Measuring Business Excellence

PROCEEDINGS OF THE 7th IADIS INTERNATIONAL CONFERENCE INFORMATION SYSTEMS 2014 ISBN: 978-989-8704-04-7, 2014

In rapidly changing environments that characterize most industries today, organizations face intense competitive pressure to do things better, faster and cheaper. The business environment of the new century has undergone rapid and accelerating change, creating more and more uncertainty and complexity. Most markets are becoming increasingly dynamic. Companies compete in this fierce environment to achieve a sustainable competitive advantage, positioning itself strategically in their industries or developing durable and distinctive firm capabilities and resources or through knowledge and innovation. Organizations can no longer rely on traditional analytical approach to understanding their industry or market, since the economic landscape is changing quickly and unexpectedly. Organizations are challenged to develop new organizational characteristics such as flexibility or expertise in order to quickly respond to changes in technology, competition and customer preferences. The use of large investments in systems and information technology (IS/IT) has been one of the solutions found by organizations to deal with these markets. These investments, which in most cases represent a significant expenditure of financial resources, have failed to bring the expected benefits. Nowadays, the importance of intangible assets is higher than traditional physical assets and performance measurement tools need to capture this new reality. Balanced Scorecard (BSC) is an innovative approach that considers the financial and non- financial perspectives in determining the performance level of organization, and not only represents a measurement tool, but it is also a multi dimensional system of performance management. Although, it’s worldwide dissemination, BSC has demonstrated inadequacy in certain circumstances, namely, in dynamic environments. The authors advocate a combination of various tools and approaches to set up and align the firm´s strategy instead of being statically hostage of an evaluation framework.

2018

The Balanced Scorecard (BSC) is the most adopted performance measurement system in businesses. This study examined the use of the BSC performance measurement system in small-size manufacturing companies in Jordan. A qualitative research approach was used to collect data. Data was collected from two groups of participants: ‘who used the BSC’ and ‘who never used it, and not planning to use it in the future’. The main finding of the study demonstrated that the BSC as a performance measurement system can be used by small size manufacturing companies. This result contradicts the argument by some scholars (including the founders of the BSC: Kaplan and Norton) that the BSC was originally designed for large scale companies. The study also demonstrated that the BSC is effective in measuring financial and non-financial performance measures.

International Journal of Productivity Management and Assessment Technologies , 5(2), 1-15, 2017

Organizations are challenged develop new organizational skills such as flexibility or expertise in order to quickly respond to changes in technology, competition and customer preferences.Companies cannot be competitive or successful if their business and information systems and technology (IS/IT) strategies are not strategic aligned. Nowadays,the importance of intangible assets is higher than traditional physical assets and performance measurement tools need to capture this new reality. Measuring organizational performance is a continuous challenge for both managers and researchers. Balanced scorecard (BSC) is a powerful tool that gives to managers a fast, but comprehensive view of the business including operational measures on customer satisfaction, organization's innovation, activities improvement, as well as financial measurements. In this paper the authors address the BSC and promote the discussion about the strengths and the limitations and pointing out new developments to overcome the today´s business trends.

2006

2015

Given the dynamic nature of business markets, organizations have witnessed a rapid change in their performance measurement systems in the last three decades with most of the performance measurement tools being more sophisticated. One of the most widespread tools is the Balanced Scorecard (BSC). Within a decade since its emergence, a majority of the Fortune 1000 companies was implementing the BSC. Despite the widespread adoption, a growing body of scholarship finds limitations in the BSC, particularly in its concept, application, and practice. The same body of scholarship contends these limitations could either undermine the effectiveness of the BSC or cause firms to abandon the BSC altogether for better performance measurement alternatives. Hence, the main aim of this paper is to provide a review or rather a critique of the BSC as a performance measurement tool and debating whether the BSC is in fact a universal solution for corporate performance measurement.

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2007

Journal indexed, from 2006, in the C category by THE NATIONAL UNIVERSITY RESEARCH COUNCIL from ROMANIA, with the code 731. 7 11 40 48 64 83 133 153 Institutions, policies and efficiency in economies Corporate governance and financial globalization Performance measurement -the balanced scorecard perspective Divergences and similarities in the evolution of the human resources function in the western part of the Mediterranean Sea Measurement and evaluation of intellectual capital Erp and e-business Constituent dimensions of customer satisfaction: a study of nationalised and private banks An analysis of the brand loyalty based consumer typology

Scandinavian Journal of Management, 2004

Performance measurement remains a vexing problem for business firms and other kinds of organizations. This book explains why: the performance we want to measure (long-term cash flows, long-term viability) and the performance we can measure (current cash flows, customer satisfaction, etc.) are not the same. The "balanced scorecard," which has been widely adopted by US firms, does not solve these underlying problems of performance measurement and may exacerbate them because it provides no guidance on how to combine dissimilar measures into an overall appraisal of performance. A measurement technique called activity-based profitability analysis (ABPA) is suggested as a partial solution, especially to the problem of combining dissimilar measures. ABPA estimates the revenue consequences of each activity performed for the customer, allowing firms to compare revenues with costs for these activities and hence to discriminate between activities that are ultimately profitable and those that are not. marshall w. meyer is Richard A. Sapp Professor and Professor of Management and Sociology at The Wharton School of the University of Pennsylvania.

COST AND PERFORMANCE IN SERVICES AND OPERATIONS

The Balanced Scorecard and the European Foundation for Quality Management (EFQM) Business Excellence Model are tools that use measures of an organisation’s performance to drive organisational improvement – generally by highlighting current shortfalls in performance – in areas of particular concern / or interest – to management teams. Both have been widely adopted in recent years and benefit from the support of powerful advocates in the form of current users, consultants, and software suppliers. The purpose of this paper is to compare the two tools. We show that despite superficial similarities, the two approaches come from very different backgrounds and are designed and used using different processes. We also show how the different approaches have a fundamentally different epistemological basis and in turn, how this suggests a contingency, which should inform decisions about the choice of either approach.

Purpose -The purpose of this paper is to show how the Balanced Scorecard approach, a performance management system, could be implemented at a college of business.