| To be successful, organisations must
| |
| | is applicable to any type of
|
| prove themselves to be indispensable to
| |
| | organisation, albeit with modifications.
|
| their customers, be attuned to their
| |
| | For example, a BSC for non-profit
|
| employees' needs, be willing to partner
| |
| | organisations must be modified to include
|
| with their suppliers, and be considerate
| |
| | a mission perspective and any other
|
| of the social, environmental, and safety
| |
| | additional perspectives which provide
|
| outcomes of their performance. These
| |
| | specific information on social
|
| rather new and expanded objectives of
| |
| | demographic factors regarding the
|
| business operations, are the main pillars
| |
| | organisation's environment. Viewed as a
|
| of business excellence.
| |
| | performance measurement system (PMS), the
|
| Samson and Challis (2002) studied leading
| |
| | BSC is not a new tool as PMSs have
|
| international organisations in an effort
| |
| | existed for a long time in all
|
| to determine why some were more
| |
| | organisations and in most cultures, in
|
| successful than others in their pursuit
| |
| | one form or another. Hence the novelty of
|
| of excellence. They identified a total of
| |
| | the BSC does not reside in its existence
|
| 14 principles that served as catalysts
| |
| | but rather in the attempt to achieve
|
| for business excellence. The extent to
| |
| | standardisation via conventions and
|
| which each organisation embodied these
| |
| | universal rules (Urrutia de Hoyos, 2001).
|
| principles appeared to be directly
| |
| | The BSC's most standardised antecedent is
|
| related to the speed of its journey
| |
| | the "tableau de bord" (Mallo and Merlo,
|
| towards excellence.
| |
| | 1995), a tool utilised principally by
|
| Furthermore, the EFQM Excellence Model,
| |
| | French companies, and whose configuration
|
| which is used to adjudicate the European
| |
| | and conceptual basis is very similar to
|
| Quality Award, and the most frequently
| |
| | the BSC. One explanation for the lack of
|
| discussed model in quality literature
| |
| | standardisation of PMSs along the line of
|
| (van der Wiele et aI., 1995, 2001), uses
| |
| | the tableau de bord and BSC is certainly
|
| self-assessment as a tool to identify
| |
| | the lack of publicised information
|
| organisational strengths, as well as
| |
| | regarding their existence due to its
|
| areas in which there exists room for
| |
| | being an excessively strategic tool; due
|
| improvement. Its outcome is a structured
| |
| | to their strategic nature, organisations
|
| plan for amelioration, which is
| |
| | are very reluctant to disclose their
|
| subsequently monitored for progress. In
| |
| | existence and utilisation.
|
| addition to this self-assessment
| |
| | Development of the BSC
|
| component, the EFQM assists organisations
| |
| | The development of the BSC has gone
|
| with their continuous improvement
| |
| | through three distinct phases.
|
| initiatives by facilitating gauging of
| |
| | The First phase
|
| progress against measures of total
| |
| | Initially the BSC was intended as a
|
| quality management, identification of
| |
| | measurement tool, with an operational and
|
| improvement opportunities benchmarking
| |
| | tactical focus. It was a collection of
|
| and organisational learning (McAdam and
| |
| | indicators arranged by perspectives or
|
| Kelly, 2002).
| |
| | key areas, which permitted the
|
| Truly effective use of the excellence
| |
| | identification of the determinants of the
|
| models for continuous improvement
| |
| | performance of a business. The original
|
| requires the input of management and
| |
| | objective was to overcome the limitations
|
| employees. For maximum benefit, it must
| |
| | of using only financial indicators. These
|
| be effectively marketed by top management
| |
| | last only provided information about
|
| and internalised by the staff of the
| |
| | actual, past performance, and failed to
|
| organisation (van der Wiele et aI.,
| |
| | provide information on the drivers of
|
| 2000). Also, to be optimally effective,
| |
| | future performance (Kaplan and Norton,
|
| quality improvements should be
| |
| | 1996). The four BSC perspectives -
|
| prioritised and should focus on the
| |
| | financial, customer, internal processes,
|
| results category of a business excellence
| |
| | learning and growth - were selected on
|
| model such as the EFQM Excellence Model
| |
| | the basis of the results of a study by
|
| (EFQM, 1999; Seghezzi, 2001), the Malcolm
| |
| | David Norton and Harvard University
|
| Baldrige National Quality Award (MBNQA,
| |
| | (Kaplan and Norton, 1992).
|
| 2002), or the Canadian Framework for
| |
| | The Second phase
|
| Business Excellence (CFBE, 2002).
