The companies have used balanced scorecard that was originated by Robert S. Kaplan, David P. Norton in the early 1990s worldwide. But still a batch of companies are non utilizing it. First, this paper will analyse the execution issues of balanced scorecard to happen out what are the major issues faced by the companies during execution. Second, it would wish to find if the degree of staff engagement during execution would convey a important consequence to the effectivity of BSC. a similar research will be conducted to analyze if effectivity of balanced scorecard could be influenced by the manner the company communicates BSC idea/strategy among the members. One-way ( exceed down hierarchically ) communicating will be compared to two-way ( allow subordinated to react ) communicating.
The consequence shows that troubles in cascading the idea/strategy within the company and assign burdening to different positions topped the list as the most ambitious execution issues. Middle director engagement in BSC execution proofed to be really of import to better the effectivity BSC. Then, bipartisan communicating besides makes an betterment to the effectivity of BSC compared to one-way communicating. Last, the companies who are non following BSC prefer to utilize fiscal ratios as a public presentation measuring.
Recognition
I would wish to thank God for being with me so that I can complete my concluding twelvemonth undertaking. I besides want to show my gratitude particularly for Mr. Lim Kaim Soon who supervised, guided me and gave his advice in the procedure of the devising of this undertaking. I besides am grateful to my parents and all my lectors who guided me during this undergraduate plan. Not to be forgotten, for all my friends who have been really supportive to complete this undertaking.
Table of Contentss
Abstract 1
Recognitions 2
Table of contents 3
Introduction 4
Literature Review 6
Methodology 10
Findingss 14
Mentions 25
Appendix 27
Introduction
Balanced scorecard ( BSC ) is a direction system that was originated by Robert S. Kaplan, David P. Norton in the early 1990s, since so world-wide houses have used it. Now, BSC has evolved from simple public presentation system to a strategic planning and direction system. The initial BSC used 4 positions: fiscal, internal concern, larning & A ; growing and client position. Despite the bright thought of BSC, non every company is presently utilizing it. BSC execution will convey alterations to the house ‘s vision and how they run, and so the execution is non an easy occupation. Harmonizing to the past researches, many houses have chosen non to implement BSC because of the complex jobs waiting in front and many more grounds that prevent them to utilize it. Meanwhile, houses are happening their manner to better the effectivity of balanced scorecard.
This survey examines the balanced scorecard use among Singapore houses and it will look into the execution of BSC. The research is based on informations analysis and the information aggregation will be utilizing a study, the questionnaire is distributed to Singapore houses through electronic mail. This paper will concentrate on the execution issues and the effectivity of balance scorecard. First of wholly, the execution issues will be assessed, possible issues generated chiefly from the past research, the major issues faced by Singapore houses will be identified, so necessary statistical trials will be used to bring forth grounds.
Effectiveness of BSC can be influenced by many factors, this paper will seek to find if degree of staff engagement in execution have an influenced to the effectivity. This survey proposes three different degree of staff engagement. The first degree will affect executive officers merely, 2nd degree gives extra center director and the last will affect supervisors and/or frontline employees. Furthermore, effectivity is traveling to be assessed to verify if the manner the company communicates BSC within the house will impact the effectivity of the BSC. One ( top-down ) and bipartisan ( allow subsidiary to react ) communicating may be will do important difference. Communication is really of import, since it can better the apprehension and enhanced the teamwork to accomplish the end and aim of the company.
BSC uniting the traditional public presentation measuring that focuses on fiscal position with non-financial positions. Nowadays, concerns has turned their caput to consumer and invention oriented which will do the non-financial positions every bit of import as fiscal position. Following, this survey examines the public presentation steps used by Singapore companies and happen out which positions are considered really of import.
Last, it will look to the respondent who stated that their companies are presently non utilizing balance scorecard and detect the grounds why they are non following it. In the interim, it would happen out their preferable public presentation measuring and direction tools while non utilizing BSC.
