Errol Iselin

The effects of the balanced scorecard on performance: The impact of the alignment of the strategic goals and performance reporting

The balanced scorecard (BSC) and other multi-perspective systems have become popular in recent times because of problems with financial systems. The BSC is a strategic management system involving strategic goal setting and performance reporting across four perspectives: financial, customer, internal business processes, and learning and growth. Kaplan and Norton (1996), the creators of the BSC, argue that the performance reporting system must be aligned with the strategic goals. Although these systems are important, research in the area is still at an embryonic stage. The research objectives are to (1) investigate if the strength of the alignment of the strategic goals and the performance reporting system is associated with organisational performance, (2) investigate the dimensions of multi-perspective performance reporting and organisational performance, and (3) study their relationship. We found that (1) the strength of the alignment of the strategic goals and the performance reporting system was positively associated with performance, (2) there were 11 dimensions of performance reporting and 13 dimensions of performance, and (3) performance reporting on a particular dimension was positively associated with organisational performance in that area.

The Relative Effects of Elements of Internal Control on Auditors’ Evaluations of Internal Control

Internal control evaluation is a critical component of the overall audit process, mandated by auditing standards worldwide. These standards divide internal control structures into a number of elements, summarised as the control environment, information systems, and control procedures. Significant research exists as to auditors’ evaluations of internal controls. However, little work appears to consider the elements’ inter-actions and relative significance. This study attempts to gauge the relative importance external auditors assign to the three elements. 94 practicing auditors evaluated internal control structures in two fictitious companies, one with strong internal control elements throughout, the other with one of the three set at a lower reliability level. The results indicate auditors consider control environment the most important element of internal control. The effect of weakening this element was that auditors assessed all three elements and overall evaluation as less reliable. Varying the other two elements did not have such significant effects. The findings carry ramifications for the auditing profession, particularly in drafting auditing standards on risk assessment.

Multi-perspective performance reporting systems, continuous improvement systems and organisational performance

The use of multi-perspective performance reporting systems (MPRS) such as the balanced scorecard (BSC), is widespread. This studys motivation comes from the importance of these systems and the lack of knowledge about them. Continuous improvement systems (CIS) are another management innovation. CIS constantly look for ways to improve performance and are used in conjunction with performance reporting systems. The research objectives were to study MPRS users and discover whether the use of CIS improved organisational performance. It was found that the use of CIS by MPRS users was positively associated with performance. The implications of these findings for managers were considered.

Multi-perspective performance reporting and organisational performance: the impact of information, data and redundant cue load

Multi-perspective performance reporting systems (MPRS), such as the balanced scorecard (BSC), have become popular. The BSC reports performance about four perspectives (learning and growth, internal business processes, customer and financials). Although these systems are important, research in these areas has only just scratched the surface, hence the motivation for this study. A possible problem with multi-perspective systems is that they may cause information/data/redundant cue (I/D/C) overload and thus detrimentally affect the performance. The objectives of this research are to: (1) explore the relationship between MPRS and organisational performance and (2) study the relationship between I/D/C load and organisational performance in multi-perspective systems. We found that (1) MPRS are positively associated with performance and (2) there is a weak negative association between I/D/C overload and performance. Our exploratory results are consistent with the views of advocates of MPRS (e.g. Kaplan and Norton) that MPRS enhance organisational performance.

Multi-perspective strategic goal setting, performance reporting and organisational performance

Purpose – This papers aim is to study multi‐perspective strategic goal setting and performance reporting systems and investigate: if the strength of the alignment of the goals and performance measures is associated with organisational performance and if performance reporting emphasis (PRE) is associated with performance.Design/methodology/approach – Structured interviews with CEOs of 50 Australian companies with sales greater than

An Exploratory Study of the Performance of Microfinancing Institutions Using the Balanced Scorecard Approach

100 million per annum were conducted.Findings – The research identified 11 dimensions of PRE and 13 dimensions of organisational performance. The strength of the alignment of the strategic goals and the performance reporting measures was positively associated with organisational performance. PRE was positively associated with organisational performance. The alignment finding was the stronger of the two.Originality/value – The research identified several dimensions of performance reporting that organisations might consider using in their performance reporting systems. The findi...