The alignment of managers’ mental models with the balanced scorecard strategy map

2012 ◽  
Vol 23 (5-6) ◽  
pp. 613-628 ◽  
Author(s):  
José Manuel Hurtado González ◽  
Miguel Ángel Calderón ◽  
José Luis Galán González
Keyword(s):  
Mental Models ◽  
Balanced Scorecard ◽  
The Balanced Scorecard ◽  
Strategy Map

Strategy maps: the essential link between the balanced scorecard and action

2015 ◽  
Vol 36 (2) ◽  
pp. 34-40 ◽  
Author(s):  
Rainer Lueg
Keyword(s):  
Balanced Scorecard ◽  
Strategy Execution ◽  
Content Type ◽  
Strategy Maps ◽  
The Balanced Scorecard ◽  
Top Managers ◽  
Action Strategy ◽  
Recent Developments ◽  
Balanced Scorecards ◽  
Strategy Map

Purpose – The purpose of this paper is to show how the use of Strategy Maps substantially improves the implementation success of balanced scorecards (BSC). The BSC is supposed to translate strategy into action. Strategy maps support this by showing cause-and-effect chains. But what does this mean for strategy execution in practice? To achieve better BSC implementations, the author uncovers pitfalls and names the remedies. Design/methodology/approach – The author summarizes the most important findings from initially over 1,000 studies that have dealt with the BSC from 1992 to 2012. Findings – BSC implementations that use a sophisticated Strategy Map appear to be successful. Strategy maps foster a better understanding of the BSC among employees, create greater commitment and less resistance and are superior to the BSC itself in communicating how to achieve strategic goals. Also, strategy maps facilitate managers’ evaluation of the relevant environment. Nevertheless, the common measure bias is a usual pitfall: top managers have a tendency to use their own strategic targets as a yardstick for lower-level employees. Originality/value – This paper helps managers understand the most recent developments on strategy maps. In particular, the author highlights that causalities do not exist in organizations in the same way as there are “laws” in physics. Instead, organizations need to customize their BSC to their way of doing business.

Improving the Industrial System Performance by Using the Balanced Scorecard Instrument

2015 ◽  
Vol 808 ◽  
pp. 370-375
Author(s):  
Flavia Fechete ◽  
Anișor Nedelcu
Keyword(s):  
Balanced Scorecard ◽  
Business Processes ◽  
Industrial System ◽  
Financial Indicators ◽  
The Balanced Scorecard ◽  
Critical Areas ◽  
Future Success ◽  
Comprehensive Picture ◽  
Strategy Map ◽  
The Impact

Nowadays, managers recognize the impact that measures have in performance. The balanced scorecard is a new tool that complements traditional measures of business unit performance. The scorecard contains a diverse set of performance measures, including financial performance, customer relations, internal business processes, and learning and growth.The Balanced Scorecard provides leaders with a process to describe strategy – both what the organization wants to accomplish and how it intends to realize its strategic outcomes. Taking all the objectives and measures together into a strategy map of cause-and-effect relationship across the four perspectives provides a comprehensive picture of the organization’s value creating activities.The analysis developed in this paper aims is to examine the critical areas of an industrial system as product, process, customer and market perspective. The study will provide managers four different perspective from which to choose measures: from traditional financial indicators, to measures for improving customer satisfaction, internal processes and innovation and improvement activities, focusing on the company’s current and future success.

scholarly journals Strategy Map dan Rancangan Balanced Scorecard PT. DPI

2018 ◽  
Vol 7 (2) ◽  
pp. 117
Author(s):  
A Fakhri Arifyanto
Keyword(s):  
Balanced Scorecard ◽  
Customer Relationship ◽  
Strategy Development ◽  
Strategic Objectives ◽  
The Balanced Scorecard ◽  
Strategic Issues ◽  
Strategic Objective ◽  
Financial Perspective ◽  
Strategy Map ◽  
Process Perspective