Literature Review
Manoj Anand, B S Sahay, and Subhashish Saha ( 2005 ) , had a research on public presentation measurings that focuses on balanced scorecard. Their aims was to place the extent of use of Balanced Scorecard by corporate India and whether they use the four positions in Kaplan and Norton ‘s ( 1992 ) model. They besides like to happen out the cardinal public presentation indexs for each position and measure the public presentation of the balanced scorecard as a direction tool.
Manoj Anand et Al. ( 2005 ) conducted a countrywide questionnaire-based study including the major corporate in India. Their determination indicated that the Balanced Scorecard acceptance rate was 45.28 per cent in corporate India with different motive in the execution of balanced scorecard including Originating the alteration procedure in the organisation, widening of the public presentation steps and easing the integrating of concern programs with the fiscal programs. From all the position, fiscal and clients ‘ position topped the list with return on investing ratio and client ‘s satisfaction for quality as the cardinal index severally. Most answering cited that the execution of balanced scorecard has led to be decrease within organisation.
Gerhard Speckbacher, Jurgen Bischof and Thomas Pfeiffer ( 2003 ) analyze the spread, execution and benefits of different types of balanced scorecards. The research was on the most of import publically traded houses in German, Austria and Switzerland.
From the entire sample taken from the three states, merely 26 per centum companies are utilizing BSC and merely 7 per centum of the houses have to the full developed BSC. The size of the house has a positive relationship with the execution of BSC. 8 per centum of the houses had used BSC but so discontinued as they felt it could non offer benefits beyond bing public presentation direction system.
Christopher D. Ittner, David F. Larcker and Marshall W. Meyer ( 2003 ) , analyze how different types of public presentation steps were weighted in a subjective balanced scorecard fillip program adopted by a major fiscal services house. Their hypotheses on the weights placed on different type of step bespeaking that “ subjectiveness ” factor will do the scorecard “ imbalanced ” as most of the weight placed on the fiscal steps. This will take the higher-ups to take irrelevant standards for foretelling future public presentation and coveted consequences. High degree of subjectiveness in Balanced Scorecard will take to favoritism in finding fillip and wagess. Their analysis shows that execution issues are may be far more of import than scorecard ‘s proficient properties in act uponing the success or failure of the balanced scorecard.
Kittiya Yongvanich and James Guthrie ( 2007 ) , suggesting a survey about the use of balanced scorecard among Stock Exchange of Thailand ( SET ) listed companies, effects on fiscal public presentation and perceived gained. They classified the balanced scorecard into three classs with the first is the basic map of BSC and the 3rd class is the most incorporate and advanced BSC.
Kittiya Yongvanich et Al ( 2007 ) had a 34 per centum respond from the questionnaire that they mailed to the companies. The consequence of the survey shows that most of the companies use the four positions and they use it in the manner that Kaplan and Norton ( 2001 ) suggested. The uses of different type of BSC have no important difference, it include the benefits gained and satisfaction degree. The employment of cause and consequence relationship is about 33 per centum of the corresponding companies. Finally, the survey found that the three types of BSC have no important difference in term of impact and satisfaction degree of fiscal public presentation.
Jamshed Mistry and Balgobin Nandram ( 2005 ) , study the relevancy of non-financial steps in stand foring the strategic alliance and house public presentation in eCommerce environment context. A set of 11 fiscal and non-financial prosodies are used in a Latent Class theoretical account to rank-order a set of eCommerce companies into bunchs of best and worse executing companies and the cogency of these bunchs is foremost established. Information from the brief instance histories of the companies that remained active, clearly underscore the importance of the customer-centric and invention dimensions for eCommerce companies. They found that engineering, uninterrupted invention and offering individualized service to client are necessary to remain competitory in eCommerce environment. From their analysis of three companies that went insolvents, internal procedure play a major portion in the failure including velocity, quality and reactivity to the client.
Dennis Campbell, Srikant Datar, Susan Kulp, and V.G. Narayanan ( 2002 ) wrote a paper about how a public presentation measuring system can be used to measure its operating scheme, place possible jobs with its scheme and devise programs to extenuate these jobs. The research conducted on Store24, which is a in private held and major convenient shop retail merchant in New England.
