Supply Chain Performance Measurement and Organizational Alignment in the Digital World

2019 ◽  
pp. 128-154
Author(s):  
Ehap Sabri ◽  
Rohan Vishwasrao
Keyword(s):  
Supply Chain ◽  
Performance Measurement ◽  
Balanced Scorecard ◽  
Maturity Model ◽  
Maturity Models ◽  
Strategic Objectives ◽  
The Balanced Scorecard ◽  
Digital World ◽  
Road Map ◽  
And Performance

The authors describe how organizations can leverage the maturity model approach in conjunction with foundational concepts of perspective-based performance evaluation models like the balanced scorecard (BSC) to define a comprehensive performance measurement framework. A maturity model by design provides a road-map to the next level of performance. In this chapter, the authors propose using maturity models as a structured way of identifying current capability or maturity level of any supply chain. The authors provide guidance on selecting the right “causal linkages” between supply chain objectives and performance measures. They then define a mechanism for specifying even more granular definitions of measures linked to strategic objectives, as the level of maturity progresses. In this chapter, the authors survey widely used supply chain/business process maturity models and current practices related to measuring operational metric. And then present a tiered framework for operational metric alignment and KPI governance based on perspective-based modeling design principles.

Supply Chain Performance Measurement and Organizational Alignment

2017 ◽  
pp. 1723-1749
Author(s):  
Rohan Vishwasrao ◽  
Ehap Sabri
Keyword(s):  
Supply Chain ◽  
Performance Measurement ◽  
Balanced Scorecard ◽  
Maturity Model ◽  
Maturity Models ◽  
Strategic Objectives ◽  
Measurement Framework ◽  
And Performance ◽  
The Right ◽  
Operational Metrics

The authors describe how organizations can leverage a maturity model approach in conjunction with foundational concepts of perspective-based performance evaluation models like Balanced Scorecard (BSC) to define comprehensive performance measurement framework. Maturity models are essentially a reflection of theories about how the capabilities of an organization evolve. Therefore, by design, they provide a roadmap to the next level of performance. The authors propose using maturity models as a structured way of identifying current capability or maturity level of any supply chain. They then provide guidance on selecting the right “causal linkages” between supply chain objectives and performance measures and define a mechanism for specifying more granular definitions of measures linked to strategic objectives for progressive levels of maturity. The authors survey widely used business process maturity models, current practices for measuring operational metrics, and then present a tiered framework for operational metric alignment and KPI governance, based on perspective-based design principles.

Supply Chain Performance Measurement and Organizational Alignment

2015 ◽  
pp. 148-174
Author(s):  
Rohan Vishwasrao ◽  
Ehap Sabri
Keyword(s):  
Supply Chain ◽  
Performance Measurement ◽  
Balanced Scorecard ◽  
Maturity Model ◽  
Maturity Models ◽  
Strategic Objectives ◽  
Measurement Framework ◽  
And Performance ◽  
The Right ◽  
Operational Metrics

The authors describe how organizations can leverage a maturity model approach in conjunction with foundational concepts of perspective-based performance evaluation models like Balanced Scorecard (BSC) to define comprehensive performance measurement framework. Maturity models are essentially a reflection of theories about how the capabilities of an organization evolve. Therefore, by design, they provide a roadmap to the next level of performance. The authors propose using maturity models as a structured way of identifying current capability or maturity level of any supply chain. They then provide guidance on selecting the right “causal linkages” between supply chain objectives and performance measures and define a mechanism for specifying more granular definitions of measures linked to strategic objectives for progressive levels of maturity. The authors survey widely used business process maturity models, current practices for measuring operational metrics, and then present a tiered framework for operational metric alignment and KPI governance, based on perspective-based design principles.

scholarly journals Evaluasi Penerapan Balanced Scorecard sebagai Pendekatan dalam Pengukuran Kinerja

2016 ◽  
Vol 1 (1) ◽  
Author(s):  
Dian Purwandari
Keyword(s):  
Performance Measurement ◽  
Balanced Scorecard ◽  
Comparative Method ◽  
Performance Measurement System ◽  
Strategic Objectives ◽  
The Balanced Scorecard ◽  
Financial Perspective ◽  
And Performance ◽  
Measure Of Performance ◽  
Internal Business Process

