Developing a strategy map for environmental consulting firms

2018 ◽  
Vol 67 (5) ◽  
pp. 916-934 ◽  
Author(s):  
Naqi Sayed ◽  
Camillo Lento
Keyword(s):  
Balanced Scorecard ◽  
Customer Value ◽  
Secondary Data ◽  
Causal Link ◽  
Active Management ◽  
Content Type ◽  
Consulting Firms ◽  
Strategy Map ◽  
Environmental Consulting ◽  
Structured Approach

Purpose The purpose of this paper is to identify key performance indicators (KPIs) for environmental consulting firms, explore their causal linkages and develop a strategy map around the balanced scorecard (BSC) perspectives. Design/methodology/approach Relevant KPIs are identified through interviews and secondary data. Causal relationships between KPIs are explored by using the decision-making trial and evaluation laboratory (DEMATEL) method to analyze survey responses from senior partners and industry experts. Findings The results suggest that the learning and growth perspective plays a pivotal role for consulting firms. In addition, and contrary to views held by some, internal process perspective can play a significant cause factor role for service businesses. Among the KPIs which were identified as important, acquiring new skills/techniques, increased customer value proposition, personnel utilization, new product solutions and start to end solutions as KPIs exhibited both cause and effect characteristics. Practical implications The results isolate core KPIs which self-reinforce, complement each other and form a feedback loop. Active management and monitoring of these KPIs is likely to result aid a consulting firm in achieving strategic objectives. The strategy map developed in this study can also serve as a reference point for similar businesses. Originality/value This is the first known study to develop a strategy map for a consulting business by adopting a structured approach and identify causal link among BSC perspectives and their respective KPIs. The study provides further empirical evidence for usefulness of a structured approach such as the DEMATEL.

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.

Determining quantitative targets for performance measures in the balanced scorecard method using response surface methodology

2018 ◽  
Vol 56 (9) ◽  
pp. 2006-2037 ◽  
Author(s):  
Sorour Farokhi ◽  
Emad Roghanian
Keyword(s):  
Response Surface Methodology ◽  
Performance Evaluation ◽  
Response Surface ◽  
Performance Measures ◽  
Balanced Scorecard ◽  
Decision Makers ◽  
Content Type ◽  
Strategic Objectives ◽  
Strategy Map ◽  
Optimal Values

Purpose The purpose of this paper is to propose a quantitative methodology for setting targets in the framework of Balanced Scorecard (BSC) in order to achieve vision and goals. Design/methodology/approach Response Surface Methodology is proposed to find the significant relationships that should be included in the strategy map and the optimal values of performance measures are assessed by using the desirability function-based approach of RSM. The proposed method was created by reviewing the existing literature, modeling the problem, and applying it in an oil company. In fact, RSM is used to execute the design matrix, analyze the collected data, extract models, analyze the results, and optimize the procedures that generate multiple responses. Findings By applying this methodological design, a clearer picture of the relationships between strategic objectives is obtained and the influence of strategic objectives on one another is determined. Afterward, optimal values for performance measures are determined. Research limitations/implications This paper proposes a framework for constructing a strategy map and setting quantitative targets to translate the goals and strategies into corresponding performance measures and targets. Also, this paper presents a case study to demonstrate the applicability and effectiveness of the proposed approach. However, RSM-based techniques require a greater amount of data to generate more accurate results. Although the advent of the Information Age has forced organizations’ decision makers to provide sufficient information and data for business analysis, the data requirements of RSM-based techniques are met. Practical implications In practice, the process of setting targets for performance measures can be challenging in terms of reaching a consensus between managers and decision makers. The findings of this paper can offer a new approach for performance evaluation based on the BSC which allows the organization’s decision makers to reach a more accurate picture of the relationship model between organization goals and those objectives within the BSC. It also demonstrates how decision makers can be guided in the process of defining performance target values in the BSC method. Originality/value Reviewing the literature on setting quantitative targets within the framework of the BSC showed no prior study in which RSM is used. This approach has two main contributions: the associations among strategic objectives are investigated and obtained in an effective way which analytically identifies the direction and degree of the relations among the performance measures. Considering the performance evaluation structure based on the BSC, quantitative targets have been determined to help in achieving the long-term goals of the organization. The application of the proposed method in a company showed that the contributions of this research are not only theoretical, but practical as well.