Statistical analysis has been done to prove the relationship identified in Store24 balanced scorecard in order to larn the benefits and failings of the distinction scheme. The result shows that there is no important relationship between distinction execution and fiscal public presentation. It besides reveal the consequence of the scheme differed among the shops with crew accomplishments as the cardinal factors. Dennis Campbell et Al ( 2002 ) showed that balanced scorecard could be used non merely to pass on scheme and mensurating public presentation, but besides to prove scheme public presentation.
Ben K. Agyei-Mensah ( 2010 ) was cognizant that the concern environment has changed while the importance of non-financial position gimmicks up with fiscal position, so understanding the house ‘s public presentation become indispensable. The writer investigates how to implement balanced scorecard and Economic Value Added ( EVA ) in a little sized fiscal services company to better its public presentation. Implementing the two public presentation steps can be hard undertaking because it means seting the house in a transformational phase. Ben K. Agyei-Mensah found that from nine out of 10 instances, communicating failures are the key in the manner of implementing balanced scorecard. The failure cardinal factors are deficiency of apprehension of the proposed transmutation for alteration, deficiency of trust to the direction who responsible for the alteration and opportunism of the employees about the occupation safety issues.
Mary A. Malina and Frank H. Selto ( 2001 ) study the effectivity of balanced scorecard as a direction control and scheme communicating device. The survey offers a theoretical account of control and communicating applicable to the BSC. Archival informations and empirical interview is used to measure the control and communicating effectivity of the BSC. The research worker got the interview informations via telephone from the several directors and distributers from U.S Fortune 500 companies. The findings are that the directors respond positively to BSC steps that improve their public presentation by reorganising their resources and activities. More significantly, the directors believe that bettering BSC will take to better their concern efficiency and profitableness and react favourably to BSC as comprehensive step of public presentation that reflects the demands of effectual direction. Communication still one of the obstructions in the manner of BSC execution, because largely they merely have one-way communicating ( top-down ) . The writers suggest to better duologue within the houses ( bipartisan communicating ) as a possible solution.
Alexandros Garefalakis et Al. ( 2009 ) wrote about execution of balanced scorecard for Gas Company of Greece which has an obsoletes public presentation measuring system. The writer ‘s purpose is to develop a more comprehensive and efficient processs through which the directors can develop future schemes and end. For analysis, the writers obtained the informations from interviews and questionnaire. The necessary point in their determination is that focal point on client, fiscal and rearrangement of internal procedures play a major portion in development of the company, while people, touchable and intangible cognition will be a good support for the company.
A research conducted by Teemu Malmi ( 2001 ) aimed to happen out the ground why companies in Finland follow BSC and how they applied it. The informations used for analysis taken from semi-structured interviews of 17 organisations in Finland. The determination shows that BSC used in two different ways, foremost it used as direction by aims, secondly it used as a mere information system. Further research show marks that companies do non to the full understand to utilize the cause-effect relationship in balanced scorecard.
Methodology
This paper focuses on three chief inquiries, which is inspired by the past research. First, it will turn to the job that the company has been confronting while the execution of the balanced scorecard. Second, it will happen out if certain factors may act upon the effectivity of the BSC. Lastly is to find the public presentation steps used by the companies.
In order to carry through the aim of this paper, informations analysis is pretty of import, but it will non be plenty to merely reply without grounds. Then, illation trial will be used to bring forth grounds such as t-test, ANOVA.
A survey-based research has been chosen to bring forth necessary informations to back up the analysis about BSC. The questionnaire developed for this survey chiefly came from the anterior researches. Then, the questionnaire distributed to the companies through electronic mail.
The early inquiries will necessitate the respondent to depict which house they are working at, so the inquiry will inquire whether the respondents are cognizant about BSC and besides the statement if their company is presently utilizing BSC, followed by how long the company has been utilizing it. Question 4 and 5 directing the respondent to go on to oppugn 9 to 10 if the reply is his/her companies are non utilizing BSC and go on the study until inquiry 8 if their company is presently utilizing the balanced scorecard
The following inquiries will travel deeper to the internal of the companies. The information of functionaries involved in the BSC execution will be really utile since every functionary will do an impact in the effectivity of the BSC, particularly the top and in-between director. BSC described by Kaplan & A ; Norton uses four positions, harmonizing to Manoj Anand et Al. ( 2005 ) research, companies has developed and put extra position into their scorecard since the importance of the position to every house in a peculiar industry will be different.
