EconPapers    
Economics at your fingertips  
 

TIME EVOLUTION ANALYSIS AND FORECAST OF KEY PERFORMANCE INDICATORS IN A BALANCED SCORECARD

Bernard Morard, Alexandru Stancu and Christophe Jeannette

Global Journal of Business Research, 2013, vol. 7, issue 2, 9-27

Abstract: This paper offers a generic and rational construction of Balanced Scorecard. The construction involves implementing a time-managed approach to identify the evolution of the main contributors to the current company’s strategy as well as their behavior in the future organizational performance. After the optimal structure of the model is generated employing financial and non-financial strategic indicators collected from the organization, the study puts forward a realistic analysis of the evolution in time of the performance metrics. This analysis is based on the Partial Least Square equations behind the Balanced Scorecard proposed methodology, statistically comparable to the Structural Equation Modeling. Using historical data in the final model, an accurate prediction of the performance indicators can be achieved in the Balanced Scorecard tool as the approach establishes a stable cause-and-effect sequence. Under certain statistical assumptions, this allows forecasting the effects of future strategic decisions. Although the paper proposes a generic methodology, applicable to any organization, both public or private, commercial or non-profit, this technique is applied, reinforced and validated with a practical example from a public-owned Swiss electricity company.

Keywords: Balanced Scorecard; Key Performance Indicators; Performance Measurement; Structural Equation Modeling (SEM); Partial Least Squares (PLS); Principal Component Analysis (PCA); Public Organization; Energy Industry; Energetic Sector (search for similar items in EconPapers)
JEL-codes: G39 L32 M19 M40 (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v7n2-2013/GJBR-V7N2-2013-2.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ibf:gjbres:v:7:y:2013:i:2:p:9-27

Access Statistics for this article

Global Journal of Business Research is currently edited by Terrance Jalbert

More articles in Global Journal of Business Research from The Institute for Business and Finance Research
Bibliographic data for series maintained by Mercedes Jalbert (contact@theibfr.com).

 
Page updated 2024-07-01
Handle: RePEc:ibf:gjbres:v:7:y:2013:i:2:p:9-27