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 A practitioner’s guide to the design of strategy map frameworks

2018 ◽  
Vol 30 (3) ◽  
pp. 334-351 ◽  
Author(s):  
Syrus Islam
Keyword(s):  
Balanced Scorecard ◽  
Future Research ◽  
Strategy Execution ◽  
Design Features ◽  
Content Type ◽  
Strategy Maps ◽  
Measurement Framework ◽  
Map Design ◽  
Prior Literature ◽  
Strategy Map

Purpose The purpose of this study is to synthesise the prior literature on strategy maps to develop a practitioner’s guide to the design of strategy map frameworks. Robert Kaplan and David Norton introduced the strategy map in their 2000 Harvard Business review article. A strategy map visually represents how the critical elements of an organisation’s strategies are linked together. In an organisation’s strategy execution process, a strategy map complements a performance measurement framework such as the balanced scorecard. Design/methodology/approach This is a technical paper, which primarily builds on the prior literature on the strategy map design. In particular, this study reviews 41 publications on strategy maps in the period 2000-2015, including observation of 333 strategy map frameworks. Findings This study develops 14 design principles across seven features of a strategy map framework. This study also identifies a significant lack of empirical research on strategy map design features and principles. Research limitations/implications Future research could examine whether and why various design features and principles could exert different or same effects (e.g. decision-relevance). Practical implications The developed design features and principles can be used by practitioners as guidance for developing customised strategy maps for their organisations. Originality/value This paper contributes to the literature by serving as a “one-stop shop” for both practitioners and researchers seeking a comprehensive understanding of the current state of the strategy map design features and principles.

An empirical investigation on the links within a sustainability balanced scorecard (SBSC) framework and their impact on financial performance

2016 ◽  
Vol 29 (2) ◽  
pp. 154-178 ◽  
Author(s):  
John Stephen Sands ◽  
Kirsten Nicole Rae ◽  
David Gadenne
Keyword(s):  
Financial Performance ◽  
Balanced Scorecard ◽  
Customer Value ◽  
Structural Equation ◽  
Content Type ◽  
Internal Process ◽  
Direct Association ◽  
Social Environmental ◽  
Sustainability Balanced Scorecard ◽  
Innovation Processes

Purpose This study aims to investigate the feasibility of integrating the social, environmental and innovation processes within the four-perspective sustainability balanced scorecard (SBSC) model by determining the extent of linkages between and within the four SBSC perspectives. Design/methodology/approach A survey collected responses from senior management and middle management of large Australian companies. Findings The findings support several positive significant associations. Direct associations are found between value-creating processes within the internal process perspective. These results support the feasibility of integrating environmental, social and innovation-orientated value-creating process into the internal process of the four-perspective SBSC model. The results also provide evidence about the extent to which direct or indirect associations exist between the four SBSC perspectives: first, direct association of human capital (learning and growth perspective) with value-creating processes (internal processes perspective); second, direct association of value-creating (internal processes perspective) with customer value (customer perspective); and third, direct and indirect associations of value-creating (internal processes perspective) with financial performance (FP; financial perspective). Research limitations/implications Several limitations are acknowledged related to cross-sectional data, senior and middle managers’ perceptions and assumptions underpinning structural equation modelling. Practical implications The implications for practice from this study concern how organisational management should relate to their stakeholders while providing value in their FP. Social implications These associations reflect the influence of stakeholders’ recognised needs on process and product innovation. These needs highlight the benefits of focusing on future-orientated environmental budgets and ongoing employee training that lead to customer value and FP. Originality/value This is an initial in-depth study of a four-perspective SBSC model that provides an effective means of integrating social, environmental and innovation processes within the traditional four SBSC perspectives.

Modeling cause and effect relationships of strategy map using fuzzy DEMATEL and fourth generation of balanced scorecard

2015 ◽  
Vol 22 (6) ◽  
pp. 1175-1191 ◽  
Author(s):  
Changiz Valmohammadi ◽  
Javad Sofiyabadi
Keyword(s):  
Strategic Planning ◽  
Automotive Industry ◽  
Balanced Scorecard ◽  
Fourth Generation ◽  
Fuzzy Dematel ◽  
Content Type ◽  
Cause And Effect ◽  
Financial Perspective ◽  
Strategy Map

Purpose – The purpose of this paper is to develop the strategy map (SM) of an Iranian automotive industry and the causal and effects relations of the SM’s variables though fourth generation of balanced scorecard (BSC) and fuzzy DEMATEL (decision-making trial and evaluation laboratory) technique. Design/methodology/approach – This research has employed a fuzzy DEMATEL approach in order to find cause and effect relations. At first step, CSFs in Company A’s SM were determined. Then four experts’ views of Company A’s strategic planning department were gathered and calculated by fuzzy set theory. Findings – Results showed the important role of customer perspective in supporting and achieving the organization’s vision which ultimately will lead to fulfillment of the financial objective of the company through satisfied customers. In other words, the dominant approach to logic of SM design in Company A and the obtained results from this research indicate, Company A can achieve strategic result with a more prominent role of customer and financial perspective, through employing the enabler perspective, i.e. learning and growth perspective. Research limitations/implications – Current study is limited to Iranian automotive industry. So, the strategic planning managers and future researchers shall consider their own company’s strategic structures for developing their SM. Originality/value – To the best of knowledge of the authors, it is the first attempt, particularly in the context of Iran, aimed at using fourth generation of BSC and fuzzy DEMATEL technique in an automotive industry which led to the confirmation that these two approaches can jointly be employed for the identifying cause and effect relations in SM and clarification and easy understanding of it. This proposed research structure can be a suitable base for the development of SM in other companies.