The following inquiries will necessitate the respondent to give evaluations on the multiple picks. The jobs while execution of BSC will be reviewed, this is consistent with Christopher D. Ittner et Al ( 2003 ) who stated that execution issues is really of import to the success or failure of the BSC.
Subsequently, the respondent will be asked to rate the public presentation steps used based on their companies ‘ patterns. This will reflect how the company has used different positions harmonizing to how of import these steps for them. It besides used to compare the importance between fiscal and non-financial steps used by the companies. Manoj Anand et Al. ( 2005 ) stated that the squad ‘s determination was fiscal steps still topped the lists followed by client positions.
Then, the following inquiry inspired by Mary A. Malina et Al ( 2001 ) research about the effectivity of BSC for the house. It will necessitate the respondent to reason either the balanced scorecard that they have been developed and used by the company has brought effectual or uneffective impact to the company as a whole.
Reviewing Mary A. Malina et Al ( 2001 ) which stated that the manner the house pass on their balanced scorecard nonsubjective to their members will impact the effectivity of the BSC public presentation. The inquiry asks if the house usage one or bipartisan communicating among the staff of the company while implementing the BSC.
The two last inquiries dedicated to those companies who are non presently utilizing BSC. The ground for non following will be a large inquiry here and if they of all time consider to implement BSC, multiple picks including the possible replies are provided with extra infinite if they have specified reply.
The information collected will be assessed with illative analysis to look for reply of the chief inquiries and aims of this paper. Descriptive analysis will assist to give a clearer image of the informations.
One-way ANOVA analysis will be used to happen out if there are important differences in the evaluation of multiple picks of jobs faced by the houses.
H0 = There is no important differences in the evaluation of jobs faced by the houses
H1 = There is important differences in the evaluation of jobs faced by the houses
The amount of squares between groups ( SSB )
The amount of squares within groups ( SSW )
The amount of squares entire ( SST )
The F-test
A follow up trial utilizing Tukey ‘s scope trial to place whether there are jobs that stand out or much more ambitious than the other, with the higher agency shows the most ambitious jobs.
H0 = all the agencies are equal
H1 = at least 1 mean are non equal
Further usage of ANOVA and Tukey ‘ scope trial are for similar intent, will be carried out for benefits that the house addition by implementing BSC and the of import steps used by the house.
Two-sample t-test is used to find whether one or bipartisan communicating among the staff of the company will do important difference to the effectivity of the balance scorecard.
H0 = There is no important difference between one and bipartisan communicating
H1 = There is important difference between one and bipartisan communicating
Last, this paper likes to happen out if there is a correlativity between the staff degree engagement with the effectivity of BSC. Correlation coefficient is traveling to be used to measure the informations.
H0 = i??iˆ?0
H1 = i??i‚?0
Sample coefficient of correlativity ( R )
T-test for correlativity
Tukey-Kramer method for unequal sample size
Restriction
This paper analyzes Singapore companies by administering the questionnaire to the companies and the informations aggregation depends on the respondent merely. Therefore, everything that the respondent says in the questionnaire is deemed to be the truth.
BSC Usage in Singapore
From a 150 questionnaire that had been distributed through electronic mail, 64 feedbacks have been obtained from the respondents, demoing 42.6 percent response rate. Then, on 64 respondents, 27 of them confirmed that their companies are non utilizing the balance scorecard, go forthing 37 of them are utilizing it. Harmonizing to respondent feedback, the acceptance rate of BSC is 57.8 per centum, which is rather high compared to Manoj Anand et Al. ( 2005 ) findings of 45.28 per centum in India and Kittiya Yongvanich et Al ( 2007 ) around 40 per centum in Thailand.
