...BALANCED SCORECARD APPLICATION IN LENDING/MICROFINANCING INSTITUTIONS: A STRATEGIC MAP IMPLEMENTATION IN THE PHILIPPINES CONTEXT This paper studies the application of Balanced Scorecard (BSC) as a powerful measurement and assessment system, in lending/micro financing institutions. Adopting the balanced scorecard (BSC) model, this exploratory study investigates the critical performance measures that lending/micro-financing institutions in the Philippines need to emphasize in their performance reporting to drive high performance. The proposed model can assist the lending institutions in assessing organizational performance, making it highly applicable for managers. Reviewing the existing literature, the paper also provides an implementation guide for BSC in the Philippines perspective. Eventually, the performance indicators for measurement purposes of the introduced case study are proposed. Keywords: Lending/ Micro financing Institutions, MFIs, Financial Services, Balanced Scorecard, BSC, Organizational Performance Assessment, performance reporting, Philippines. 1. Introduction In many developing countries, microfinance plays a vital role in providing the poor (i.e. micro-entrepreneurs, small farmers, fishermen) with access to credit and helping them improve their lives by encouraging entrepreneurial activity (Arch, 2005; Bhatt & Tang, 2011; Khandker, 1996; Llanto, 2004). It has also proven to be “a potent tool for poverty reduction by helping the poor...
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...Chapter 2 |The Balanced Scorecard and Strategy Map |[pic] | QUESTIONS 2-1 Financial performance measures, such as operating income and return on investment, indicate whether the company’s strategy and its implementation are increasing shareholder value. However, financial measures tend to be lagging indicators of the strategy. Firms monitor nonfinancial measures to understand whether they are building or destroying their capabilities—with customers, processes, employees, and systems—for future growth and profitability. Key nonfinancial measures are leading indicators of financial performance, in the sense that improvements in these indicators should lead to better financial performance in the future, while decreases in the nonfinancial indicators (such as customer satisfaction and loyalty, process quality, and employee motivation) generally predict decreased future financial performance. 2-2 A Balanced Scorecard is a systematic approach to performance measurement that translates an organization’s strategy into clear objectives, measures, and targets. The Balanced Scorecard integrates an appropriate mix of short- and long-term financial and non-financial performance measures used across the organization, based on the organization’s strategy. 2-3 The four measurement perspectives in the Balanced Scorecard are (1) financial, (2) customer, (3) process, and (4) learning and...
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...Conceptual Foundations of the Balanced Scorecard Robert S. Kaplan Working Paper 10-074 Copyright © 2010 by Robert S. Kaplan Working papers are in draft form. This working paper is distributed for purposes of comment and discussion only. It may not be reproduced without permission of the copyright holder. Copies of working papers are available from the author. Conceptual Foundations of the Balanced Scorecard1 Robert S. Kaplan Harvard Business School, Harvard University 1 Paper originally prepared for C. Chapman, A. Hopwood, and M. Shields (eds.), Handbook of Management Accounting Research: Volume 3 (Elsevier, 2009). 1 Conceptual Foundations of the Balanced Scorecard Abstract David Norton and I introduced the Balanced Scorecard in a 1992 Harvard Business Review article (Kaplan & Norton, 1992). The article was based on a multi-company research project to study performance measurement in companies whose intangible assets played a central role in value creation (Nolan Norton Institute, 1991). Norton and I believed that if companies were to improve the management of their intangible assets, they had to integrate the measurement of intangible assets into their management systems. After publication of the 1992 HBR article, several companies quickly adopted the Balanced Scorecard giving us deeper and broader insights into its power and potential. During the next 15 years, as it was adopted by thousands of private, public, and nonprofit enterprises around the...
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...For the exclusive use of h. abdelrahman, 2015. 9-107-038 REV: JANUARY 29, 2008 ROBERT S. KAPLAN RICARDO REISEN DE PINHO Amanco: Developing the Sustainability Scorecard A modern company must have a much broader and more sophisticated relationship with society, and must respond to issues that didn’t exist previously… Our strategy is the best for the sustainable creation of value. — Stephan Schmidheiny, Grupo Nueva and Amanco’s founder1 On January 9, 2006, CEO Roberto Salas arrived at the new Amanco headquarters in São Paulo after a long and strenuous tour through the company’s key units in Latin America. Salas had conducted intense and productive discussions about how to strengthen and standardize Amanco’s Sustainability Scorecard system (SSC), for use in executing Amanco’s new strategy. Amanco was Latin America’s biggest producer and marketer of plastic pipes and fittings for transporting fluid. It had dominant positions in Colombia and Ecuador, and was a major competitor in Brazil and Mexico. Amanco had become a top brand while establishing a reputation as a leading company in corporate social responsibility. Julio Moura, Amanco’s chairman, explained, “Customers want products that improve the society in which they exist and that protect the environment.”2 Salas reflected on the company’s recent financial performance (summarized in Exhibit 1): Amanco has lived by its triple bottom line values and become one of the Latin American’s most admired socially...