Quantitative target setting in balanced scorecard method using simultaneous equations system and goal programming

2019 ◽  
Vol 69 (9) ◽  
pp. 2089-2118
Author(s):  
Sorour Farokhi ◽  
Emad Roghanian ◽  
Yaser Samimi
Keyword(s):  
Goal Programming ◽  
Balanced Scorecard ◽  
Simultaneous Equations ◽  
Decision Makers ◽  
Programming Method ◽  
Content Type ◽  
Strategic Objectives ◽  
Strategy Map ◽  
Simultaneous Equations System

Purpose The purpose of this paper is to identify the accurate cause and effect relationships among strategic objectives and also to demonstrate how decision makers can be guided in the process of defining quantitative strategic target values in the framework of balanced scorecard (BSC) and performance measurement system. Design/methodology/approach Based on the proposed method in this research, after determining strategic objectives and developing an initial strategy map according to decision makers’ opinions, simultaneous equations system (SES) was used to determine the significance of the relationships among strategic objectives in higher perspectives of the BSC and corresponding strategic objectives in lower perspectives. Afterward, desirable values for performance measures were determined based on the equations and relationships obtained through SES and were optimized by goal programming method. Findings By applying the proposed method, a clearer picture of the associations among strategic objectives is obtained and the influence of strategic objectives on one another is determined. Afterward, optimal values for strategic objectives are determined to achieve the organization’s goals. Research limitations/implications This paper proposes a framework for constructing a strategy map and setting quantitative targets in the framework of BSC. Indeed, this paper presents a case study to demonstrate the applicability and effectiveness of the proposed approach. However, SES technique requires a greater amount of data to generate more accurate results. Although the advent of the Information Age has forced organizations’ decision makers to provide sufficient information and data for business analysis, the data requirements are met. Practical implications The presented quantitative approach is a supporting approach for improving decision makers’ opinions and enabling them to reach a more accurate picture of the relationships, valuing strategic objectives and achieving strategic goals. This research also presents a case study to demonstrate the applicability of the proposed approach. The application and implication of the proposed method in banking services show that the contributions of the paper are not only theoretical, but also practical. Originality/value The proposed method provides a novel approach for determining the most appropriate targets and applies a comprehensive and scientific model together with decision makers’ opinions and experiences and has two main contributions: first, the associations among strategic objectives are investigated and obtained in an effective way by conducting the SES for the first time in the framework of BSC. Second, quantitative targets have been determined to help in achieving the long-term goals. This task has been accomplished through a combination of SES, the three-stage least squares regression analysis and optimization by using weighted goal programming method.

Designing a balanced scorecard using a scenario approach

2019 ◽  
Vol 32 (2) ◽  
pp. 118-137
Author(s):  
Miguel Angel González ◽  
Luis Quezada ◽  
Pedro Palominos
Keyword(s):  
Balanced Scorecard ◽  
Training Session ◽  
Social Benefit ◽  
Ease Of Use ◽  
Content Type ◽  
Strategic Objectives ◽  
Strategy Map ◽  
Intervention Team ◽  
New Strategies

Purpose The purpose of this paper is to design a method or process that relates dynamic environmental conditions with the strategic objectives present in a company’s strategy map, thereby allowing rapid analysis and the generation of new strategies that the company can adopt in a timely manner in order to maintain and/or improve its competitive position in the market. Design/methodology/approach One training session and three workshops were run involving the company staff. The intervention team reviewed and analyzed the results achieved and prepared the final presentation. Finally, they were asked to evaluate the intervention methodology with respect to usefulness and ease of use. Findings The developed methodology allows companies to obtain a broader vision of their future prospects. The executives’ participation in the process provided them a vision and understanding of the most relevant and sensitive variables of their environment. Research limitations/implications The proposed methodology is easy to use. It provides a simple and agile mechanism to adapt the strategy of an organization to the changes in the market and environment. Social implications This process will provide social benefit for the global community, from both a methodological perspective and a practical one, as it will provide a tool that will positively impact competitiveness and quality of life for workers and the wider community. Originality/value This paper allows the identification of the possible scenarios and their incorporation into a strategy map, which may help companies deal with the changes in their competitive environment. The strategy maps generated for each of the scenarios provide useful information with respect to presented events.

