corporate governance structures, auditor type, return on assets, and industry. The study aims to advance understanding of accounting compliance in Indonesia and identify areas needing regulatory intervention.
The impact of top management support on the behavioural intention to adopt in...LenaFrau
This literature review examines the impact of top management support on behavioral intention to adopt information systems over 46 years of research. The review finds three relationships between top management support and adoption: direct linear connection, relationship mediated by other variables, and more complex relationships. Top managers can influence adoption through culture change, motivating employees, and setting the right atmosphere. Influencing factors on top managers' strategic decisions include their cognitive base and values. The review identifies gaps in researching factors influencing top managers' behaviors in supporting information system adoption.
This document discusses organizational environments and how organizations manage dependencies and uncertainties. It covers the specific and general environments that organizations operate in, as well as sources of uncertainty like complexity, dynamism, and resource scarcity. Theories discussed include resource dependence theory, which holds that organizations aim to minimize dependence on others for resources, and transaction cost theory, which proposes that organizations seek to minimize costs of exchanging resources. Strategies for managing dependencies with other organizations like suppliers and competitors are analyzed, such as developing reputations, strategic alliances, mergers, and regulatory bodies.
This document provides an executive summary and table of contents for a project report on quality management for an ERP implementation project at Saudi Electricity Company. The report will use a case study approach, first reviewing literature on critical success factors for ERP implementations including top management support, project management, and change management. It will then describe the ERP implementation project at SEC and analyze it in light of the literature.
This document discusses how steering committees can manage change through dynamic capabilities to increase system satisfaction. It proposes that steering committees can develop business IS capabilities by leveraging an innovative culture and capable champions. This mediates the effects on system quality and satisfaction. The study develops a change model based on dynamic capability for IT governance. It suggests implications for practice and theory of project-based IT governance.
The Relationships Between IT Flexibility, IT-Business Strategic Alignment and...IJMIT JOURNAL
What seems to still be the main concern for managers in the corporate world across the globe is IT business strategic alignment. This study seeks to address the research problem about the lack of alignment between IT and business strategies. Upon reviewing various literature on this subject, it was found that IT flexibility is one of the most vital factors that help sustain strategic alignment. The researcher upon having a detailed discussion on the possible areas associated with the present body of knowledge has discovered gaps in the studies that have been undertaken on strategic alignment and IT flexibility. This is because IT capability in relation to IT flexibility and strategic alignment has been ignored in the previous studies. As a result, this research proposes a relationship between IT flexibility (i.e., modularity, connectivity and compatibility), IT capability, and strategic alignment.
This document summarizes a research paper that analyzed factors affecting ERP system adoption and compared adoption between small-to-medium enterprises (SMEs) and large companies. The summary identifies that business complexity and organizational change were examined as factors potentially influencing ERP adoption. An empirical study of 366 companies found that business complexity was a weak predictor of adoption, while company size was a strong predictor. SMEs cited structural and organizational reasons for non-adoption more than financial constraints, differing from large companies who cited organizational reasons most.
Success Factors for Enterprise Systems in the Higher Education Sector: A Case...inventionjournals
This document summarizes literature on critical success factors for implementing enterprise systems in higher education. It finds that while many studies have identified success factors for commercial sectors, the unique characteristics of higher education including decentralized structures, non-uniform cultures, and focus on teaching and research rather than business processes, suggest a more specialized set of factors may apply. The document reviews literature on challenges implementing enterprise systems in higher education due to misalignment with academic culture. It then presents a case study of a large Australian university to determine which proposed critical success factors are most relevant for successful enterprise system deployment in higher education.
In order to survive and sustain in today’s turbulent business environment an organisation needs to explore opportunities and avoid threats constantly. Organisations succeed or fail due to the strategies formulated by its decision makers. Executives working in organisations possess unique perceptions regarding the events occurring in the business environment and they exhibit varied scanning behaviours. This uniqueness is reflected in their decisions and strategies.
La combinación de gestión del conocimiento y gestión del cambio en procesos y servicios de Consultoría.
En este trabajo se analiza la relación entre los procesos de cambio y la gestión del conocimiento, entre los partidarios de gestión del cambio y facilitadores de la Gestión del Conocimiento.
Management Information System and Organizational Success in a Competitive Env...Dr. Amarjeet Singh
The purpose of this paper was to examine the
effect of management information system as a process for
improving organizational success: A case study of small
scale businesses in port Harcourt. The research design was
descriptive survey to study and observe the influence of
management information system in organizational success
in a competitive environment. It is very important for
managers of small scale businesses within this expanse to
effectively install a management information system that
will constantly provide them with update on the currents in
their environment, both internally and externally since this
will help them to make strategic decisions that will have an
impact on the success or failure of the organization.
Findings from the research shows that when an organization
is equipped with a sound management information system,
it tends to enjoy improved customer services, increased
adaptability, production improvement, improved
management decision making process etc. Consequently, it
is very important for managers to take the competitive
environmental factors seriously since it can affect the
operations and performance of the business both internally
and externally .Some recommendations were put forward to
resolve some of the issues of the research.
The awareness of the Sustainable Development (SD) issues and stakeholder interactions in the field of information and communication technologies (ICT) management, forces companies to adopt the concepts of Corporate Social Responsibility (CSR) and Green IT to meet the challenges of innovation agility, and afterwards to create differentiation in the processes of governance and strategic alignment of ICT. In this article, we present the enhanced model of eco-strategy as a new generation model for ICT management, which will serve as a theoretical basis and aims to improve research in the field of responsible management of ICT. The updated eco-strategy model is composed of two dimensions: “ICT Green Alignment” and “ICT Green Governance”. These dimensions were designed according to a Green IT and CSR strategy to provide companies with tools for the development of coherent and sustainable managerial strategies capable of boosting overall performance and to explore new levers of transition towards renewed management modes in service the SD.
The Role Of Non Market Capability Moderation In The Relationship Between Envi...IOSR Journals
This study aims to: 1) explain the influence of government involvement and resources on the efficiency and performance of Water Supplier Companies; 2) explain the role of non market capability moderation in the relationship between environment, strategies, and the performance of Water Supplier Companies. The data were collected by using a survey on 60 Water Supplier Companies in Sulawesi. From those companies, 54 gave consent to participate in this study, but only 50 questionnaires can be analysed by using PLS. This reserach reveals that: 1) financial support from the local government was on time, and the water production capacity and distribution wereon optimal level; 2) the financial supportwas strengthened by the ability of the Water Supplier Companies to communicate with local government; and 3) the availability of resources - including pipe networks, machines, and pumps – suited the necessity.
Research evolution on implementation and adoption behaviour of information sy...LenaFrau
This document reviews research on the implementation and adoption of information systems by senior managers in commercial organizations over the last 40 years. It analyzes theories and models of information system adoption and implementation, examining how they have evolved while considering various determinants and limitations. Based on the literature review and findings, the paper proposes a comprehensive model for information system implementation.
Decentralization Analysis of Decision Making and Performance of Accounting Co...IOSR Journals
This document summarizes a study that analyzed the effect of decentralization of decision-making and the use of accounting control systems on organizational performance. The study used a sample of 53 managers from a university in Indonesia. Statistical tests found that decentralization of decision-making and the use of accounting controls together explained 27.5% of the variation in organizational performance. Individual tests found that decentralization of decision-making had a slightly stronger influence on performance than accounting controls. The study concluded that decentralizing decision-making and using accounting controls can improve organizational performance.
Articles Jack Value Mapping Second Generation Performance Management 132swati18
Value Mapping is a second generation performance measurement and strategic performance management solution that uses the concept of value. It begins with identifying stakeholder needs through a Value Needs Assessment. It then develops Value Maps to visually communicate desired value outcomes and the value drivers that impact those outcomes. Value Mapping also uses assessments to select the most important value drivers and measures, and to evaluate the impact and value created by organizational initiatives. The goal is to focus measurement and management on activities and measures that most effectively meet stakeholder needs and create value over time.
A REVIEW OF LITERATURE IN MANAGEMENT CONTROL SYSTEM (MCS), BUSINESS STRATEGY,...Christine Maffla
This document reviews 10 articles on the relationship between management control systems (MCS), business strategy, and firm performance. Most articles studied manufacturing industries in Australia and Canada, with managers and top management as the most common key informants. The majority used quantitative methods. Findings showed MCS can support both cost leadership and differentiation strategies, though different MCS may be needed for each. Interactive MCS were found to support differentiation strategies and influence innovation and financial performance. Overall the literature revealed linkages between MCS, strategy, and performance.
