An Extension of the REA Framework to Support Balanced Scorecard Information Requirements

2007 ◽  
Vol 21 (1) ◽  
pp. 1-25 ◽  
Author(s):  
Kim S. Church ◽  
Rod E. Smith
Keyword(s):  
Balanced Scorecard ◽  
Value Chain ◽  
Information Architecture ◽  
Financial Resources ◽  
Management Systems ◽  
Information Requirements ◽  
The Balanced Scorecard ◽  
Nonfinancial Measures ◽  
Chain Level ◽  
Task Level

In this paper, we propose extensions to the resource-event-agent (REA) framework to encompass the information requirements of the balanced scorecard and other management systems that incorporate nonfinancial measures. The REA conceptual accounting framework was designed to describe the information architecture related to an organization's economic activity (e.g., McCarthy 1982; Dunn et al. 2005). Geerts and McCarthy (2001b, 2002) extended the original REA to include value-chain level configurations, task-level configurations, and encompass a broader array of business economic phenomena. Yet, the REA framework remains closely tied to its accounting roots, with a focus on economic events and financial resources. A substantial number of organizations are adopting strategic management systems that include both financial and nonfinancial measures to overcome known limitations of systems based on traditional financial data alone (e.g., Said et al. 2003; Eccles et al. 2001; Ittner et al. 2003). We therefore examine whether the REA framework supports the information requirements of this broader domain and propose extensions to fill the gaps identified.

scholarly journals The Moderating Effect of Procedural Justice on the Effectiveness of the Balanced Scorecard in Improving Managerial Performance through Organizational Commitment

2010 ◽  
Vol 12 (3) ◽  
pp. 415
Author(s):  
Supriyadi Supriyadi
Keyword(s):  
Organizational Commitment ◽  
Procedural Justice ◽  
Balanced Scorecard ◽  
Moderating Effect ◽  
Managerial Performance ◽  
Financial Measures ◽  
The Balanced Scorecard ◽  
Nonfinancial Measures ◽  
The Impact ◽  
The Relationship

This study extends prior studies on the effectiveness of theBalanced Scorecard (BSC) to improve managerial performancedone by Lau and Mosser (2008) and Lau and Sholihin (2005).Specifically, the study empirically tests the moderating effects ofprocedural justice on the relationship between the financial andnonfinancial dimensions of BSC and managerial performance. Italso tests the impact of organizational commitment on performance.Based on survey data from 76 respondents, the results indicate thatperceived procedural justice in the use financial and nonfinancialdimensions of the BSC is associated with managers’ organizationalcommitment. It further finds that organizational commitment ispositively related to performance. The study extends the literatureby providing empirical evidence about the moderating effect ofprocedural justice on the relationship between the financial andnonfinancial dimensions of BSC and organizational commitment.Keywords: balanced scorecard; organizational commitment; financial measures;managerial performance; moderating effect; nonfinancial measures;procedural justice

E-Business Planning and Analysis Framework

2011 ◽  
pp. 264-271
Author(s):  
Ben Clegg ◽  
Boon Tan
Keyword(s):  
Balanced Scorecard ◽  
Value Chain ◽  
Quality Function Deployment ◽  
Online Community ◽  
Development Project ◽  
Business Planning ◽  
Analysis Framework ◽  
Value Chain Analysis ◽  
The Balanced Scorecard

This article reports on a framework that has been successfully used to analyze the e-business capabilities of an organization with a view to developing their e-capability maturity levels. This should be the first stage of any systems development project. The framework has been used widely within start-up companies and well-established companies both large and small; it has been deployed in the service and manufacturing sectors. It has been applied by practitioners and consultants to help improve e-business capability levels, and by academics for teaching and research purposes at graduate and undergraduate levels. This article will provide an account of the unique e-business planning and analysis framework (E-PAF) and demonstrate how it works via an abridged version of a case study (selected from hundreds that have been produced). This will include a brief account of the three techniques that are integrated to form the analysis framework: quality function deployment (QFD) (Akao, 1972), the balanced scorecard (BSC) (Kaplan & Norton, 1992), and value chain analysis (VCA) (Porter, 1985). The case study extract is based on an online community and dating agency service identified as VirtualCom which has been produced through a consulting assignment with the founding directors of that company and has not been published previously. It has been chosen because it gives a concise, comprehensive example from an industry that is relatively easy to relate to.

scholarly journals Performance measurement frameworks in a state controlled research organization: Can the Balanced Scorecard (BSC) be modified?