Execution Issues
Many houses tried to implement BSC, some of them had implemented it and harmonizing to Kittiya Yongvanich et Al ( 2007 ) findings, some of them decided non to implement. Despite the figure of companies who has successfully implemented it, they need to get the better of the execution issues foremost. The execution issues is critical for implementing BSC, Christopher D. Ittner ( 2003 ) stated that execution issues are may be more of import than proficient properties toward the success or failure of BSC.
Table 1. Execution Issues
Anova: Single Factor
Summary
Groups
Count
Sum
Average
Discrepancy
1. Troubles to cascade the idea/strategy within the company
37
150
4.054
1.164
2. Assign burdening for different positions
37
144
3.892
1.266
3. Developing ends, aims and schemes
37
85
2.297
0.937
4. Lack of resources ( clip & A ; fundss )
37
110
2.973
1.471
5. Developing cause-effect relationship between positions
37
139
3.757
1.356
6. Lack of employee & A ; in-between director support
37
132
3.568
1.697
Analysis of variance
Beginning of Variation
United states secret service
df
Multiple sclerosis
F
P-value
F crit
Between Groups
82.144
5
16.429
12.493
1.1661E-10
2.256
Within Groups
284.054
216
1.315
Entire
366.198
221
A
A
A
A
*Rating based on graduated table 1 to 5, with 5 is most ambitious
Table 1 shows the informations summary about execution issues, the mark is based on the grade of challenge evaluation. ANOVA has been done in order to happen out if there is important difference in the grade of challenge among the issues. Since the F-test consequence with 95 per centum assurance degree is greater than the critical value, the H0 demand to be rejected which imply that there is important difference among the issues.
Table 2. The ( Q ) Value of Tukey ‘s Range Test
2
3
4
5
6
1
0.859
9.320*
5.734*
1.575
2.578
2
8.461*
4.875*
0.716
1.719
3
3.586
7.744*
6.742*
4
4.159*
3.156
5
1.003
1-6 = Issues in several order
c.v = 4.10
* = Significant Difference
Tukey ‘s scope trial consequence shows that non all the agencies are equal, so the significance difference among the issues is located. With the assistance of table 2, the most important difference is between 1 and 3, which is explicating that troubles to cascade the idea/strategy within the company is the most ambitious issues in implementing the BSC ( greater mean ) , while developing ends, aims and schemes is the least challenging.
Table 3. Execution Issues ( Rearranged* )
Groups
Rating
( Average )
1. Troubles in cascading the idea/strategy within the company
4.054
2. Assign burdening to different positions
3.892
3. Developing cause-effect relationship between positions
3.757
4. Lack of subsidiaries support
3.568
5. Lack of resources ( clip & A ; fundss )
2.973
6. Developing ends, aims and schemes
2.297
*Arranged from most to least ambitious
Troubles in cascading the scheme, most likely experienced by the large houses in term of figure of employees. It even worse for the MNCs, where the directors and employees are scattered geographically, which hamper the communicating among the staff. Then it followed by delegating weightage to different position, which is similar to Manoj Anand et Al. ( 2005 ) who found that delegating weightage to different position is besides one of the most of import jobs in India.
Developing cause and consequence relationship is rather ambitious job in execution, it is hard to associate non-financial and fiscal steps since the clip the “ consequence ” will predominate is unsure. This is besides aligned with Kittiya Yongvanich et Al ( 2007 ) who found that merely around 33 per centum of the respondents were using cause and consequence relationship. Lack of subsidiaries support can be really troublesome because a steadfast demand teamwork from many hierarchal degrees to be successfully implemented. Lack of resources likely experienced by little size houses where a individual hiring is count and dearly-won for them. Surprisingly, the study found that developing ends, aims and schemes is the least challenging for companies.
Effectiveness of BSC
Staff engagement
The degree of staff engagement may be act uponing the BSC effectivity as a direction tool. Since, more people in hierarchal order involved, the more teamwork can be performed to accomplish the aim.