Treasury Board of Canada Secretariat. (2012). Policy on evalua.docxturveycharlyn
This document provides an overview of key steps in designing and implementing an effective performance measurement system for public organizations. It discusses 12 steps, emphasizing both technical/rational and political/cultural perspectives on organizations. The steps include identifying organizational champions, understanding what performance measurement can and cannot do, establishing communication channels, clarifying intended uses of performance information, identifying resources, understanding organizational history, developing logic models, involving users, measuring constructs, analyzing and reporting data, and getting user feedback. The document stresses that both the technical and political aspects must be considered to build sustainable performance measurement systems that can improve efficiency, effectiveness and accountability.
American Express operates in the financial services industry providing credit cards, travel services, and risk management solutions. It targets high earning customers and charges merchants a fee on credit card transactions. The environment American Express operates in is characterized by:
1. High complexity due to operating globally in a niche premium market segment.
2. High dynamism as it seeks to expand its merchant acceptance while facing challenges from competitors offering lower fees.
3. High richness with opportunities to capture more corporate travel customers and transactions.
The multiple forces American Express must deal with across different environments and its goal of market expansion results in a highly uncertain operating environment.
Ch12 - Organisation theory design and change gareth jonesAnkit Kesri
The document discusses various models of organizational decision making including the rational model, Carnegie model, incrementalist model, unstructured model, and garbage can model. It also covers organizational learning, knowledge management, factors affecting learning such as cognitive biases, and strategies to improve decision making like using devil's advocates and dialectical inquiry.
11.vol 0003www.iiste.org call for paper no 1 pp 26-44Alexander Decker
This study examines the level of compliance with key Indonesian accounting regulations (IARC) for inventory, fixed assets, and depreciation by analyzing 160 listed Indonesian companies' 2006 annual reports. The study finds a high level of compliance, at 71.63% for inventory, 51.13% for fixed assets, and 99.69% for depreciation. Through statistical analysis, the study investigates factors that influence compliance levels, such as firm size, ownership concentration, corporate governance structures, auditor type, return on assets, and industry. The study aims to advance understanding of accounting compliance in Indonesia and identify areas needing regulatory intervention.
The impact of top management support on the behavioural intention to adopt in...LenaFrau
This literature review examines the impact of top management support on behavioral intention to adopt information systems over 46 years of research. The review finds three relationships between top management support and adoption: direct linear connection, relationship mediated by other variables, and more complex relationships. Top managers can influence adoption through culture change, motivating employees, and setting the right atmosphere. Influencing factors on top managers' strategic decisions include their cognitive base and values. The review identifies gaps in researching factors influencing top managers' behaviors in supporting information system adoption.
This document discusses organizational environments and how organizations manage dependencies and uncertainties. It covers the specific and general environments that organizations operate in, as well as sources of uncertainty like complexity, dynamism, and resource scarcity. Theories discussed include resource dependence theory, which holds that organizations aim to minimize dependence on others for resources, and transaction cost theory, which proposes that organizations seek to minimize costs of exchanging resources. Strategies for managing dependencies with other organizations like suppliers and competitors are analyzed, such as developing reputations, strategic alliances, mergers, and regulatory bodies.
This document provides an executive summary and table of contents for a project report on quality management for an ERP implementation project at Saudi Electricity Company. The report will use a case study approach, first reviewing literature on critical success factors for ERP implementations including top management support, project management, and change management. It will then describe the ERP implementation project at SEC and analyze it in light of the literature.
This document discusses how steering committees can manage change through dynamic capabilities to increase system satisfaction. It proposes that steering committees can develop business IS capabilities by leveraging an innovative culture and capable champions. This mediates the effects on system quality and satisfaction. The study develops a change model based on dynamic capability for IT governance. It suggests implications for practice and theory of project-based IT governance.
The Relationships Between IT Flexibility, IT-Business Strategic Alignment and...IJMIT JOURNAL
What seems to still be the main concern for managers in the corporate world across the globe is IT business strategic alignment. This study seeks to address the research problem about the lack of alignment between IT and business strategies. Upon reviewing various literature on this subject, it was found that IT flexibility is one of the most vital factors that help sustain strategic alignment. The researcher upon having a detailed discussion on the possible areas associated with the present body of knowledge has discovered gaps in the studies that have been undertaken on strategic alignment and IT flexibility. This is because IT capability in relation to IT flexibility and strategic alignment has been ignored in the previous studies. As a result, this research proposes a relationship between IT flexibility (i.e., modularity, connectivity and compatibility), IT capability, and strategic alignment.
This document summarizes a research paper that analyzed factors affecting ERP system adoption and compared adoption between small-to-medium enterprises (SMEs) and large companies. The summary identifies that business complexity and organizational change were examined as factors potentially influencing ERP adoption. An empirical study of 366 companies found that business complexity was a weak predictor of adoption, while company size was a strong predictor. SMEs cited structural and organizational reasons for non-adoption more than financial constraints, differing from large companies who cited organizational reasons most.
Success Factors for Enterprise Systems in the Higher Education Sector: A Case...inventionjournals
This document summarizes literature on critical success factors for implementing enterprise systems in higher education. It finds that while many studies have identified success factors for commercial sectors, the unique characteristics of higher education including decentralized structures, non-uniform cultures, and focus on teaching and research rather than business processes, suggest a more specialized set of factors may apply. The document reviews literature on challenges implementing enterprise systems in higher education due to misalignment with academic culture. It then presents a case study of a large Australian university to determine which proposed critical success factors are most relevant for successful enterprise system deployment in higher education.
In order to survive and sustain in today’s turbulent business environment an organisation needs to explore opportunities and avoid threats constantly. Organisations succeed or fail due to the strategies formulated by its decision makers. Executives working in organisations possess unique perceptions regarding the events occurring in the business environment and they exhibit varied scanning behaviours. This uniqueness is reflected in their decisions and strategies.
La combinación de gestión del conocimiento y gestión del cambio en procesos y servicios de Consultoría.
En este trabajo se analiza la relación entre los procesos de cambio y la gestión del conocimiento, entre los partidarios de gestión del cambio y facilitadores de la Gestión del Conocimiento.
Management Information System and Organizational Success in a Competitive Env...Dr. Amarjeet Singh
The purpose of this paper was to examine the
effect of management information system as a process for
improving organizational success: A case study of small
scale businesses in port Harcourt. The research design was
descriptive survey to study and observe the influence of
management information system in organizational success
in a competitive environment. It is very important for
managers of small scale businesses within this expanse to
effectively install a management information system that
will constantly provide them with update on the currents in
their environment, both internally and externally since this
will help them to make strategic decisions that will have an
impact on the success or failure of the organization.
Findings from the research shows that when an organization
is equipped with a sound management information system,
it tends to enjoy improved customer services, increased
adaptability, production improvement, improved
management decision making process etc. Consequently, it
is very important for managers to take the competitive
environmental factors seriously since it can affect the
operations and performance of the business both internally
and externally .Some recommendations were put forward to
resolve some of the issues of the research.
The awareness of the Sustainable Development (SD) issues and stakeholder interactions in the field of information and communication technologies (ICT) management, forces companies to adopt the concepts of Corporate Social Responsibility (CSR) and Green IT to meet the challenges of innovation agility, and afterwards to create differentiation in the processes of governance and strategic alignment of ICT. In this article, we present the enhanced model of eco-strategy as a new generation model for ICT management, which will serve as a theoretical basis and aims to improve research in the field of responsible management of ICT. The updated eco-strategy model is composed of two dimensions: “ICT Green Alignment” and “ICT Green Governance”. These dimensions were designed according to a Green IT and CSR strategy to provide companies with tools for the development of coherent and sustainable managerial strategies capable of boosting overall performance and to explore new levers of transition towards renewed management modes in service the SD.
The Role Of Non Market Capability Moderation In The Relationship Between Envi...IOSR Journals
This study aims to: 1) explain the influence of government involvement and resources on the efficiency and performance of Water Supplier Companies; 2) explain the role of non market capability moderation in the relationship between environment, strategies, and the performance of Water Supplier Companies. The data were collected by using a survey on 60 Water Supplier Companies in Sulawesi. From those companies, 54 gave consent to participate in this study, but only 50 questionnaires can be analysed by using PLS. This reserach reveals that: 1) financial support from the local government was on time, and the water production capacity and distribution wereon optimal level; 2) the financial supportwas strengthened by the ability of the Water Supplier Companies to communicate with local government; and 3) the availability of resources - including pipe networks, machines, and pumps – suited the necessity.
