The Proposal of an Innovative Integrated BSC – DEA Model

AbstractData envelopment analysis has been one of the most significant management tools for measuring efficiency. On the other side, the balanced scorecard has been one of the best-known performance management tools. Several foreign studies deal with innovative approaches to a modification of the balanced scorecard and data envelopment analysis methods, frequently by the designing of new models in combination with other methods. However, there are very few studies that examine integration of these two methods and compare the obtained results. In this paper, we combine the BSC with the DEA method to obtain comprehensive performance and efficiency management system for industrial companies and their processes

Integrating the data envelopment analysis and the balanced scorecard approaches for enhanced performance assessment

This article presents the development of a conceptual framework which aims to assess Decision Making Units (DMUs)from multiple perspectives. The proposed conceptual framework combines the Balanced Scorecard(BSC)method with the non-parametric technique known as Data Envelopment Analysis (DEA) by using various interconnected models which try to encapsulate four perspectives of performance (financial, customers, internal processes,learning and growth). The practical relevance of the conceptual model has been tested by using it to assess the performance of DMUs in a multinational company which operates in two business areas.Various models were developed with the collaboration of the directors of the company in order to conceive an appropriate and consensual framework, which may provide useful information for the company.The application of the conceptual framework provides structured information regarding the performance of each DMU(from multiple perspectives)and ways to improve it.By integrating the BSC and the DEA approaches this research helps to identify where there is room for improving organisational performance and points out opportunities for reciprocal learning between DMUs.In doing so,this article provides a set of recommendations relating to the successful application of DEA and its integration with the BSC,in order to promote a continuous learning process and to bring about improvements in performance

Balanced Scorecard and Efficiency: Desing and Empirical Validation of strategic Map in the University by Means of DEA

The principal objective of the research reported in this article is to validate a Balanced Scorecard (BSC) model and a Strategic Map for the University by studying the relationships of efficiency between its dimensions. Subsequently, the validation is completed by establishing hypotheses of efficiency relationships between the perspectives proposed, em- ploying Data Envelopment Analysis (DEA). Empirical evidence has been obtained on the validity of the proposed BSC for a unit of academic management in the university. The first contribution of this work is the establishment of a framework of analysis of the hypothetical cause-effect relationships in the BSC in university institutions. The second contribution is to obtain the determining factors of the performance in this type of institution and, therefore, the Strate- gic Map. Specifically, these factors are: the participation of teaching staff in innovation activities; the number of doc- torate-level staff; the academic subjects and credits in the Virtual Campus; and the scores in the surveys of student sat- isfaction. With respect to research, the determining factors of the performance are: the research sexennials; the funding obtained from contracts with companies; the number of research projects obtained; their financing; and the participation of teachers in these projects

Improving efficiency of decision making units through BSC-DEA technique

Performance evaluation is one of the most important techniques to prioritize different decision making units. Data envelopment analysis (DEA), as a non-parametric method, plays an important role for measuring relative efficiency. Balanced score card, on the other hand, is another method to evaluate a business plan based on non-financial perspectives. The integrated BSC-DEA takes advantage of the advantages of both methods' features. In this paper, we propose a BSC-DEA method to rank different decision making units. We consider different financial criteria such as profit-margin, return on assets along with non-financial criteria such as customer satisfaction, advanced services, employee skills to compare the performance of different banks. The results are analyzed and discussed, which could be used for making better decisions

Combined Use of BSC and DEA Methods for Measuring Organizational Efficiency

Although financial indicators are most often used to measure organizational efficiency, contemporary research suggests that more consideration should be given to non-material factors that can be enveloped by different non-parametric techniques. However, there is no method powerful enough to cover all the relevant aspects of the efficiency problem, i.e. each of them has its advantages and disadvantages. The paper discusses possible combined use of Balanced Scorecard (BSC) method and Data Envelopment Analysis (DEA) in the measurement of organizational efficiency, starting from the deficiencies of the single method use. The main goal of the research in the paper is to show that by combining these methods certain deficiencies in their independent application are eliminated, as well as to indicate the possibilities and limitations, advantages and disadvantages of their combined application. The paper explains that if BSC method is applied first, as a framework for defining goals and performance measures, and then four interactive DEA models are developed, in order to evaluate efficiency in each of the perspectives, relevant synergetic effects will be achieved. This work is licensed under a&nbsp;Creative Commons Attribution-NonCommercial 4.0 International License.</p