Table 4. The effectivity of BSC harmonizing to staff engagement
Anova: Single Factor
Summary
Groups
Count
Sum
Average
Discrepancy
1. Executive Officers ( top directors ) merely
11
37
3.363636364
0.654545455
2. Executive Officers + Manager ( center )
19
77
4.052631579
0.497076023
3. Executive Officers + Manager ( center ) and supervisor ( and/or frontline staff )
7
30
4.285714286
0.571428571
Analysis of variance
Beginning of Variation
United states secret service
df
Multiple sclerosis
F
P-value
F crit
Between Groups
4.646173172
2
2.323086586
4.174372263
0.023925026
3.275897991
Within Groups
18.9213944
34
0.5565116
Entire
23.56756757
36
Mistake! Not a valid link.The consequence of ANOVA trial with 95 per centum confident degree found that there is important difference among the group of staff engagement. Then a follow up trial is conducted, Tukey-Kramer method is used because the sample sizes are non equal. The consequence can be seen in table 5 where group 1 has important difference to group 2 and 3, which means that companies who merely involve executive officers has a lower effectivity compared to the companies who involve in-between director and supervisor in BSC execution. There is no important difference between group 2 and 3, which convey the importance of in-between director engagement to hike the effectivity of BSC. It could be because in-between directors ‘ functions are like a span between the top directors who set the ends and aims and the people who really do the mundane activities to accomplish it. Based on this consequence, it can be seen that subordinates support drama a large function to the effectivity of balance scorecard. Furthermore, enhanced teamwork will do it easier and faster for the house to accomplish its ends and aims.
Table 5. Tukey-Kramer Method
Pair
Critical
Difference
Actual
Difference
1 V 2
0.688
0.689*
1 V 3
0.878
0.922*
2 V 3
0.803
0.233
Alpha = 0.05
Communication
The manner the house pass on the BSC thoughts within the company besides may act upon the effectivity of BSC it self. Harmonizing to Mary A. Malina et Al ( 2001 ) , communicating is one of the hurdlings to implement BSC and stated that bipartisan communicating ( when subordinates allowed to give response ) could be solution for the job.
Table 6. The effectivity of BSC harmonizing to communicating
t-Test: Two-Sample
A
One-way communicating
( Top-down hierarchically )
Two manner communicating
( Let subsidiary to react )
Mean
3.4
4.227272727
Discrepancy
0.542857143
0.46969697
Observations
15
22
Pooled Discrepancy
0.498961039
Hypothesized Average Difference
0
df
35
T Stat
-3.49761093
P ( T & lt ; =t ) one-tail
0.000648699
t Critical one-tail
1.68957244
P ( T & lt ; =t ) two-tail
0.001297399
t Critical two-tail
2.030107915
A
Alpha 0.025 ( two-tailed )
T-test in table 6 indicates that there is a important difference between one and bipartisan communicating. The consequence implies that bipartisan communicating scores a greater evaluation of effectivity in implementing BSC. Once once more, teamwork is of import in order to implement BSC efficaciously. One-way communicating ( top-down hierarchically ) is merely the superior scene end and giving order to subordinate to transport out the scheme, the teamwork could be small between them. Meanwhile, bipartisan communicating would let the subsidiaries to react, giving feedback and suggestion, which will be really helpful to the determination shapers to measure and/or reconstruct the scheme to be appropriate with a peculiar status. Furthermore, bipartisan communicating besides allowed the employees to better the apprehension about the BSC by discoursing the ends and scheme with their superior, hence with a better apprehension, they can accomplish a better public presentation consequence and better the effectivity of the BSC itself.
Performance Measures
Table 7. BSC Performance Measures Ratings
Anova: Single Factor
Summary
Groups
Count
Sum
Average
Discrepancy
1. Fiscal Measures
37
168
4.540540541
0.255255255
2. Cost Measures
37
135
3.648648649
0.512012012
3. Customers Measures
37
122
3.297297297
0.936936937
4. Invention Measures
37
113
3.054054054
0.719219219
5. Quality Measures
37
135
3.648648649
0.567567568
6. Human Resource Measures on Employees
37
118
3.189189189
0.824324324
7. Operational Measures
37
136
3.675675676
0.66966967
Analysis of variance
Beginning of Variation
United states secret service
df
Multiple sclerosis
F
P-value
F crit
Between Groups
53.66795367
6
8.944658945
13.96049548
1.04935E-13
2.134660831
Within Groups
161.4594595
252
0.640712141
Entire
215.1274131
258
*Alpha 0.05
Table 7 shows the informations harmonizing to the evaluation shows the importance of the peculiar steps to the several companies. The ANOVA trial consequence point towards rejecting the void hypothesis, which is non all agencies are equal.
