The Effect of Judgmental/Subjective Measures on Implementing Balanced Scorecard in Bahrain Firms

Very little attention has been paid to study the judgmental effects of the balanced scorecard (BSC) in the developing countries, particularly in the Gulf area. This paper analyzes survey data from forty Bahrain firms in order to examine the extent to which these firms use of judgmental/subjective measures in evaluating their performance. The findings reject the null hypothesis and report statistically significant differences between Bahrain firms in using judgmental, /subjective measures in their balanced scorecards. However, data are analyzed by Paired t tests and ANOVA; significant differences are found between both types of firms with and without subjective measures in the use of BSC, particularly in cost measures and internal process measures.  Furthermore, the study reports various types of measures have different impacts on the performance evaluation in these firms. Keywords: balanced scorecard, performance measurement, subjective measures

Contemporary performance measurement systems: A review of their consequences and a framework for research

The main purpose of this paper is to develop a conceptual framework for understanding the literature on the consequences of contemporary performance measurement (CPM) systems and the theories that explain these consequences. The framework is based on an in-depth review of 76 empirical studies published in high-quality academic journals in the areas of accounting, operations, and strategy. The framework classifies the consequences of CPM into three categories: people's behaviour, organizational capabilities, and performance consequences. This paper discusses our current knowledge on the impact of CPM, highlighting inconsistencies and gaps as well as providing direction for future research

SISTEM INFORMASI PENILAIAN KINERJA PADA STARTUP BISNIS MENGGUNAKAN METODE SIMPLE MULTI ATTRIBUTE RATING TECHNIQUE EXPLOITING RANKS

Sistem evaluasi kinerja memiliki peran yang sangat strategis dalam peningkatan kinerja sebuah perusahaan. Perusahaan pada umumnya menilai kinerja hanya didasarkan pada aspek keuangan saja tanpa memperhatikan aspek lain yang juga tidak kalah pentingnya. Penelitian ini bertujuan untuk membangun sebuah sistem evaluasi kinerja dengan menggunakan kerangka perspektif Balance Scorecard yaitu perspektif keuangan, perspektif pelanggan, perspektif proses bisnis internal dan perspektif pembelajaran dan pertumbuhan yang dapat membantu pengambil keputusan dalam mengevaluasi kinerja dan memprioritaskan langkah alternatif kompetitif dalam meningkatkan pencapaian tujuan strategis perusahaan. Implementasi metode Simple Multi-Attribute Rating Technique Exploiting Ranks (SMARTER) pada sistem evaluasi kinerja memberikan data hasil evaluasi kinerja yang tepat. Data tersebut diperoleh dengan menghitung bobot kriteria dan subkriteria dari 4 perspektif dan 13 Key Performance Indicators (KPIs) berdasarkan perspektif balance scorecard pembobotan Rank Order Centroid (ROC) untuk mendapatkan peringkat kriteria dan subkriteria sesuai dengan tingkat kepentingannya. Berdasarkan studi kasus, hasil penelitian ini menunjukkan bahwa perspektif proses bisnis internal dengan nilai akhir 0,521 adalah perspektif yang paling penting dalam evaluasi kinerja startup bisnis, selanjutnya perspektif pelanggan dengan nilai akhir 0,271, kemudian perspektif pembelajaran dan pertumbuhan dengan nilai akhir 0,146 serta perspektif keuangan dengan nilai akhir 0,063. Sedangkan indikator kinerja biaya overhead dengan nilai akhir 0,009 dan biaya akuisisi dengan nilai akhir 0,004 dari perspektif keuangan merupakan faktor penting untuk dilakukan perbaikan. Kata kunci: Balance Scorecard; Simple Multi-Attribute Rating Technique Exploiting Ranks; Rank Order Centroid. Performance evaluation system has a very strategic role in improving the performance of a company. Companies generally judge performance based only on the financial aspect only, regardless of other aspects that are also not less important. This study aims to build a performance evaluation system using a Balanced Scorecard perspective framework that is a financial perspective, customer perspective, internal business process perspective and learning and growth perspective, which can assist decision makers in evaluating performance and prioritizing competitive alternative measures in enhancing the achievement of strategic objectives company. Implementation of the Simple Multi-Attribute Rating Technique Exploiting Ranks (SMARTER) method of performance evaluation system provides the right performance evaluation data. The data were obtained by calculating the criteria and sub-criteria weightings from 4 perspectives and 14 key performance indicators (KPIs) based on the Balance Scorecard perspective using Rank Order Centroid (ROC) weighting to obtain criteria and sub-criteria rating according to importance level. Base on case studies, the results of this research indicate that the perspective of internal business processes with a priority weight of 0.521 is the most important perspective in evaluating business startup performance, then the customer perspective with a weight of 0.271, then learning and growth perspective with a weight of 0.146 and perspective finance with a weight of 0.063. While the overhead performance indicator with a weight value of 0.009 and customer acquisition cost with a weight of 0.004 from a financial perspective are important factors for improvement. Keywords: Balance Scorecard; Simple Multi-Attribute Rating Technique Exploiting Ranks; Rank Order Centroid

