DISCUSSION OF: Testing Strategy with Multiple Performance Measures: Evidence from a Balanced Scorecard at Store24

2015 ◽  
Vol 27 (2) ◽  
pp. 67-73 ◽  
Author(s):  
Clara Xiaoling Chen
Keyword(s):  
Performance Measurement ◽  
Performance Measures ◽  
Balanced Scorecard ◽  
Business Strategy ◽  
Business Models ◽  
Performance Measurement System ◽  
Future Research ◽  
The Balanced Scorecard ◽  
Performance Measurement Systems ◽  
Using Data

ABSTRACT The Campbell, Datar, Kulp, and Narayanan (2015; hereafter, CDKN) study empirically investigates how the quality of a firm's business strategy can be tested and validated using statistical analysis of the firm's internal performance measurement system. Using data from the balanced scorecard of a convenience store chain, their study provides empirical evidence that the company's internal performance measures reveal timely information about problems with the strategy and can help identify where and why the strategy failed. In this brief discussion of the study, I first summarize the major strengths of their study, then discuss my concerns and comments, and finally point out some potential extensions. In summary, CDKN's study is important in that it makes significant contributions to several streams of literature. CDKN have inspired follow-up studies on the use of performance measurement systems to evaluate strategy and the testing of business models, and has opened up exciting opportunities for future research.

The Benefits of an E-Business Performance Measurement System

2011 ◽  
pp. 158-169
Author(s):  
David Barnes ◽  
Matthew Hinton
Keyword(s):  
Performance Measurement ◽  
Measurement System ◽  
Balanced Scorecard ◽  
Business Performance ◽  
Best Practice ◽  
Performance Metrics ◽  
Performance Measurement System ◽  
The Balanced Scorecard ◽  
Business Operations ◽  
Performance Measurement Systems

This chapter investigates how organizations have been adapting their performance measurement practices in response to their adoption of e-business in their business operations. It aims to identify the features and benefits of an effective e-business performance measurement system. Twelve organizations known to have had some success in developing performance measurement systems suitable for the online environment were studied. The researchers found that these organizations adopted an incremental rather than a radical approach to changing their performance measurement system for e-business, thereby avoiding the costs and disruption associated with the introduction of more complex performance metrics. Secondly, they eschewed the use of best practice recipes (such as the balanced scorecard). The study concludes that although these results may be at odds with the prescriptive generic performance measurement literature, they may be appropriate for the current state of development of e-business.

scholarly journals Performance measurement for supply chains in the Industry 4.0 era: a balanced scorecard approach

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Guilherme Francisco Frederico ◽  
Jose Arturo Garza-Reyes ◽  
Anil Kumar ◽  
Vikas Kumar
Keyword(s):  
Supply Chain ◽  
Performance Measurement ◽  
Supply Chains ◽  
Balanced Scorecard ◽  
Industry 4.0 ◽  
Theoretical Perspective ◽  
Performance Measurement System ◽  
Content Type ◽  
The Balanced Scorecard ◽  
Performance Measurement Systems

PurposeThe purpose of this paper is to present a theoretical approach based on the balanced scorecard (BSC) with regard to performance measurement – PM in supply chains for the Industry 4.0 era.Design/methodology/approachThis paper combines the literature of PM and specifically the BSC with the literature related to the dimensions of supply chain in the context of Industry 4.0.FindingsDimensions extracted from the literature based on supply chains within the context of Industry 4.0 showed a strong alignment with the four perspectives of the BSC, which make it suitable to be considered as a performance measurement system (PMS) for supply chains in this new context.Research limitations/implicationsFrom theoretical perspective, this study contributes to the limited literature on PM for supply chains in Industry 4.0 era. The study proposes a supply chain 4.0 Scorecard and strongly support researchers to conduct future empirical researches in order to get a deeper understanding about PM in supply chains in the Industry 4.0 era. As limitations, the theoretical framework proposed needs further empirical research in other to validate it and obtain new insights over the investigation conducted and presented into this paper.Practical implicationsPractitioners can use this study as a guide to develop more effective performance measurement systems – PMSs in their organizations.Originality/valueThis research is unique as it addresses a significant knowledge gap related to PM in supply chains in the Industry 4.0 era. It brings a significant contribution in terms of understanding how to measure performance in supply chains in this new era.