2010 ◽  
Vol 41 (2) ◽  
pp. 51-63 ◽  
Author(s):  
K. Sartorius ◽  
N. Trollip ◽  
C. Eitzen
Keyword(s):  
Performance Measurement ◽  
Balanced Scorecard ◽  
Value Chain ◽  
Research Organization ◽  
Hybrid Form ◽  
The Balanced Scorecard ◽  
Measurement Framework ◽  
Research Sector ◽  
Significant Difference

The development of multiple stakeholder performance measurement frameworks (PMF) is a complex process in the public research sector. The objective of the paper was to investigate whether the performance measurement framework (PMF) of a state owned research organization could be adapted to the Balanced Scorecard (BSC). A conceptual framework developed a hybrid form of BSC that could be applied in a research setting before describing a case study setting. A case study, as well as a survey was employed to investigate the research questions. The results suggest that the research sector PMF incorporated the properties the organization’s value chain, as well as reflected its strategies and key actions. Furthermore, suitable performance measures had been created for all the organization’s stakeholders. Further inductive analysis indicated that the PMF resembled a hybrid form of BSC based on the Moullin (2002) public sector framework. Finally, the results indicated that the PMF motivated its researchers at operations level, however, a survey of opinions suggests there was a significant difference in opinion between different categories of researchers.

HR IS Standardization "CHRISP Case"

2010 ◽  
pp. 162-181
Author(s):  
Robert van Wessel
Keyword(s):  
Balanced Scorecard ◽  
Value Chain ◽  
Complex Problem ◽  
Erp Systems ◽  
It Investments ◽  
The Balanced Scorecard ◽  
Financial Benefits ◽  
Product Standardization ◽  
Real Costs

To gain further experience with the conceptual model, as part of the theory testing phase, a third in-depth case study was carried out at FINCORP. The IS product standardization in this study relates to ERP HR modules of PeopleSoft®1, which include the accompanying HR processes. These modules were selected as company IT standard. As discussed in Chapter 3, measuring the real costs and benefits of IT investments is a notoriously complex problem (Brynjolfsson and Hitt, 1998). Asif and Schuff (2005) acknowledge that this becomes even more complicated when considering ERP technologies that impact on a variety of processes across the value chain. Chand et al. (2005, p.560) also acknowledge the problem of assessing the benefits of ERP systems is less well studied and understood, and illustrate the applicability of the Balanced Scorecard (BSC) to ERP systems. They list various reasons that motivate organizations to implement ERP systems, which can be split into financial and non-financial benefits (Table 1). Anticipated benefits related to company IT standardization can be clearly identified. Furthermore, they integrate the four Kaplan and Nortons’ Balanced Scorecard perspectives with Zuboff’s automate, informate and transformate goals of information systems (Zuboff, 1985) in an attempt to measure the contributions and impacts of ERP systems at operational, tactical and strategic levels. However, in this case study we will use the original perspectives to make comparison with the other case studies possible.

scholarly journals SUSTAINABLE ENGAGEMENT IN STAKEHOLDER RELATIONSHIPS: CRAFTING A STAKEHOLDER MAP

2017 ◽  
Vol 17 (1) ◽  
pp. 27
Author(s):  
Juha Kettunen ◽  
Manodip Ray Chaudhuri
Keyword(s):  
Balanced Scorecard ◽  
Value Chain ◽  
Graphical Representation ◽  
Graphical Approach ◽  
The Balanced Scorecard ◽  
Stakeholder Relationships ◽  
Long Run