| |
| | In the process of identifying indicators
|
| Quality management
| |
| | for each of the four perspectives, it was
|
| The family of ISO 9000 standards can be
| |
| | discovered that by developing strategy
|
| regarded as the foundation on which
| |
| | maps, not only could the appropriate
|
| organisations can build their excellence
| |
| | indicators be identified, but also
|
| programs. The success of a quality
| |
| | management could utilise the BSC for
|
| management program that builds upon the
| |
| | strategic planning. In the first phase,
|
| foundation of the ISO 9000 system has
| |
| | indicators were identified subsequent to
|
| been said to relate to the original
| |
| | the development and definition of the
|
| motivation for registration (van der
| |
| | organisation's strategy, and had an
|
| Wiele et aI., 2001). The message is that
| |
| | operational and/or tactical focus. During
|
| the added value that an organisation
| |
| | this phase, it was discovered that it was
|
| derives from the ISO 9000 standards
| |
| | not enough to simply identify indicators,
|
| should be a result of that organisation's
| |
| | it was also necessary that the indicators
|
| motives for, and approach to,
| |
| | were extracted directly from the
|
| implementation (Cobb, 2003; Gotzamani and
| |
| | strategic plan. This so as to identify,
|
| Tsiotras, 2002; Singels et aI., 2001).
| |
| | and explicitly describe, the causal
|
| Issues such as organisation, internal and
| |
| | relationships with the organisation's
|
| external communications, employee
| |
| | strategy. In other words, the indicators
|
| awareness of quality, product conformance
| |
| | were identified prior to the development
|
| and customer satisfaction are all
| |
| | and definition of the organisation's
|
| addressed within the ISO 9000 system,
| |
| | strategy, and as such playa key role in
|
| simplifying management commitment to
| |
| | the development and definition of the
|
| quality. This can be a driving force to
| |
| | strategy. The act of measurement has
|
| go beyond and achieve business
| |
| | consequences that exceed simply providing
|
| excellence. However, if not done
| |
| | information on past results. It also
|
| properly, it is also possible that
| |
| | directs attention to the future, since
|
| implementation of ISO 9000 may lead to
| |
| | the indicators selected by management are
|
| excessive emphasis on the documented
| |
| | 'de facto' those which are important to
|
| procedures and less emphasis on achieving
| |
| | management. Hence, with a clearly defined
|
| business objectives (Gotzamani and
| |
| | strategy, coherently communicated and
|
| Tsiotras, 2002).
| |
| | aligned with change drivers, what was
|
| The importance and relevance of quality
| |
| | initially an information/measurement
|
| cannot be overstated. In recent decades,
| |
| | tool, and part of the management control
|
| public, private, and third-sector
| |
| | function, was converted into a tool for
|
| organisations have been awakened to the
| |
| | strategic management (Kaplan and Norton,
|
| necessity of creating and ensuring
| |
| | 2000) and a part of the strategy
|
| quality in every aspect of their
| |
| | formation process.
|
| operations. Far beyond "permitting things
| |
| | The Third phase
|
| to run smoothly", an emphasis on quality
| |
| | The BSC communicates the organisation's
|
| in management systems is now considered
| |
| | strategic plan via maps in which the
|
| essential to an organisation's
| |
| | cause-effect relationships between the
|
| prosperity. Globalisation and an enhanced
| |
| | different strategic objectives can be
|
| concept of corporate liability are two
| |
| | visualised. This permits management to
|
| important societal trends contributing to
| |
| | utilise the BSC as a tool for change
|
| this emphasis on quality. There are
| |
| | management leading to the achievement of
|
| numerous reports in the literature that
| |
| | Business Excellence.
|
| describe quality management practices and
| |
| | Conclusion
|
| the benefits that emanate from
| |
| | This article explored the broad issues
|
| implementation of an ISO 9000 system.
| |
| | related to business excellence and the
|
| Many of these are case studies or reports
| |
| | application of ISo 9000 and the BSC as
|
| of the benefits and drawbacks of such
| |
| | the first steps in achieving excellence.
|
| systems. The emphasis is on continuous
| |
| | ISO 9000 and the BSC aim at assisting
|
| improvement which is beyond simple
| |
| | firms to develop systems and procedures
|
| conformance to the ISO 9000 standards.
| |
| | which allow them to achieve business
|
| The Balanced Scorecard
| |
| | excellence by becoming more
|
| The Balanced Scorecard (BSC) is an
| |
| | customer-oriented. The implementation of
|
| instrument which translates the mission
| |
| | such systems requires on-going support
|
| and strategy of an organisation into a
| |
| | from senior management; taking into
|
| broad collection of action metrics and
| |
| | consideration the role of internal
|
| indicators, and which subsequently
| |
| | reporting and operational control systems
|
| provides the structure necessary to serve
| |
| | to monitor and proactively adapt to
|
| as control and strategic measurement
| |
| | changing business needs.
|
| system (Kaplan and Norton, 1996). The BSC
| |
| |
|
