Setting benchmarks and evaluating balanced scorecards with data envelopment analysis

Rickards, Robert C.

doi:10.1108/14635770310477762

Cited by 78 publications

(61 citation statements)

References 7 publications

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“…The exceptions are the works of Rickards [30], Eilat et al [31], Chen and Chen [32], Eilat et al [33], Chen et al…”

Section: The Integration Of Data Envelopment Analysis and Balanced Scmentioning

confidence: 99%

“…This pyramid captured the four perspectives of the BSC and was used to facilitate the identification of the sources of inefficiencies identified by the DEA model. It was, however, Rickards [30] who developed the first DEA model aiming to capture the four perspectives of the BSC. In a comparison of 69 units of a multinational company, Rickards used the following outputs: cash flow, customer commitment, internal service quality and employee motivation.…”

Section: The Integration Of Data Envelopment Analysis and Balanced Scmentioning

confidence: 99%

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Integrating the Data Envelopment Analysis and the Balanced Scorecard approaches for enhanced performance assessment

Amado

Santos

Marques

2012

Omega

118

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This article presents the development of a conceptual framework which aims to assess Decision Making Units (DMU) from multiple perspectives. The proposed conceptual framework combines the Balanced Scorecard (BSC) method with the non-parametric technique known as Data Envelopment Analysis (DEA) by using various interconnected models which try to encapsulate four perspectives of performance (financial, customers, internal processes, learning and growth).The practical relevance of the conceptual model has been tested by using it to assess the performance of DMUs in a multinational company which operates in two business areas.Various models were developed with the collaboration of the directors of the company in order to conceive an appropriate and consensual framework which may provide useful information for the company. The application of the conceptual framework provides structured information regarding the performance of each DMU (from multiple perspectives) and ways to improve it. By integrating the BSC and the DEA approaches this research helps to identify where there is room for improving organisational performance and points out opportunities for reciprocal learning between DMUs. In doing so, this article provides a set of recommendations relating to the successful application of DEA and its integration with the BSC, in order to promote a continuous learning process and to bring about improvements in performance.

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“…The exceptions are the works of Rickards [30], Eilat et al [31], Chen and Chen [32], Eilat et al [33], Chen et al…”

Section: The Integration Of Data Envelopment Analysis and Balanced Scmentioning

confidence: 99%

Section: The Integration Of Data Envelopment Analysis and Balanced Scmentioning

confidence: 99%

Integrating the Data Envelopment Analysis and the Balanced Scorecard approaches for enhanced performance assessment

Amado

Santos

Marques

2012

Omega

118

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“…However, there are very few articles in the literature on management accounting; some can be found that evaluate, in a very general way, the suitability of the BSC [33] or that correlate efficiency and performance [35][36][37].…”

Section: Measuring and Relating Efficiency To The Balanced Scorecardmentioning

confidence: 99%

“…On this point, it is found that most of the studies have been conducted in the framework of public research centres, [30][31][32], but few in companies. In the study of [33], the result of the performance of the BSC is evaluated by calculating different ratios of efficiency by means of DEA, but in no case have previous authors validated the content of the BSC employed, nor have they orientated it to university activities.…”

Section: Measuring and Relating Efficiency To The Balanced Scorecardmentioning

confidence: 99%

Balanced Scorecard and Efficiency: Design and Empirical Validation of a Strategic Map in the University by Means of DEA

Valderrama¹,

Cornejo²,

Bordoy³

2013

AJOR

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The principal objective of the research reported in this article is to validate a Balanced Scorecard (BSC) model and a Strategic Map for the University by studying the relationships of efficiency between its dimensions. Subsequently, the validation is completed by establishing hypotheses of efficiency relationships between the perspectives proposed, employing Data Envelopment Analysis (DEA). Empirical evidence has been obtained on the validity of the proposed BSC for a unit of academic management in the university. The first contribution of this work is the establishment of a framework of analysis of the hypothetical cause-effect relationships in the BSC in university institutions. The second contribution is to obtain the determining factors of the performance in this type of institution and, therefore, the Strategic Map. Specifically, these factors are: the participation of teaching staff in innovation activities; the number of doctorate-level staff; the academic subjects and credits in the Virtual Campus; and the scores in the surveys of student satisfaction. With respect to research, the determining factors of the performance are: the research sexennials; the funding obtained from contracts with companies; the number of research projects obtained; their financing; and the participation of teachers in these projects.

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“…The issues, each of which is important such as; customer needs, quality development, productivity, launching a new product or service to the market, and long-term management can be seen in one report (Storey, 2002). Measures in BSC which present management a fast, clear and understandable picture which covers financial and activity performance of the company help the managers perform management functions successfully (Rickards, 2003).…”

Section: Balanced Scorecardmentioning

confidence: 99%

The Use of Time Driven Activity Based Costing and Analytic Hierarchy Process Method in the Balanced Scorecard Implementation

Ayvaz¹,

Pehlivanl²

2011

IJBM

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Balanced scorecard (BSC) functions as an action plan for the basis of establishing the strategy which is defined with critical success factors. BSC classifies the vision and strategy of the enterprise in four perspectives in which financial and non financial scales are used. BSC becomes a strong method for planning, developing and transforming the strategy. An active planning is needed in order to settle a strategy. In this study, time driven Activity Based Costing (TDABC) is important not only in the process of providing full and in time information which aim at serving both the customer and cost goals. On the other hand, Analytic Hierarchy Process (AHP) is a decision making method used for evaluating various criteria in order to choose the best one while determining critical success criteria. The aim is to create a modeling in order to integrate BSC with TDABC and AHP in order to provide an effective strategic decision support process.Keywords: Balanced scorecard, Analytic hierarchy process, Time driven activity based costing Balanced scorecard (BSC) which consists strategic management, strategic planning, performance and management accounting, arouses companies' interest and increase the number of companies using BSC. Companies determine a criterion for critical success factors for their BSC, but they face with problems while defining data that support these factors. Companies which start BSC implementation after gathering unreliable data which support critical success measures face with the risk of failure. So, in the case of entering risky data into BSC and making important strategic decisions which depend on it, the result will most probably be opposite to companies' interests. For this reason, the senior management has some worries in the course of making strategic and operational decisions about whether or not this data is reliable enough. In order to prevent such negative situations, it is necessary to observe the institutional performance truly, dynamically and in a sustainable way. Besides this, not only it is necessary to evaluate the derivation of internal process and source usage caused by consumer behaviors and product differences correctly, but also it is crucial to reflect those evaluations on the cost and connect them with profits.Decision making is the process of choosing one of the alternatives action plans for companies that serve for reaching targets and purposes; it is the core of all management functions. Today's rapidly changing environment and globalization movements make it necessary for a company to have a rational deficient making process in order to reach a sustainable success. Rational decision making contains not only gathering and using data but also making strategic decisions with the help of developed decision-making techniques. Making rational decisions is an important strategic process in order to gain a sustainable and competitive advantage. While decision-making requires much time and effort in order to gather and analyze the information, evaluating the alternative ...

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Setting benchmarks and evaluating balanced scorecards with data envelopment analysis

Cited by 78 publications

References 7 publications

Integrating the Data Envelopment Analysis and the Balanced Scorecard approaches for enhanced performance assessment

Integrating the Data Envelopment Analysis and the Balanced Scorecard approaches for enhanced performance assessment

Balanced Scorecard and Efficiency: Design and Empirical Validation of a Strategic Map in the University by Means of DEA

The Use of Time Driven Activity Based Costing and Analytic Hierarchy Process Method in the Balanced Scorecard Implementation

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