Research evolution on implementation and adoption behaviour of information sy...LenaFrau
This document reviews research on the implementation and adoption of information systems by senior managers in commercial organizations over the last 40 years. It analyzes theories and models of information system adoption and implementation, examining how they have evolved while considering various determinants and limitations. Based on the literature review and findings, the paper proposes a comprehensive model for information system implementation.
Decentralization Analysis of Decision Making and Performance of Accounting Co...IOSR Journals
This document summarizes a study that analyzed the effect of decentralization of decision-making and the use of accounting control systems on organizational performance. The study used a sample of 53 managers from a university in Indonesia. Statistical tests found that decentralization of decision-making and the use of accounting controls together explained 27.5% of the variation in organizational performance. Individual tests found that decentralization of decision-making had a slightly stronger influence on performance than accounting controls. The study concluded that decentralizing decision-making and using accounting controls can improve organizational performance.
Articles Jack Value Mapping Second Generation Performance Management 132swati18
Value Mapping is a second generation performance measurement and strategic performance management solution that uses the concept of value. It begins with identifying stakeholder needs through a Value Needs Assessment. It then develops Value Maps to visually communicate desired value outcomes and the value drivers that impact those outcomes. Value Mapping also uses assessments to select the most important value drivers and measures, and to evaluate the impact and value created by organizational initiatives. The goal is to focus measurement and management on activities and measures that most effectively meet stakeholder needs and create value over time.
A REVIEW OF LITERATURE IN MANAGEMENT CONTROL SYSTEM (MCS), BUSINESS STRATEGY,...Christine Maffla
This document reviews 10 articles on the relationship between management control systems (MCS), business strategy, and firm performance. Most articles studied manufacturing industries in Australia and Canada, with managers and top management as the most common key informants. The majority used quantitative methods. Findings showed MCS can support both cost leadership and differentiation strategies, though different MCS may be needed for each. Interactive MCS were found to support differentiation strategies and influence innovation and financial performance. Overall the literature revealed linkages between MCS, strategy, and performance.
Treasury Board of Canada Secretariat. (2012). Policy on evalua.docxturveycharlyn
This document provides an overview of key steps in designing and implementing an effective performance measurement system for public organizations. It discusses 12 steps, emphasizing both technical/rational and political/cultural perspectives on organizations. The steps include identifying organizational champions, understanding what performance measurement can and cannot do, establishing communication channels, clarifying intended uses of performance information, identifying resources, understanding organizational history, developing logic models, involving users, measuring constructs, analyzing and reporting data, and getting user feedback. The document stresses that both the technical and political aspects must be considered to build sustainable performance measurement systems that can improve efficiency, effectiveness and accountability.
A STUDY ON SC PERFORMANCE MEASUREMENT IN MANUFACTURING INDUSTRY THROUGH BALAN...Sabrina Baloi
This document provides a literature review on using the Balanced Scorecard (BSC) to measure supply chain performance in manufacturing industries. It discusses the origins and components of the BSC model. While the BSC was widely adopted, the literature review finds several limitations, such as failing to consider factors like leadership, sustainability, and key stakeholders. The review also examines strengths of the BSC but notes it provides little guidance on identifying appropriate performance measures. It concludes the BSC is limited in addressing modern issues and constraints, and a new comprehensive model is needed to better measure supply chain performance.
Advantages And Limitations Of Performance Measurement Tools The Balanced Sco...Andrea Porter
This document discusses performance measurement tools, specifically comparing the Balanced Scorecard (BSC) to other tools. It notes that the BSC considers both financial and non-financial metrics to determine organizational performance, representing both a measurement tool and a performance management system. While widely used, the BSC has some limitations in dynamic environments. The document advocates combining various tools and approaches rather than relying solely on one evaluation framework like the BSC, to better align strategy as the business environment changes.
Organizational determinants as a barrier of balanced scorecard adoption for p...Alexander Decker
This document discusses organizational barriers to adopting the Balanced Scorecard (BSC) as a performance measurement tool in Pakistan. It provides background on the BSC, describing it as a popular multi-dimensional performance measurement system that derives key performance indicators from strategy. The study aims to identify barriers within organizations that may prevent BSC adoption. A literature review covers performance measurement, BSC features and adoption. However, little research has examined resistance to adopting innovations like the BSC. The document aims to identify potential organizational determinants that could serve as barriers to BSC adoption in Pakistan.
Knowledge management as bridge of accounting information system and strategic...Alexander Decker
Knowledge management acts as a bridge between accounting information systems and strategic management. It supports both by providing quality information resources, managing information maturity, and ensuring information integrity. When used effectively, knowledge management and accounting information systems can provide managers with timely, accurate information to facilitate strategic decision-making and help companies achieve their goals.
The effectiveness of social and environmental accounting (SEA) depends on two key objectives: 1) meeting stakeholders' non-financial information needs, and 2) enhancing business performance. At a societal level, the most effective SEA maximizes social efficiency by weighing overall societal costs and benefits. At an organizational level, the most effective SEA is the level that equalizes marginal costs and benefits for the reporting organization. The paper reviews economic theories on the costs and benefits of SEA for reporting organizations and society, presents empirical evidence on financial benefits to organizations, and discusses how political systems influence SEA. It concludes by suggesting future research directions.
The document summarizes an instrumental theory of social and environmental accounting (SEA) at the organizational and societal levels of analysis. At the organizational level, the effectiveness of SEA is measured by whether it maximizes the firm's utility by setting the level of SEA where marginal costs equal marginal benefits. At the societal level, effectiveness is measured by the level of SEA that achieves the greatest social efficiency by maximizing aggregate societal well-being relative to costs. The paper then analyzes potential benefits and costs of SEA based on signaling theory and transaction cost economics for both reporting organizations and stakeholders. It concludes by discussing how political governance systems may influence SEA and provides suggestions for future research.
A Framework Of IS Business Alignment Management Practices To Improve The Desi...Michelle Shaw
This document proposes a framework to identify management practices that can improve the process of aligning information systems with business objectives and the design of IT governance architectures. The framework maps management capabilities from the strategic alignment maturity model against structures in the IT governance assessment process model. The mapping was used to classify management practices identified from a case study of a large food and beverage company. The study found that improving coordination of IT investment management and enabling structures that strengthen budgetary controls can positively impact both IS/business alignment and IT governance architecture design at the operational and tactical levels.
This document provides a literature review on the problems with implementing performance measurement systems linked to pay in the public sector, based on literature from the UK. It begins with an abstract that outlines the goals and promises of performance-related pay systems in linking individual rewards to organizational performance targets. However, the document notes that while these systems may increase productivity, their impact on employee motivation and behaviors has often been found to be negative. The literature review then examines different performance measurement frameworks and identifies gaps in the research on the strengths and coherence of links between rewards and performance measurement systems in the public sector.
This document discusses strategic environmental scanning and its impact on organizational performance. It analyzes two companies - Nestle Nigeria Plc and Cadbury Nigeria Plc - to understand this relationship. The findings show that 30% of variations in effective organizational performance and productivity are caused by variations in strategic environmental scanning and external environmental factors respectively. Thus, strategic environmental scanning helps companies identify opportunities to seize and threats to avoid, leading to improved profitability. The document recommends that organizations strategically and continuously scan their environment to stay aware of changing political, economic, social, technological and other external factors impacting their business.
Creating superior operational performance through total quality management pr...Alexander Decker
This document summarizes a study that investigated the effect of total quality management (TQM) practices on operational performance at manufacturing companies in Surabaya, Indonesia. The study classified critical TQM practices into three factors: strategic, tactical, and operational. A questionnaire was distributed to 118 medium and large manufacturing companies. Data analysis found that tactical factors were the strongest predictor of operational performance. Overall, TQM practices had a positive effect on operational performance, with tactical factors playing a particularly important role. The study provides empirical evidence on the relationship between TQM practices and operational performance at manufacturing companies.
A proposed model of balance score cards for enterprise governanceAlexander Decker
This document proposes a model for a balanced scorecard approach to enterprise governance. It begins by defining enterprise governance and discussing existing governance frameworks. It then reviews balanced scorecards, which use financial and non-financial metrics across four perspectives - financial, customer, internal processes, and learning and growth. The document suggests that a balanced scorecard could provide a framework to evaluate an enterprise's governance across conformance with standards and policies, as well as performance and strategic objectives. It proposes testing a model that applies the balanced scorecard approach to comprehensively assess an enterprise's governance arrangements and outcomes.
11.a proposed model of balance score cards for enterprise governanceAlexander Decker
This document proposes a model for balanced scorecards for enterprise governance. It consists of two parts:
1. The conformance balanced scorecard with 5 dimensions: financial indicators, customer satisfaction, operations systems, employee factors, and compliance.