scholarly journals Performance measurement systems in auditing firms

2015 ◽  
Vol 5 (4) ◽  
pp. 395-423 ◽  
Author(s):  
Mohamed Hegazy ◽  
Myada Tawfik
Keyword(s):  
Performance Measurement ◽  
Performance Measures ◽  
Measurement System ◽  
Performance Measurement System ◽  
Future Research ◽  
High Quality ◽  
Content Type ◽  
Financial Measures ◽  
Measurement Systems ◽  
Performance Measurement Systems

Purpose – The purpose of this paper is to investigate challenges facing auditing firms in designing and measuring their performance and discusses why and how the balance scorecard (BSC) could support the auditing firms overcome such challenges. The paper contributes to the existing literature by identifying the peculiarity of the auditing firms in designing and implementing performance measurement systems including the need for sound and advanced information systems, subjectivity embedded in measuring customer satisfaction, growth and success of the firms and restrictions imposed by regulations and auditing standards for the provision of non-audit services which may increase the firms’ revenues and profits to help maintain high-quality outputs. Also, the paper provided evidence for the use of non-financial measures in service industry in particular for customers and finance. The unique dilemma in the auditing firms to provide services to satisfy customers yet maintaining distance and independence from them represent an important research question requiring investigation and study. Design/methodology/approach – A review of the literature for performance evaluation in general and in particular BSCs in service industries was made to identify challenges facing auditing firms when measuring their performance. Data were collected using case study approach; two auditing firms, one of the Big 4 and a medium size auditing firm with international affiliation operating in the Egyptian market were selected. Interviews, document analysis and participant observations were used in the analysis of each firm performance measurement system. Findings – The paper suggests that major challenges face auditing firms in measuring their performance mainly the size of the firm and its affiliation with international auditing firm, the qualification and experience of partners and audit managers needed for the design and implementation of a BSC or similar performance measures, the resources required for the introduction of such performance measure and the peculiarity of the auditor and client relationship with the need to maintain independence and confidentiality while providing high-quality services. Although both auditing firms being studied have formal performance measurement systems, they differ in their degree of comprehensiveness. In particular, the performance measurement system of the larger firm is more elaborate than that of the smaller one and both place more emphasis on qualitative measures such as learning and growth and internal business processes than financial measures. Research limitations/implications – Overall, the results have implications for understanding the performance measurement process of auditing firms in general and in particular in an emerging economy such as Egypt. The identification of the challenges facing auditing firms in measuring their performance and how the implementation of BSC can help partners and employees to overcome those challenges will add to the literature for performance evaluation in service companies. Future research should be carried to compare and assess differences between the behavioural aspects of performance measures in auditing firms and possible application of BSC in such firms and those used in services industry. Also, the practicality of implementing a BSC measures for different auditing firms should be investigated further in future research. Originality/value – The research among the first to investigate the challenges facing auditing firms in designing and operating a performance measurement system and to discuss, using case studies, how a BSC could support the auditing firms to overcome such challenges. Further, the research provides insights into performance measures in auditing firms in developing economies like Egypt which are sparse since most studies have been conducted in developed economies. Also, the paper enriches the literature of performance measurement systems in service rather than the manufacturing sector especially for medium and small size firms.