Table 8. Tukey ‘s Range Test Method
Volt
2
3
4
5
6
7
1
6.757*
9.424*
11.265*
6.758*
10.242*
6.553*
2
–
2.667
4.507*
0
3.485
0.205
3
–
1.841
2.667
0.818
2.871
4
–
4.507*
1.023
4.712*
5
–
3.485
0.205
6
–
3.690
c.v = 4.46
* Significant Difference
Tukey ‘s Range trial is conducted to turn up the important difference, the consequence tabulated in Table 8. Based on consequence, fiscal step ( group 1 ) is still by far more of import than the remainder, do it the chief concern of bulk companies, since it has important difference to the remainder of the steps. The other important differences are between 2vs4, 4vs5 and 4vs7, although the ( Q ) values are really near to the critical value.
Table 9. Performance Measures ( Rearranged* )
Groups
Rating ( Average )
1. Fiscal Measure
4.541
2. Operational Measure
3.676
3. Cost Measure
3.649
4. Quality Measure
3.649
5. Customers Measure
3.297
6. Human Measure
3.189
7. Invention Measure
3.054
*Arranged from most of import to the least
After the public presentation Measures tabulated to postpone 9, operational step is at the 2nd topographic point followed really closely by cost and quality steps. Operational measures sit at 2nd topographic point illustrates the concern environment in Singapore where service-based concerns plays a major portion in the economic system, hence on-time bringing and dealing procedures could be the really of import steps. Quality steps such as maintaining path on client ailment is really important for service-based concerns. Surprisingly, invention step is the least of import harmonizing to the informations collected, it most likely because most concerns are serviced based, unlike fabrication that require merchandise invention in order to prolong competitory advantage in the market.
Reasons for non following
27 out of 64 respondent ( 42 % ) affirmed that the company they presently working are non following BSC. The most common grounds from the respondents are deficient benefits to warrant the cost and attempt followed by confounding and complicated which is logical, because BSC is a complex system that comprises most of concern facets, it will take clip and work force to plan and fix it to run. Too clip consuming is apprehensible since altering the running system of a company could take months or old ages. Does non hold adequate staff most likely associated with little size companies in term of figure of employees where extra hiring is non economical to the house ‘s balance sheet.
Table 10. Reasons to non follow BSC
Reasons
Count
1. Insufficient benefits to warrant the cost and attempt
13
2. Confusing & A ; Complicated
10
3. Too clip devouring
8
4. Department of energies non hold adequate staff
5
5. Lack of good defined vision/strategy
3
Companies, which are non following balance scorecard, have a different ways to mensurate their public presentation and specify strategic determination. Fiscal ratios such as ROI, Residual Income, runing net income border and EVA are still the primary pick to take topographic point as a public presentation measuring system while Entire Quality Management besides among the favourite as a direction tool.
Decision
This paper provides grounds sing the BSC execution among Singapore houses. The study had a ( 64 respondent ) 42.6 percent response rate with ( 37 ) 57.8 per centum of the companies are presently utilizing Balanced Scorecard, a favourable comparing to Manoj Anand et Al. ( 2005 ) findings of 45.28 per centum in India and Kittiya Yongvanich et Al ( 2007 ) around 40 per centum in Thailand.
Troubles in cascading the idea/strategy within the company sits as a primary issues and it will be given to acquire worse for MNCs who has their employees scattered geographicly. Delegating burdening into different positions and developing cause-effect relationship ( between positions ) are the undermentioned major job during execution phase of BSC.
Degree of staff engagement proofed to be an influence to the effectivity of BSC. The trial consequence indicate that center directors engagement is really of import to better the effectivity of BSC, since they are the 1 who linked the strategic determination shapers with the employee who literally work in mundane footing to accomplish the end. The manner that the companies communicate BSC scheme or thoughts will besides impacting the effectivity of BSC. The consequence shows that bipartisan communicating, which allows the subsidiary to react, enhanced the effectivity of BSC. This is may be because synergistic communicating increases the apprehension and teamwork among the employees.