2. The performance balanced scorecard with 6 dimensions: SWOT analysis, strategy implementation, technology needs, HR decisions, mergers and acquisitions, and risk management.
The model is intended to help boards of directors evaluate enterprise governance in terms of both accountability (conformance) and value creation (performance). It draws on prior literature discussing balanced scorecards and their use in assessing strategic decision making, resource allocation, and risk management at the enterprise level.
Utilizing the BSC and EFQM as a Combination Framework; Scrutinizing the Possi...Waqas Tariq
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 company’s performance has been assessed based on BSC and EFQM and the results are analyzed with TOPSIS method.
This document discusses the need for performance measurement systems in facilities management and identifies problems with current approaches. It proposes a conceptual framework for facilities management performance measurement that is based on existing theory. Key elements of the framework include linking measurement to organizational strategy, promoting integration across departments, ensuring the system is dynamic and can adapt to changes, and making measures transparent and focused on improvement. The framework is intended to address issues like a lack of strategic focus, difficulty implementing measures, and an overemphasis on financial metrics in current approaches.
This document summarizes a research paper that examines how the use of multidimensional performance measures and four organizational factors influence the effectiveness of performance measurement systems (PMSs). The study collected survey data from 455 senior financial officers in Australian manufacturing organizations. The results showed that the use of multidimensional measures was associated with better performance and staff outcomes. Top management support was linked to improved performance outcomes, and training was tied to enhanced staff outcomes. The findings provide insight into characteristics and factors that can strengthen PMS effectiveness.
Impact of Corporate Governance on Organizational PerformanceJenıstön Delımä
Citation: Delima, V. J., & Ragel, V. R. (2017). Impact of corporate governance on organizational performance. International Journal of Engineering Research and General Science, 5(5).
Abstract- This study examined whether corporate governance has impact on organizational performance in Financial Institutions as research problem. This research was carried out with objective to measure association between Corporate Governance and Financial Institution’s Performance in Batticaloa district. Conceptual framework has been developed to measure linkages between Corporate Governance and Financial Institution’s Performance. Board Size, Corporate Governance Mechanism, Communication Strategies, and Code of Conduct are considered as the measurement variables of Corporate Governance which was derived from Changezi & Saeed (2013) and Customer Satisfaction, Employee Commitment and Corporate Reputation are considered as the measurement variable of Organizational Performance which was derived from Bayoud (2012) and Carton (2004). Questionnaires were used to collect data for this study. 115 Management Respondents and 115 Customers from whole Financial Institutions in Batticaloa district have been selected for this study. Data were analyzed and evaluated by Univariate and Bivariate techniques. In Univariate analysis, Descriptive statistic has been used for the analysis. In Bivariate analysis, Correlation and multiple regressions have been used for the analysis. Findings have shown the Corporate Governance and Organizational Performance are at high level. Moreover, it also found that there is a strong positive relationship between Corporate Governance and Organizational Performance. Corporate Governance significantly impacts Organizational Performance of Financial Institutions. These findings would be useful to consider more on Corporate Governance practices to avoid the Corporate Collapses and to achieve successful Organizational Performance
The document discusses measuring organizational performance through a holistic framework. It examines existing performance measurement models like the balanced scorecard, performance pyramid, performance prism, and action-profit linkage model. These models share similarities like linking customer satisfaction to organizational performance. The document outlines challenges to effective performance measurement like organizational resistance, poorly chosen measures, and lack of data availability. It emphasizes the importance of measuring the right things through a collaborative process and communicating measurements to align performance across departments.
Abnormalities of hormones and inflammatory cytokines in women affected with p...Alexander Decker
Women with polycystic ovary syndrome (PCOS) have elevated levels of hormones like luteinizing hormone and testosterone, as well as higher levels of insulin and insulin resistance compared to healthy women. They also have increased levels of inflammatory markers like C-reactive protein, interleukin-6, and leptin. This study found these abnormalities in the hormones and inflammatory cytokines of women with PCOS ages 23-40, indicating that hormone imbalances associated with insulin resistance and elevated inflammatory markers may worsen infertility in women with PCOS.
A usability evaluation framework for b2 c e commerce websitesAlexander Decker
This document presents a framework for evaluating the usability of B2C e-commerce websites. It involves user testing methods like usability testing and interviews to identify usability problems in areas like navigation, design, purchasing processes, and customer service. The framework specifies goals for the evaluation, determines which website aspects to evaluate, and identifies target users. It then describes collecting data through user testing and analyzing the results to identify usability problems and suggest improvements.
A universal model for managing the marketing executives in nigerian banksAlexander Decker
This document discusses a study that aimed to synthesize motivation theories into a universal model for managing marketing executives in Nigerian banks. The study was guided by Maslow and McGregor's theories. A sample of 303 marketing executives was used. The results showed that managers will be most effective at motivating marketing executives if they consider individual needs and create challenging but attainable goals. The emerged model suggests managers should provide job satisfaction by tailoring assignments to abilities and monitoring performance with feedback. This addresses confusion faced by Nigerian bank managers in determining effective motivation strategies.
A unique common fixed point theorems in generalized dAlexander Decker
This document presents definitions and properties related to generalized D*-metric spaces and establishes some common fixed point theorems for contractive type mappings in these spaces. It begins by introducing D*-metric spaces and generalized D*-metric spaces, defines concepts like convergence and Cauchy sequences. It presents lemmas showing the uniqueness of limits in these spaces and the equivalence of different definitions of convergence. The goal of the paper is then stated as obtaining a unique common fixed point theorem for generalized D*-metric spaces.
A trends of salmonella and antibiotic resistanceAlexander Decker
This document provides a review of trends in Salmonella and antibiotic resistance. It begins with an introduction to Salmonella as a facultative anaerobe that causes nontyphoidal salmonellosis. The emergence of antimicrobial-resistant Salmonella is then discussed. The document proceeds to cover the historical perspective and classification of Salmonella, definitions of antimicrobials and antibiotic resistance, and mechanisms of antibiotic resistance in Salmonella including modification or destruction of antimicrobial agents, efflux pumps, modification of antibiotic targets, and decreased membrane permeability. Specific resistance mechanisms are discussed for several classes of antimicrobials.
A transformational generative approach towards understanding al-istifhamAlexander Decker
This document discusses a transformational-generative approach to understanding Al-Istifham, which refers to interrogative sentences in Arabic. It begins with an introduction to the origin and development of Arabic grammar. The paper then explains the theoretical framework of transformational-generative grammar that is used. Basic linguistic concepts and terms related to Arabic grammar are defined. The document analyzes how interrogative sentences in Arabic can be derived and transformed via tools from transformational-generative grammar, categorizing Al-Istifham into linguistic and literary questions.
A time series analysis of the determinants of savings in namibiaAlexander Decker
This document summarizes a study on the determinants of savings in Namibia from 1991 to 2012. It reviews previous literature on savings determinants in developing countries. The study uses time series analysis including unit root tests, cointegration, and error correction models to analyze the relationship between savings and variables like income, inflation, population growth, deposit rates, and financial deepening in Namibia. The results found inflation and income have a positive impact on savings, while population growth negatively impacts savings. Deposit rates and financial deepening were found to have no significant impact. The study reinforces previous work and emphasizes the importance of improving income levels to achieve higher savings rates in Namibia.
A therapy for physical and mental fitness of school childrenAlexander Decker
This document summarizes a study on the importance of exercise in maintaining physical and mental fitness for school children. It discusses how physical and mental fitness are developed through participation in regular physical exercises and cannot be achieved solely through classroom learning. The document outlines different types and components of fitness and argues that developing fitness should be a key objective of education systems. It recommends that schools ensure pupils engage in graded physical activities and exercises to support their overall development.
A theory of efficiency for managing the marketing executives in nigerian banksAlexander Decker
This document summarizes a study examining efficiency in managing marketing executives in Nigerian banks. The study was examined through the lenses of Kaizen theory (continuous improvement) and efficiency theory. A survey of 303 marketing executives from Nigerian banks found that management plays a key role in identifying and implementing efficiency improvements. The document recommends adopting a "3H grand strategy" to improve the heads, hearts, and hands of management and marketing executives by enhancing their knowledge, attitudes, and tools.
This document discusses evaluating the link budget for effective 900MHz GSM communication. It describes the basic parameters needed for a high-level link budget calculation, including transmitter power, antenna gains, path loss, and propagation models. Common propagation models for 900MHz that are described include Okumura model for urban areas and Hata model for urban, suburban, and open areas. Rain attenuation is also incorporated using the updated ITU model to improve communication during rainfall.