Managing Value Creation within the Firm: An Examination of Multiple Performance Measures

2004 ◽  
Vol 16 (1) ◽  
pp. 107-131 ◽  
Author(s):  
Lisa Bryant ◽  
Denise A. Jones ◽  
Sally K. Widener
Keyword(s):  
Performance Measurement ◽  
Outcome Measures ◽  
Performance Measures ◽  
Measurement System ◽  
Value Creation ◽  
Balanced Scorecard ◽  
Business Processes ◽  
Performance Measurement System ◽  
Cross Sectional ◽  
Performance Measurement Systems

There has been an emphasis in recent years on understanding how value is created within the firm. To understand what drives value, managers must have in place performance measurement systems designed to capture information on all aspects of the business, not just the financial results. Many firms are implementing a Balanced Scorecard (BSC) performance measurement system that tracks measures across four hierarchical perspectives: learning and growth, internal business processes, customer, and financial perspectives. Although BSCs should ideally be tailored to each firm's unique strategy, evidence shows that managers tend to rely on generic measures, particularly as measures of the outcome of each perspective. We use cross-sectional data on seven archival measures from 125 firms over a five-year period to proxy for typical outcome measures of the four BSC perspectives. We find that a model that allows each outcome measure to be associated with outcome measures in all higherlevel BSC perspectives captures the value-creation process better than a relatively simple model that allows each measure to be a driver of only the next perspective in the BSC hierarchy. We also find differences in the relations among performance measures when firms implement a performance measurement system that contains both financial and nonfinancial measures versus one that relies solely on financial measures.

Incorporating the environmental dimension into the balanced scorecard

2019 ◽  
Vol 27 (4) ◽  
pp. 652-674
Author(s):  
Salim Khalid ◽  
Claire Beattie ◽  
John Sands ◽  
Veronica Hampson
Keyword(s):  
Performance Measurement ◽  
Balanced Scorecard ◽  
Healthcare Sector ◽  
Performance Measurement System ◽  
Future Research ◽  
Structured Interviews ◽  
Content Type ◽  
The Balanced Scorecard ◽  
Starting Point ◽  
Environmental Activities

PurposeThis study aims to explore the ways that the balanced scorecard (BSC) can be adapted to incorporate environmental performance in a health care context.Design/methodology/approachThis research adopts a qualitative approach that uses an in-depth case study including semi-structured interviews and document review. Interviews are conducted with individuals working within a regional public hospital and health service organisation in Australia. The research is informed by stakeholder theory.FindingsThe participants identified a number of approaches to incorporating environmental dimensions within the BSC: fully integrated, partially integrated, a separate additional perspective and differentiation based on the origin of the environmental activities and events. These findings confirm the contingent nature of the selected model and reinforce the importance of organisational vision and environmental strategy as formative factors.Research limitations/implicationsThis research provides a starting point for future research to refine the proposed models and evaluate their viability and relevance in other contexts.Practical implicationsThis study provides motivations for managers to engage with the BSC as an effective performance measurement system, which can be developed and adapted to incorporate important environmental elements of organisational performance.Social implicationsThis study reveals the importance of difference between endogenous and exogenous environmental activities. As concerns around the environmental consequences of organisational activities continue to grow, opportunities for institutions to reassure stakeholders of their sustainable practices are increasingly critical.Originality/valueThis study presents preliminary evidence on the suitability of various models for integrating environmental dimensions within the BSC. The findings provide a valuable contribution to literature on performance measurement systems in the healthcare sector.

scholarly journals A relação entre o Balanced Scorecard e a mitigação dos riscos organizacionais: estudo de caso múltiplo

Revista Foco ◽  
2019 ◽  
Vol 12 (2) ◽  
pp. 04
Author(s):  
Gabrielle Ribeiro Rodrigues da Silva ◽  
Gustavo Abib
Keyword(s):  
Risk Management ◽  
Performance Measurement ◽  
Balanced Scorecard ◽  
Action Plan ◽  
Performance Measurement System ◽  
The Balanced Scorecard ◽  
Strategic Risk ◽  
Performance Measurement Systems ◽  
The Individual ◽  
The Relationship

