Without doubt Robert Kaplan has been, in the last decade, and continues to be the most influential thinker in the field of performance management, and his Balanced Scorecard is…
Abstract
Without doubt Robert Kaplan has been, in the last decade, and continues to be the most influential thinker in the field of performance management, and his Balanced Scorecard is the most successful concept in this field. The article is a summary of an interview with Robert Kaplan, co‐author of The Balanced Scorecard, Translating Strategy into Action (Harvard Business School Press, 1996). The Balanced Scorecard, measures that drive performance (Harvard Business Review, January/February 1992) and The strategy‐focused organization, how balanced scorecard companies thrive in the new business environment (Harvard Business School Press, 2000).
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This article presents an interview with Dr. Robert S. Kaplan and Dr. David P. Norton.
Abstract
Purpose
This article presents an interview with Dr. Robert S. Kaplan and Dr. David P. Norton.
Design/methodology/approach
Kaplan and Norton answer questions about their book Alignment: Using the Balanced Scorecard to Create Corporate Synergies.
Findings
Kaplan and Norton discuss the ideas in their book.
Originality/value
This interview provides useful insights into Kaplan and Norton's book.
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Three recent publications by noted authors offer valuable insights into the new directions that leadership development thinking and practice now need to take, with all of three…
Abstract
Purpose
Three recent publications by noted authors offer valuable insights into the new directions that leadership development thinking and practice now need to take, with all of three books placing particular emphasis on the importance of character, identity and values, not just competence.
Design/methodology/approach
Organizational psychologist Fred Kiel’s book, Return On Character sets out to show that the strength of a leader’s character is an important driver of business success and to examine the implications for leadership development. Discover Your True North by Harvard professor and former CEO of Medtronic Bill George examines why the self-development process of discovering one’s core values and passion (authenticity) to lead is essential to becoming an engaging and empowering leader. The theme of leadership as a life-long developmental challenge is Robert Kaplan’s primary focus in What You Really Need to Lead.
Findings
Kiel’s data revealed a clear relationship between the strength of a leader’s character and demonstrated mastery of these key skills, with virtuosos “consistently” outperforming their more self-focused peers.
Originality/value
One of the reasons that character matters is that leaders who more consciously and persistently search for greater self-awareness over the course of their careers tend to become ever more capable of questioning “not only the ideas of others” but even their “own most cherished beliefs,” and as a result, their understanding of their life, their business, their marketplace, and the global forces that shape them “enters a state of continual growth and development.”
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The globalisation of markets, emerging concepts of sustainable development, and circular economy have defined the boundaries within which organisations must compete and address…
Abstract
The globalisation of markets, emerging concepts of sustainable development, and circular economy have defined the boundaries within which organisations must compete and address the needs of key stakeholders. As circumstances change, boundaries are often replaced by the relationships between companies and the communities they serve. Consequently, strategy has become a central aspect of sustainable leadership and the foundation for implementing strategic management in a dynamic system of relationships. Every company is born and grows within social and economic ecosystems. Drawing on the metaphor of biology, ecosystems are described as dynamic interconnections among various elements that influence and foster entrepreneurship. Interconnections between players (such as marketplaces, organisations, governments, and universities) create a flow of expertise, abilities, knowledge, experience, and tangible resources. Economic and social ecosystems involve various actors and components that continuously coexist and interact, leading to the creation of numerous mutual relationships. Consequently, it is crucial for managers to gain a comprehensive understanding of the internal and external environments. Various decision-making tools and strategies can be used to achieve this goal. These tools were developed to assist managers, researchers, and consultants in making informed decisions under complex scenarios. This chapter presents several decision-making strategies and tools, including the Boston Consulting Group (BCG) matrix, General Electric (GE) matrix, Balanced Scorecard (BSC), PEST, PESTEL analysis, and SWOT analysis.
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Mohamed Sayed Abdel Hamied and Ayman Elbagoury
The study aims to provide a clear framework of steps on how to implement the balanced scorecard model at the level of measuring and managing local performance, with a mix between…
Abstract
Purpose
The study aims to provide a clear framework of steps on how to implement the balanced scorecard model at the level of measuring and managing local performance, with a mix between what theoretical approaches show in this matter and examples of applied experiences in different contexts.
Design/methodology/approach
The study relies on the case study approach, which was used to present pioneer experiences in the field of application of the model on local government's level, namely, in the USA, England and South Africa. This paper was done by reviewing the original balanced scorecard literature and writings regarding the public and local government sector. This literature formed the basis for analyzing the various sections of study.
Findings
Balanced scorecard is one of the important models for developing and measuring local performance. International experiences under study confirmed that application of the model requires the following: The availability of bureaucratic will at the local level to apply the model, necessity of capacity building of local government units to apply it, introduction of institutional and strategic changes to the local units to be able to build their own performance cards, as well as strengthening local information systems, and not standardizing the performance cards at the different local administrative units.
Originality/value
This study will be useful for scholars, policymakers and local executive leaders on ways to apply the balanced scorecards at the local government units.
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The purpose of this paper is to provide the author's insights about five papers written in this volume about his published work on the balanced scorecard (BSC).
Abstract
Purpose
The purpose of this paper is to provide the author's insights about five papers written in this volume about his published work on the balanced scorecard (BSC).
Design/methodology/approach
The author's comments are based on his personal writing, teaching, speaking about, and implementing the BSC during the past 20 years.
Findings
The author finds that academic commentary on the BSC often ignores its role in strategy execution.
Research limitations/implications
The commentary is unique to the author's personal experiences and may not be generalizable to other scholars who have not shared the same experiences.