Abstrak Penelitian ini bertujuan untuk: (1) mengevaluasi balanced scorecard yang diterapkan oleh Bank XYZ; (2) menganalisis sistem pengukuran kinerja; (3) merumuskan kembali balanced scorecard sesuai dengan misi, visi, dan strategi Bank XYZ. Penelitian dilakukan dengan menggunakan metode deskriptif komparatif, yaitu melalui studi literatur yang dilakukan dengan mempelajari literatur yang berkaitan dengan topik penelitian, serta studi lapangan yang dilakukan melalui wawancara dan observasi langsung untuk mendapatkan gambaran mengenai situasi dan kondisi perusahaan. Berdasarkan hasil evaluasi secara keseluruhan, perancangan balanced scorecard Bank XYZ belum optimal. Cakupan sasaran strategis dari perspektif proses bisnis internal, serta perspektif pembelajaran dan pertumbuhan masih terlihat sederhana dan belum mengakomodasi sasaran strategis dari perspektif pelanggan dan perspektif keuangan. Penelitian ini berusaha merumuskan kembali perancangan balanced scorecard dengan menggunakan ukuran indikator kinerja sesuai dengan teori Kaplan dan Norton. Kata Kunci : Balanced Scorecard dan Pengukuran Kinerja Evaluation of the Application of Balanced Scorecard as Performance Measurement Approach (Case Study on Bank XYZ) Abstract This research is aimed to: (1) evaluate BSC applied by Bank XYZ; (2) analyze the performance measurement system; (3) reformulate balanced scorecard in accordance with the mission, vision, and strategy of Bank XYZ. This research uses descriptive comparative method, specifically the study of literature that conducted by studying literature related to the research topic, and the field study carried out by interviews and direct observation to get an overview of the situation and condition of the company. Based on the overall results of the evaluation, the design of balanced scorecard on Bank XYZ is not optimal. The scope of the strategic objectives of the internal business process, and learning and growth perspective still look simple and yet accommodate the strategic objectives of the customer perspective, and financial perspective. This research seeks to reformulate the design of the balanced scorecard by using a measure of performance indicators in accordance with the theory of Kaplan and Norton. Keywords: balanced scorecard and performance measurement

Performance Measurement using Balance Score Card and its Applications: A Review

2015 ◽  
Vol 4 (3) ◽  
Author(s):  
Shradha Gawankar ◽  
Sachin S. Kamble ◽  
Rakesh Raut
Keyword(s):  
Performance Measurement ◽  
Organizational Performance ◽  
Performance Management ◽  
Balanced Scorecard ◽  
Strategic Change ◽  
The Balanced Scorecard ◽  
Balance Score Card ◽  
Measurement Framework ◽  
Score Card ◽  
And Performance

This paper aims to propose the idea of briefly explaining the balance scorecard by highlighting its use, application in depth. A critical enabler in achieving desired performance goals is the ability to measure performance. Despite the importance of accurately measuring organizational performance in most areas of academic research, there have been very few studies that have directly addressed the question of how overall organizational performance is or should be measured. Perhaps more importantly, none of these studies seems to have significantly influenced how overall organizational performance is actually measured in most of the empirical research that uses this construct as a dependent measure. The most popular of the performance measurement framework has been the balanced scorecard abbreviated as BSC. The BSC is widely acknowledged to have moved beyond the original ideology. It has now become a strategic change management and performance management process. The approach used in this paper is the combination of literature review on evolution of balance score card and its applications in various sectors/organizations/ areas. This paper identify that the balanced scorecard is a powerful but simple strategic tool and the simplicity of the scorecard is in its design. By encompassing four primary perspectives, the tool allows an organization to turn its attention to external concerns, such as the financial outcomes and its customers expectations, and internal areas, which include its internal processes to meet external requirements and its integration of learning and growth, to successfully meet its strategic expectations. This paper provides a comprehensive overview of the balanced scorecard combined with application and strategy, which are now in a better position to begin to recognize managements expectations and to discover new ways to build value for workplace learning and performance within organization.

scholarly journals Enterprise Intelligent Procurement Management Model Exploration

2021 ◽  
Author(s):  
Baixing Yang ◽  
Sai Yang
Keyword(s):  
Supply Chain ◽  
Balanced Scorecard ◽  
Maturity Model ◽  
Procurement Management ◽  
The Balanced Scorecard ◽  
Supply Chain Efficiency ◽  
Development Direction ◽  
Procurement System ◽  
Benchmarking System

With the development of big data analysis, blockchain and other technologies, the supply chain of enterprises is transforming to lean and intelligent. As an important link in the enterprise supply chain, the intelligent transformation of procurement plays an important role in the improvement of the supply chain efficiency, therefore, the construction of a common method supporting the intelligent upgrade of the enterprise procurement business has become a key concern for enterprise managers. Based on the balanced scorecard theory and the supply chain maturity model, this study combines the actual situation of procurement management in Chinese energy enterprises and constructs a procurement benchmarking system that balances the development direction of the industry and the actual needs of enterprises. Meanwhile, based on the grounded theory, three major themes of the intelligent procurement system (digital business module, procurement synergy mechanism and procurement ecosystem) are extracted to provide a methodological reference for the construction of intelligent procurement systems of energy enterprises. The study concludes with a case study of China National Energy Group Materials Company to demonstrate the application of the intelligent procurement system built in this paper, with a view to providing methodological reference for the intelligent procurement management in energy enterprises.

