Performance measurement system implementation using Balanced Scorecard and statistical methods

The Use of Balanced Scorecards in Mental Health Services: an Integrative Review and Thematic Analysis

Performance management of mental health services (MHS) through quality reporting of strategic indicators and goals is essential to improve efficiency and quality of care. One such method is the balanced scorecard (BSC). This integrative review of peer-reviewed and industry implemented BSCs in MHS aims to inform future development of a more comprehensive mental health–focused benchmarking tool. A two-part systematic literature search consisted of peer-reviewed published literature on MHS specific BSCs utilising the PRISMA guidelines in addition to industry published BSCs available online. A total of 17 unique BSCs were identified. A total of 434 indicators were subject to thematic analysis identifying 11 key themes: prevalence, accessibility, services provided, clinical outcomes, client satisfaction, client involvement, staff motivation, staffing levels, governance and compliance, development, and costs and revenue. These themes represented the measures that MHS believed measured key performance criteria in alignment with their organisational objectives.

System dynamics applications in performance measurement research

Purpose

This study investigates system dynamics (SD) applications in performance measurement (PM) research and practice. A bibliometric analysis was conducted to investigate the maturity of this research area and identify opportunities for development.

Design/methodology/approach

A systematic literature review (SLR) was conducted to provide a comprehensive and rigorous review of the existing literature. The search was conducted on 10 platforms identifying 97 publications, which were evaluated using bibliometric analysis.

Findings

The analysis revealed that applications of SD are most commonly used in the PM system design phase to model organisational performance. In addition, the bibliometric results showed a highly dispersed author set, with most studies using exploratory methods, suggesting that the research is in a relatively early stage of development. The results also showed that over 50 per cent of the causal models were not validated, emphasizing an important methodological gap in this research area.

Research limitations/implications

This SLR is limited to indexed publications on 10 platforms, the search strategy was relatively precise and only available papers in English language were used for the literature review.

Practical implications

PM systems supported by SD can help managers understand and improve organisational behaviours by addressing dynamic complexities and relationship between variables. This study evaluates the maturity of this research area including information about the current development of this area and opportunities to build on existing knowledge.

Originality/value

This study identifies how SD approaches are applied to PM and highlights areas that require further research consideration. This paper is the first of two publications to result from this study and focuses on evaluating the current state of this research area.

Strategic scenario analysis combining dynamic balanced scorecards and statistics

Purpose

The purpose of this paper is to explore the way in which system dynamics (SD) can enhance some key success factors of the balanced scorecard (BSC) model and support decision-makers, specifically in analyzing and evaluating the results of hypothetical scenarios. Moreover, the paper aims to emphasize the role played by statistics not only in validating the SD-based BSC, but also in increasing managers’ confidence in the model reliability.

Design/methodology/approach

The paper presents a case study, developed according to an action research perspective, in which a three-step approach to the BSC implementation was followed. Specifically, the first step requires the development and implementation of a “traditional” BSC, which is refined and transformed into a simulation SD model in the second step. Last, the SD-based BSC is combined with statistics to develop policy making and scenario analysis.

Findings

The integration of BSC and SD modeling enables the development of a comprehensive approach to strategy formulation and implementation and, more importantly, provides a more reliable basis upon which to build and test sound cause-and-effect relationships, within a specific BSC. This paper exemplifies how an SD-based BSC can be used – and perceived reliable – to evaluate different scenarios and mutually exclusive policy effects in a multidimensional approach. In particular, this study illustrates how to forecast and depict trends for financial and non-financial indicators over the simulation period, with reference to three different scenarios.

Originality/value

This paper contributes to the ongoing debate on the BSC by exploring whether a combination of SD and statistics may enhance the BSC system’s advantages and facilitate its implementation process and use for decision-making and scenario analysis.

Determinants of operational efficiency in the oil and gas sector

Purpose

There is limited research that indicates the relation between knowledge management practices (KMPs), organizational culture (OC) and operational efficiency performance (OE) by using Balanced scorecards (BSC) specifically in oil and gas sector. This relationship is not yet acknowledged through empirical tests. The purpose of this paper is to fill this gap by providing a better understanding of that relationship and its importance with regard to business outcomes.

Design/methodology/approach

In order to examine the relationship between OC and OE, this research takes a BSC perspective with the mediating impact of KMPs. Three hypotheses were developed using literature review and tested through the application of confirmatory factor analysis in structural equation modeling. Altogether, 568 valid responses were collected from one of the biggest oil and gas companies in the UAE.

