Balanced scorecard approach

Instead, the direct evaluation of cost drivers is in focus for optimization. Cost drivers are performance measures driving costs or profit but their immediate contribution to total costs/profit cannot be expressed explicitly.For assessing the SC performance diverse performance measurement systems are proposed with many of them relying on the balanced scorecard approach in combination with the SCOR model.Performance measures can be categorized according to the dimensions of the balanced scorecard or... 

See Kaplan et al. (1992) for the seminal work on the balanced scorecard and Bhagwat and Sharma (2007) for performance measurement systems in SCM based on the balanced scorecard approach. See Siirie and Wagner (2008) or Gunasekaran et al. (2004, 2001) and Agami et al. (2012) for an overview of performance measurement systems. 

Bhagwat, R. and Sharma, M. K. Performance measurement of supply chain management A balanced scorecard approach. Computers Industrial Engineering, 53(l) 43-62, 2007. 

Service delivery execution system (exemplified by programs, policies, and behavioral aspects delivering complimentary areas of customer focus), possibly using balanced scorecard approaches. 

Today, various virtual e-services and physical services models may be developed, evaluated, and monitored using a balanced scorecard approach. The service value network concept also fits under this measured strategic decision-making approach. Service value networks house fully integrated e-demand and e-supply chains working in harmony to the deliver both services and e-services. They are also highly agile and offer customer-induced flexible business solutions to customer requests. 

Kaplan and Norton, whose quotation introduced this chapter, have also developed what is now a widely employed technique called the balanced scorecard. The balanced scorecard, or BSC, also has value in locking in supply chain changes. Use of concepts behind the balanced scorecard approach will also evaluate whether or not actions to support supply chain changes are having the desired effect. 

The BSC approach takes broad corporatewide goals and cascades them down into meaningful measures for departments, groups, and individuals. The balance in the balanced scorecard approach comes from the breadth of the measures. Rather than following the common practice of limiting measurement to financial information, the balance is provided by four perspectives ... 

Anser R, Malik QA (2013) Cash conversion cycle and firms profitability a study of listed manufacturing companies of Pakistan. lOSR J Bus Manag 8(l) 83-87 Bhagwat R, Sharma MK (2006) Performance measurement of supply chain management a balanced scorecard approach. Comput Ind Eng 53 43-62... 

In the Balanced Scorecard approach, a business unit s mission and strategy are translated into tangible, measureable objectives. A balance is to be maintained between the outcome measures, the results from past efforts (the lagging indicators), and the measures that drive future performance (the leading indicators.) Operational processes, the authors say, are selected for emphasis that are most critical for achieving breakthrough performance (10). 

Alsyouf, I. 2006. Measuring maintenance performance using a balanced scorecard approach. Journal of Quality in Maintenance Engineering 12(2) 133-149. 

To capture the business opportunities, the procurement team then needs to build a holistic business plan. The business plan mentality is critical, since it will provide the organization with a clear proposal and basis for the decision to allocate necessary resources to the planned efforts. Organizations that have pursued such an approach have created the prerequisites for performance transparency and service-oriented behavior. Possible outcomes depending on the needs of the company and the capabilities developed within procurement can range from a strong procurement network with its own profit and loss statement and balanced scorecard to the creation of a market-oriented profit center unit. The business plan should be focused primarily on value creation rather than cost savings, and should consist of two distinct parts ... 

The balanced scorecard model is a highly useful tool that can assist with the focusing, targeting, and delivery of optimized growth approaches for an industry block like the phar-... 

Balanced scorecard An approach to measurement that cascades measures from the top down through the organization. The method uses four perspectives to achieve balance. These are financial, customer, internal business, and irmovation and learning. 

The Balanced Scorecard is a new approach to strategic management, developed in the early 1990s by Drs. Robert Kaplan and David Norton (Balanced Scorecard Institute 2001). The concept translates the planning perspective of an institution (mission, strategic vision, and goals) into a system of performance indicators that covers all-important perspectives of performance (i.e., finances, users, internal processes, and improvement activities) (Poll 2001, 709). 

A good reference line of key performance indicators of a supply chain is the Balanced Scorecard by Kaplan and Norton (1996). Kaplan and Norton argue that a valuation of intangible assets and company capabilities would be especially helpful since, for information age companies, these assets are more critical to success than traditional physical and tangible assets . The Balanced Scorecard retains traditional financial measures, customer services and resource utilization (internal business process) and includes additional measures for learning (people) and growth (innovation). This approach complements measures of past performance with drivers for future development. 

There is evidence (HBS Publishing, 2000) that the Balanced Scorecard (BSC) approach of Kaplan and Norton has made a significant impact on performance management results. Many companies benefited from applying selected metrics in the four perspectives of the BSC, viz. ... 

The use of metrics has been a hot management topic for several years. This popularity has been fueled by two primary factors. The first is the phenomenal success of a series of articles in the Harvard Business Review and a subsequent book. The Balanced Scorecard, by Kaplan and Norton, which make a case for metrics as a key ingredient for excellence in both operations and strategy. Chapter 13 describes the approach. The second is the fact that metrics are easy to implement and produce very clear and measurable results, causing metric success to be largely self-propitiating. 

Wua, H.-Y, Tzeng, G.-H. Chen Y.-H. 2009. A fuzzy MCDM approach for evaluating banking performance based on Balanced Scorecard. Expert Systems with Applications 36 10135-10147. 

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