The purpose of this paper is to present the theory of sustainable engagement in the stakeholder relationships of enterprises and develop a stakeholder map to fi nd the circular forms of sustainability. This study uses a graphical approach based on the balanced scorecard approach to present the sustainable engagement of stakeholder relationships. The paper applies the concept of sustainable engagement in the value chain and extends it to circular processes. The paper also presents the comprehensive stakeholder map for the identifi cation of the most signifi cant stakeholders of an enterprise. The stakeholder map can be used for the graphical representation of circular processes, economy, learning and impact. The framework presented in the paper is useful for enterprises which want to identify its most important stakeholders and promote sustainable engagement with its stakeholders to create value and sustain in the long run

Team-based employee remuneration

2019 ◽  
Vol 32 (2) ◽  
pp. 252-272
Author(s):  
Hemantha S.B. Herath ◽  
Wayne G. Bremser ◽  
Jacob G. Birnberg
Keyword(s):  
Balanced Scorecard ◽  
Value Chain ◽  
Complex Problem ◽  
Content Type ◽  
The Balanced Scorecard ◽  
Performance Targets ◽  
Proposed Model ◽  
Division Managers ◽  
Team Setting ◽  
Collaborative Decision

Purpose The purpose of this paper is to relate the balanced scorecard (BSC) to strategy and teams. Design/methodology/approach This paper proposes deriving performance targets and weights using a multiparty collaborative decision model that can be integrated into team-based bonus formulas. Findings Cross-functional division managers face a more complex problem in setting goals for individual managers. The proposed approach is intended to develop such goals and link them for team-based incentives. An example illustrates the application of the proposed BSC model and the team-based pay formula. Practical implications The model can be used to determine group bonus. Originality/value The paper has two objectives: to relate the BSC to the team setting with a participative flavor rather than with imposed targets and weights, and to develop a better way of relating behaviors and outcomes to the team’s and/or the organization’s goals. Integrating the strategies of various units adds a new dimension that differs from rationalizing the superior’s and the subordinate’s goals. The proposed model considers input from all value chain functional managers involved in implementing an organizational strategy. A methodology is provided to operationalize (Hope and Fraser, 2003) beyond the budgeting model principles.

scholarly journals Factors Affecting the Use of Balanced Scorecard in Measuring Company Performance

2020 ◽  
Vol 12 (3) ◽  
pp. 1178 ◽  
Author(s):  
Eva Benková ◽  
Peter Gallo ◽  
Beáta Balogová ◽  
Jozef Nemec
Keyword(s):  
Balanced Scorecard ◽  
Primary Objective ◽  
Financial Resources ◽  
Company Performance ◽  
Financial Indicators ◽  
Chi Square ◽  
Research Results ◽  
The Balanced Scorecard ◽  
Chi Square Test ◽  
The Given

The paper presents the results from the research on the factors influencing the use of the Balanced Scorecard methodology in measuring company performance in the engineering sector. The primary objective of the research was to verify the importance of using non-financial factors in managing businesses in connection to the use of the Balanced Scorecard methodology and to verify the dependence between the use of the given methodology and the lack of human and financial resources for its usage. The research focusing on the given issue was conducted over a period of six months. The research was based on the hypotheses that were verified with statistical methods using the methodology of a Chi-square test. To identify the factors that hinder the usage of the Balanced Scorecard methodology in the addressed enterprises, the method of standard deviation was used. The main result of the research is a finding that there is a statistically significant relationship between the enterprises considering the non-financial indicators and the use of the Balanced Scorecard methodology to be important. This relationship is confirmed also by the calculation using a test with p = 0.0422. The research verified one of the main research goals, i.e., the importance of non-financial indicators in connection to the Balanced Scorecard concept (BSC). Other hypotheses are related to the issue of the lack of human and financial resources. Using the Chi-square test in these cases once again, the study also found out the existence of the dependence between the lack of these resources and the use of the Balanced Scorecard methodology. The final value p = 0.0446 relating to human resources and the value p = 0.0377 relating to financial sources define the barriers as being important in implementing the BSC methodology into corporate practice. These values confirm other research results related to the barriers of using BSC. The presented paper assesses the research results that confirm the importance of using non-financial indicators and define the barriers that hinder this usage. The research contributed to the extension of the knowledge of the BSC concept that we consider being a modern managerial future-oriented tool and supported its implementation in companies so that they could operate within the framework of sustainable development.