Findings

All KMPs were found to have significant relationship with OE and OC. Also, KMPs mediate the relationship between OC and OE. In addition, the results show that the standardized coefficients of these paths and the loadings of the indicators on their factors are significant. Pearson’s correlations indicate strong evidences of the joint impact of OC and KM practices on OE, with a possible mediator impact of KM practices on OE.

Research limitations/implications

One of research limitations is the type of organization. Future research may include other industries such as manufacturing and construction. Only the operational variable is evaluated and there is no consideration of other dimensions such as leadership type, organizational structure and technology.

Originality/value

This paper is the first in the UAE and the region to examine the relationship between OC and KMPs by considering OE from a BSC perspective with the mediating impact of KMPs.

Implementation issues of a design management indicator system

Purpose

The purpose of this paper is to present and discuss the process and results achieved from the implementation of a design management indicator system in four product development companies.

Design/methodology/approach

To this end, instruments and techniques for implementing and collecting composite data were adopted.

Findings

The implementation made it possible to test the system metrics, and the analysis of the results enabled the identification of factors that hinder a successful implementation.

Originality/value

Design is being recognized as providing significant economic, social, and environmental benefits, and as it becomes a part of the management process, it can have an impact on business performance. Therefore, information sharing through indicator systems that consider factors that generate reliable and quantifiable information has become fundamental.

The adoption of balanced scorecard: an exploration of its antecedents and consequences

Purpose

The purpose of this paper is to study the adoption of balanced scorecard (ABSC) as performance management system (PMS). It also proposes a framework for empirically validating the antecedents and consequences of the ABSC as PMS.

Design/methodology/approach

Through the extensive review of BSC literature, the antecedents and consequences factors of BSC adoption as PMS are explored. A conceptual model is derived which hypothesises the relationship between the antecedents and consequences of the ABSC. The data collected by surveying perception of 128 bank employees is empirically tested. Confirmatory factor analysis is used to test the validity of the proposed measurement model, and hypothesised relationships are tested using structural equation modelling.

Findings

The findings confirmed the hypothesised conceptual model. They indicate that top management involvement and interdepartmental communication are the two prime antecedent factors which significantly lead to ABSC as PMS. In addition to this, the findings validate a strong causal relationship between ABSC and three consequence factors, namely, employees’ behaviour, organisational capabilities and perceived performance.

Research limitations/implications

The current study broadens the understanding of the notion of BSC as PMS in a considerable manner. It overcomes the inadequacy of the previous studies which failed to explore the antecedents and consequences of ABSC in a comprehensive way. The studies’ key limitation is that it is based on the perception of employees which can be overcome by using multiple methods to collect data in future studies.

Originality/value

The current study makes a significant contribution to the BSC literature. It is a first of its kind study to provide empirical validation to the conceptual model of antecedents and consequences of the ABSC as PMS. The research finding offers key implications for both researchers and practitioners.

Supply chain performance measures and metrics: a bibliometric study

Purpose

The purpose of this paper is to review the existing literature on supply chain performance measures and metrics (PMMs). It provides a critical evaluation of 234 articles published in past 24 years.

Design/methodology/approach

The paper examines the studies published from 1991 to 2014 by adopting the bibliometric technique of citation and co-citation analysis.

Findings

The analysis of the results indicate that the number of articles on supply chain PMMs is increasing at its fastest pace in the past few years. Furthermore, the study identifies some of the most influential articles on performance measurement and metrics. Finally, it concludes that there has been a transition from traditional to more sophisticated performance measurement system.

Research limitations/implications

This study focuses only on supply chain performance measurement and metrics and excludes research on performance management and control. Thus, researchers may explore and extend this area of research.

Originality/value

To the knowledge of the authors, this is the first study to review the literature on supply chain PMMs by using citation and co-citation analysis. The study includes 234 articles over the time of 24 years (1991-2014).

Identification and prioritization of the barriers of knowledge management implementation using fuzzy analytical network process

Purpose

The purpose of this paper is to identify the barriers of knowledge management (KM) implementation in Alborz Province industrial Parks Corporation and prioritize them using fuzzy analytical network process (FANP).

Design/methodology/approach

Through an in-depth review of the literature on KM and researcher findings from observations and interviews with experts, the main barriers of KM implementation, namely, organizational culture, organizational structure, human resource, technology and miscellaneous factors along with their related factors in the surveyed organization were identified. Then, based on the information gathered, an expert questionnaire was developed. Finally, the priority of each main barrier and their sub-factors were determined using FANP.