A synthetic review of contraceptive supplies in punjabAlexander Decker
This document discusses contraceptive use in Punjab, Pakistan. It begins by providing background on the benefits of family planning and contraceptive use for maternal and child health. It then analyzes contraceptive commodity data from Punjab, finding that use is still low despite efforts to improve access. The document concludes by emphasizing the need for strategies to bridge gaps and meet the unmet need for effective and affordable contraceptive methods and supplies in Punjab in order to improve health outcomes.
A synthesis of taylor’s and fayol’s management approaches for managing market...Alexander Decker
1) The document discusses synthesizing Taylor's scientific management approach and Fayol's process management approach to identify an effective way to manage marketing executives in Nigerian banks.
2) It reviews Taylor's emphasis on efficiency and breaking tasks into small parts, and Fayol's focus on developing general management principles.
3) The study administered a survey to 303 marketing executives in Nigerian banks to test if combining elements of Taylor and Fayol's approaches would help manage their performance through clear roles, accountability, and motivation. Statistical analysis supported combining the two approaches.
A survey paper on sequence pattern mining with incrementalAlexander Decker
This document summarizes four algorithms for sequential pattern mining: GSP, ISM, FreeSpan, and PrefixSpan. GSP is an Apriori-based algorithm that incorporates time constraints. ISM extends SPADE to incrementally update patterns after database changes. FreeSpan uses frequent items to recursively project databases and grow subsequences. PrefixSpan also uses projection but claims to not require candidate generation. It recursively projects databases based on short prefix patterns. The document concludes by stating the goal was to find an efficient scheme for extracting sequential patterns from transactional datasets.
A survey on live virtual machine migrations and its techniquesAlexander Decker
This document summarizes several techniques for live virtual machine migration in cloud computing. It discusses works that have proposed affinity-aware migration models to improve resource utilization, energy efficient migration approaches using storage migration and live VM migration, and a dynamic consolidation technique using migration control to avoid unnecessary migrations. The document also summarizes works that have designed methods to minimize migration downtime and network traffic, proposed a resource reservation framework for efficient migration of multiple VMs, and addressed real-time issues in live migration. Finally, it provides a table summarizing the techniques, tools used, and potential future work or gaps identified for each discussed work.
A survey on data mining and analysis in hadoop and mongo dbAlexander Decker
This document discusses data mining of big data using Hadoop and MongoDB. It provides an overview of Hadoop and MongoDB and their uses in big data analysis. Specifically, it proposes using Hadoop for distributed processing and MongoDB for data storage and input. The document reviews several related works that discuss big data analysis using these tools, as well as their capabilities for scalable data storage and mining. It aims to improve computational time and fault tolerance for big data analysis by mining data stored in Hadoop using MongoDB and MapReduce.
1. The document discusses several challenges for integrating media with cloud computing including media content convergence, scalability and expandability, finding appropriate applications, and reliability.
2. Media content convergence challenges include dealing with the heterogeneity of media types, services, networks, devices, and quality of service requirements as well as integrating technologies used by media providers and consumers.
3. Scalability and expandability challenges involve adapting to the increasing volume of media content and being able to support new media formats and outlets over time.
This document surveys trust architectures that leverage provenance in wireless sensor networks. It begins with background on provenance, which refers to the documented history or derivation of data. Provenance can be used to assess trust by providing metadata about how data was processed. The document then discusses challenges for using provenance to establish trust in wireless sensor networks, which have constraints on energy and computation. Finally, it provides background on trust, which is the subjective probability that a node will behave dependably. Trust architectures need to be lightweight to account for the constraints of wireless sensor networks.
This document discusses private equity investments in Kenya. It provides background on private equity and discusses trends in various regions. The objectives of the study discussed are to establish the extent of private equity adoption in Kenya, identify common forms of private equity utilized, and determine typical exit strategies. Private equity can involve venture capital, leveraged buyouts, or mezzanine financing. Exits allow recycling of capital into new opportunities. The document provides context on private equity globally and in developing markets like Africa to frame the goals of the study.
This document discusses a study that analyzes the financial health of the Indian logistics industry from 2005-2012 using Altman's Z-score model. The study finds that the average Z-score for selected logistics firms was in the healthy to very healthy range during the study period. The average Z-score increased from 2006 to 2010 when the Indian economy was hit by the global recession, indicating the overall performance of the Indian logistics industry was good. The document reviews previous literature on measuring financial performance and distress using ratios and Z-scores, and outlines the objectives and methodology used in the current study.
Balanced scorecard weaknesses, strengths, and its ability as performance
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BALANCED SCORECARD: WEAKNESSES, STRENGTHS, and
ITS ABILITY as PERFORMANCE MANAGEMENT SYSTEM
VERSUS OTHER PERFORMANCE MANAGEMENT SYSTEMS
Milad Abdelnabi Salem1
School of Technology and Logistic Management, College of Business, University Utara Malaysia
Sintok, 06010 Kedah, Malaysia
Tel: 0060175513458, E-mail: Sagat7420032003@yahoo.com
Dr. Norlena Hasnan2
School of Technology and Logistic Management, College of Business, University Utara Malaysia
E-mail: mnhnh69@yahoo.co.uk
Dr. Nor Hasni Osman3
E-mail: has1218@uum.edu.my
School of Technology and Logistic Management, College of Business, University Utara Malaysia
Abstract
Since the last decades, the performance management has become a legislative requirement for the private and public
sectors. Companies are looking to find the tool that a can measure the performance effectively. One of the attractive
areas subject to be measured is the social and environmental considerations. This paper provides theoretical discussion
of the BSC and compares it with other different measurement systems. Moreover, it evaluates the ability of BSC to
incorporate the social and environmental issues. The paper concluded that although the criticisms of BSC, it has many
advantages versus other performance systems. It also strongly suggested the ability to BSC to incorporate the social and
environmental issues, which can open the door for coming studies to consider such issue.
Key words: Balanced Scorecard, performance management systems, social and environmental issues.
1. Introduction
Performance measurement has been a popular topic for both industrialists and academics. The different approaches of
management research areas have given different definitions of performance management system. It defined as “the
process, a metric, or the set of metrics, which used to quantity both the efficiency and the effectiveness of actions”
(Bournce, Nelly, Mills 2003: p4). However, the quantity only the efficiency and the effectiveness dimensions of actions
could be too limited (www.balancedscorecardreview.com).
Bititci, Carrie, Mcdevitt (1997) define the performance management system as “The performance management
system is the information system which is at the heart of the performance management process, and it is of critical
importance to the effective and efficient functioning of the performance management” (p 522).
Performance management system defined by Artelly (2001) as
“the performance management system is the heart and soul of the performance-based management process.
Flowing from the organizational mission and the strategic planning process, it provides the data that will be
collected, analyzed, reported, and, ultimately used to make sound business decisions”. (p1)
The aim of any performance measurement system is the improvement of the performance. The company cannot
manage what cannot measure. Therefore, it is important for any organization to measure its activities to determine the
strengths and the weakness in its operations. During the history of business, there are many performance management
systems, which have been used to evaluate the performance of the organizations. However, some of these systems’
measures suffer from their inability to cover all the elements associated with the successful of the organization, which in
turn led to the absence of critical and important elements in the measurement operation. Mohobbot (2004) summarized
the weaknesses of the traditional accounting management systems in the following weaknesses: (1) Lack predictive
ability to explain future performance. (2) They are not actionable, providing little information on root causes or
solutions to problems. (3) One of these elements is the linkage between these systems and the strategy of the
organization. (4) Too aggregated and summarized to guide management actions. (5) Give inadequate considerations to
difficult quantify “intangible” assets such as intellectual capital. (6) Do not capture key business changes until it is too
late. (7) Reward short-term or incorrect behaviour. In addition, these measurements lack to the linkage to the strategy of
the organizations.
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One of the most attractive issues nowadays is the role that corporations play with regard to environmental and
social issues. It is becoming increasingly common for a company’s image to depend as much on its environmental and
social issues than on its financial performance (Keogh & Polonsky, 1998). This is in response to stakeholders’ pressure,
governments’ regulations, and the pursuit of economic profit. Therefore, it becomes critical for corporations to find
appropriate performance measurement systems that enable them to evaluate the social and environmental activities
(Wanger, 2007). Thomas (2003) mentioned that, so far environmental sustainability remains largely separated from the
traditional strategies and management systems, which are geared nearly solely towards financial performance indicators
Although many companies have implemented environmental and/or social management systems in order to
manage and control sustainability, yet, these management systems often fall short in company practices. This due to that
these management systems are often run on an operating level, and lack the linkage of the strategic planning and
management of the company (Thomas, 2003). Moreover, some systems such ISO 14001 are imposed by self-objectives
determined by the company itself. For instance, it is possible for a company performing poorly to be certified under ISO
14001 as long as it has established an acceptable program to reach its-self imposed objectives. Thus, two companies
with very different levels of environmental performance can be certified as good companies (Federal Facilities Council
Report, 1999). In general, such systems focus on the operational levels of organizations and do not link to the strategic
objectives.