DEVELOPMENT AND APPLICATION OF AN ELECTRONIC-MANUFACTURING SELECTION FRAMEWORK FOR SMEs

2007 ◽  
Vol 04 (03) ◽  
pp. 241-265 ◽  
Author(s):  
BOON L. TAN ◽  
DAVID J. BENNETT
Keyword(s):  
Balanced Scorecard ◽  
Value Chain ◽  
Quality Function Deployment ◽  
Business Environment ◽  
Value Chain Analysis ◽  
The Balanced Scorecard ◽  
Electronic Manufacturing ◽  
Manufacturing Planning ◽  
Planning Framework ◽  
Selection Framework

With a wide diversity of available technologies, it is extremely problematic for SMEs to identify, plan, prioritize and use the correct strategy. Electronic-manufacturing has been evolving for some time, but currently an effective planning framework to assist managers with implementing electronic-manufacturing planning is still lacking. A framework, built around three elements: the Balanced Scorecard, Quality Function Deployment and Value Chain Analysis, is proposed here to assist SMEs in managing complexity in e-manufacturing planning. A case study, carried out in Singapore, demonstrates the practicality and utility of the framework in the context of a real business environment.

E-Business Planning and Analysis Framework

2009 ◽  
pp. 314-324
Author(s):  
Ben Clegg ◽  
Boon Tan
Keyword(s):  
Balanced Scorecard ◽  
Value Chain ◽  
Quality Function Deployment ◽  
Online Community ◽  
Development Project ◽  
Business Planning ◽  
Analysis Framework ◽  
Value Chain Analysis ◽  
The Balanced Scorecard

This chapter reports on a framework that has been successfully used to analyze the e-business capabilities of an organization with a view to developing their e-capability maturity levels. This should be the first stage of any systems development project. The framework has been used widely within start-up companies and well-established companies both large and small; it has been deployed in the service and manufacturing sectors. It has been applied by practitioners and consultants to help improve e-business capability levels, and by academics for teaching and research purposes at graduate and undergraduate levels. This chapter will provide an account of the unique e-business planning and analysis framework (E-PAF) and demonstrate how it works via an abridged version of a case study (selected from hundreds that have been produced). This will include a brief account of the three techniques that are integrated to form the analysis framework: quality function deployment (QFD) (Akao, 1972), the balanced scorecard (BSC) (Kaplan & Norton, 1992), and value chain analysis (VCA) (Porter, 1985). The case study extract is based on an online community and dating agency service identified as VirtualCom which has been produced through a consulting assignment with the founding directors of that company and has not been published previously. It has been chosen because it gives a concise, comprehensive example from an industry that is relatively easy to relate to.

scholarly journals The impact of performance analysis on the financial management and control at public universities in Bosnia and Herzegovina Federation

2019 ◽  
Vol 24 (2) ◽  
pp. 145-153
Author(s):  
Fuad Čergić ◽  
Emira Kozarević
Keyword(s):  
Public Sector ◽  
Balanced Scorecard ◽  
Financial Management ◽  
Financial Resources ◽  
Performance Models ◽  
The Balanced Scorecard ◽  
The Public ◽  
For Profit ◽  
And Control ◽  
The Impact

Organizations in today’s extremely competitive environment need to devote significant time, energy as well as human and financial resources to the measurement of their efficiency, in order to increase their profit, reduce costs, better plan their assets and manage their budgets, as well as to improve budget controls and risk assessment. Therefore, they need performance models, including the Balanced Scorecard. Primarily intended for profit organizations, the Balanced Scorecard is today used in the public sector, as well. This paper presents the research into the utilization of the Balanced Scorecard in the public sector, examining whether the performance of higher education institutions may be improved by the design and utilization of the Balanced Scorecard model.

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