engleski

A Simplified Balanced ‘Balanced Scorecard’

This paper proposes a performance measurement system (PMS) based on the Balanced Scorecard (BSC) that requires only 25 common key performance indictors (KPIs), which are characterized by their easiness to collect, in turn making the PMS an affordable instrument for all types of organizations, regardless of their resource availability. This is particularly relevant for SMEs. A sample of 813 surveys collected from managers in the Republic of Croatia is analyzed through structural equation modeling. The proposed simplified BSC shows good psychometric features, and the relationships found among the four classical perspectives are consistent with the literature, which provides homological validity for the model. This paper also proves that the equilibrium among the four perspectives has a significant impact on three perspectives, vouching for the importance of this balance among perspectives. It further shows the extent to which strategy influences the four perspectives. The proposed simplified BSC may interest both academics and practitioners as it does not require any special knowledge or additional resources to be implemented and monitored while also highlighting (i) the importance of strategy in the design of the model (ii) and the importance of balance among perspectives.

Balanced scorecard ; performance measurement system ; small and medium-sized enterprises ; key performance indicators

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