Improving the Industrial System Performance by Using the Balanced Scorecard Instrument

Abstract:

Nowadays, managers recognize the impact that measures have in performance. The balanced scorecard is a new tool that complements traditional measures of business unit performance. The scorecard contains a diverse set of performance measures, including financial performance, customer relations, internal business processes, and learning and growth.The Balanced Scorecard provides leaders with a process to describe strategy – both what the organization wants to accomplish and how it intends to realize its strategic outcomes. Taking all the objectives and measures together into a strategy map of cause-and-effect relationship across the four perspectives provides a comprehensive picture of the organization’s value creating activities.The analysis developed in this paper aims is to examine the critical areas of an industrial system as product, process, customer and market perspective. The study will provide managers four different perspective from which to choose measures: from traditional financial indicators, to measures for improving customer satisfaction, internal processes and innovation and improvement activities, focusing on the company’s current and future success.

• Periodical: Applied Mechanics and Materials (Volume 808)
• Pages: 370-375
• DOI: https://doi.org/10.4028/www.scientific.net/AMM.808.370
• Online since: November 2015
• Authors: Flavia Fechete*, Anișor Nedelcu
• Keywords: Assessing Models, Balanced Scorecard, Financial Indicators, Performance Measures

References

[1] R. Kaplan, D. Norton, The Balanced Scorecard: measures that drive performance, Harvard Business Review, 6 (2004) 172 – 180.

[2] S. Davis, T. Albright, An investigation of the effect of Balanced Scorecard implementation on financial performance, Management Accounting Research Review, 15 (2004)135–153.

DOI: 10.1016/j.mar.2003.11.001

[3] H. Nřrreklit, The Balanced Scorecard: what is the score? A rhetorical analysis of the Balanced Scorecard, Accounting, Organizations and Society Review, 28 (2003) 591–619.

DOI: 10.1016/s0361-3682(02)00097-1

[4] R. Kaplan, D. Norton, Linking the Balanced Scorecard to strategy, California Management Review, 53 (1996) 79 -92.

DOI: 10.2307/41165876

[5] A. Pappalexandris, G. Ioannou, G. Prastacos, An Integrated Methodology for Putting the Balanced Scorecard into Action, European Management Journal, 23 (2005) 214–227.

DOI: 10.1016/j.emj.2005.02.004

[6] S. Sumedrea., Financial management and strategies (in Romanian), Transilvanya, Braşov, (2006).