Ranking strategic objectives in a strategy map based on logarithmic fuzzy preference programming and similarity method

This paper aims to rank strategic objectives in a strategy map to improve the efficiency of strategy implementation. Objectives are ranked based on strategic destinations using the combination of Logarithmic Fuzzy Preference Programming (LFPP) and similarity method. In the first step, the weight of strategic destinations is obtained using LFPP technique; then objectives are ranked by similarity method. Similarity method uses the concept of alternative gradient and magnitude for effectively solving the general multi-criteria analysis problem. Finally, objectives are ranked in an actual strategy map. As a practical and efficient tool, the proposed approach can assist managers and decision-makers in drawing more efficient output from strategy maps.publishe

Strategi Pemitigasian Bias Pengukuran Umum dalam Evaluasi Balanced Scorecard dengan Balikan Eksplanatori

This study aims to prove the existence of a common measure bias in the evaluation of Balanced Scorecard and test strategies explanatory feedback as mitigation common measure bias. Efforts mitigation impact of the proposed common measure bias in this study is to provide knowledge to the method of explanatory feedback. This research uses experimental design factorial 2x2x2 between-within subjects with 56 participants S1 Accounting students are already taking courses in management accounting. The first hypothesis testing in this research using the independent t-test, comparing the performance measurement group before getting explanatory feedback. The second hypothesis testing using a paired t-test to see performance measurement division before and after getting explanatory feedback. Results of laboratory experiments show that there is a common measure bias in the manager before receiving explanatory feedback. Explanatory feedback method is supported as a strategy mitigation common measure bias in the evaluation of BSC

Revisiting strategy mapping for performance management: a realist synthesis

Purpose The strategy map represents a major contribution to the theory and practice of performance management. However, it has failed to realize its full potential due to a lack of theoretical and conceptual development. Therefore, the purpose of this paper is to revisit the theories of strategy maps to better understand how and in what circumstances they benefit performance management. Design/methodology/approach The study employs realist synthesis, a method of systematic literature review. A theory on how strategy maps work is extracted from performance management literature, which are subsequently evaluated through a critical examination of empirical studies. Findings A theory of how strategy maps are meant work is presented in relation to the generic performance management stages of problem structuring, development and use, where they can serve as a tool for discovery and by stimulating social interactions. Based on the findings, 12 propositions are offered related to the effective use of strategy maps within a performance management framework. Research limitations/implications The introduction of the strategy map to performance management represented a breakthrough in how organizational performance could be understood and communicated. This study goes a step further by considering how they work and in what circumstances. In so doing, the study aims to open the way for new and more effective applications of strategy maps within the changing performance management context. Practical implications This study provides practitioners with actionable propositions which can help in effectively using strategy maps. Originality/value Distinguishing the aims and mechanisms of the strategy map along performance management systems has the potential to greatly increase their effectiveness in practice as a powerful, but underutilized tool. This paper also demonstrates how realist synthesis, currently an uncommon method in management studies, facilitated the creation of a new perspective of strategy maps to fit specifically within performance management

Conceptualização do Balanced scorecard: estudo de caso numa empresa de promoção imobiliária

