Do hospital balanced scorecard measures reflect cause-effect relationships?

2017 ◽  
Vol 66 (3) ◽  
pp. 338-361 ◽  
Author(s):  
Marcela Porporato ◽  
Peter Tsasis ◽  
Luz Maria Marin Vinuesa
Keyword(s):  
Balanced Scorecard ◽  
Content Type ◽  
The Balanced Scorecard ◽  
Effect Relationship ◽  
Composite Indices ◽  
Upper Level ◽  
Relationship Of ◽  
Quantitative Case Study ◽  
Practical Implications

Purpose The purpose of this paper is to investigate whether first level measures in the Balanced Scorecard (BSC) declaring a cause-effect relationship by design are composite indices of lower measures, and if they converge into a single factor as is traditionally accepted in the BSC literature. Design/methodology/approach This study reports results of a quantitative case study that focusses on an Ontario (Canada) community hospital that has been using the BSC. Findings The results of this study challenge the cause-effect assumption of the BSC, particularly in a cascading context, and suggest that a lack of attention of how composite indices of lower measures converge into a single higher level measure may be the reason for ineffective use of the BSC. Research limitations/implications The BSC is a dynamic tool; as such there are several measures that have a very short history, thus limiting the observations available to be used in statistical models. Practical implications A key recommendation for practice that emerges from this study is the need to test if lower level metrics do merge naturally in the upper level measure of the BSC; if not, the upper level measure might not be linked to other measures rendering the BSC ineffective in the context of causality. Originality/value Although several studies have argued in favour of the cause-effect relationship of the BSC, none of those found in the literature have paid attention to the way in which first level measures are constructed. This may explain why certain measures are linked, while others are not, to those that are calculated as composite indices of several lower level indicators.

Balanced scorecard and emerging strategies

2017 ◽  
Vol 33 (4) ◽  
pp. 25-27
Keyword(s):  
Balanced Scorecard ◽  
Good Deal ◽  
Content Type ◽  
The Balanced Scorecard ◽  
Business Change ◽  
Complex Organization ◽  
Pertinent Information ◽  
Multiple Levels ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings The article “Multi-level strategic alignment within a complex organisation” by Laurie et al. (2016) provides an in-depth look at how a large, complex organization was able to implement the balanced scorecard in multiple levels and phases. Such a case study can teach business change managers a good deal about the theoretical as well as the practical considerations of such an implementation, particularly in the context of the Middle East. Practical implications The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

The balanced scorecard for school management: case study of Thai public schools

2020 ◽  
Vol 24 (3) ◽  
pp. 285-300
Author(s):  
Nopadol Rompho
Keyword(s):  
Public Schools ◽  
Balanced Scorecard ◽  
Structural Equation ◽  
Generic Model ◽  
Statistical Tool ◽  
Content Type ◽  
The Balanced Scorecard ◽  
Management Case Study ◽  
Practical Implications

Purpose This study aims to develop and empirically test the balanced scorecard for public schools in Thailand. Design/methodology/approach Data were obtained from 3,351 public schools in Thailand. Structural equation modelling was used as a statistical tool to analyse the data. Findings The results showed that there are cause-and-effect relationships between students, internal processes and learning and growth perspectives in the balanced scorecard. Nevertheless, a relationship with the resources perspective was not found. Research limitations/implications The sampled schools in this study might be different from normal public schools because these schools get some support from the private sector. Thus, the generalisation of the findings should be made with caution. Practical implications The proposed balanced scorecard model that has been empirically tested in this study can be used in public schools to help manage their organisation. These schools can start with a generic model and modify it to suit their organisation. Originality/value Most of the studies on the application of the balanced scorecard for schools did not test the validity of the framework because of the lack of available data. This study was among the first to empirically test the relationships between perspectives in the balanced scorecard model for public schools. Additionally, the balanced scorecard can be a useful tool for non-managers who work in public schools.

