Rajko Novak and Aleksander Janeš
The purpose of this paper is to empirically evaluate business process orientation (BPO) of the Slovenian power supply business.
Abstract
Purpose
The purpose of this paper is to empirically evaluate business process orientation (BPO) of the Slovenian power supply business.
Design/methodology/approach
Within the empirical investigation, the level of BPO maturity was measured in the 19 organizations of the power supply business. The survey was focused on the top, middle and lower managers. As a measuring instrument, a questionnaire for the extended concept of process orientation with nine elements was used.
Findings
The results of the BPO measurement show that, despite this long-standing preoccupation with processes, certified management system and the computerization of operations, process maturity is not high. Particularly the lowest score for information technology represents a surprise.
Practical implications
This research makes significant contributions to the literature and above all to scholars and practitioners who work professionally in this field and will find useful guidance for a better understanding of applying BPO and maturity models.
Social implications
One important reason for performing the maturity measurement in the power supply business is the importance of its activities for the operation and development and environmental impact of the whole of Slovenian society.
Originality/value
Presented research is the first one which considers the BPO maturity in the Slovenian power supply business and therefore contributes to understanding of the “intangible factors” which have impact on the introduction of business process management and BPO.
Details
Keywords
Aleksander Janeš and Armand Faganel
The purpose of this paper is to explore and clarify the cause and effect relations between key performance indicators (KPIs) which significantly contribute to the benefits of the…
Abstract
Purpose
The purpose of this paper is to explore and clarify the cause and effect relations between key performance indicators (KPIs) which significantly contribute to the benefits of the business processes exploitation in the Luka Koper, d.d. Company.
Design/methodology/approach
The paper developed a single equation microeconomic error correction model (ECM) with the Engle and Granger two-step method. With the ECM approach, the paper performed application on the KPIs and estimated short- and long-term effects between them.
Findings
From the final ECM model, it can be recognized that the total turnover has been increased, by increased maritime throughput. Increasing the maritime throughput means a reduction in electricity consumption per tonne reloaded and increasing consumption of fossil fuels and water. Revenue per unit of maritime throughput has a negative regression coefficient, which may lead to an increase in income or increased amount of maritime throughput and simultaneously reducing the cost per tonne reloaded. Results are reflecting the impact of sharp declining in maritime throughput with the greatest added value in the years 2007 and 2008. All these results and observations suggest that an error correction mechanism exists and that the paper set up a stable model, which describes the dynamics of short-term determinants of the long-term service performance.
Research limitations/implications
The following limitations exist to this study: sample size and quality of the data that were available and the quantitative analysis in the four perspectives of the Kaplan and Norton's balanced scorecard (BSC). Since this is the case study that investigates the impact of the KPIs' on the results and causalities between them, the paper also encountered the data, which are treated as a business secret. Further research into the impact of introducing the four perspectives of the BSC to monitor the implementation of strategies and strategic projects is recommended.
Practical implications
The presented quantitative approach is useful in combination with a qualitative approach, which is a common practice in determining the causal relations resulting in the strategic map of BSC. Simulations of the developed model are possible on all levels of management, by combining the KPIs, and consecutively acquire new knowledge about their relations. Developed quantitative approach supports improving the monitoring of operational efficiency of an organization, improving business processes, project efficiency and achievement of the strategic goals.
Originality/value
Developed approach supports identification and classification of strategic goals and their KPIs that are best suited for inclusion in the BSC strategic map, improvements to the monitoring of implemented strategic initiatives and achievement of strategic goals.
Details
Keywords
The development and empirical verification of the balanced scorecard (BSC) model are key parts of the research of a case study on the performance measurement system (PMS) of the…
Abstract
Purpose
The development and empirical verification of the balanced scorecard (BSC) model are key parts of the research of a case study on the performance measurement system (PMS) of the Ydria Motors LL Company (YM). The paper aims to discuss these issues.
Design/methodology/approach
The research was performed as a single case study of modelling the BSC for the manufacturing company and founded on complementary use of qualitative and quantitative methods. The central part of the case study is an empirically evaluated layout of the BSC with the Engle-Granger two-step method.
Findings
The results and findings from empirical analysis showed that the methods used are appropriate for inclusion in the methodological approach as they are complementary. Therefore, it can be asserted that the introduction of quantitative methods of continuous data analysis for the implementation of the BSC improved the established approach. In this research, an approach that represents the basis for further work in the field of research in PMSs of companies, with the use of econometric tools, was empirically tested and developed.
Research limitations/implications
The generalization of research findings is limited to only one manufacturing company. With the continuation of the research on other case studies, the preliminary lessons learned can be expanded to other organizations.
Originality/value
Following the research findings, it can be established that the methodology used provides support to organization's decision-making process in real-time and can be used with different strategies scenarios and forecast simulations and thus supports the prioritization of strategic initiatives. In addition, the developed model allows the integration and testing of various performance indicators and the identification and selection of the most appropriate KPIs.