Practical implications
The paper may help scholars better understand the role of the BSC for strategy formulation, communication and implementation. It may also aid them in teaching the BSC to students and executives.
Social implications
The paper discusses how the BSC can be used in public sector applications, as well as for companies that want to internalize environmental, social and community objectives in their strategies.
Originality/value
The paper reflects the personal views of the author; it is original to him.
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The Planning Forum's Annual Conference in Washington, D.C. posted another attendance record. Some 1300 senior executives exchanged war stories, business theories, and points of…
Abstract
The Planning Forum's Annual Conference in Washington, D.C. posted another attendance record. Some 1300 senior executives exchanged war stories, business theories, and points of view with each other while attending three days of presentations by major company CEOs, consultants to leading corporations, noted academics, and practitioners of strategic management.
To develop and apply the social enterprise balanced scorecard (SEBS) as an amended balanced scorecard technique for use evaluating UK social enterprises.
Abstract
Purpose
To develop and apply the social enterprise balanced scorecard (SEBS) as an amended balanced scorecard technique for use evaluating UK social enterprises.
Design/methodology/approach
The study involved exploring the potential mainstream application of the balanced scorecard in UK social enterprises to learn how this process show the ways in which social enterprises can develop, and implement and track the performance of their socially driven strategies. Describes the development of an SEBS and its testing by 12 social enterprises in a pilot training programme (August 2004‐December 2004).
Findings
The results indicated that the SEBS had changed participant views about their organizations in terms of: increased employee understanding about their organization as a business; the usefulness as a business planning tool for social enterprises; the natural fit of the SEBS alongside the existing UK quality accreditation scheme of Investors In People; the power of the SEBS to be an effective means to engage staff and team members as an early‐warning system for potential problems; helping to redress the balance between purely financial gains and social purpose; and providing focus, clarity, and the ability to remove non‐essential detail from strategic planning. Concludes that: Kaplan and Norton’s balanced scorecard is capable of being adapted to suit social enterprises; positive outcomes include creating a common language through which social entrepreneurs can share and compare experience, even if they operate in different industries; and the application of the SEBS can enable organizations to become better businesses, while demonstrating social value added to stakeholders.
Originality/value
Reveals the benefits of extending the balanced scorecard approach to the evaluation of social enterprises.
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Matthew Fish, William Miller, D’Arcy Becker and Aimee Pernsteiner
The purpose of this paper is to examine the role of organizational culture as a company migrates through a four-stage model for designing a performance measurement system (PMS…
Abstract
Purpose
The purpose of this paper is to examine the role of organizational culture as a company migrates through a four-stage model for designing a performance measurement system (PMS) focused on customer profitability.
Design/methodology/approach
This is a single-site phenomenological case study, at Growth Spurt Marine Accessories (Growth Spurt), a manufacturing organization headquartered in the USA. Data were collected over a two-year period through interviews with accounting staff, internal company documents and recording observational notes.
Findings
The paper identifies three major factors that prevented Growth Spurt from transitioning its customer profitability analysis (CPA) reporting package through Kaplan and Cooper’s four-stage model of PMS design: executives exerting their power and spending political capital to prevent implementation without providing rationale, executives believing that the allocation methods were too subjective and executives relying on their own intuition in analyzing customer profitability rather than relying on data. These factors suggest that organizational culture plays an important role in migrating a customer-focused profitability PMS through Kaplan and Cooper’s four-stage model of PMS system design.
Research limitations/implications
The findings suggest that a PMS focused on customer profitability that does not advance beyond Stage II (financial reporting-driven) may still suit the needs of an organization. Additionally, managers should advocate for a multidisciplinary PMS design and implementation team to minimize potentially adverse effects of organizational culture.
Originality/value
This paper is unique because it applies Kaplan and Cooper’s four-stage model for PMS design to CPA and it uses a phenomenological case approach to explore impediments to a comprehensive CPA implementation.
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M. Punniyamoorthy and R. Murali
The purpose of this paper is to create a model called “Balanced score for the balanced score card” and to provide an objective benchmarking indicator for evaluating the…
Abstract
Purpose
The purpose of this paper is to create a model called “Balanced score for the balanced score card” and to provide an objective benchmarking indicator for evaluating the achievement of the strategic goals of the company.
Design/methodology/approach
The paper uses the concepts of “Balanced scorecard” proposed by Robert. S. Kaplan and David P. Norton. This paper also adopts the model given by Brown P.A. and Gibson D.F. and the extension to the model provided by P.V. Raghavan and M. Punniyamoorthy. Preference theory is used to calculate the relative weightage for each factor, using the process of pair wise comparison. The balanced score for balanced scorecard provides a single value by taking into account all the essential objective and subjective factors – be it financial or non‐financial. It also provides a suitable weightages for those parameters. The target performance and the actual performance are compared and the analysis is made.
Findings
Information from a leading organization was obtained and the balanced score for a balance scorecard was calculated for that organization. The variations were analyzed through this model. The depth and objectivity in the analysis is highlighted.
Research limitations/implications
This provides a single bench marking measure to evaluate how far the firm had been successful in achieving the strategies. The paper has adopted the preference theory which limits the weightage to be accorded to the factors concerned. However, further refinement can be provided by the usage of analytic hierarchy process for arriving suitable weightages.
Practical implications
The organization can calculate the balanced score by themselves, by assigning appropriate importance to the activities – as they deem fit. It is a tailor made benchmarking information system created by the firm for itself.
Originality/value
This is of value to the top management to identify the important activities and setting suitable target measures to be achieved in those activities. The variations are arrived by comparing the targeted performance with the actual. This will help the firm to take suitable actions under those parameters where there are significant deviations.