BSC inside a strategic management control package

2019 ◽  
Vol 20 (1) ◽  
pp. 120-132
Author(s):  
Nathalie Bénet ◽  
Aude Deville ◽  
Gerald Naro
Keyword(s):  
Strategic Management ◽  
Balanced Scorecard ◽  
Business Models ◽  
Strategic Alignment ◽  
Management Control ◽  
Management Systems ◽  
Conceptual Approach ◽  
Content Type ◽  
Strategy Map ◽  
Control Package

PurposeKaplan and Norton proposed the strategy map as a way to overcome the weaknesses of the balanced scorecard (BSC), but this approach may not be enough. The purpose of this paper is to present a strategic management control package composed of three systems from strategic management and management control. This conceptual approach operationalizes strategic alignment, which is the core interest of the BSC.Design/methodology/approachThe rationale for this research is derived from the literatures on business models (BMs), the BSC and management control packages. The authors first identified gaps in the BSC literature, which has underlined the BSC’s insufficient connection to strategy, and the strategic literature, which has criticized the BM as being too conceptual. The authors propose to fill these gaps through contributions from the management control package literature.FindingsThe findings are in line with the current literature on the interdependencies of management control systems. In response to the criticism of the BSC because of its weak strategic foundations, the authors provide a framework comprising three management systems: the BM, the strategy map and the BSC. This framework ultimately promotes two feedback loops that provide a dynamic view of the reciprocal influences of the BSC and strategy.Research limitations/implicationsSeveral authors note that the BSC suffers from a lack of conceptualization. The underlying assumptions and the conceptual and empirical validity of the cause-and-effect relationships are particularly questioned. Therefore, the purpose of this paper is to overcome the criticism linked to the “low” strategic alignment of the strategy map, and then of the BSC, by proposing a conceptual framework based on a package including three management systems: the BSC, the strategy map and the BM. A major limit lies in the purely conceptual dimension of this research, and it will be interesting to empirically investigate the conceptual package through longitudinal case studies.Practical implicationsThe authors propose guidelines to develop a strategically aligned BSC through a three-step operationalization process to achieve a non-linear strategic management control. Moreover, the authors suggest empirical research avenues to address the weaknesses of Kaplan and Norton’s BSC and to enhance its connection to strategy through an integrated strategic management control package that includes a BM.Originality/valueThis paper adds value by proposing a package of management systems that includes both strategic management and management control perspectives. The authors, therefore, offer a way to bridge the gap between these research streams and highlight the interest of recent developments in the literature regarding the management control package.

What signifies success in e‐CRM?

2009 ◽  
Vol 27 (2) ◽  
pp. 246-267 ◽  
Author(s):  
Hande Kımıloğlu ◽  
Hülya Zaralı
Keyword(s):  
Performance Measurement ◽  
Balanced Scorecard ◽  
Customer Value ◽  
Business Processes ◽  
Management Tool ◽  
Measurement Tool ◽  
Content Type ◽  
The Balanced Scorecard ◽  
Support Costs ◽  
A Performance

PurposeThis paper seeks to use the balanced scorecard approach to create a performance measurement tool for e‐CRM implementations, distinguishing the criteria which signify higher levels of success in e‐CRM for internet businesses.Design/methodology/approachA performance measurement tool assessing the success of e‐CRM implementations under the customer, internal business, innovation and learning, and financial perspectives of the balanced scorecard is constructed. A total of 72 internet businesses in Turkey were surveyed about how much their CRM implementations contributed to the improvement in various measures under these four perspectives. These businesses are categorised as those with high versus moderate levels of perceived e‐CRM success. T‐tests are conducted to find out which success criteria distinguish these two groups more significantly.FindingsCompanies with higher levels of perceived e‐CRM success claimed significantly higher levels of improvements in customer satisfaction, transaction amounts and frequency, brand image, effective database management and customer targeting, efficient business processes, technology utilisation, excellence and innovation in services, improved sales, profitability and decreased service support costs.Research limitations/implicationsThe sample size is relatively small due to the difficulty of collecting data from internet businesses on a strategic issue such as e‐CRM. Perceived e‐CRM success is assessed based on the answers of a single respondent from each business.Practical implicationsWith successful e‐CRM programs, internet businesses can experience significant levels of improvements under all the four perspectives of the balanced scorecard, including tangible measures such as financial outcomes and the less tangible indicators such as customer value, innovation, excellence, and efficiency in business processes.Originality/valueA general strategic management tool is applied to a specific process in internet businesses. Performance in e‐CRM is assessed extensively.

Sign in / Sign up

Export Citation Format

Share Document