What Difference Does It Make

2003 ◽  
pp. 52-65 ◽  
Author(s):  
Abdus S. Chaudhry
Keyword(s):  
Knowledge Management ◽  
Performance Measurement ◽  
Performance Measures ◽  
Measurement System ◽  
Balanced Scorecard ◽  
Intangible Assets ◽  
Competitive Success ◽  
Salient Features ◽  
Management Work ◽  
Comprehensive Coverage

This chapter provides an overview of performance measurement in the area of knowledge management. Salient features of main measures have been described and their role in determining the return on knowledge management work highlighted. While Balanced Scorecard and Intangible Assets Monitor provide comprehensive coverage, several other measures are also in use. A recent study and review of applications of main KM performance measures in selected organizations showed several areas of commonality in the objectives of performance measurement and revealed differences in approaches to the application and presentation of various performance measures. Developing a measurement system for knowledge management is considered the key to the competitive success of the organization.

What Difference Does It Make

2011 ◽  
pp. 2907-2918
Author(s):  
Abdus Sattar Chaudhry
Keyword(s):  
Knowledge Management ◽  
Performance Measurement ◽  
Performance Measures ◽  
Measurement System ◽  
Balanced Scorecard ◽  
Intangible Assets ◽  
Competitive Success ◽  
Salient Features ◽  
Management Work ◽  
Comprehensive Coverage

This chapter provides an overview of performance measurement in the area of knowledge management. Salient features of main measures have been described and their role in determining the return on knowledge management work highlighted. While Balanced Scorecard and Intangible Assets Monitor provide comprehensive coverage, several other measures are also in use. A recent study and review of applications of main KM performance measures in selected organizations showed several areas of commonality in the objectives of performance measurement and revealed differences in approaches to the application and presentation of various performance measures. Developing a measurement system for knowledge management is considered the key to the competitive success of the organization.

Performance Measures for Knowledge Management

2002 ◽  
Vol 01 (01) ◽  
pp. 27-39 ◽  
Author(s):  
Jasna Dhansukhlal ◽  
Abdus Sattar Chaudhry
Keyword(s):  
Knowledge Management ◽  
Performance Measurement ◽  
Performance Measures ◽  
Intellectual Capital ◽  
Balanced Scorecard ◽  
Exploratory Study ◽  
Intangible Assets ◽  
The Balanced Scorecard ◽  
Business Excellence

An exploratory study of the existing performance measures carried out through reviews of websites revealed a variety of approaches that organizations use in implementing knowledge management. The main measures are the balanced scorecard and the intangible assets monitor, both of which provide a comprehensive, developed and tested approach to performance measurement of knowledge management. Additional measures include Skandia's intellectual capital taxonomy and AFS business navigator, the business excellence model, the intellectual capital index, Montague Institute's 12 techniques used to value intangible assets and the APQC measurement efforts.

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

2015 ◽  
Vol 27 (2) ◽  
pp. 39-65 ◽  
Author(s):  
Dennis Campbell ◽  
Srikant M. Datar ◽  
Susan L. Kulp ◽  
V. G. Narayanan
Keyword(s):  
Performance Measurement ◽  
Financial Performance ◽  
Performance Measures ◽  
Measurement System ◽  
Balanced Scorecard ◽  
Business Strategies ◽  
Performance Measurement System ◽  
Testing Strategy ◽  
Strategy Formulation ◽  
Specific Performance

ABSTRACT This study investigates the idea that business strategies can be tested and validated based on statistical analysis of a firm's internal performance measures. The strategy literature describes business strategies using the concepts of formulation, implementation, and fit. The management accounting literature links these strategy concepts with the selection and use of performance measures. Building on these two streams we examine whether and how a multidimensional performance measurement system can be used to distinguish between strategic problems related to strategic inputs, customer-oriented strategic outputs, and financial performance. We use data from the performance measurement system of a field site that formulated, implemented, and subsequently abandoned an innovative operating strategy. Managers learned the strategy was ineffective over a two-year period. We find that the company's internal performance measures systematically reveal more timely information about problems with the strategy. Furthermore, the performance measures can help identify where and why the strategy failed. The results are consistent with strategy inputs leading to positive customer experiences but poor financial performance because of a poor fit between the strategy and the firm's internal capabilities and skills. These results provide evidence that strategically linked firm-specific performance measures can be used (1) to evaluate strategy on a timely basis, and (2) to distinguish between problems, such as strategy formulation, implementation, and fit, that cause strategies to fail.

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.

HCS: Designing a Balanced Scorecard in a Knowledge-Based Firm

2001 ◽  
Vol 16 (4) ◽  
pp. 569-601 ◽  
Author(s):  
Chris Moore ◽  
Beverly J. Rowe ◽  
Sally K. Widener
Keyword(s):  
Human Capital ◽  
Performance Measures ◽  
Measurement System ◽  
Balanced Scorecard ◽  
Systems Design ◽  
Operational Performance ◽  
Performance Measurement System ◽  
Knowledge Based ◽  
Consulting Services ◽  
Strategic Context

The purpose of this case is to enable you to design a performance measurement system using a balanced scorecard. This case is based on factual issues and decisions faced by the real-world managers and employees of Holloway Consulting Services (HCS) (names and dollar amounts have been changed). HCS is a service firm that provides its customers with managed business solutions, i.e., integrating outsourcing options with systems design and support. Currently, HCS collects several financial and operational performance measures; however, Sharon Holloway, owner of HCS, is concerned that these measures are not adequate for a firm that competes using intangible assets, especially human capital. Therefore, she plans to implement a balanced scorecard in which performance measures are linked to the firm's strategy. This case provides you with the opportunity to develop a balanced scorecard that incorporates both traditional and nontraditional performance measures within the strategic context of a knowledge-based firm.

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.

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.

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