This research aims to compile and designing Strategy Map and Balanced Scorecard on PT. DPI in order to achieve the objective of becoming an international organization or world class company.  According to David P. Norton which had been quoted by Mathews (2007), Balanced Scorecard is precise methodologies to develop measurement which is capable to describe the organization’s strategy.  Development of Strategy Map is the key to design effective Balanced Scorecard. The analysis result stated that the Strategy Map of PT. DPI could be compiled by virtue of the strategic issues in the corporate level, meanwhile for the Balanced Scorecard design consists of four perspectives in which financial perspective to improve the ROI of strategic objective by increasing revenue from existing product and new product.  Customer perspective, with the strategic objective of customer satisfaction, increased market share by retaining existing customers and add new customers.  Internal Business Process Perspective, with a strategic objective of developing superior products, innovative and sophisticated, improved customer relationship management.  Learning and Growth Perspective, with strategic objectives to improve the quality, professionalism of human resources DPI, to develop a conducive climate in DPI (improve DPI climate).    

scholarly journals The Determination of Performance Measures by Using a Balanced Scorecard Framework

2019 ◽  
Vol 11 (1) ◽  
pp. 43-56
Author(s):  
Irem Kefe
Keyword(s):  
Balanced Scorecard ◽  
Financial Measures ◽  
The Balanced Scorecard ◽  
Manufacturing Company ◽  
Strategy Map ◽  
Owned Company ◽  
The Relationship ◽  
A Company

Abstract The aim of this study was to determine the contributions of the balanced scorecard (BSC) methods to identify the relationship between the objectives and activities and examine how the BSC should be formed in a manufacturing company. The BSC framework was examined via a case study in a yarn manufacturing company. The activities to be carried out by the company to achieve its objectives and how the appropriate measures are determined in evaluating the contribution of the activities to the achievement of objectives are explained under the BSC approach. The BSC implementation and adaptation have facilitated in a family owned company because of its fast decision-making process. Objectives are made clear in accordance with the company’s strategy and causal relationship between objectives and activities are linked by the strategy map. The BSC implementation shows that financial measures are not enough to evaluate the effects of all the activities on the objectives in a company. The cooperation between departments in the company and the efficiency of corporation meetings increases. The meetings have become more result-oriented due to clarifying objectives and responsibility of individual levels.

Proposing a strategy map for coastal urban project success using the balanced scorecard method

2020 ◽  
Vol 27 (10) ◽  
pp. 2993-3030
Author(s):  
Truc Thi-Minh Huynh ◽  
Chau Ngoc Dang ◽  
Long Le-Hoai ◽  
Anh-Duc Pham ◽  
Truong Duy Nguyen
Keyword(s):  
Balanced Scorecard ◽  
Success Factors ◽  
Project Success ◽  
Principal Component ◽  
Asia Pacific ◽  
Content Type ◽  
The Balanced Scorecard ◽  
Strategy Map ◽  
Urban Project ◽  
Social And Environmental Performance

PurposeThis study aims to develop a strategic framework for the success of coastal urban projects in Vietnam, which is one of the Asia Pacific countries significantly affected by climate change.Design/methodology/approachA questionnaire was used to collect data from practitioners in Vietnam. Principal component analysis (PCA) technique was used to identify critical success factors (CSFs) of coastal urban projects. A strategy map for the success of coastal urban projects was also proposed using the balanced scorecard (BSC) method.FindingsThis study identified 41 project success factors that could contribute to project success, and thence, extracted 11 CSFs for coastal urban projects using the PCA technique. In addition, 11 key performance indicators (KPIs) for coastal urban projects were listed and their linking with project success factors and CSFs was explored. Furthermore, a strategy map for the success of coastal urban projects was proposed using the BSC method. The strategy map included five perspectives: learning and growth, internal processes, social and environmental performance, financial performance, and stakeholders' satisfaction.Originality/valueThis study identified 11 CSFs for coastal urban projects and proposed a strategy map for the success of coastal urban projects.

