Performance measurement and metrics in supply chains: an exploratory study

2015 ◽  
Vol 64 (8) ◽  
pp. 1068-1091 ◽  
Author(s):  
Wojciech Piotrowicz ◽  
Richard Cuthbertson
Keyword(s):  
Performance Management ◽  
Customer Service ◽  
Balanced Scorecard ◽  
Economic Value ◽  
Empirical Work ◽  
Health And Safety ◽  
Value Added ◽  
Small Sample ◽  
Content Type ◽  
The Balanced Scorecard

Purpose – The purpose of this paper is to explore the approaches and metrics used to measure supply chain (SC) performance, and to understand the relative perceived importance of such measures. Design/methodology/approach – This research is based on empirical data captured through a survey of SC professionals in a variety of business sectors. Findings – The research confirms the importance of the balanced scorecard (BSC) approach, with BSC, SCOR and economic value added being the most commonly used tools. Economic metrics dominate, focused on cost and customer service. While social and environmental-related measures are of emerging importance, they appear to be of similar importance to economic metrics only when backed up by a legal obligation. Research limitations/implications – The small sample of 51 companies was based on access and the group is not wholly representative of all businesses. Respondents were mainly managers from EU countries involved in procurement, logistics and transport activities. Surveyed companies included manufacturing, automotive, retail, logistics services and wholesaling businesses. Practical implications – The common key performance indicators (KPI’s) are identified. These include measures related to: quality, efficiency, responsiveness, health and safety, employees, emission, natural resources utilisation, waste and recycling. Issues that influence the usage of measurement systems as well as the company and SC levels are ranked. Social implications – Implementation of a monitoring system and subsequent usage of the collected data may help to reduce negative external impacts on society and the environment. Originality/value – The field of SC performance management is still developing, with growing empirical work. Nevertheless this paper is one of the first attempts to carry out such an analysis focused on metrics and their usage. The survey instrument has been tested and can now be applied to other contexts.

scholarly journals Managing For Value: Developing A Performance Measurement System Integrating Economic Value Added and The Balanced Scorecard In Strategic Planning

1970 ◽  
Vol 21 (1) ◽  
pp. 1-18
Author(s):  
Harold Fletcher ◽  
Darlene Brannigan Smith
Keyword(s):  
Performance Management ◽  
Balanced Scorecard ◽  
Economic Value ◽  
Value Added ◽  
Performance Measurement System ◽  
Corporate America ◽  
Economic Value Added ◽  
The Balanced Scorecard ◽  
System A ◽  
Hierarchy Process

Economic value added (EVA) systems and the balanced scorecard (BSC) havegenerated a tremendous interest in corporate America recently as approachesto performance management. Implementation of these methodologies has notproven to be easy. This paper introduces the analytical hierarchy process andshows how this methodology addresses the limitations of EVA and BSC by integratingthem into one comprehensive system. A case study is used to illustratethis methodology.

Measuring value creation: VAIC and EVA

2014 ◽  
Vol 18 (1) ◽  
pp. 8-21 ◽  
Author(s):  
Gianpaolo Iazzolino ◽  
Domenico Laise ◽  
Giuseppe Migliano
Keyword(s):  
Balanced Scorecard ◽  
Economic Value ◽  
Value Added ◽  
Financial Indicators ◽  
Economic Sectors ◽  
Accounting Systems ◽  
Content Type ◽  
Evaluation Systems ◽  
Multi Criteria Evaluation ◽  
Capital Efficiency

Purpose – This study proposes a comparison between Value Added Intellectual Coefficient (VAIC) and one of the most important performance evaluation methods, the Economic Value Added (EVA), starting from a re-interpretation of the VAIC. Design/methodology/approach – The empirical data were gathered from AMADEUS Bureau van Dijk and consist of 2,596 companies operating in Northern Italy, from six different economic sectors, observed for the year 2011. A correlation analysis was carried out in order to highlight whether there is a relationship between the two concepts of VAIC and EVA. Findings – Results show that EVA and VAIC have no significant relationships; as a matter of fact, EVA is based on financial theory, whereas VAIC is focalised on the assessment of Intellectual Capital Efficiency (ICE). Practical implications – Managers could be misled due to the fact that they often make decisions by taking into account only financial indicators such as EBIT, EVA, etc. Although methods like EVA have improved modern accounting systems, they do not take into account information linked to ICE. Therefore, these two perspectives can be useful in a context in which firms' performances are measured through multi-criteria methodologies (i.e. Balanced scorecard). Originality/value – The proposal describes the differences between VAIC and EVA considering these two concepts as not contrasting. In fact, in order to better measure firms' performances, it could be useful to consider VAIC and EVA as an integrated vision in order to develop multi-criteria evaluation systems, rather than consider them separately.

