Article 3, Volume 5 Issue 2

A Simplified Balanced ‘Balanced Scorecard’

Author

Ivan Malbasic – (University of Zagreb)

Frederic Marimon – (Universitat Internacional de Catalunya)

Received December 12, 2018; accepted January 11, 2019.

Abstract

This paper proposes a performance measurement system (PMS) based on the Balanced Scorecard (BSC) that requires only 25 common key performance indictors (KPIs), which are characterized by their easiness to collect, in turn making the PMS an affordable instrument for all types of organizations, regardless of their resource availability. This is particularly relevant for SMEs. A sample of 813 surveys collected from managers in the Republic of Croatia is analyzed through structural equation modeling. The proposed simplified BSC shows good psychometric features, and the relationships found among the four classical perspectives are consistent with the literature, which provides homological validity for the model. This paper also proves that the equilibrium among the four perspectives has a significant impact on three perspectives, vouching for the importance of this balance among perspectives. It further shows the extent to which strategy influences the four perspectives. The proposed simplified BSC may interest both academics and practitioners as it does not require any special knowledge or additional resources to be implemented and monitored while also highlighting (i) the importance of strategy in the design of the model (ii) and the importance of balance among perspectives.

Este documento propone un sistema de medición del rendimiento (PMS) basado en el Balanced Scorecard (BSC) que requiere solo 25 indicadores clave de rendimiento (KPI) comunes, que se caracterizan por su facilidad de recopilación, lo que hace que el PMS sea un instrumento asequible para todo tipo de organizaciones, independientemente de su disponibilidad de recursos. Esto es particularmente relevante para las PYME. Una muestra de 813 encuestas recolectadas de gerentes en la República de Croacia se analiza a través de modelos de ecuaciones estructurales. El BSC simplificado propuesto muestra buenas características psicométricas, y las relaciones encontradas entre las cuatro perspectivas clásicas son consistentes con la literatura, que proporciona validez homológica para el modelo. Este documento también demuestra que el equilibrio entre las cuatro perspectivas tiene un impacto significativo en tres perspectivas, dando fe de la importancia de este equilibrio entre las perspectivas. Además, muestra hasta qué punto la estrategia influye en las cuatro perspectivas. El BSC simplificado propuesto puede interesar tanto a académicos como a profesionales, ya que no requiere ningún conocimiento especial o recursos adicionales para ser implementados y monitoreados, al tiempo que destaca (i) la importancia de la estrategia en el diseño del modelo (ii) y la importancia del equilibrio entre perspectivas.

Citation

Marimon, F., & Malbasic, I. (2019). A Simplified Balanced ‘Balanced Scorecard’. European Accounting and Management Review5(2), 38-60.

Figures

Keywords

  • Balanced scorecard
  • Performance measurement system
  • Small and medium-sized enterprises
  • Key performance indicators

Palabras clave

  • Cuadro de mando integral
  • Sistema de medición del rendimiento
  • Pequeñas y mediana empresa
  • Indicadores clave

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