scholarly journals How are strategy maps linked to strategic and organizational change? A review of the empirical literature on the balanced scorecard

2014 ◽  
Vol 11 (4) ◽  
pp. 439-446 ◽  
Author(s):  
Rainer Lueg ◽  
Pernille Julner
Keyword(s):  
Organizational Change ◽  
Literature Review ◽  
Balanced Scorecard ◽  
Empirical Studies ◽  
Empirical Literature ◽  
Sustainable Change ◽  
Strategy Maps ◽  
The Balanced Scorecard ◽  
Strategy Map ◽  
The Common

Proponents of the Balanced Scorecard (BSC) emphasize that the BSC translates strategy into action, but that Strategy Maps are a crucial mean to sustainable change. This literature review investigates how Strategy Maps are linked to strategic and organizational change. We aim at a better understanding of BSC implementations, gaps in practice, as well as remedies. Built upon the theoretical framework of Kaplan and Norton, we conduct a systematic literature review of initially 332 empirical studies between 1992 and 2013. We find that only 15 studies have dealt with the topic of Strategy Maps. Yet, BSC implementations that actually use Strategy Maps appear to be rather successful. Strategy Maps induce sustainable change, foster a better understanding of the BSC, facilitate evaluations of the external environment, create greater commitment, lower resistance, and are superior to a stand-alone BSC in communicating strategy. Nevertheless, we identify the common measure bias as a usual pitfall that leads to inappropriate evaluations of lower-level actors. We assert that BSC implementations need a Strategy Map to be successful. We also highlight that there has been only little research on the topic, and that present findings might be inconclusive due to the confined range of methodology (single-organization case studies).

Strategies for the Cooperation of Higher Education Institutions in ICT

2008 ◽  
pp. 2104-2117
Author(s):  
Juha Kettunen
Keyword(s):  
Higher Education ◽  
Economic Growth ◽  
Strategic Planning ◽  
Balanced Scorecard ◽  
Joint Venture ◽  
Higher Education Institutions ◽  
The Balanced Scorecard ◽  
Strategy Map

This study analyzes the strategic planning of the ICT center, which is a joint venture of three higher education institutions. The strategies of focus and operations excellence are natural choices to define the strategic outlines for the center, which aims to increase the economic growth of the region. The selected strategies are described in this study using the balanced scorecard approach. It allows the network of organizations to articulate and communicate their strategy to their employees and stakeholders. The concept of the strategy map is used to describe the strategy. The decentralized efforts of separate organizational units would most likely fail without the network strategy and cooperation.

Causal Inference in Judgment Using the Balanced Scorecard

2019 ◽  
Vol 32 (2) ◽  
pp. 201-224
Author(s):  
Kristian Rotaru ◽  
Dennis D. Fehrenbacher ◽  
Min Hui Liang ◽  
Axel K.-D. Schulz
Keyword(s):  
Balanced Scorecard ◽  
Data Availability ◽  
Strategic Objectives ◽  
Performance Outcome ◽  
The Balanced Scorecard ◽  
Strategic Objective ◽  
Generic Strategy ◽  
Strategy Map ◽  
Financial Performance Measures ◽  
Psychology Literature

ABSTRACT One of the potential threats to the effectiveness of the Balanced Scorecard (BSC) is that managers over- or underuse particular perspectives of the BSC. Specifically, we investigate the effects of (1) the presentation of strategic objectives (generic strategy map versus strategic objective list), and (2) the performance outcome patterns (positive versus negative outer perspective) across the performance measurement perspectives of the BSC and find support that is consistent with the violation of the causal independence assumption (VCIA) in the psychology literature (Rehder 2014). Our findings show that the presentation of the strategic objectives and the performance outcome patterns interact significantly affecting performance evaluation outcomes. Two follow-up experiments provide further support for the VCIA observed in the main experiment by ruling out an alternative explanation that managers simply place a greater emphasis on financial performance measures. Data Availability: Data are available from the authors upon request.

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