Tata Power Delhi Distribution Ltd: measuring beyond the metrics

2012 ◽  
Vol 2 (2) ◽  
pp. 1-17
Author(s):  
Monica Singhania ◽  
R. Venkatesh
Keyword(s):  
Performance Management ◽  
Balanced Scorecard ◽  
Management System ◽  
Graduate Program ◽  
Planning Process ◽  
Performance Management System ◽  
Inclusive Growth ◽  
Strategy Formulation ◽  
Content Type ◽  
The Balanced Scorecard

Subject area The focus is on a performance management system and its strategic alignment using a Balanced scorecard in a Public Private Partnership framework. This case study analyses the situation for Tata Power Delhi Distribution (TPDD) which needs to realign its strategy to meet the emerging sustainability challenges of inclusive growth and combating the climate change. The case covers the field of strategic management, strategy formulation and performance management system deployment using the balanced scorecard. It touches upon the emerging need for corporates to look beyond economic signals and take social and environmental impacts into strategy planning process. Study level/applicability The case can be used in the following courses; post graduate program in public administration; MBA/Post graduate program in management in strategic management; executive training program for Government executives in public sector organizations to highlight the concept of performance management system in PPP companies. Case overview After the initial tumultuous years, TPDD emerged as one of the efficient power distribution companies in Delhi region. One of the major management tools that was helpful to achieve this was the balanced scorecard. TPDD's general manager for corporate strategy & planning reviewed the process and the due diligence that went into designing and implementing the balanced scorecard. Now, after the balanced scorecard success story, he along with Dr Ganesh Das, Head of Group – Strategy wants to take it to a next level and integrate their strategies related to inclusive growth of community and combating the ill effects of climate change. They believe that the balanced scorecard method that had helped them to achieve their strategic goals will help them to achieve future objectives too. But whether the existing four perspectives: financial, customer, internal process and learning and growth would adequately address the emerging challenges or whether there was a need to introduce a new perspective – “The Social Perspective” – is what they contemplate in the case. Expected learning outcomes The case can be used to teach the following: the importance of strategy in an organization and how it helps the firms to realize their stated vision; to highlight the process of strategy formulation and its deployment; to help students realize the difficulties in realizing a strategic goal through performance management system; use the balanced scorecard as an effective tool for strategy deployment and organizational alignment; to introduce students the concept of sustainability in the organization and emerging global challenges; and to illustrate the complexities involved in a strategic planning process Supplementary materials Teaching notes.

Social construction of linking executive compensation to EVA: a study on Indian corporates

2019 ◽  
Vol 11 (3) ◽  
pp. 202-219 ◽  
Author(s):  
Manju Tripathi ◽  
Smita Kashiramka ◽  
P.K. Jain
Keyword(s):  
Financial Performance ◽  
Executive Compensation ◽  
Performance Management ◽  
Economic Value ◽  
Value Added ◽  
Performance Measure ◽  
Goal Congruence ◽  
Content Type ◽  
Performance Benchmarks ◽  
The Right

Purpose “Paying for performance” has been the corporate mantra for ages, but finding the right performance benchmarks continues to be an enigma. Equally significant is the ongoing debate on the superiority of economic value added (EVA) aligned executive incentive plans over traditional financial performance benchmarks to ensure optimal goal congruence between the corporate and the executive performances. Consequently, this paper aims to explore a plausible linkage between executive compensation and EVA for Indian corporates from a social constructivist perspective. Design/methodology/approach The study uses a mixed method approach where the quantitative analysis of responses from the survey of senior personnel/finance executives of Indian firms is complemented by the qualitative analysis of personal interviews to provide contextual depth to the quantitative data. Findings Based on the study, the researchers construct an understanding that EVA is a superior concept but has restricted utility primarily owing to its computational complexity and unaudited characteristics. The researchers’ interpretive inference finds mandatory disclosure of an audited EVA figure in the corporate financial statements as a prime requirement for EVA to emerge as an objective and visible performance measure. Practical implications Attention of policymakers is sought towards standardising its computation and ensuring its disclosure to bring it at par with the conventional executive financial performance benchmarks. Originality/value The narrative on benefits and the challenges of adopting EVA aligned performance management system is provided directly by the top-level executives responsible for designing the “paying for performance” policies.