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.

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.

Monitoring and regulating corporate identities using the balanced scorecard

2009 ◽  
Vol 13 (2) ◽  
pp. 116-135 ◽  
Author(s):  
Jai Kim ◽  
Caroline Hatcher
Keyword(s):  
Performance Measurement ◽  
Balanced Scorecard ◽  
Identity Management ◽  
Corporate Identity ◽  
Management Control ◽  
Content Type ◽  
The Balanced Scorecard ◽  
Measurement Systems ◽  
Performance Measurement Systems ◽  
And Performance

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.

scholarly journals PENILAIAN KINERJA PERGURUAN TINGGI ISLAM DENGAN BALANCED SCORECARD AGAR TERWUJUD LEMBAGA PENDIDIKAN ISLAM BERBASIS MAQASID SYARIAH

2017 ◽  
Vol 8 (2) ◽  
pp. 121-131
Author(s):  
Zuraidah Zuraidah ◽  
Esy Nur Aisayah
Keyword(s):  
Organizational Performance ◽  
Internal Control ◽  
Balanced Scorecard ◽  
Performance Measure ◽  
Strategic Objectives ◽  
Internal Process ◽  
The Balanced Scorecard ◽  
Financial Perspective ◽  
Process Perspective ◽  
And Performance

In improving organizational performance, alignment an organizations and individuals in the organization is very important. Balanced Scorecard is one of the alternative performance measure that aims to combine the performance measures of financial and non-financial. Inspired by Kaplan and Norton, the concept was developed in four perspectives: financial, customer, internal process and learning and growth. This article discusses how to build a balanced scorecard, include determining the strategic objectives, measures, targets, initiatives, and implementing the balanced scorecard in public organizations. The performance assessment of Islamic Universities have: 1) strategic targets financial perspective: the ability to obtain funding and cost efficiency, 2) strategic objectives perspectives of stakeholders, namely the satisfaction and pride for students, 3) strategic objectives of internal process perspective is a internal business portal, process and policy procedures, financial systems and reporting, internal control and performance measurement, research and community service quality, 4) strategic objectives of learning and growth perspectives improve the professionalism of human resources, improve the quality and infrastructure facilities. Islamic university has 21 strategic objectives in the four perspectives of the balanced scorecard. As well as the maqasid syariah used as an indicator both in aligning the results of an assessment of the performance of the Islamic universities.

Behavioral-Economic Nudges and Performance Measurement Models

2014 ◽  
Vol 27 (1) ◽  
pp. 27-45 ◽  
Author(s):  
Mary A. Malina ◽  
Frank H. Selto
Keyword(s):  
Performance Measurement ◽  
Balanced Scorecard ◽  
Empirical Support ◽  
Measurement Model ◽  
Data Availability ◽  
Behavioral Economic ◽  
The Balanced Scorecard ◽  
Measurement Models ◽  
Economic Framework ◽  
And Performance

ABSTRACT We describe the context wherein a Fortune 500 company's performance measurement model (PMM) has endured and evolved over a 15-year period. The PMM's tenure and continued importance refute the alleged faddish nature of PMMs such as the Balanced Scorecard, at least in this case, and allow identification of factors that add to theory about PMM longevity. We use a behavioral-economic framework and qualitative and quantitative data to examine the mechanisms behind this successful PMM. Aspects of the way the PMM is designed and implemented appear to enable the company using the PMM to exploit or mitigate common behavioral heuristics and biases in decision-making. The PMM helps manage cognitive load in a way that is consistent with the company's priorities, and it manages biases by allowing the company to frame performance information in ways that nudge managers toward strategically important results and risks. The behavioral-economic connection might be a reason why this PMM, and perhaps others, endures. Thus, this study adds to and presents preliminary empirical support for testable behavioral-economic PMM theory. Data Availability: Use of all data collected for this study is regulated by a strict nondisclosure agreement, which requires the researchers to protect the company's identity and its proprietary information.

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