HCS: Designing a Balanced Scorecard in a Knowledge-Based Firm

Abstract

The purpose of this case is to enable you to design a performance measurement system using a balanced scorecard. This case is based on factual issues and decisions faced by the real-world managers and employees of Holloway Consulting Services (HCS) (names and dollar amounts have been changed). HCS is a service firm that provides its customers with managed business solutions, i.e., integrating outsourcing options with systems design and support. Currently, HCS collects several financial and operational performance measures; however, Sharon Holloway, owner of HCS, is concerned that these measures are not adequate for a firm that competes using intangible assets, especially human capital. Therefore, she plans to implement a balanced scorecard in which performance measures are linked to the firm's strategy. This case provides you with the opportunity to develop a balanced scorecard that incorporates both traditional and nontraditional performance measures within the strategic context of a knowledge-based firm.

A Study on the Relationship between the Typology of Knowledge-Intensive Businesses (KIBs) and Performance Measurement Systems (PMS): Evidence from Taiwan

“…Kaplan and Norton (1996) propose the concept of BSC, and BSC is also to apply multiple-dimension of PMS. This study extends the research of Kaplan and Norton (1996), Moore et al (2001) and Cheng and Humphreys (2012), and it divides the PMS of KIBs into financial, customer, internal business process and human capital perspective. And we analyze the difference of PMS among four types of KIB.…”

“…According to the concept of BSC, multiple dimensions of PMS should integrate financial, customer, internal business process, learning and growth perspectives (Kaplan and Norton, 1996). Moore, Rowe, and Widener (2001) indicate that human capital performance is more important than learning and growth perspectives of PMS. Besides, Sari and Basri (2015) state that effective PMS should incorporate multiple financial and non-financial measures.…”

“…□ The ratio of customer complain= Percentage of customers reporting complaints about products or services (4) Human capital perspective (Moore et al, 2001): □ Employee satisfaction: Involvement with decision, recognition for doing a good job, access to sufficient information to do the job well, overall satisfaction with company. □ Voluntary separation rate = (Voluntary separation) / (Headcount)…”

Financial statement data in assessing the future potential of a technology firm: The case of Nokia

“…The last approach, the Balanced Scorecard, was introduced by Kaplan and Norton (1992) to pay attention to four performance perspectives in the firm, the financial perspective being only one of them. This approach takes account of intangibles to assess the future potential (see Bontis, Dragonetti, Jaxcobsen, & Roos, 2001;Moore, Rowe, & Widener, 2001).…”

Knowledge Management and Performance in Mexican Manufacturing Small Business

“…2, No. 3, 2017 Published by SCHOLINK INC. 2003;Boomer, 2004), and on the will the employees have to share their knowledge (Foster & Skyrme, 1999;Moore et al, 2001;Niven, 2003;Boomer, 2004), when the organization makes an evaluation on how to distribute the human resources in a more efficient and effective way for KM. Also, to make an evaluation of the employees the organization requires a correct implementation of the human resources policy, an investment in employee training and managers with good training on information systems (Niven, 2003;Boomer, 2004).…”