The balanced scorecard: comments on balanced scorecard commentaries

2012 ◽  
Vol 8 (4) ◽  
pp. 539-545 ◽  
Author(s):  
Robert S. Kaplan
Keyword(s):  
Balanced Scorecard ◽  
Strategy Execution ◽  
Personal Writing ◽  
Strategy Formulation ◽  
Content Type ◽  
The Balanced Scorecard ◽  
The Past ◽  
Personal Experiences ◽  
Practical Implications

PurposeThe purpose of this paper is to provide the author's insights about five papers written in this volume about his published work on the balanced scorecard (BSC).Design/methodology/approachThe author's comments are based on his personal writing, teaching, speaking about, and implementing the BSC during the past 20 years.FindingsThe author finds that academic commentary on the BSC often ignores its role in strategy execution.Research limitations/implicationsThe commentary is unique to the author's personal experiences and may not be generalizable to other scholars who have not shared the same experiences.Practical implicationsThe paper may help scholars better understand the role of the BSC for strategy formulation, communication and implementation. It may also aid them in teaching the BSC to students and executives.Social implicationsThe paper discusses how the BSC can be used in public sector applications, as well as for companies that want to internalize environmental, social and community objectives in their strategies.Originality/valueThe paper reflects the personal views of the author; it is original to him.

Sustainability reporting integrated into management control systems

2015 ◽  
Vol 27 (2) ◽  
pp. 189-207 ◽  
Author(s):  
Jennifer Kerr ◽  
Paul Rouse ◽  
Charl de Villiers
Keyword(s):  
Control Systems ◽  
Balanced Scorecard ◽  
Sustainability Reporting ◽  
Management Control ◽  
Management Control Systems ◽  
Management Control System ◽  
Content Type ◽  
The Balanced Scorecard ◽  
External Reporting

Purpose – This paper aims to examine how three different organisations integrate sustainability reporting into management control systems (MCS). Design/methodology/approach – A case study examination of sustainability reporting integrated into MCS in three New Zealand organisations. Findings – The integration of sustainability reporting into MCS holds advantages for organisations to operationalise sustainability objectives, broaden stakeholder accountability as well as intensify interactions with stakeholders, formalise organisation beliefs and improve communication of sustainability measures internally. While frameworks such as the balanced scorecard (BSC) can facilitate implementation of sustainability reporting, some organisations may choose to fully integrate the latter into their management control system. Originality/value – Sustainability reporting is sometimes seen as an external reporting philosophy that can be managed as a separate project. The authors show it can be integrated into MCS, either entirely or through tools such as the BSC. The authors develop a framework that may be useful in future studies to locate our case organisations.

Measuring performance in R&NPD

2010 ◽  
Vol 13 (4) ◽  
pp. 481-506 ◽  
Author(s):  
Ciriaco Bassani ◽  
Valentina Lazzarotti ◽  
Raffaella Manzini ◽  
Luisa Pellegrini ◽  
Stefano Santomauro
Keyword(s):  
New Product Development ◽  
Balanced Scorecard ◽  
Performance Measurement System ◽  
Military Industry ◽  
Holistic View ◽  
Content Type ◽  
The Balanced Scorecard ◽  
Specific Object ◽  
Managerial Implications

PurposeImplementing a performance measurement system (PMS) for research and new product development (R&NPD) is fundamental for supporting decision making but is a challenging task, because effort levels are not measurable and success is highly uncertain. The purpose of this paper is to investigate the design of a PMS in R&NPD in a case study based on the balanced scorecard and Lynch and Cross's pyramidal framework.Design/methodology/approachThe case study regards Whitehead Alenia Sistemi Subacquei that was thought to be a proper company for the empirical analysis for its strong reliance on R&NPD activities, the adoption of a PMS in the R&NPD department and the lack of contributions in the literature that investigate the design of a PMS for R&NPD function in the context of the military industry.FindingsRelevant managerial implications can be drawn: there is the need for different perspectives in measuring performance in an NPD environment, beyond the iron triangle (time, cost and quality); the use of different perspectives/indicators allows tailoring PMS to the specific object of control, coherently with the need to identify specific responsibilities for each measured performance; the adoption of different performance perspectives/indicators should not prevent a holistic view of performance, in which the different performance perspectives/indicators are related with the overall R&NPD economic performance and implementation matters: sharing with people the measurement aim/characteristics make the PMS understandable and acceptable.Originality/valueAlthough this subject has been debated in the literature, more study of applications in real contexts is needed.