O risco, inerente a qualquer atividade, está presente tanto no cotidiano individual quanto no empresarial. A literatura aponta ainda lacunas na relação entre a gestão do risco e as metodologias de análise de desempenho, aqui tratado através do Balanced Scorecard (BSC). O objetivo deste artigo repousa na investigação da relação entre o BSC e a gestão ou a mitigação dos riscos corporativos, analisando, se a ação de estabelecer uma cultura voltada para a implementação, execução e controle das estratégias, apoiada por sistemas adequados de medição de desempenho, impactam na gestão dos riscos. Por meio de um estudo de múltiplos casos com três grandes empresas que já haviam implantado o BSC há pelo menos dois anos, buscou-se tal resposta. Apesar do risco ser administrado de maneira diferente em cada organização, verificou-se que com a adoção da metodologia do BSC possibilitou as empresas identificarem uma maior gama de riscos prováveis, potencializando assim a sua gestão. O sistema de mensuração de desempenho auxiliou a empresa a focar eventuais áreas de risco estratégicas e auxiliar a direção em um plano de ação sustentável para atenuar os riscos. The risk, inherent in any activity, is present both in the individual and in everyday business. The literature also highlights gaps in the relationship between risk management and performance analysis methodologies, here handled through the Balanced Scorecard (BSC). The aim of this paper lies in investigating the relationship between the BSC and the management or mitigation of corporate risks, analyzing whether the action of establishing a culture focused on the implementation, execution and control of strategies, supported by adequate performance measurement systems, impact on risk management. Through a multiple case study with three large companies that have already deployed the BSC for at least two years, we sought to answer such question. Despite the risk be administered differently in each organization, it was found that by adopting the BSC methodology enabled companies to identify a wider range of possible risks, thus enhancing its management. The performance measurement system helped the company to focus on possible strategic risk areas and assist the direction on a sustainable action plan to mitigate the risks.  

Measuring and Managing E-Business Initiatives through the Balanced Scorecard

2011 ◽  
pp. 152-168 ◽  
Author(s):  
Wim Van Grembergen ◽  
Isabelle Amelinckx
Keyword(s):  
Information Technology ◽  
Performance Measurement ◽  
Measurement System ◽  
Balanced Scorecard ◽  
Performance Measurement System ◽  
Financial Measures ◽  
The Balanced Scorecard ◽  
Business Perspective ◽  
Customer Perspective ◽  
A Performance

The Balanced Scorecard (BSC) initially developed by Kaplan and Norton is a performance measurement system that supplements traditional financial measures with the criteria that measure performance from three additional perspectives: customer perspective, internal business perspective, and innovation and learning perspective. In recent years, the Balanced Scorecard has been applied to information technology in order to ensure that IT is fairly evaluated. The proposed methodology can also be applied to e-business initiatives. In this chapter, it is illustrated how the BSC can be used to measure and manage e-business initiatives. A generic e-business Balanced Scorecard is proposed and its development and implementation is discussed.

The Fifth Perspective

2010 ◽  
pp. 2378-2388
Author(s):  
Preeti Goyal ◽  
Bhimaraya A. Metri
Keyword(s):  
Performance Measurement ◽  
Performance Measures ◽  
Balanced Scorecard ◽  
Business Process Outsourcing ◽  
Organizational Boundaries ◽  
Strategic Objectives ◽  
The Balanced Scorecard ◽  
Measurement Framework ◽  
External Relationships ◽  
New Perspective

Today, alliances, collaborations, and networks are synonymous with strategy. Business process outsourcing (BPO) is one such type of alliance. With increasing reliance on outsourcing, the organizational boundaries are blurring. The implications for the client organization can be tremendous, as it now relies on an outside organization to fulfill its operational objectives. Currently, there is no single framework that can effectively measure performance for BPO arrangements. In its present form, the balanced scorecard (BSC) only addresses the performance measurement needs of a single enterprise and any perspective on any external relationships is completely missing. The traditional BSC does not suffice as a performance measurement framework for BPO. While both the client and the vendor can use a BSC for their respective organizations, the strategic objectives of the organizations may not be met. In this article the authors propose a new perspective as an extension to the BSC, namely, the goals alignment perspective. Goals alignment of the two organizations will enable creation of performance measures that will help participating organizations to achieve their respective goals.

