Balanced score for the balanced scorecard: a benchmarking tool

摘要

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.