Accordingly, there is a need to find a tool that has the ability to measure the impacts, influence and the leverage of
the organizational activities, and other long-term goals in general. Environmental management is not integrated with
strategic management in many cases (Wanger, 2007). The importance of such objectives has resulted in the emergency
of several management systems such as the Balanced Scorecard, the EFQM Excellence Model, Performance Pyramid,
Performance Prism, Shareholder Value, and Blue Ocean Strategy, which can be used to maintain the strategic objectives
of the company including environmental ones (chapter three discusses these systems). However, with regard to
environmental issues, many studies have confirmed the ability of the Balanced Scorecard Model to integrate these
issues with the strategic level concerns of the companies (Kaplan & Norton, 1996; Epstien & Winser, 2001; Figge et al,
2002; David & Todd, 2006; Margarita, 2008; Margrine & Lins, 2007; Pederson, 2008; Sardinha, Reijnders, Lansilueto
& Jarvenpa, 2008). For instance, Gminder and Bieker (2002) concluded that, the integration of BSC into business
management of accompany can reduce the problems related to environmental and social issues.
The aforementioned issue leads this paper to point the light on Balanced Scorecard as one of the most famous
performance measurement tool, that give the management the ability to measure its performance from different aspects
at the same time with a strong linkage to its strategy. This paper considers BSC and compares it with some performance
management systems. It also provides a discussion of the limitation of BSC as articulated in previous literature.
2. Balanced Scorecard (BSC) Approach
Kaplan and Norton introduced BSC in 1992 as reflect of the inadequacy of traditional management systems, and their
dependence on financial measures which are lag indicators, that report on the outcomes from past actions. Additionally,
some traditional measurement systems, which incorporate nonfinancial measures, are lake the linkage to the strategy of
an organization.
Banker, Chang, Pizzini (2004) explained BSC as “an essential aspect of the BSC is the articulation of linkage
between performance measures and strategy objectives, once linkage is understood, strategic objectives can be further
translated into actionable measures to help organizations improve performance”. (p 2)
The BSC focus on measure the performance from four perspectives, financial, customers, internal processes, and
learning and growth activities as shown in figure (1). Each of these perspectives provides relevant feedback as how well
the strategic plan is executing, so that adjustments can be made as necessary. Kaplan and Norton (1996) believed that,
the four perspectives of the BSC can make balance between many important things, such as, between outcomes desired
and the performance drivers of those outcomes, and between hard objectives and more subjective measures. Although
the Balanced Scorecard emphasis primarily the financial dimension, the toll can integrate other sustainability aspects
such as social and environmental ones (Figge, Tobias, Stefen, & Markus, 2001; Sigma, 2003; Epstein & Winser 2001)
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Finance: how should we act
towards our shareholders in
order to be financially
successful?
Customers: how should we Internal processes: in which
act towards our customers in Vision business processes we have to
order to realize our strategy be the best in class to satisfy
objectives? our shareholders and
customers?
Learning and development: how can we
foster our potentials to change and growth in
order to realize our vision?
Figure 1:The Balanced Scorecard
Source: Kaplan and Norton (1996, P.9)
3. BSC and Other Performance Management Systems
Many performance management systems have been adopted by organizations to maintain their performance. These
systems assist organizations in a number of different ways, each having its strengths and weaknesses. This section
illustrates some of the management systems and tries to compare it with the BSC approach.
3.1 Balanced Scorecard versus TQM
The BSC and TQM are similar tools, which use to integrate the performance management and control systems, both
tools have similar aspects such as focusing on communication, reducing the cost, and emphasizing the importance of
organizations to manage the system and not the people, and both tools need to be supported by the top management in
the organization.
With regard to the history, TQM is older than BSC. According to Mika, Harni, Kulmala (Without publishing date)
the basis of TQM as Japanese born philosophy was created in the 1960, Whereas, BSC was created by Kaplan and
Norton in the 1992.
Both TQM and BSC aim to improve the performance of an organization. However, the major difference between
the BSC and TQM is the emphasis of each of tools. The BSC more emphasizes on financial objects. According to
Schwartz and Jay (2010) that Kaplan and Norton stress that financial object, represents the long-term goals of an
organization. They added that BSC uses traditional financial objects relating to profitability, asset returns, and revenue
enhancements, whereas, TQM does not diminish the importance of financial solvency but focuses more on the system
of the organization, the concept of empowering people, and employees involvement. As a result, when BSC focuses on
whole organization, TQM focuses more on internal processes. According to (www.BalancedScorecard.org) the biggest
difference between BSC and TQM that, BSC takes a holistic (organizational-wide) view of performance, where TQM
tends to emphasize improvements to internal business processes. However, BSC can support the adoption of TQM.
Zahirul (2003), concluded that “TQM does not consider employees in its search for continuous improvement, but the
BSC does. Therefore, by adopting a BSC a firm that has adopted TQM may overcome this oversight which should
increase employee satisfaction and subsequently organizational performance.” (p 563)
3.2 Balanced Scorecard versus ISO 14001
ISO 14001 was created by the International Organization of Standardization. It is defined as environmental
management system guidelines to improve the environmental management. ISO14001 defines the requirements for
establishing, implementing, and operating an environmental management system.
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ISO14001 has many advantages of organizations regarding to environmental aspects. However, it has many
weaknesses, such as, that ISO14001 describes the management system and does not describe how to address
environmental management issues, its lack to integrate the full legal requirements and company policies, and the need
to consideration of environmental factors by every decision. Otherwise, environmental management system certification
could be affected. (www.leyhill.com)
The main difference between BSC and ISO14001 is that BSC is a strategy management tool, which focuses on
whole of the organization, Whereas, ISO14001 is system that focuses on environmental issues, with regardless to the
other aspects that may affected by the environmental aspects. In brief, ISO14001 is run on the operating level, and does
not linked to the strategic planning and management of the company.
3.3 BSC versus the Performance Pyramid
The Performance Pyramid was introduced by Cross and Lynch (1992). It focuses on the linkage of organization’s
strategy with its operations within four levels, which seem to fit into each other in the achievement of objectives.
According to Stefan (2004), the development of company’s Performance Pyramid starts with defining an overall
corporate vision at the first level, which translated into specific business unit objectives. The second level is concerning
the setting of short-term targets and long-term goals. The business operating system links top-level to day-to-day
operational measures. Finally, four key performance measures (quality, cycle time, delivery, waste) are using at
departments and work centers on a daily basis. Although the Performance Pyramid includes financial and non-financial
measures, also it considers the integration of corporate objectives with operational performance indicators. It faces
many critical points, Miral and Mark (2005) note that the Performance Pyramid does not explicitly integrate the concept
of continuous improvements, does not provide any mechanisms to identify key performance indicators, and also the
model has not been empirically tested.
The Pyramid Performance and BSC are two excellent methods of strategically driven performance management
systems, and both models uses strategy maps to explain the relationships between the aspects of the performance.
However, BSC is more effective than The Pyramid Performance in the use of the strategic map. According to Hasnan
(2006), the success map of the Pyramid Performance is more difficult to understand than the strategy map of BSC. In
the strategy map of BSC everybody can understand the cause and effect of logical mapping and direction towards the
strategy objectives.
3.4 BSC versus Performance Prism
The Performance Prism was created by Nelly and Adam (2000); it presents itself as performance management system
alternative to be used by organizations. According to Frederico and Cavenghi (2009) that the Performance Prism
focuses on stakeholders involved in the environment of an organization through five perspectives, considering
stakeholders satisfaction, strategies, processes, capabilities, and stakeholders contributions. The organization must
consider each of these perspectives. Etienne, Erik, Arjan, (2005) noted that each of these perspectives has question
which must be asked to measure the performance of the organization from different sides. In stakeholders’ satisfaction,
the key question is: who are the key stakeholders, and what do they want and need? The main question of the strategies
is: what strategies do we have to put in place to satisfy the wants and needs of stakeholders? Regarding to the processes,
the key question is: what critical processes do we require, if we are to execute these strategies? The main question of
capabilities is: what capabilities do we need to operate and enhance these processes? In the stakeholders’ contributions,
the key question is: what contributions do we require from our stakeholders, if we are to maintain and develop these
capabilities?