A fiscal public presentation step still sits at the top of the list, doing it the most of import step. Operational, cost and quality steps are the following chief steps used by Singapore houses.
The grounds for non following BSC is vary, but deficient benefits to warrant the cost and attempt is the most common ground for Singapore houses to non following BSC. While, excessively much clip consumed and confusing/complicated are really apprehensible grounds for every individual house. In the average clip, fiscal ratios such as ROI and operating net income are still preferred because those are easy to utilize.
Due to limited resources are accessible by this research, generalising the result demand to be reexamined closely. Future survey may supply more accurate informations and consequence with more dependable resources and larger sample.
Mentions
Anand, Manoj, Sahay, B. S. and Saha, Subhashish, Balanced Scorecard in Indian Companies. Vikalpa, Vol. 30, No. 2, pp. 11-25, April-June 2005. Available at SSRN: hypertext transfer protocol: //ssrn.com/abstract=629249
Speckbacher, Gerhard, Bischof, Jurgen and Pfeiffer, Thomas, A Descriptive Analysis on the Implementation of Balanced Scorecards in German-Speaking Countries ( 2003 ) . Available at SSRN: hypertext transfer protocol: //ssrn.com/abstract=1027060
Ittner, Christopher D. , Larcker, David F. and Meyer, Marshall W. , Subjectivity and the Weighting of Performance Measures: Evidence from a Balanced Scorecard. Available at SSRN: hypertext transfer protocol: //ssrn.com/abstract=395241 or doi:10.2139/ssrn.395241
Yongvanich, Kittiya and Guthrie, James, The Balanced Scorecard of Thailand Listed Companies and Performance Implications ( September 26, 2007 ) . Presented to the 4th Conference on Performance Measurement and Management Control: Measuring and Rewarding Performance, 26-28 September 2007, Nice, France.. Available at SSRN: hypertext transfer protocol: //ssrn.com/abstract=1360491
Mistry, Jamshed J and Nandram, Balgobin, The Relevance of the Balanced Scorecard on Assessing Firm Performance of eCommerce Companies ( July 30, 2005 ) . Available at SSRN: hypertext transfer protocol: //ssrn.com/abstract=773105
Campbell, Dennis, Datar, Srikant, Kulp, Susan Cohen and Narayanan, V. G. , Using the Balanced Scorecard as a Control System for Monitoring and Revising Corporate Strategy ( September 5, 2002 ) . Harvard NOM Working Paper No. 02-35. Available at SSRN: hypertext transfer protocol: //ssrn.com/abstract=328880 or doi:10.2139/ssrn.328880
Agyei-Mensah, Ben Kwame, Strategic Repositioning of Amben Investment Services Using the Balanced Scorecard and Economic Value Added ( April 18, 2010 ) . Available at SSRN: hypertext transfer protocol: //ssrn.com/abstract=1591864
Malina, Mary A. and Selto, Frank H. , Communicating and Controlling Strategy: An Empirical Study of the Effectiveness of the Balanced Scorecard. Journal of Management Accounting Research, 2001. Available at SSRN: hypertext transfer protocol: //ssrn.com/abstract=294379
Garefalakis, Alexandros, Sariannidis, Nikolaos, Zopounidis, C. and Zisis, Pandelis, Building Balanced Scorecard in a Complex Form of Enterprise with Various Effective Managerial Tools and Performance Schemes: The Case of Gas Corporation S.A. , in Greece ( March 14, 2009 ) . Available at SSRN: hypertext transfer protocol: //ssrn.com/abstract=1359873
Malmi, Teemu, Balanced Scorecards in Finnish Companies: A Research Note. Management Accounting Research, Vol. 12, No. 2, 2001. Available at SSRN: hypertext transfer protocol: //ssrn.com/abstract=269224
Black.K 2009, Business statistics: Contemporary Decision Making. USA: John Wiley and Sons.
