The narrow view of the business entities within the framework of what is going inside it became unacceptable, especially with the latest developments and changes in successive multiple frameworks since about twenty five years ago till now, and the resulted increase in the existed dynamic environment.
The industrial business entities is difficult to operate isolated from what is surrounding, as its inputs as well as its outputs are through the surrounding environment, and even in between, operations are to be done with the same environment in context of the value chain, this chain which take out the entity from its inner framework of Homeland to consider pre and post influential external parties affecting its activities. The researcher considers that any efforts in the context of improving performance efficiency without taking into account these parties will give limited results or it could access better results if considered.
And for the fact that, customer requirements should be taken into account, and we have to ensure their continued satisfaction and loyalty as well as the satisfaction and loyalty of the entity’s personnel, which is reflected in the operating results for achieving its objectives in the light of its strategy, we must stress on two important points:
1) There is a closed circuit, begins by customers and end by them, which means the need to create a good operating environment with its human and different material resources, as well as the overlapping and influential relationships with each other, that lead to ensuring operational quality and the resulting output that meets customer requirements for realizing the objectives within the framework of measuring and evaluating performance.
2) To measure and evaluate the performance of the entity - specially the strategic one – we should not be limited to the factors inside it, or to take only the customer factor from its outside leaving the other related parties and the variables affecting measurement and evaluating performance results without subjecting the matter to analysis and study.
If one of the criticisms regarding the Balanced Scorecard model is in limiting the card at four dimensions only in their original form, without any additions except for the environmental dimension, the researcher indicates that when the BSC form was first submitted, it allowed the measurement and evaluation of performance proportionate to the third phase of measurement and evaluation, which described the measurement and evaluation as strategic, and the first providers of the BSC, as (Kaplan & Norton) have pointed out that each entity can add other dimensions - as it deems appropriate - as required by the nature of its activities and the requirements of measuring and evaluating performance of it.
This criticism represents a good interance for the researcher to develop the strategic measurement and performance evaluation phase through value analysis perspective to complement the rings of the chain in the industrial entities, through adding new dimensions closed to supply chain, competitors, and technological developments, with the consolidation and strengthening of the existing dimensions through Benchmarking.
Based on the foregoing, the tee to the wider horizons of the industrial entity framework, is considered a must in terms of the imposed reality of the surrounding variables and expanding the value chain circle - from the current inadequate vision - making the concern moving to and influenced by the attainment of their objectives in the light of its vision and mission within the framework of its strategy, and to achieve maximum added value resulting from the optimal utilization of its available resources.
So the research aims to develop the Balanced Scorecard model by adding an important dimensions in the light of the required value chain completion, in addition to activating the existed dimensions, thus ensuring the desired goals of the model used - after developing it - in an activated and integrated measurement and evaluation of the strategic performance to play an effective role as a new stage for measurement and evaluation of industrial entities, in the light of its visions, missions, and strategies.
According to the research limits, it is important to consider that:
1) It will be proposed performance measures regarding the suppliers dimension with connection to the other card dimensions, but for the dimension of both competitors and technological developments, their organic combination with the existed customers and internal operations dimensions respectively, make these dimensions measures quite enough, especially after activating it through Benchmarking.
2) The use of synonyms for the term “Balanced Scorecard model ", as well as words like (Perspectives, or dimensions), (entity, concern, or firm), is for the honest handling regarding the quoted parts.
The main research postulate is that “It is possible to develop the current model of the Balanced Scorecard, allowing the measurement and evaluation of a strategic integrated performance, through adding new dimensions corresponding to completing the value chain rings of industrial entities, and that the use of Benchmarking approach increases the effectiveness of the existed dimensions”.
The researcher followed the inductive approach, depending on the analytical study as a method depending on the real needs of industrial entities, for concluding the constraints regarding performance through workshops, along with interviews and discussions fulfilled with the officials and employees of these entities, out of the fact that these entities represent the core of benefit regarding the development of the Balanced Scorecard Model in the light of the value chain integration, in order to effectuate its use for measuring and evaluating performance, which highlights the importance of the research on both the theoretical and practical levels.
Now, the researcher can present the BSC dimensions, and their relations according to the developed strategic measurement and evaluation model in the light of complementing value chain rings as follows:
The proposed developed model of the Balanced Scorecard
Now we can present the research’s results - closely related to its main postulate - ended by its main recommendation, followed by some suggested future points of research, as follows:
Connecting the main dimensions of the BSC model by the Benchmarking approach increases the yield of its use in the performance measurement and evaluation, as well as supporting the competitiveness of the entity in terms of increasing the parameters used and the activation of the existing ones under each of these dimensions.
In the light of completing the value chain rings of industrial entities, there are important dimensions that can be added to the BSC to consolidate and activate the measurement and evaluation of strategic performance model, as shown by the proposed developed model of the Balanced Scorecard.
The measures related to the supplier’s dimension - in the context of the supply chain - enables completing the pre part of the value chain, add to this taking into consideration the dimensions of competitors, and technological developments, means the completion of the rest of the chain-linked as a support for customers and internal operating processes dimensions respectively.
Technological developments extend far beyond the requirements of advanced manufacturing systems closely relating to flexibility, as it affects clearly, marketing & financial, accounting, and management information systems in business entities generally and the industrial ones particularly.
It is a must - under the successive, rapid and unfavorable variables which most industrial entities are performing through - to adapt the value chain, with its continues improvement to increase the efficiency of using the developed card model for measuring, evaluating and improving performance.
Based on the above research results, the researcher recommends the industrial entities to update applying the Balanced Scorecard Dimensions using the proposed model, which leads to the completion of the value chain, through the important added dimensions, with enhanced performance dimensions of the existing measures through applying the Benchmarking Approach, in order to ensure a strategic performance measure and evaluation, which requires the availability of the displayed Ingredients in the item (3-2) of the research.
As for future research proposals,
Measuring and evaluating the developed strategic performance of trigonometric endoscopes for the intellectual capital.
An Empirical Study of the Developed Balanced Scorecard Model in the light of the value chain integration in industrial entities.
The application of the Activity Based Management Model in transformative industries to avoid risks of the supply chain and ensure the goodness of the developed performance measure and evaluation.
Reflections of the non-financial performance measures application on the fundamental indicators of financial measures: an experimental study in the economic units under the application of the Developed Balanced Scorecard Model.
Correlations between the dimensions of the developed Balanced Scorecard Model and the evaluation criteria for investment expansion projects in light of technological operating environment in the industrial entities.
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