The Performance Prism takes a radically different look at performance measurement, and sets out explicitly to
identify how managers can use measurement data to improve business performance. However, the measurement faces
some critical points; according to Metawe and Gilman (2005) that the Performance Prism tends to neglect issues such as
how the performance measures are going to be realized, hence, little concentration is given to the processes of designing
the system. Additionally, Etienne et al (2005), note that there is only little evidence that the Performance Prism works in
practice.
3.5 BSC versus the European Foundation Quality Management (EFQM) Excellence Model
EFQM excellence model was developed in 1991 (and revised in 1999), and the model also know as self-assessment or
EFQM. The EFQM promoted by European Foundation Quality Management. It is a framework designed to help
organizations achieving business excellence through continuous improvement in the management and developing the
process to engender wider use of best practice activities. According to Steven (2003), the main objective of EFQM is to
improve organizational performance through self-assessment and improvement activity against major benchmark
excellent criteria. The EFQM is a practical tool to help organization determining where they are on the path of
excellence and assessing the current health of the organization (www.wikipedia.org). The model evaluates the
organization’s processes and performance against a uniform set of strategic priorities, which facilities the design of
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process and enables the standardized “benchmarking” of results between different organizations (Henrik, Anderson, &
Michael 2000).
The BSC and the EFQM are tools use measures of organizational performance for the purpose of the improvement,
and both tools have been widely adopted and addressed broadly similar issues. However, there are some differences
between the two tools. Henrik et.al(2000) point out that the BSC design processes starts with the articulation of a shared
strategic vision specific to the organization, and backwards to define the priority strategic activities and outcomes that
need to occur to achieve success. In contrary, the EFQM assesses performance against a standard of activities against
generic “best practice” standards. This may leads to say that the design of BSC is more complex than the design of
EFQM. At the same time, with the respect of the differences between the strategic priorities of the organizations, the
measures of BSC are more likely (compared to the EFQM) to provide directly information on an organization’s
strategic performance. Additionally, BSC designs be necessity must explain uniquely for each organization its
managers’ plans to drive improved performance, this may makes a BSC approach is more positively to represent the
specific strategic issues of the organization.
The EFQM model is a widely used tool, which designed for helping the organizations in their drive towards being
more competitive. As well as the resulting EFQM measures can strongly supports comparison if we compare it to BSC.
However, there are many critical points of the EFQM model. Henrik et.al (2000) note, that the EFQM is closely defined
and relatively static-based on generic strategic priorities. In addition, a partnership study conducted by McAdam and O’
Neills(1999) with Norton Ireland Electricity emphasized the limitations of EFQM model as a strategic framework in
that it is primarily on assessment of the exiting, rather than a predictor of future strategy. Furthermore, Steven (2003)
concluded that there are two major limitations of EFQM: the lack of a strategy direction and the need to focus
improvement activity.
3.6 BSC versus Management by Objectives (MBO)
MBO was introduced by Peter Drucker in 1954 in his book (The practice of Management). It bases on the idea that
individual’s efforts must be put together to reach a common goal. All efforts must put in the same direction, and their
contributions must fit together to reduce a whole-without gaps, or unnecessary duplications of efforts. According to
Karl (2001), MBO is “a process whereby the superior and subordinate managers of an organization jointly identify its
common goals, define each individual’s major area of responsibility in terms of the results expected of him, and use
these measures as guides for operating the unit and assessing the contribution of each of its members”. (p 8)
MBO has some advantages such as its effect on the motivation of employees, better communication and
coordination, clarity of goals, and managers can ensure that objectives of the subordinates are linked to the
organization’s objectives. (www.en.wikipedia.org)
MBO is different from BSC. In MBO, each goal is determined through consultation between managers and
subordinates. A total goal is composed of section’s goals, and each section’s goal is composed of individual’s goals. It
emphases on employees participation and takes the employees’ motivation into account (Mohobbot, 2004). When MBO
requires eight areas in business (market standing, innovation, productivity, physical and financial resources,
profitability, manager performance and development, worker performance, and public responsibility) the BSC requires
three to five measures for each of its four areas. This makes MBO is more complex than BSC. Additionally, MBO
suffers from some limitations; it emphasizes the setting of goals over the marking of a plan as a driver of outcomes, the
neglect of the importance of environmental differences, and the evaluation of employees by comparing them to the
“ideal” employees (en.wikipedia.org).
Both BSC and MBO are influenced by Fayol’s four functions of management; planning, organizing, leading, and
controlling (Karl, 2001). BSC has advantages over MBO because BSC focuses on only four business areas, and within
each area focuses only on the most important performance indicators.
3.7 BSC versus Blue Ocean Strategy (BOS)
BOS is a new concept created by Kim and Mauborgone in 2004. It emphasize that companies should focus on finding
new market space instead of focusing on battling the competitors in existing market places. The value innovation is the
corn stone of BOS. It incorporates the idea that says swim where the ocean is clear, blue and non-competitive.
According to Kim and Mauborgone (2005) that” head –to-head competition results in nothing but a bloody red ocean
rivals fight over shrinking profits. Success does not come from battling competitors, but from making the competition
irrelevant by creating blue oceans of uncontested market place” (p.24).
BOS can be defined as “a consistent pattern of strategic thinking behind the creation of new markets and industries
where demand is created rather than fought for and the rule of competition is irrelevant” (Kim, Yang, & Kim, 2008.
p.522). This indicates that BOS philosophy depends on that companies should reduce their existing competition, which
result in winners and losers. Instead, companies should depend on their innovation abilities to create new market
strategies over the existing once.
Kim and Mauborgone (2005) point out that there are six key risks impede the development of BOS strategies of the
companies. Those are search risk, planning risk, scope risk, business model risk, organizational risk, and management
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risk. To overcome these risks, Kim and Mauborgone claim that companies should address six principles; reconstruct
market boundaries, focus on the big picture, reach beyond existing demand, get the strategic sequence right, overcome
key organizational hurdles, and build execution into strategy.
Although the advantages of the BOS, which can be represented in that the strategy promise took over the business
world, BOS faces some criticisms. For instance, the nature of competition is that there are no specific actions. This
conflicts with the assumption of BOS This due to that in the business world; competitors also strive to obtain the best
results of the same type (Herman, 2008). Another critical point of BOS is its level focus. Herman (2008) point out that
BOS discusses the differentiation and innovation on the level of strategy, while the focus of most traditional occupation
is on the level of products and brands. Moreover, the prospect of raising demand infinitely simply does not exist. When
the BOS of the company works; sooner or later someone will copy or even improve its already successful model.
BSC and BOS are strategic management systems. BSC approach focuses on improvement of the strategy of the
company to enhance its ability of the competition. It takes a holistic approach to improve the different areas of the
company, Whereas, BOS focuses on the enhancement of the company ability to the innovation.
3.8 BSC versus Environmental Shareholder Value (ESV)
ESV is evaluation method which more conductive to economically efficient environmental protection. The concept
indicates that environmental activities should be achieved at a minimal cost or additional profits by cost saving.
According to Wanger(2007) that ESV is a potential candidate to support the integration of environmental management
with the strategy of the company in way that positively influence the economic performance of the company.
Although the ability of ESV to evaluate the environmental management of companies for the purpose of
shareholder interests. This concept has many criticisms, which related to the ability to use the concept with the interests
of stakeholders. Schaltegger and Figge(1998) notion that ESV covers only one part of environmental management when
analyzing the corporate environmental protection. They added that the identity of the impacts of environmental
management on shareholder value is one part of shareholder value analysis.
The basic differences between BSC and ESV is that BSC takes into account all stakeholders of the company including
shareholders, whereas, the ESV focuses on the aspects of shareholders. This may limits the ability of the concept to
evaluate the impacts of environmental activities on the whole organizational performance.
In conclusion, the importance of environmental issues has forced many companies to implement specific
environmental management systems. These systems have, however, rarely been integrated with the general
management systems of a firm. As a result, environmental management often not linked to the economic success of the
firm.
4. Limitations of BSC
Although the successfully emergency of BSC and its wide world in many organizations. As other measurement
systems, the BSC has attracted criticism from a variety. Most these criticisms came from the academic community. This
section will explain the most important critical points of the BSC.
