John Sands

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.

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.

An empirical investigation on the links within a sustainability balanced scorecard (SBSC) framework and their impact on financial performance

Purpose - This study investigates the feasibility of integrating the social, environmental, and innovation processes within the four SBSC perspective model by determining the extent of linkages between and within the four SBSC perspectives. Design/methodology/approach - A survey collected responses from senior management and middle management of large Australian companies. Findings - The findings support several positive significant associations. Direct associations are found between value-creating processes within the Internal Process perspective. These results support the feasibility of integrating environmental, social, and innovation-orientated value-creating process into the Internal Process of the four SBSC perspective model. The results also provide evidence about the extent direct or indirect associations exist between the four SBSC perspectives: first, human capital (Learning and Growth perspective) direct association with value-creating processes (Internal Processes perspective); second, the value-creating (Internal Processes perspective) direct association with customer value (Customer Perspective); and third, value-creating (Internal Processes perspective) direct and indirect associations with financial performance (Financial perspective). Research limitations/implications - Several limitations are acknowledged related to cross-sectional data, senior and middle managers’ perceptions, and assumptions underpinning structural equation modelling (SEM). Practical implications - The implications for practice from this study concern how organisational management should relate to their stakeholders while providing value in their financial performance. Originality/value - This is an initial in-depth study of a four SBSC perspective model that provides an effective means of integrating social, environmental and innovation processes within the traditional four BSC perspectives.

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

Advancing sustainability management accounting in the Asia Pacific region

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...

The influence of sustainability performance management practices on organisational sustainability performance

The Asia Pacific region is the fastest-growing source of greenhouse gas emissions and natural resource consumption. The impact of climate change and rapid natural resource consumption is visible in the region. Significant droughts and floods have caused serious disruption and volatility in these economies. Sustainability challenges contribute to high material costs, high transportation costs, and rising energy and commodity prices. There is a risk that the Asia-Pacific region is consuming more resources than its ecosystems can replenish, threatening the region’s self-sustaining mechanisms. Companies operating in the Asia-Pacific region experience sustainability-related problems without recognizing potential opportunities of sustainability management. In particular, local sustainability challenges in the region require different sustainability management approaches to minimize environmental degradation, carbon impacts and social impacts. To develop operational and strategic approaches, how and to what extent do environmental and sustainability management accounting (EMA) practices contribute to sustainability management? Also, what are the effects of sustainability management and integrated reporting in the Asia-Pacific region?