scholarly journals Rancangan Service Scorecard sebagai Pengukuran Kinerja Pelayanan Cargo

2015 ◽  
Vol 2 (3) ◽  
pp. 143
Author(s):  
Nurlailah Badariah ◽  
Tiena Gustina Amran ◽  
Aditya Friandy
Keyword(s):  
Performance Management ◽  
Customer Service ◽  
Balanced Scorecard ◽  
Business Processes ◽  
Business Environment ◽  
Strategic Objectives ◽  
The Balanced Scorecard ◽  
Financial Perspective ◽  
Customer Perspective ◽  
Charter Flight

<p><em>Abstrak<strong> – </strong></em><strong>Persaingan antara pelaku bisnis </strong><strong><em>charter flight</em></strong><strong> semakin ketat dalam persaingan global. perusahaan harus  dinamis dan adaptif terhadap perubahan lingkungan bisnis. Perubahan ke arah strategi yang dapat diimplementasikan sesuai dengan perkembangan persaingan </strong><strong><em>charter flight</em></strong><strong> untuk pelayanan yang terbaik bagi pelanggan. Penelitian ini menggunakan pendekatan aplikatif yaitu merancang suatu sistem yang dapat diaplikasikan pada perusahaan </strong><strong><em>charter flight</em></strong><strong>, yang telah memiliki sistem pengelolaan kinerja dengan menggunakan </strong><strong><em>Balanced Scorecard</em></strong><strong>. </strong><strong>Pada perancangan </strong><strong><em>Balanced Scorecard</em></strong><strong> terdapat 4 perspektif utama yaitu : </strong><strong><em>financial perspective , customer perspective, internal business processes , learning and growth perspective</em></strong><strong>. </strong><strong><em>Balanced Scorecard</em></strong><strong> tidak di desain secara spesifik untuk perusahaan jasa dan tidak bersifat prediksi.</strong><em> </em><strong>Sementara</strong> <strong><em>Service </em><em>Scorecard</em> memfokuskan spesifik pelayanan pada <em>customer perspective</em>. </strong><strong>Dari hasil penelitian diperoleh </strong><strong><em>Strategy Mapping</em></strong><strong> yang memuat tujuan-tujuan strategis dan indikator (<em>Lead dan Lag</em>) dari <em>Service Scorecard</em>. Terdapat 17 ukuran kinerja yang temuat di dalam 17 tujuan strategis dan 7 perspektif dari <em>Service Scorecard</em> yaitu : <em>Growth, Leadearship, Acceleration, Collaboration, Innovation, Execution, Retention</em>. Tujuan strategis yang dibuat dalam suatu Strategy Mapping dan indikator sangat berguna untuk menyusun langkah selanjutnya yang akan ditempuh oleh perusahaan. </strong></p><p> </p><p><em>Abstract<strong> – </strong></em><strong>Competition </strong><strong>between charter flight businesses increasingly stringent in a global competition. Companies must be dynamic and adaptive to changes in the business environment.  Changes in the direction of strategy that can be implemented in accordance with the competition  development of charter flight for the best service for customers. This research uses applicative approach to design a system that can be applied to the charter flight company, which already has a performance management system by using the Balanced Scorecard. In the Balanced Scorecard , there are four main perspectives: financial perspective, customer perspective, internal business processes, learning and growth perspective. Balanced Scorecard is not designed specifically to service companies and non-predictive. While the Service Scorecard specific focus on customer service perspective. This research has resulted a strategy map with subsequent strategic objectives and indicator (Lead and Lag) for Service Scorecard. Finally, there are 17 performance measures with subsequent 17 strategic objectives and 7 perspectives Service Scorecard: Growth, Leadearship, Acceleration, Collaboration, Innovation, Execution, Retention. Strategic goals made in a Mapping Strategy and indicator is very useful to formulate the next steps to be taken by the company.</strong><strong></strong></p><p><strong><em> </em></strong></p><p><strong><em>Keyword </em></strong><em>– Service Scorecard, Balanced Scorecard, Strategy Mapping, </em><em>customer perspective, </em><em>Lead dan Lag</em></p>

Implementing the balanced scorecard in a local government sport organization

2017 ◽  
Vol 66 (3) ◽  
pp. 362-379 ◽  
Author(s):  
Panagiotis Dimitropoulos ◽  
Ioannis Kosmas ◽  
Ioannis Douvis
Keyword(s):  
Public Sector ◽  
Performance Management ◽  
Balanced Scorecard ◽  
Management Tool ◽  
Content Type ◽  
Non Profit ◽  
The Balanced Scorecard ◽  
The Public ◽  
Sport Organization ◽  
The Impact