Measuring up: do you have a scorecard?

2002 ◽  
Vol 2 (4) ◽  
pp. 181-187
Author(s):  
K. Johnson
Keyword(s):  
Best Practices ◽  
Performance Measurement ◽  
Measurement System ◽  
Balanced Scorecard ◽  
Performance Measurement System ◽  
Business Practices ◽  
Actual Performance ◽  
Measurement Systems ◽  
Performance Measurement Systems ◽  
A Performance

Performance measurement can be an effective tool in driving organization improvement to enable your utility to become more competitive, or improve customer satisfaction. WERF Project #99-WWF-7, Developing and Implementing a Performance Measurement System, is developing performance measurement systems by investigating a number of “best practices” in other industries and implementing selected practices at various water/wastewater utilities nationwide to determine how these practices can be adapted and applied. This joint WERF/AWWARF research project has been underway since mid-1999 to provide methods and tools that enable the utility to develop and implement a performance measurement system based on a demonstrated, proven approach. The Volume I Report summarizes the secondary research and project approach. Well designed, properly implemented performance measurement systems can enable utilities to achieve new levels of performance in terms of efficiency, quality, and effectiveness. Interest in performance measurement is increasing in all competitive businesses and industries today, and has been advanced through concepts such as the Balanced Scorecard. Utilities can employ these same concepts and learn “best practices” from other industries' experiences. While a performance measurement system alone does not improve performance or make a utility competitive, when combined with an appropriate business strategy and performance improvement initiatives, it can drive a cycle of change. A successful performance measurement system combines a holistic approach around improved business practices and effective human/organizational strategies in addition to actual performance information for operational decision-making.

A Balanced Scorecard Approach to Monitoring and Evaluating E-Partnerships

2011 ◽  
pp. 205-227
Author(s):  
Fang Zhao
Keyword(s):  
Performance Measurement ◽  
Performance Measures ◽  
Balanced Scorecard ◽  
Performance Metrics ◽  
Business Partnerships ◽  
Complementary Resources ◽  
Performance Measurement Systems ◽  
Future Direction ◽  
Traditional Performance

The ongoing success of e-partnership requires the constant monitoring and measuring of its progress and outcomes. Many companies rushed into e-partnerships in order to exploit complementary resources that they lacked but knew little about how to make their partnerships work and how to effectively monitor and measure its performance. Even today, many partnerships are left to drift without a system in place to assess the quality of partnerships. So, how can the productivity and health of a partnership be monitored and measured? The biggest challenge relating to performance measurement for e-partnerships is that e-partners are often independent business firms and legal entities with different stakeholders and different business objectives and goals. In the supplychain, for example, one firm can rarely control the entire supply chain’s performance. However, performance measures that can be extended across firm boundaries and processes are needed to measure inter-organizational e-partnerships. The uncertainty and intangibility of e-business and information technology add more complexity and challenges to the measurement of e-partnership performance. Looking at the current literature, it is not hard to find that the development and implementation of performance measurement systems for inter-firm collaboration is still in its infancy. Overall, traditional performance measures do not focus on key inter-firm activities to monitor extended enterprise performance. This chapter reviews and discusses various concepts, models and issues of performance measurement. On the basis of that, the chapter proposes, by taking a balanced scorecard approach, a new set of performance metrics for managers to assess the process and outcome of e-partnerships in a comprehensive manner. The chapter will also help e-partners to benchmark against best practices and determine future direction and priorities in their e-business partnerships.

Sign in / Sign up

Export Citation Format

Share Document