The use of the balanced scorecard to measure knowledge work

Author(s):  
Nicholas John Wake

Purpose – The purpose of this paper is to question whether the balanced scorecard provides an appropriate control mechanism for management control of knowledge workers. Design/methodology/approach – A case study approach is taken to explore the way in which management control of employees engaged in research and development is undertaken. Findings – The key finding of this work is that the balanced scorecard is not in itself a useful approach to management control of knowledge workers but provides an important mechanism for ensuring that there is alignment between the strategic objectives of an organisation and the work being undertaken. Research limitations/implications – The inductive approach taken in a single-company case study has provided a rich data set for exploratory research, however, this research design limits the generalisability of the findings. Practical implications – The work provides insights into how the balanced scorecard can be used in knowledge-worker environments. Originality/value – The balanced scorecard is often reported as a tool that allows organisations to cascade strategic priorities down to the level of the individual though the use of measures. This research provides an alternative explanation of how the balanced scorecard can support knowledge worker control.

2015 ◽  
Vol 27 (2) ◽  
pp. 189-207 ◽  
Author(s):  
Jennifer Kerr ◽  
Paul Rouse ◽  
Charl de Villiers

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.


2014 ◽  
Vol 10 (4) ◽  
pp. 466-485 ◽  
Author(s):  
Will Seal ◽  
Linna Ye

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.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tharusha N. Gooneratne ◽  
Zahirul Hoque

Purpose This paper aims to report on an empirical investigation of the fate of the balanced scorecard (BSC) approach in an organization. Design/methodology/approach Building on actor-network theory and using a qualitative case study approach, this study analyses how across time certain actors attempted to build a competing network in the organization to gain support for their underlying rationales for replacing the BSC with a budgeting system. Data were collected using interviews, observations and archival data from a Sri Lankan commercial bank. Findings This paper finds that despite the enthusiastic journey with all its potentials to be a sustainable accounting innovation, the attraction towards the BSC innovation by the organization appeared to be temporary because the BSC knowledge claims that were advanced by its promoters had not been widely accepted by those involved in the practice. Such a consequence of innovation diffusion appeared to be the result of the failure of the innovation promoters in coordinating the heterogeneous interests of various actors involved in the practice. This study concludes that the BSC failed to be sustained, amid varying ideologies and interests of powerful actors across time and opponent actors’ perceived deficiencies in its adapted design attributes. Research limitations/implications Although the findings relate to a Sri Lankan case, they offer important insight into how parallel, competing networks advocating different control systems may exist in an organization, and that the sustainability of a specific system may depend upon the efforts and the relative power of the advocators of that system. Practical implications This paper sheds useful insights for practitioners on the effective implementation of accounting innovations and managing management control systems in organizations amid tensions associated with competing networks. Originality/value The outcomes enhance the knowledge of how multiple networks operating in an organization could compete with one another, with the result that one network may fall apart while another network gains prominence in the corporate landscape across time, amid varying interests of key actors, their actions and interessement devices used.


2009 ◽  
Vol 13 (2) ◽  
pp. 116-135 ◽  
Author(s):  
Jai Kim ◽  
Caroline Hatcher

PurposeThe purpose of this paper is to provide a parallel review of the role and processes of monitoring and regulation of corporate identities, examining both the communication and the performance measurement literature.Design/methodology/approachTwo questions are posed: Is it possible to effectively monitor and regulate corporate identities as a management control process? and, What is the relationship between corporate identity and performance measurement?FindingsCorporate identity management is positioned as a strategically complex task embracing the shaping of a range of dimensions of organisational life. The performance measurement literature likewise now emphasises organisational ability to incorporate both financial and “soft” non‐financial performance measures. Consequently, the balanced scorecard has the potential to play multiple roles in monitoring and regulating the key dimensions of corporate identities. These shifts in direction in both fields suggest that performance measurement systems, as self‐producing and self‐referencing systems, have the potential to become both organic and powerful as organisational symbols and communication tools. Through this process of understanding and mobilising the interaction of both approaches to management, it may be possible to create a less obtrusive and more subtle way to control the nature of the organisation.Originality/valueThis paper attempts the theoretical and practical fusion of disciplinary knowledge around corporate identities and performance measurement systems, potentially making a significant contribution to understanding, shaping and managing organisational identities.


