Balanced Score for the Balanced Scorecard: a Benchmarking Tool

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BIJ 15,4

Balanced score for the balanced scorecard: a benchmarking tool
M. Punniyamoorthy
Faculty of Production and Operations and Finance, Department of Management Studies, National Institute of Technology, Tiruchirappalli, India, and

420

R. Murali
Faculty of Human Resources and Finance, Department of Management Studies, National Institute of Technology, Tiruchirappalli, India
Abstract
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.
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This makes the process little too complex. What they perhaps need is some benchmarking indicators to process the data objectively and to come to a conclusion not only correctly but also quickly. It is observed:
Benchmarking is a process used in management and particularly strategic management, in which organizations evaluate various aspects of their processes in relation to best practice, usually within their own sector. This then allows organizations to develop plans on how to adopt such best practice, usually with the aim of increasing some aspect of performance. Benchmarking may be a one-off event, but is often treated as a continuous process in which organizations continually seek to challenge their practices. Benchmarking opens organizations to new methods, ideas and tools to improve their effectiveness. It helps crack through resistance to change by demonstrating other methods of solving problems than the one currently employed, and demonstrating that they work (“On best process of benchmarking”, available at: www.managementupdate.info/benchmarking.htm).

Balanced score for the balanced scorecard 421

Therefore, through this paper, we have devised a process of calculating a suitable bench mark figure called “Balanced score” through which the achievements of the performance in the implementation of the strategy by the firm can be evaluated. The paper uses the concepts of “Balanced scorecard” proposed by Kaplan and Norton (1992a); and the model adopted by Brown
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