The balanced scorecard and the construction of a management control discourse

2014 ◽  
Vol 10 (4) ◽  
pp. 466-485 ◽  
Author(s):  
Will Seal ◽  
Linna Ye
Keyword(s):  
Conceptual Framework ◽  
Critical Discourse Analysis ◽  
Balanced Scorecard ◽  
Management Control ◽  
Critical Discourse ◽  
Content Type ◽  
The Balanced Scorecard ◽  
Organizational Action ◽  
The Impact

Purpose – The purpose of this paper is to synthesise a pragmatic constructivist view of management control and a critical discourse perspective on organizational action. These theories are deployed to build a conceptual framework that can be used to interpret the construction of a management control discourse in specific empirical situations. The framework is deployed to show how, in a particular instance, the balanced scorecard (BSC) can be seen as impacting on organizational action and success/failure. Design/methodology/approach – The paper develops a theoretical framework for management control which is used to interpret a case study of a BSC implementation in a major bank. Findings – The paper reports on a case study of a major bank where the BSC changed actors’ perceptions and actions. Although the bank avoided some of the worst excesses of pre-Credit Crunch delinquency, other problems such as misselling suggest that the BSC’s impact on organizational success/failure was ambiguous. The BSC may have improved organizational coordination but long-standing values based on a bonus culture contributed to long-term commercial problems. Research limitations/implications – With mainstream researchers on the BSC lacking a conceptual basis that explains the communicative impact of the BSC and interpretive researchers focusing on the role of rhetoric in spreading the BSC amongst practitioners, then the conceptual framework in this paper suggests a way of synthesising mainstream and interpretive research on the BSC. Originality/value – The originality of the paper lies in its application of pragmatic constructivism and critical discourse analysis to interpret and explain the impact of the BSC in a particular organizational setting.

Use and abuse of the balanced scorecard

2016 ◽  
Vol 32 (7) ◽  
pp. 17-19
Keyword(s):  
Human Resources ◽  
Case Studies ◽  
Balanced Scorecard ◽  
Design Methodology ◽  
Reading Time ◽  
Cutting Edge ◽  
Content Type ◽  
The Balanced Scorecard ◽  
Pertinent Information ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Why do firms measure performance? This seems, at first, a rather trite, facile question – “to assess how much money they can make, of course!” – however, the simplicity of the question masks a much more complex suite of answers. First, are measures used for internal or external purposes? Second, if they are internal, is it about efficiency, growth or scale of outputs? Third, if it is about scale, what areas are being judged for scale – human resources (HR) or profits, for example? Research limitations/implications The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Getting the scorecard in balance

2014 ◽  
Vol 30 (6) ◽  
pp. 23-25
Keyword(s):  
Case Studies ◽  
Balanced Scorecard ◽  
Design Methodology ◽  
Reading Time ◽  
Second Generation ◽  
Content Type ◽  
The Balanced Scorecard ◽  
Initial Generation ◽  
Pertinent Information ◽  
Practical Implications

Purpose – This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach – This briefing is prepared by an independent writer who adds his own impartial comments and places the articles in context. Findings – In this study, eight subsets of the Balanced Scorecard are proposed, grouped into three generations; the first being the initial generation of scorecard, the second generation including strategy maps and the final generation which includes destination statements. Practical implications – The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value – The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and an easy-to digest format.