A análise da literatura existente sobre o Balanced Scorecard permitiu concluir que não existem estudos sobre a sua aplicação na área da promoção imobiliária, tendo surgido assim uma oportunidade para colmatar esta lacuna. Este trabalho tem como objectivo a conceptualização de um Mapa Estratégico e de um Balanced Scorecard para uma empresa do sector da promoção imobiliária. O método de investigação utilizado foi o estudo de caso, tendo a informação sido recolhida através de entrevistas semi-estruturadas, relatórios e contas da organização, mapas do controlo de gestão, site da empresa, visitas aos empreendimentos comercializados e a observação directa. Foi concluído que é possível a sistematização de um Mapa Estratégico e de um Balanced Scorecard para este tipo de actividade

The effect of integrating strategic risk information in the balanced scorecard on managers strategy evaluations and recommendations

There has been growing awareness by practitioners, academics and regulators that managing strategic risks is critical to organizational success. One approach that has been suggested to improve strategic risk management is integrating strategic risk information within strategic performance management systems (SPMS), such as the balanced scorecard (BSC). While recent survey evidence has found that managers use SPMS to respond to changes and uncertainties in the external environment (e.g., Chenhall 2005; Widener 2007), there has been little investigation of the impacts that integrating strategic risk information in SPMS has on managers strategy-related judgments. This thesis aims to empirically examine the effect of integrating strategic risk information in the BSC on managers strategy evaluations and strategy recommendations. Specifically, this thesis compares the judgmental effects of integrating strategic risk information in the BSC to presenting strategic risks in a risk register separate to the BSC, and the moderating role of different strategic risk profiles (that is, whether the strategy is exposed to high strategic outcome risks or high strategic input risks). Based on the results of an experiment, this thesis shows that when strategic risk information is integrated in the BSC, managers make less favorable strategy evaluations and strategy recommendations for a strategy with high strategic input risks than one with high strategic outcome risks. However, managers strategy evaluations and strategy recommendations are not influenced by these different strategic risk profiles when strategic risk information is presented in a risk register separate to the BSC. This thesis contributes to the literature by being one of the first to investigate the effect of strategic risks on managerial judgments. The findings also demonstrate that integrating strategic risk information in SPMS, such as the BSC, has potential beneficial effects in enabling managers to distinguish between strategic risks that have differential impacts on a strategy

Breakthroughs in the management accounting science: imaging a balanced scorecard thought by lean philosophy rationales

This work aims at providing a proposal for a new way of conducting the balanced scorecard (BSC), assuming a model that fulfils the leading features of lean philosophy and designing a research strategy that could explain how to act for arguing a "Lean-Balanced Scorecard". Management solutions inclined towards lean thinking try to solve contemporary worldwide market challenges by focusing on a virtuous corporate functioning, thanks to a shared philosophy that relies entirely on the minimization of any kind of waste: their main target is to achieve business goals in a way that is absolutely flexible and can be shared at any strategy level within the firm. In the transition towards new management accounting paradigms, might the use of the BSC enhance information processing, useful for spreading lean thinking all over the firm, and for testing its effects? Moreover, thanks to lean thinking, might we suppose improvements related to the BSC functioning, by streamlining that information processing? According to the literature, little is known about how to answer these questions. By answering them, however, we may find innovative solutions towards a better measuring process of firm success-especially from the perspectives of integrated management reporting activities in turbulent times

The diffusion of balanced scorecard from the perspective of adopters: Evidence from Australia

© 2018 Academic Research Centre of Canada The purpose of this paper is to explore the shortcomings of the Balanced Scorecard (BSC) as a performance measurement tool, and to examine the extent of association between its diffusion and the characteristics of its adopters in practice. This study uses a survey approach and targets registered members of Chartered Institute of Management Accountants (CIMA) in Australia. The results show that ignoring the risks, environmental and sustainability factors as well as neglecting the concerns/rights of relevant stakeholders are the key shortcomings of the BSC in practice. The findings further confirm that it is vital to distinguish between the diffusion of the BSC as a practice (one single tool) and as a process (a chain of different activities). Because some attributes of adopters are only associated with the initial decisions to adopt (or not) the BSC (as a practice) but not with the sequential implementation stages of its adoption (as a process) and vice versa