2010 ◽  
Vol 13 (4) ◽  
pp. 481-506 ◽  
Author(s):  
Ciriaco Bassani ◽  
Valentina Lazzarotti ◽  
Raffaella Manzini ◽  
Luisa Pellegrini ◽  
Stefano Santomauro

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.


2017 ◽  
Vol 33 (4) ◽  
pp. 25-27

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.


Author(s):  
Manoj Hudnurkar ◽  
Urvashi Rathod ◽  
Suresh Kumar Jakhar ◽  
Omkarprasad S. Vaidya

Purpose The purpose of this paper is to design and develop a balanced scorecard (BSC)-based index for quantifying the suitability of suppliers to mature to the next level of collaboration with the buyer company. Design/methodology/approach A BSC-based decision framework was developed using factors and factor indicators affecting collaboration with the supplier, using exploratory research. The proposed decision framework was implemented as a real-world case study in an Indian manufacturing organisation by using the Analytic Hierarchy Process. An 11-step methodology was developed to quantify supplier suitability to mature to the next level of collaboration. This is referred to as the “supplier collaborative performance index” (SCPI). Findings The proposed decision-making framework helps quantify the extent of collaboration with each supplier. It serves as an index by using the perspectives that are significant for the strategic performance of the buyer company, the factors that affect the collaboration and their specific factor indicators. The initial results of the implementation of the case study were found to be useful in judging supplier suitability in order to mature in their relationship. Practical implications A comprehensive BSC-based framework for enhancing relationships with suppliers, SCPI will be instrumental in deciding, managing and improving the level of collaboration with suppliers in manufacturing companies, depending on priorities. Originality/value This approach provides a single index to establish the supplier’s suitability to mature to the next level of collaboration with a buyer company. The higher the value of the Collaboration Index for a supplier, the better is the chance to move to the next level of maturity.


2020 ◽  
Vol 24 (3) ◽  
pp. 285-300
Author(s):  
Nopadol Rompho

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.


2020 ◽  
Vol 21 (4) ◽  
pp. 763-781
Author(s):  
Terje Berg ◽  
Dag Øivind Madsen

PurposeThis paper examines the evolution of a company's management control package (MCP) over time. The overall aim is to gain a deeper understanding of internal and external factors shaping a company's management control package.Design/methodology/approachThis paper employs a retrospective single-case methodology where a company is followed over a ten-year period (2005–2015). Theoretically, the paper builds on Malmi and Brown's (2008) MCP framework while also utilizing Simons' (1994) levers of control framework as well as Abrahamson's (1991) management fashion theory.FindingsThe company's MCP evolved in several ways. First, there was a change from using an interactive to a diagnostic budget. Second, the Balanced Scorecard approach was replaced by a narrow, strong focus on shareholder value. Finally, the quality system was reduced from a system for continuous learning and improvement to a system for compliance purposes only.Research limitations/implicationsThis paper offers naturalistic generalization to enable a holistic understanding of the changes to a management control package over time. The findings suggest that history matters in the design and configuration of MCPs. The MCP has evolved from being balanced and interactive, resembling Beyond Budgeting, to a diagnostic approach resembling traditional budgetary control. In 2005, the different controls were complementary and used for different purposes, while in 2015 the controls solely support the creation of shareholder value. The findings also indicate that management accounting innovations such as The Balanced Scorecard and Beyond Budgeting in this specific context may be considered fashions or even fads.Practical implicationsThe findings of the paper could be useful for CFOs and other managers who are involved in the design and configuration of MCPs. The findings show that internal and external events shape how much leeway managers have in the design and configuration of MCPs.Originality/valueThe paper answers a call for more empirical studies on MCPs. By adopting a retrospective approach, the paper can provide insight into the temporal evolution of a control package.


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