Metachoice for benchmarking: a case study

2015 ◽  
Vol 22 (3) ◽  
pp. 338-353 ◽  
Author(s):  
Domenico Laise ◽  
Laura Marraro ◽  
Gianpaolo Iazzolino
Keyword(s):  
Balanced Scorecard ◽  
Business Performance ◽  
Balance Sheet ◽  
Evaluation Criteria ◽  
Multicriteria Analysis ◽  
Evaluation Process ◽  
Content Type ◽  
Benchmark Analysis ◽  
Practical Implications

Purpose – In a previous paper the authors emphasized the advantages of multicriteria methodologies to evaluate business performance. The purpose of this paper is to highlight the metachoice problem that always arises in a benchmark multicriteria analysis that can be synthesized as follows: “how to choose an algorithm to choose?” Design/methodology/approach – In order to perform a benchmark analysis, a set of criteria must be chosen. In the Balanced Scorecard approach, for example, key performance indicators (KPIs) are grouped in four different perspectives: financial, customer, internal processes and learning and growth. In this paper, the authors focus on multicriteria benchmark analysis applied to KPIs of the financial perspective. The paper considers a set of criteria used in financial statement analysis based on balance sheet, income statement and cash flow statement. A case study is described. Findings – The main findings of the paper are when the evaluation of a firm is based on different genuine criteria, a metachoice problem arises: multicriteria ranking algorithms cannot be selected using a multicriteria algorithm; the choice of an algorithm ultimately depends on the subjective preference of the policy maker; and the authors metachoice solution to the benchmarking problem is in accordance with Simon’s satisfacing solution, describing a non-maximizing performance measurement methodology. Practical implications – The paper provides several practical implications in all cases in which a ranking has to be assigned to a group of firms based on financial performances. More in general the problem is very relevant when a ranking has to be carried out with respect to a set of projects, a set of strategies, a set of organizational units, etc. Originality/value – The adoption of a set of criteria is certainly an advantage to avoid uni-criterial myopic evaluation. However, this also creates some methodological problems. The paper demonstrates the “relativity” (subjectivity) of results of the evaluation process when there are many evaluation criteria, as in a benchmark context. This is a metachoice problem that cannot be solved by using another multicriteria algorithm.

Implementing the Value Scorecard

2015 ◽  
Vol 16 (3) ◽  
pp. 234-251 ◽  
Author(s):  
Stephen Town
Keyword(s):  
Performance Measurement ◽  
Balanced Scorecard ◽  
Single Case ◽  
Academic Research ◽  
It Services ◽  
Content Type ◽  
The Balanced Scorecard ◽  
Unique Framework ◽  
The University

Purpose – The purpose of this paper is to present a case study of the implementation and use of the Value Scorecard in a university library. The Value Scorecard seeks to articulate the full value of a library through a four dimensional matrix populated with data, evidence and narrative. Design/methodology/approach – The study covers two years of collection of data and evidence to populate the Value Scorecard at the University of York, UK. This is action research and development. Findings – The paper describes the success of the implementation of the framework across a broad university service including library, archives and IT services. The reporting template is outlined and the availability of relevant measures for populating each dimension are discussed, together with developments in the concepts of each dimension since the original paper on the scorecard. The paper reflects on the advances in the understanding and practice of performance measurement and assessment in libraries that the Value Scorecard offers. The strengths and omissions of other pre-existing frameworks, including the Balanced Scorecard, are discussed and absorbed into the value framework. The application of the Value Scorecard offers a practical and successful framework for library performance measurement and advocacy in a dynamic and changing landscape. Research limitations/implications – The limitations of the research are those generally applying to a single case experience. Practical implications – Nothing arises from the study to suggest that other libraries could not apply this framework, as it encompasses other previous frameworks and allows for local variations and circumstances. Some elements of the framework lack full measurement methods, and this is discussed. Originality/value – The originality and value of the paper is that it provides a unique framework for measurement of all dimensions of activity and value in an academic research library, and one that can be tailored to local requirements.

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