Combined Use of BSC and DEA Methods for Measuring Organizational Efficiency

Although financial indicators are most often used to measure organizational efficiency, contemporary research suggests that more consideration should be given to non-material factors that can be enveloped by different non-parametric techniques. However, there is no method powerful enough to cover all the relevant aspects of the efficiency problem, i.e. each of them has its advantages and disadvantages. The paper discusses possible combined use of Balanced Scorecard (BSC) method and Data Envelopment Analysis (DEA) in the measurement of organizational efficiency, starting from the deficiencies of the single method use. The main goal of the research in the paper is to show that by combining these methods certain deficiencies in their independent application are eliminated, as well as to indicate the possibilities and limitations, advantages and disadvantages of their combined application. The paper explains that if BSC method is applied first, as a framework for defining goals and performance measures, and then four interactive DEA models are developed, in order to evaluate efficiency in each of the perspectives, relevant synergetic effects will be achieved. This work is licensed under a&nbsp;Creative Commons Attribution-NonCommercial 4.0 International License.</p

Supply chain sustainability performance measurement of small and medium sized enterprises using structural equation modeling

Sustainability of small and medium sized enterprises (SMEs) is significant as SMEs contribute to GDP substantially in every economy. This research develops an innovative sustainable supply chain performance measurement model for SMEs. Prior researches predominantly use balanced score card (BSC) approach that presume causal relationship of criteria and Data Envelopment Analysis (DEA), which derive efficiency of units from a few input and output criteria. While DEA is effective for policymakers, BSC is more suitable for individual SME. The proposed method that uses structural equation modeling (SEM) approach to derive the relationship of criteria and criteria weights formulates regression-type models for a specific region as well as for specific SME. The SEM-based supply chain sustainability performance measurement model is beneficial to policymakers as they can determine means for improvement at a regional level. The proposed method could also facilitate managers/owners of individual SMEs with measures for improving their supply chain sustainability performance. The method has been applied to three varied geographical locations in the UK, France and India in order to demonstrate its effectiveness

Performance measurement with multiple interrelated variables and threshold target levels:evidence from retail firms in the US

In this study, we developed a DEA-based performance measurement methodology that is consistent with performance assessment frameworks such as the Balanced Scorecard. The methodology developed in this paper takes into account the direct or inverse relationships that may exist among the dimensions of performance to construct appropriate production frontiers. The production frontiers we obtained are deemed appropriate as they consist solely of firms with desirable levels for all dimensions of performance. These levels should be at least equal to the critical values set by decision makers. The properties and advantages of our methodology against competing methodologies are presented through an application to a real-world case study from retail firms operating in the US. A comparative analysis between the new methodology and existing methodologies explains the failure of the existing approaches to define appropriate production frontiers when directly or inversely related dimensions of performance are present and to express the interrelationships between the dimensions of performance

Strategic performance management for soccer clubs: A quantitative model proposal

Soccer has been a very popular sports industry all over the world. Since soccer clubs generate a huge income from a variety of sources, the stakeholders of the soccer industry have come to recognize that this business should be managed professionally, and this would entail all of the functions of management, including performance management. This study provides a comprehensive framework for the strategic performance management of soccer clubs. In order to be strategy-focused, to better serve their mission, and to improve their performance, the performance management systems of soccer clubs should be linked to their missions and visions. Therefore, this study elucidates the application of a strategic performance management tool, the balanced scorecard (BSC), to the different levels of soccer clubs such as giant, middle-level, and lower-level. The study also provides a quantitative BSC model as a case study

A multidimensional analysis of post-acquisition performance : the case of research and development in the pharmaceutical sector

This thesis provides an additional perspective of the Merger Paradox, namely that mergers and acquisitions (M&A) continue to be transacted when historically their results seem to be disappointing overall. The thesis shows that when a theoretically sound basis (related to the Resource Based View and expressed as twelve design principles) is used to design a performance measurement framework, then there is no association between a firm's post-acquisition performance and the scale of a firm's previous acquisitions; the thesis then shows, by contrast, that there is a positive association between firms with an above-average level of past acquisitions (by value) and higher financial performance. This divergence provides both a motive and an ability to continue to undertake M&A, despite a lack of association of acquisitions with longer-term operational performance and very strong evidence of diseconomy of scale in the most crucial business process, for the case examined, which is the research and development (R&D) process in the research-based pharmaceutical sector. Additionally, the thesis examines the relative merits of Return on Sales and Return on Assets as financial metrics of performance, and establishes statistically significant differences in the measurement of performance by these two metrics. The thesis also establishes a contrast between the findings at the level of the firm and at the level of the sector, namely acquisitions considered in aggregate are associated with gains at the sector level, even though this association was not observed when acquisition was considered at the level of the acquiring firm. The thesis provides a new application of Data Envelopment Analysis and establishes a scale efficiency relationship for the pharmaceutical R&D process. A further empirical contribution is the examination of the statistical distribution of acquisitions in the pharmaceutical sector and confirmation of the consistency of that distribution with a power-law