1- The causality relationships between the areas of measurement in the BSC are unidirectional and too simplistic. Some
scholars note that there is no cause-and-effect relationship between some of the suggested areas of measurements in the
BSC (Norrekelit, 2003; Mohobbot, 2004; Henk and Kim 2002). Norrekelit (2003) has depended on the relationship
between customer loyalty and financial performance as example of these limitations. In his discussion has showed that
the lack of cause-and-effect relationship is crucial because invalid assumptions in a feed-forward control system will
cause individual companies to anticipate performance indicators, which are actually faulty.
2- The BSC neglects the time dimension. This critical point of the BSC starts from the assumption that the linkage
between different points of time must be understood. In this point of view, BSC does not explain the role of time in its
cause-and-effect relationships. Norrekelit (2003), notes that BSC does not incorporate the time dimension in the cause-
and-effect relationships, and it also does not separate cause-and-effect relationships in time.
3- The lack of the validation; the reliance of BSC on few measures makes a critical point of BSC. Mohobbot (2004) and
Henk and Kim (2002) point out that the advantage of checking just a few number measures became disadvantage when
not the right numbers are selected for the BSC. This critical point of view depends on that BSC lacks the mechanism for
maintaining the relevance of defined measures. This leads to reduce the validation of BSC and the possibility to miss
some critical measures. Hondson, Smart, & Bourne (2001) noted that the BSC has a good coverage of the dimensions of
the performance, but it provides no mechanism for maintaining the relevance of defined measures. Martensson (2008)
noted that there seems to be tension in the BSC concept between the different focus areas, and the idea that only a
limited number of indicators should capture these areas.
4- The lack of the integration between top-levels and operational levels’ measures. Mohobbot (2004), Henk and Kim
(2002) point out that BSC fails to identify performance measurements as two-ways process. Hondson et al(2001) notes
that one of the critical points of BSC is its lack of the integration between the top and operational levels which may
leads to strategic problematic. This critical point refers to the ability of low levels to understand the implantation of
BSC. Furthermore, the absence of the integration limits the use of BSC from the higher levels only. As a result, the
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strategic plans of the organization may fail because of the weakness of the coherence and the integration between the
organization’s levels.
5- An internally focus. One of the criticisms of BSC is that its framework encourages the focus on internal aspects.
Mohobbot (2004) mentions that the BSC is incapable to answer the questions related to the competitors movements.
Additionally, the BSC does not evaluate the significant changes in external conditions. The management should assess
how the external changes affect the implementation of BSC (may.jobstreet.com). In addition, Henk and Kim (2002)
point out that the BSC does not consider the extended value chain in which employee and supplier contributions are
highlighted. Norreklit (2003) points out that there are some stakeholders who are not incorporate in the BSC such as
suppliers and public authorities, which may be important to some firms.
6- An ineffective to corporate sustainability. According to Thomas (2003) the traditional BSC-concept is not effective
enough to contribute to corporate sustainability. This point of view supported by Mohobbot(2004) and Hink and
Kim(2002).
5. Discussions on the Limitations of BSC
Most of the critical points of BSC came from the misunderstanding of the mechanisms of it. This section will explain
some of the limitations of BSC from the supporters’ point of view. The discussion will depend mainly on the work of
Kaplan and Norton (1996), also some studies will be included in the discussion.
1- The causality relationships between the areas of measurement in the BSC. The cause and effect relationships of BSC
mean that relationships which represent the organization’s strategy and the improvements which high probability lead to
desired outcomes. In other words, BSC does not suggest a generic cause and effect relationships, but it suggests
incorporating the most important critical areas. Kaplan and Norton (1996) note that “the cause-and-effect
interrelationships in the scorecard help identifies the critical drivers that will allow breakthrough performance on
important outcome measures”. (p 224) According to Per and Teemu (2005), Kaplan and Norton suggest the analysis of
customer profitability to determined which customer demands should be satisfied in ways that are profitability of the
organization.
2- Concept of time dimension in the BSC. The BSC does not mention to the time dimension explicitly in its
implementation as measurement management system. However, since the BSC is a strategy management tool, so, the
time dimension is implicitly a part of the methodology because the strategic plans take into account the time of the
implementation. According to Per and Teemu (2008), companies often have the time dimension into their strategic
maps and scorecards in simple ways.
3- The validation of BSC. The purpose of the focus on few measures in the BSC is to avoid the information overload.
BSC is more than collection of measures used to identify problems. The dependence on few measures in the BSC is to
identify and measure those actions that are required improve desired outcomes. Kaplan and Norton (1996) point out that
the process of building BSC clarifies the strategic objectives and identifies the critical few drivers of the strategic
objectives. Hasnan (2006), notes that the reduction of the number of measures increases the ability of the company to
direct its efforts to strategic priority. Furthermore, the objectives within the four perspectives are carefully selected and
are firm specific. It is noticeable that the total numbers of measures should be limited to somewhere between 15 and 20,
or three to four measures for each of the four perspectives (www.netmba.com).
4- Linkage between top and operation levels of the organization. Kaplan and Norton emphasize that the measures of
BSC must be a part of the information system at all levels of the organization. According to Kaplan and Norton (1996)”
the objectives and the measures for the BSC are more than just a somewhat collection of financial and nonfinancial
performance measures; they are derived from a top –down process driven by the mission and the strategy of the
business unit”. (p9) Hasnan (2006), notes that one of the most important points of building BSC will be the ability of
the organization to express its strategy and vision in tangible terms within the company. It is clearly that the mechanism
of BSC encourages the integration between all levels of the organization.
5- The focus of BSC. Kaplan and Norton note that BSC focuses on both external and internal aspects. They added that
BSC is the result of the collision between the irresistible force to build long-range competitive capabilities and the
immovable object of historical-cost financial accounting model. Hasnan (2006) points out that BSC balances the
internal capabilities of the organization and its external relationships. Although Kaplan and Norton do not identify the
role of the competitors in their traditional BSC, the noticeable that they considered the BSC as a tool that helps
organizations to the success in the new information age competition. The BSC supports the organization’s ability to
build strong internally and externally situations.
6- BSC and corporate sustainability. Kaplan and Norton suggest using BSC for the purpose of sustainability aspects.
The use of BSC in sustainability approach is relatively new. However, as we will show later, some companies such as
Novartis, Novo Nordisk, Volkswagen, Shell, Dow Junes, and others, have adopted aspects of sustainability in their
balanced scorecards.
BSC has many critical points which mainly came from academic field. However, it is still attract a lot of researcher
attention because of worldwide implementation and its emergence as alternative of the traditional accounting systems
which focus heavily on financial aspects, with the neglecting of the other aspects. This may lead to lose these
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accounting systems its balance, and resulted in the emergence of BSC to create the balance of the measurement of the
organization. Kaplan and Norton (1996 ) noted that:
“The measures of BSC represent a balance between external measures for stakeholders and customers, and
internal measures of critical business process, innovation, and learning and growth. The measures are
balanced between the outcome measures- the results from past efforts- and the measures that drive future
performance. And the scorecard is balanced between objective, easily quantified outcome measures and
subjective, somewhat judgmental, performance drivers of the outcome measures”. (p 10)
Conclusion
Since the last decades, the performance management has become a legislative requirement for the private and public
sectors. Companies are looking to find the tool that a can measure the performance effectively. Unfortunately, many
management systems have felt for shortcoming in their measures specially regard to environmental and social issues.
Comparing BSC with other performance management system resulted that BSC has the ability over other system to
present the different dimensions of the performance. The BSC has been a highly regarded performance measurement
tools, which can measure different aspects in the company. According to Kaplan and Norton (2001), the first companies
which adopted BSC such as Mobil Oil Corporation’s North America Marketing and Refining, CIGNA Corporation’s
Property & Casualty Division, Chemical Retail Bank, and Brown & Root Energy Services’ Rock water Division- these
organizations used the Balanced Scorecard to create strategy focused organizations and have got successful strategy
execution.
Although using BSC in the practice field of the sustainability issues is relatively a new if compared with other
systems, it has been suggested by Kaplan and Norton. This may due to the emergence of new variables, which have a
critical role in the business. According to Margarita (2008), in modern business models, intangible assets such as
employees’ skills and knowledge levels, customers and suppliers relationships, and an innovative culture are critical in
providing the much-needed cutting-edge to the organization. The research into how environmental issues can be
integrated into the core business process through the extension of the BSC is still in a very early stage. Such results
open the door for future studies to consider the role of BSC as performance management system that able to include the
social and environmental issues.
Acknowledgment
We would like to students at University Utara Malaysia. Our thanks go also to professor Ala. Alden, Professor Hartinne
Ahmad, Dr. Sitti Norezam at School of Technology and Logistic Management for their helpful comments during
conducting this paper. Additionally, we would like to thank all staff at library of the university.
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