Findings

The results show that human resource and organizational culture factors with the weights of 0.66 and 0.22, respectively, have the highest ranking and therefore are the most important barriers. The technology factor with the weight of 0.00002 is the least important barrier in implementing KM in the surveyed corporation.

Research limitations/implications

One of the limitations of this study is the generalizability of the findings, which may be limited by the single case study method used.

Originality/value

There are fewer studies about KM barriers specifically with a focus on prioritizing them in organizations, especially in the context of Iran as a developing country. This study develops a comprehensive and solid mathematical technique to prioritize the identified barriers of KM implementation in the context of Iran.

Modeling cause and effect relationships of strategy map using fuzzy DEMATEL and fourth generation of balanced scorecard

Purpose

– The purpose of this paper is to develop the strategy map (SM) of an Iranian automotive industry and the causal and effects relations of the SM’s variables though fourth generation of balanced scorecard (BSC) and fuzzy DEMATEL (decision-making trial and evaluation laboratory) technique.

Design/methodology/approach

– This research has employed a fuzzy DEMATEL approach in order to find cause and effect relations. At first step, CSFs in Company A’s SM were determined. Then four experts’ views of Company A’s strategic planning department were gathered and calculated by fuzzy set theory.

Findings

– Results showed the important role of customer perspective in supporting and achieving the organization’s vision which ultimately will lead to fulfillment of the financial objective of the company through satisfied customers. In other words, the dominant approach to logic of SM design in Company A and the obtained results from this research indicate, Company A can achieve strategic result with a more prominent role of customer and financial perspective, through employing the enabler perspective, i.e. learning and growth perspective.

Research limitations/implications

– Current study is limited to Iranian automotive industry. So, the strategic planning managers and future researchers shall consider their own company’s strategic structures for developing their SM.

Originality/value

– To the best of knowledge of the authors, it is the first attempt, particularly in the context of Iran, aimed at using fourth generation of BSC and fuzzy DEMATEL technique in an automotive industry which led to the confirmation that these two approaches can jointly be employed for the identifying cause and effect relations in SM and clarification and easy understanding of it. This proposed research structure can be a suitable base for the development of SM in other companies.

The impact of knowledge management practices on organizational performance

Purpose

– The purpose of this paper is to present a holistic approach regarding evaluation of knowledge management (KM) practices on organizational performance. The effects of seven critical success factors (CSFs), namely leadership role, organizational culture, KM strategy, processes and activities, training and education, information technology, and motivation and rewarding system, on organizational performance in the framework of four perspectives of balance scored card (BSC) approach were surveyed.

Design/methodology/approach

– The research hypotheses were raised based on the four perspectives of this approach, namely, growth and learning, internal processes, customer and financial. By literature review, CSFs of KM and organizational performance along with their items were identified in the framework of BSC’s perspectives. Based on these constructs and their items an instrument was designed and distributed among managers and employees of the subsidiary firms of Iran National Petrochemical Company (INPC). Reliability of the instrument was calculated by Chronbach’s α for the two sections of the instrument i.e. KM practices and organizational performance. Also, using factor analysis the construct validity of the questionnaire was approved. Finally, based on the hypotheses of the study and using structural equation modeling the impacts of KM practices on organizational performance were investigated.

Findings

– The results revealed that KM practices positively and meaningfully (though weak) impact overall organizational performance. This impact is significant only regarding growth and learning dimension and on the other dimensions is insignificant. Also, as customer and financial constructs were loaded on one factor based on the entity of their indicators we considered these two constructs as stakeholders construct. In addition, among the above mentioned seven CSFs, motivation and rewarding system obtained the lowest rank among the survey organizations.

Research limitations/implications

– The sample is restricted to only three companies, so gathering data from various parts of Iran including both manufacturing and service industries could increase the generalizability of the results obtained. Also, as in this study the data gathered were cross-sectional, a longitudinal study could help gain deeper understanding of the cause-and-effect relationship among the variables.

Originality/value

– The most significant gap in the literature is the lack of enough application of statistical and comprehensive methods like BSC that KM makes a difference to organizational performance. This study contributes to the field of KM by empirically investigating the impact of KM practices on various measures of organizational performance in order to prove the suitability of a comprehensive approach like BSC.