Purpose The purpose of this paper is to examine the issue of performance management in the public sector and specifically the implementation of the balanced scorecard (BSC) methodology on a public (municipal) non-profit sport organization in Greece. The research provides a discussion on the BSC development process, the goals set on each pillar and the outcome that the organization achieved, in order to be used as a roadmap for other managers in the public sector. Design/methodology/approach The study used information extracted from the municipal board of Papagos-Holargos city in Greece, including board reports, documents and decision transcripts and open-ended interviews related to the implementation of BSC method, as well as to the impact of this decision on the quality of services, citizens’ satisfaction and the improvement of internal processes. Findings The results indicated that the citizens of Papagos-Holargos perceived sport services to be of enhanced quality related to/when compared to the previous years (based on a questionnaire submitted by the citizens of Papagos-Holargos at the end of the each sample per year). In addition, the staff improved its skills and abilities by participating in training seminars and, in general, the implementation of the BSC method on the municipal sport organization of Papagos-Holargos city sets the basis for an effective performance management which can enhance its future sustainability. Practical implications Managers of municipal and public sport organizations could use the findings of the study as a roadmap for discussing, evaluating and possibly implementing the BSC approach in their organizations’ daily operations. Originality/value This study fills a significant gap in the existing literature on the implementation of a traditional business performance management tool on a non-profit public sport organization.

Model of a Performance Measurement System for Maintenance Management

2017 ◽  
pp. 194-214
Author(s):  
José Contreras ◽  
Carlos Parra ◽  
Adolfo Crespo Márquez ◽  
Vicente González-Prida ◽  
Fredy A. Kristjanpoller ◽  
...  
Keyword(s):  
Balanced Scorecard ◽  
Economic Value ◽  
Value Added ◽  
Maintenance Management ◽  
Performance Measurement System ◽  
Strategic Objectives ◽  
The Balanced Scorecard ◽  
Definition Of ◽  
Key Indicators ◽  
The Relationship

This chapter book will analyze different systems of indicators by which maintenance management is evaluated. The models analyzed are: 1) The Balanced Scorecard. 2) The Alsyouf Model. 3) The Maintenance Scorecard Model. 4) The Metrics for Maintenance of SMRP (Society of Maintenance and Reliability Professionals). 5) The EN-15341-Maintenance Key Performance Indicators (European Standard). This paper presents a model for indicators based on various hierarchical levels and different functions and processes taking place in a maintenance department. With this model a comprehensive assessment of the most important aspects at all levels of the organization is achieved and shows the relationship between the various indicators to understand the overall performance of maintenance management and so align departmental objectives with the strategic objectives. Also is developed the C-KPI-M model, which is the definition of 18 chains of key indicators for viewing the cause and effect of the maintenance KPI that contribute to achieving the maximum Economic Value Added (EVA).

Design principles for the development of the balanced scorecard

2016 ◽  
Vol 30 (5) ◽  
pp. 622-634 ◽  
Author(s):  
Zehra Keser Ozmantar ◽  
Tokay Gedikoglu
Keyword(s):  
Performance Management ◽  
Balanced Scorecard ◽  
Developmental Process ◽  
Educational Institution ◽  
Implementation Process ◽  
Design Principles ◽  
Open Communication ◽  
Content Type ◽  
The Balanced Scorecard ◽  
Flexible Management

Purpose – The purpose of this paper is to investigate the development and implementation process of the balanced scorecard (BSC) approach in an educational institution in the context of the Turkish educational system. It also aims, on the basis of the results of the applications in a particular school, to define principles through which the development of BSC could be successfully achieved. Design/methodology/approach – The study adopts a design-based research method which provides a particularly useful approach to the solution of real problems in the field of education. The study was carried out in a private educational institution with 161 members of staff including managers, teachers and personnel of the support units. Scorecards for the institution as well as 161 members of staff were developed. Findings – The examination of the developmental process suggests 12 design principles: willingness to change; managerial support; flexible management structure; appropriate team members; training of staff; availability of strategic planning; distinctive BSC dimensions; smart strategic objectives; balance between leading and lagging indicators; developing individual scorecards; open communication system; structured report format. Originality/value – This is the first study that develops BSC for a school in a Turkish context. The design principles, the author believes, are particularly useful for schools that do not have a strategic performance management background. This study is also important in terms of putting forward the applicability of BSC in educational organizations in different cultures and thus gaining new insights about the developmental process of BSC.

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