Enhancing the effectiveness of the balanced scorecard with scenario planning

Abstract

Purpose -This paper aims to propose the idea of linking the use of the balanced scorecard with scenario planning. Scenario planning emphasizes the development of a strategic plan that is robust across different scenarios. This ensures that the strategy implemented using the balanced scorecard is linked to external conditions and takes into consideration the expected changes in the environment. Design/methodology/approach -This paper examines the criticisms of the balanced scorecard and proposes the use of scenario planning as a way of overcoming some of these limitations. Findings -It argues that the use of scenario planning is capable of overcoming the lack of external orientation in the balanced scorecard. Scenario planning also helps make the balanced scorecard more reflective of changes that may appear in the future. This ensures that the scorecard developed is not merely a linear extension from the present. Research limitations/implications -Studies need to be undertaken to examine whether integrating scenario planning with the balanced scorecard leads to more effective strategy implementation. Practical implications -Adopters of the balanced scorecard need to recognize that developing a balanced scorecard system needs to be preceded by a strategy formulation process that incorporates an understanding of how future events may evolve. This can be achieved using scenario planning. Originality/value -This study is probably the first attempt to link the implementation of the balanced scorecard and scenario planning.

Performance measurement scenarios with fuzzy cognitive strategic maps

“…Typically, in many organisations, there are inconsistencies in the frequency of gathered values and the range in which the values vary over a period of time. Othman (2007) argues that a very serious drawback of strategy maps is the lack of representing the time evolution element in strategic plans. This missing time element also influences the ability to model performance indicators in SMs.…”

“…Even though the literature on strategy mapping is fairly vast, few authors have suggested the combination of strategy maps and scenario analysis (Fink et al, 2005;Othman, 2007) and none of them has described the actual design process and nobody using any tools with simulation capabilities.…”

Holistic Performance Model for Cyber Security Implementation Frameworks

“…For example, the awareness and capability building goal of CSS might have several sub goals being executed by different entities; national TV will run an awareness campaign for citizens, a security company will train professionals on how to prevent email attacks, another campaign will be conducted online to get e-commerce users be aware on how to prevent credit card frauds, etc. Our proposed Holistic BSC helps in solving the problems pointed out by [24] and [23].…”

“…It is built for the level of an organization and below. Moreover, the BSC is "seen as myopic and ignores the activities and initiatives that goes beyond the original targets" [23]. Furthermore, the BSC can point out problems but not how to reveal them [24].…”

A Performance-Based Scenario Methodology to Assess Collaborative Networks Business Model Dynamicity

“…[8] developed a called "future scorecard" in which some consideration is given to the possibility of developing a scorecard that possesses an additional input with the information and conclusions derived from environmental analysis. On the other hand, Othman [9] establishes that a balanced scorecard could be linked with scenario planning by taking into account a future state or scenarios to be reached when formulating the PMS strategy. Both of these works are theoretical and do not go beyond, as they neither propose a structured method nor provide experiences derived from application.…”