Wayne G. Bremser

A framework for performance measurement in the e-business environment

The advent of networked economy calls for new understanding of business, and it is evidenced by the visible trend of traditional businesses either migrating to e-business or expanding to embrace electronic commerce. Constant change in the environment means continually evolving strategies, new products, new processes and new technologies to adopt. E-business metrics are needed to measure performance with the firms strategic focus in mind, and they must go beyond the Web metrics that are discussed in the usual electronic commerce context. The basic objective of this paper is to present a framework for developing performance measurement metrics in the e-business environment. The proposed framework, designed by incorporating the balanced scorecard methodology with existing taxonomies of e-business models and the theories behind them, is intended to enable firms to develop new metrics that are needed to implement e-business strategies and tactics.

Corporate budget planning, control and performance evaluation in Bahrain

Examines budget planning; implementation and performance evaluation practices by utilizing a questionnaire survey of 54 medium and large sized companies located in Bahrain. Most of the companies prepare long‐range plans and operating budgets, and they follow a definite budget procedure and implementation methodology. Uses budget variances to measure a manager’s ability, for timely recognition of problems, and to improve the next period’s budget. While both the listed and non‐listed companies have reported many similar budget practices, the main differences were specific purposes served by budgets, degree of budget participation, periodicity of variance reporting, and purposes and authority to evaluate budget variance reports. In certain cases, firm size influences budgeting practices. Contributes toward filling a gap in the literature on the use of budgets as a planning and control tool in developing countries. Most prior studies were mainly confined to advanced countries. The study findings suggest the need for research on attitudes held by the budgetees towards the use of budget variances in the context of advanced management accounting techniques.

Performance measurement, budgeting and strategic implementation in the multinational enterprise

Considers the implications for budgeting and performance measurement of the emphasis on strategic management of human and information resources to obtain global competitive advantage. Summarizes relevant research, noting increasing use of economic value added, non‐financial measures and the balanced scorecard; and explaining Simons’ (1995) “levers of control” framework. Illustrates how this can be applied to the budgeting process, stressing the importance of interactive control systems which capture an integrated set of critical performance measures, and uses Skandia (insurance, Sweden) as an example. Lists the ten non‐financial performance metrics identified by Ernst & Young (1997) as important to investors and discusses the ten differences between budgeting in a traditional as opposed to a balanced scorecard environment put forward by Govindarajan and Shank (1992). Concludes that the need for multinationals to be flexible means that control and measurement systems must be aligned with strategic goals, taking account of national cultures, investors’ expectations and demands for employee empowerment.

Balanced Scorecard Implementation of Security Strategies: A Framework for IT Security Performance Management

The article develops a conceptual framework for strategic implementation of IT security using a balanced scorecard (BSC) approach. Current research has mostly looked at economics of IT security, technical considerations, and behavioral aspects of what counter measures are available to firms instead of how successful or cost effective the investments or counter measures are. More specifically, our article provides a framework for building and implementing scorecards for information security performance management.

An experiential approach to learning about the balanced scorecard

Abstract The balanced scorecard (BSC) is an integrated strategic performance management framework that helps organizations translate strategic objectives into relevant performance measures. This paper offers guidelines for implementing an experiential approach to learning about the BSC through the study of “real-world” organizations. This approach emphasizes hands-on experience with the team-based, cross-functional, and strategic aspects of management accounting designed to address several educational objectives, including: understanding organizational strategy and critical success factors; gaining insight into how to measure performance; and developing oral presentation and team-building skills. Specific examples of classroom materials to facilitate implementation of this approach in management accounting courses at both graduate and undergraduate levels are also offered.

Facilitating a Team Culture: A Collaborative Balanced Scorecard as an Open Reporting System

The balanced scorecard (BSC) allows firms to place importance on both financial and nonfinancial performance measures in four perspectives for developing and implementing corporate strategy and performance evaluation. The BSC literature however provides minimal insight on how to set targets, how to weigh measures when evaluating managers and the firm, and how to resolve conflicts that arise in the BSC process. Researchers have attempted to fill these gaps using two contending approaches. In particular, Datar et al. (2001) uses an agency model to select the optimal set of weights and more recently Herath et al. (2009) develop a mathematical programming–based collaborative decision model to find the optimal (or approximately optimal) set of target and weights considering inputs from two parties. In this article, we apply the Herath et al. (2009) model to a detailed BSC example. We demonstrate how the collaborative BSC model can be implemented in Microsoft Excel by practitioners to minimize BSC conflicts. Finally, we discuss how the model facilitates alignment and a culture of open reporting (information sharing) around the BSC that is necessary for its effective implementation.

Accountants for the Public Interest: strategy implementation and performance measurement for a nonprofit organization

Abstract This case describes strategic issues and the operations of Accountants for the Public Interest (API), a national organization that is dedicated to making volunteer accounting services available to financially disadvantaged individuals and nonprofit organizations. API is a well-known nonprofit organization that receives financial support from the accounting profession. In addition to discussing strategic decisions facing API, the case covers performance measurement topics commonly integrated in managerial and cost accounting courses. APIs Board of Directors (BOD) must make important strategic planning and implementation decisions during a period of change. One Board member has suggested using performance measures to assess APIs progress in implementing strategy and achieving goals. Students are asked to develop financial and nonfinancial measures relevant to APIs strategy and to show how their suggested measures would appear in a balanced scorecard. Whether CPAs should be obligated to provide volunteer accounting services to the community is another issue that the case requires students to address.

A Balanced Scorecard Strategic Initiative Planning Model with Resource Constraints

Abstract Purpose Empirical evidence indicates that effective management of resources to implement strategy in a balanced scorecard (BSC) system is essential. We present a mathematical model for allocating limited resources in the BSC strategy implementation process. Methodology/approach The proposed facilitated negotiation model provides a systematic approach to prioritizing strategic initiatives in the design and implementation of a BSC. Findings Our joint decision model prioritizes strategic initiatives and concurrently calculates the optimal (or approximately optimal) set of BSC targets and weights, given multiyear resource restrictions. Practical Implications The model assumes full, open, and truthful exchange of information between the parties; an assumption that may exclude many organizations. Social Implications We address an important gap in the BSC literature on how organizations can effectively link strategy to the potential constraint of resource budgets. Originality/value Quantitative models are being used in practice for allocating resources, but we are not aware of their use by organizations for allocating resources in a BSC application.

A comparison of United States and European union taxation of e-commerce

Transactional taxes are an important source of revenue for government operations. The growth of borderless e-commerce, and digitally delivered goods and services, has created confusion about the e-vendors obligation to collect and remit transactional taxes extra-jurisdictionally, resulting in a potential loss of tax revenue. This paper analyzes and compares transactional taxes in the United States (U.S.) and European Union (E.U.). In the U.S., a transactional tax is imposed, as a sales or use tax, by the states rather than by the national government. A proposed solution to the unique constitutional impediments to a U.S. states ability to collect transactional taxes from e-commerce vendors is presented. Within the E.U., the member states impose a value added tax (VAT) on sales transactions. The implications and issues relevant to the E.U. directive affecting the taxation of E-commerce are discussed. Finally, a multi-jurisdictional agreement is recommended as a global solution.