Balanced Scorecard Case Study

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An empirical investigation of Big Data Analytics role in customer performance measurement INTRODUCTION The balanced scorecard is a managerial accounting tool designed to align managerial decisions with corporate strategy by focusing attention and effort on a balanced set of performance measures that are both financial and nonfinancial. Balanced scorecard information, if properly constructed, can enable managers to make decisions that fit best with firm strategy and it can encourage managers to exert effort to achieve strategic objectives. Most studies to date on the balanced scorecard address ….. In this paper, we examine the BDA’s effect on customer performance measurement as a non-financial dimension of the BSC We conduct an experiment…show more content…
In the second section, we develop our theory and hypotheses regarding …... The third section describes our research design …. MOTIVATION AND HYPOTHESES The Balanced Scorecard The balanced scorecard is a management accounting tool that incorporates performance measures from different strategic functional areas. A recent Bain & Co. survey of global business (Rigby 2005) suggests that 57% of firms are using the balanced scorecard in one form or another. Kaplan and Norton (1992, 1996, 2001) initially emphasized, and continue to promote, the balanced scorecard as a decision support tool, claiming that the balanced scorecard would enable companies to incorporate nonfinancial and forward-looking information into strategic planning to make up for deficiencies in traditional financial data. In this study, therefore, we explore the following research question: will the BDA improve the balanced scorecard system? HYPOTHESES The research question is how can BDA improve BSC efficiency. in order to get answer to this question we should determine the BSC efficiency…show more content…
W. (2003), Kaplan and Norton, (2001), ) using too few measures (two or three) per perspective may be a cause of BSC failure because a good BSC should have an appropriate mix of outcomes (lagging indicators) and performance drivers (leading indicators) of the company’s strategy. Moreover, some companies use significant number of indicators to measure the financial performance but limit this number regarding the non-financial performance to one or two at most. The problem of favoritism in bonus awards and the uncertainty in the criteria used to determine rewards due to the possibility for area directors to incorporate factors other than the scorecard measures in performance evaluations, to change evaluation criteria from quarter to quarter, to ignore measures that were predictive of future financial performance. Following previous studies, which show the disadvantages of relying on a small number of non-financial (customer-employee) indicators or relying on indicators that use financial performance to assess the non-financial aspect. the following hypotheses were

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