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...Conceptual Foundations of the Balanced Scorecard Robert S. Kaplan Working Paper 10-074 Copyright © 2010 by Robert S. Kaplan Working papers are in draft form. This working paper is distributed for purposes of comment and discussion only. It may not be reproduced without permission of the copyright holder. Copies of working papers are available from the author. Conceptual Foundations of the Balanced Scorecard1 Robert S. Kaplan Harvard Business School, Harvard University 1 Paper originally prepared for C. Chapman, A. Hopwood, and M. Shields (eds.), Handbook of Management Accounting Research: Volume 3 (Elsevier, 2009). 1 Conceptual Foundations of the Balanced Scorecard Abstract David Norton and I introduced the Balanced Scorecard in a 1992 Harvard Business Review article (Kaplan & Norton, 1992). The article was based on a multi-company research project to study performance measurement in companies whose intangible assets played a central role in value creation (Nolan Norton Institute, 1991). Norton and I believed that if companies were to improve the management of their intangible assets, they had to integrate the measurement of intangible assets into their management systems. After publication of the 1992 HBR article, several companies quickly adopted the Balanced Scorecard giving us deeper and broader insights into its power and potential. During the next 15 years, as it was adopted by thousands of private, public, and nonprofit enterprises around the...
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...Designing Staff Incentive Schemes to Balance Social and Financial Goals September 2006 By: Mattias Grammling and Martin Holtmann Using Staff Incentive Schemes to Balance Social and Financial Goals ii Contents Acknowledgements..................................................................................................................................... iii 1 Introduction: The Role of Staff Incentives to Balance Social And Financial Goals.......................... 1 2 Balancing Social And Financial Goals................................................................................................... 2 2.1 Social and financial goals of MFIs .................................................................................................... 2 2.2 Operational perspectives on balancing social and financial goals ..................................................... 3 3 Designing Staff Incentive Schemes That Balance Social And Financial Goals.................................. 6 3.1 Principles for designing staff incentive schemes ............................................................................... 6 3.1.1 Fairness .........................................................................................................................................................................6 3.1.2 Transparency ........................................................................................................................................................
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...relationship between globalisation, inequality and poverty. The term globalisation refers to the process by which the world has become more connected through advancements in technology, transport and communications and resultantly become integrated in many areas of life. For the purposes of this essay, one will be discussing the relationship between primarily economic globalisation, poverty and inequality in what many have referred to as the ‘third wave’ of globalisation, which has been prominent since the 1980s. Advocates of economic globalisation, understood as “the widening, deepening, and speeding up of worldwide interconnectedness” (McGrew in Ravenhill, 2005: 275) suggest that economic advancement through globalisation is a by-product of well-functioning markets; that countries should specialise in line with their comparative advantage; and that countries should practice free trade as a guiding principle. (Wade, 2004a: 184) Still today there exists huge economic inequality both within and between countries, and mass poverty is an issue which is still high on the agenda of world leaders across the globe. Yet data from the World Bank has shown that the number of people living in extreme poverty, of which it classifies as those living on less than $1 per day in Purchasing Power Parity (PPP) has fallen in the last two decades for the first time in 120 years. (Wade, 2004a: 163) The relationship between globalisation, inequality and poverty thus seems to be one which is subject to highly...
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...STATE OF THE WORLD’S CITIES 2008/2009 Case Study Woman-headed households suffer disproportionately from inadequate housing s Turkish women taking a lunch break in Ankara ©Kobby Dagan/iStockphoto A recent report released by the Centre on Housing Rights and Evictions notes that while previous studies found that women who migrate to cities do so to join family members – mostly husbands – in the city, this trend appears to be changing: an increasing number of women are migrating to cities on their own, often to escape domestic violence or discrimination in rural areas, or because they have been disinherited. In some sub-Saharan African countries, stigmatization due to HIV/AIDS has also forced women to move to cities. In Kenya, for instance, many rural women who are infected with HIV, or who have lost a husband to the disease, are sent away from the marital home along with their children. Many of these women end up in urban slums, while their children, who are presumed to be infected with the virus, are often denied a share of the father’s property. While poor women and men in urban centres both face insecurity of land tenure and shelter, women are especially disadvantaged because they are often excluded from secure tenure as a consequence of cultural norms and unequal legal rights in legislative and policy frameworks of political systems. Women who become single heads of households, particularly in Africa, are particularly vulnerable, as in many countries in the region...
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...2010 اﻟﻤــﺆﺗﻤـﺮ اﻟـﺪوﻟــﻲ اﻷول ﻟﻠﺘﻨـﻤﻴــﺔ ﻓﻲ ﺳـــﻮرﻳــــﺔ دور اﻟﻤﺠﺘﻤـﻊ اﻷهـﻠــﻲ ﻓﻲ اﻟﺘﻨﻤﻴــﺔ 2010 32-42 آﺎﻧﻮن اﻟﺜﺎﻧﻲ/ ﻳﻨﺎﻳﺮ The First Interna onal Development Conference of Syria 2010 Emerging Role of Civil Society in Development 23‐24 January 2010 A Case Study of the AKRSP – Successful Rural Development in Northern Pakistan دراﺳﺔ ﺣﺎﻟﺔ- ﻧﺠﺎح اﻟﺘﻨﻤﻴﺔ اﻟﺮﻳﻔﻴﺔ ﻓﻲ ﺷﻤﺎل اﻟﺒﺎآﺴﺘﺎن Antonia Settle, Sustainable Development Policy Institute, Islamabad, Pakistan أﻧﺘﻮﻧﻴﺎ ﺳﻴﺘﻞ، ﻣﻌﻬﺪ ﺳﻴﺎﺳﺎت اﻟﺘﻨﻤﻴﺔ اﻟﻤﺴﺘﺪاﻣﺔ، إﺳﻼم أﺑﺎد، اﻟﺒﺎآﺴﺘﺎن antonia@sdpi.org This paper may not be distributed or reproduced without permission from the author(s). For references, please cite as follows: “Paper presented at the First International Development Conference of Syria, organised by the Syria Trust for Development, Damascus 23-24 January 2010”. A CASE STUDY OF THE AKRSP – SUCCESSFUL RURAL DEVELOPMENT IN NORTHERN PAKISTAN By Antonia Settle, Sustainable Development Policy Institute, Islamabad, Pakistan. ABSTRACT: There has been a shift in development paradigms reflected in the discourse of international funding bodies, from technocratic aid modalities associated with Washington Consensus models towards a ‘new development paradigm’ that accompanies post-Washington Consensus economic prescriptions. This new development paradigm relies increasingly on NGOs for channeling funds, while granting more space for government regulation and emphasizing participatory approaches. The...
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...changed from conferencing and workshops to active dialogues and practical outputs. This was accurately displayed when the panel discussions and dialogues superseded the conventional manner of conferencing. There was a remarkable shift from proclamation to accurate application. The CSI Congress has provided a moral order and accurately confronted specifics that will result in the eradication of systems in which the exploitation of resources leads to the poverty of the country. The CSI Congress primarily identified both the theoretical and practical strengths and weaknesses of alternative approaches to measuring freedom, and clarified on which techniques are most suited for building sustainable systems towards excellence and to chart concrete directions for future research that will add value to SA`s sustainable corporate social development. This interactive dialogue was well attended by leaders in the Social & Development industry. We have joined forces and will together build a multidimensional economic framework for reducing poverty, improve service delivery and good governance along with redemptive freedom. DELEGATE REPRESENTATION: The congress started off with 102 delegates on the first day and the last session ended with 89...
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...Benchmarking in HR/ HR Balanced Scorecard /SEM SAP AG HCM EMEA - public - Agenda Benchmarking Balanced Scorecard © SAP AG 2002, The HR Balanced Scorecard, Dr. Martina Schuh, Page 2 Agenda Benchmarking Balanced Scorecard © SAP AG 2002, The HR Balanced Scorecard, Dr. Martina Schuh, Page 3 Benchmarking – Definition Benchmarking is the comparison of similar processes across organizations, companies and industries to identify best practices and develop improvement plans and actions (Score Research) [ Learn from the best by enterprise comparison!!! ] [ Learn from each other by enterprise comparison!!! ] © SAP AG 2002, The HR Balanced Scorecard, Dr. Martina Schuh, Page 4 Integration with Benchmark Provider: Data Flow Payroll Benchmark Provider SEM Measure Catalog (HR Measures) Administration 0100010101 1011001010 1101001010 1010100011 1010100101 1011010101 1001010101 XML Time Management HR Benchmarks Business Content Benchmarks from Provider 0100010101 1011001010 1101001010 1010100011 1010100101 1011010101 1001010101 XML Developments BW Rel. 3.0 HR InfoCube for external Benchmarking © SAP AG 2002, The HR Balanced Scorecard, Dr. Martina Schuh, Page 5 Measures: Data Flow SAP SEM Objective/Measure Actual Plan B.mark Develop key skills Strategic skills available 17 26 25,5 Employee retention 73 70 68 Improve corporate culture Employee satisfaction 9,1 8,5 9,0 Measure Builder Measure definition Balanced Scorecard MEASURES are defined from a purely business point...
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...Step One: Assessment Step One of the scorecard building process starts with an assessment of the organization’s Mission and Vision, challenges (pains), enablers, and values. Step One also includes preparing a change management plan for the organization, and conducting a focused communications workshop to identify key messages, media outlets, timing, and messengers.Step Two: Strategy In Step Two, elements of the organization’s strategy, including Strategic Results, Strategic Themes, and Perspectives, are developed by workshop participants to focus attention on customer needs and the organization’s value proposition.Step Three: Objectives In Step Three, the strategic elements developed in Steps One and Two are decomposed into Strategic Objectives, which are the basic building blocks of strategy and define the organization's strategic intent. Objectives are first initiated and categorized on the Strategic Theme level, categorized by Perspective, linked in cause-effect linkages (Strategy Maps) for each Strategic Theme, and then later merged together to produce one set of Strategic Objectives for the entire organization. | | | Step Four: Strategy Map In Step Four, the cause and effect linkages between the enterprise-wide Strategic Objectives are formalized in an enterprise-wide Strategy Map. The previously constructed theme Strategy Maps are merged into an overall enterprise-wide Strategy Map that shows how the organization creates value for its customers and stakeholders...
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...Balanced Scorecard The BSC is a planning & management system which can be widely applied to organizations and companies regardless of size or type of business. The technique, extensively used in business and industry, government, and non-profit organizations worldwide, provides a method of aligning business activities to the vision & strategy of the organization, integrating internal & external communications, & keeping a watch on organization performance against strategic goals. It was developed by Robert Kaplan and David Norton of Harvard University in 1990. The line of the balanced scorecard runs deep, and include the revolutionary and path breaking work of General Electric on performance measurement coverage in the late 1950’s and the work of French engineers in the early part of the 20th century in France. Due to the fact that balanced scorecard term is a generic, it is interpreted differently by different people, and in practice, there are wide variations in both understanding and implementation. To some, the balanced scorecard is just a simple control panel indicating performance measures, while to others it is a inclusive planning and management system encompassing the whole organization and planned to focus efforts on business strategy and more significantly on performance and results. The balanced scorecard has steadily developed from its early use as a simple performance measurement framework for non-financial performance measures to a full strategic planning and...
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...WHAT IS A BALANCED SCORECARD? According to Robert Kaplan and David Norton, the founders of the Balanced Scorecard, "The balanced scorecard retains traditional financial measures. But financial measures tell the story of past events, an adequate story for industrial age companies for which investments in long-term capabilities and customer relationships were not critical for success. These financial measures are inadequate, however, for guiding and evaluating the journey that information age companies must make to create future value through investment in customers, suppliers, employees, processes, technology, and innovation. (4)" In essence, the Balanced Scorecard is a performance management system used in multitude of organizations throughout the world. It is used to develop an organization’s goals and mission that will enhance the success it has with its customers and employees. HISTORY Although first developed in the early 1990’s by Robert Kaplan and David Norton of the Harvard Business School and coined “Balanced Scorecard” in the early 1990’s, Kaplan and Norton’s method originally stemmed from the pioneering work of General Electric on performance measurement reporting in the 1950’s and the dashboard performance measures from French process engineers in the early 20th century (4) The idea behind this performance measurement tool developed from the fact that traditional performance measurement systems, mostly financial performance indicators, were insufficient in...
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...CASE MEMO VERIZON COMMUNICATIONS INC: IMPLEMENTING A BALANCED SCORECARD By : Pallabi Roy (35) Pranjal Yadav (37) Rudra Prasad Banerjee (43) Sherin S Mathews (49) Sohini Banerjee (52) Srijan Sinha (53) Supratim Datta (55) By : Pallabi Roy (35) Pranjal Yadav (37) Rudra Prasad Banerjee (43) Sherin S Mathews (49) Sohini Banerjee (52) Srijan Sinha (53) Supratim Datta (55) CASE SUMMARY Company profile: Verizon is a global leader in delivering innovation in communications, information and entertainment. It has close to 90.0 million customers. 130 million customer connections (wireless, wireline, broadband and TV) are served every day by them. It has its headquarters in New York City and Operations Center in Basking Ridge, N.J. Its key products and services are: * Wireline voice and data services * Wireless services * Publishing of print and electronic directories Company Evolution: Originally, before the passage of the Act, Bell Atlantic, NYNEX, and other “baby bell” companies were formed. Then in 1996, Congress passed the Telecommunications Act which aimed at deregulation in the telecommunications industry. The total value of mergers and acquisitions had increased considerably after the passage of the act. Soon after this, Bell Atlantic / GTE merger was announced. The entity thus created was named as Verizon. Verizon had more than $22 billion in cash flow. * It had $6 billion revenues and 260,000 employees * It was the largest...
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