electronic scorecards used by senior managers at some companies

A version of this article appeared in the, From the Magazine (SeptemberOctober 1993), Using the Balanced Scorecard as a Strategic Management System, The Balanced Scorecard: Measures That Drive Performance. A Proposed Best-practice Framework for Information Security Governance: In Proceedings of the 2nd International Conference on Internet of Things, Big Data and Security (pp. Enterprise security architecture. Electronic Journal of Information Systems Evaluation, 110. Employee scorecards can be multipurpose tools that help an employee achieve high-quality work. Dr. Teju Herath acknowledges partial research funding from the Social Sciences and Humanities Research Council (SSHRC) of Canada (Grant no: 4102010-1848). Leverage your professional network, and get hired. This area is loaded with real potential for organizational development and improved strategic capability. A new framework for bridging the gap between IT service management and IT governance from a security perspective (pp. Decision Support Systems, 57, 5463. 277309). The monthly or quarterly scorecard measures operations that have been configured to be consistent with our long-term strategy. Approach for selecting the most suitable automated personal identification mechanism (ASMSA). This role does not eliminate the need for strategic planning. An interview evaluation form allows interviewers to assess and score job applicants consistently, allowing for more objective screening. We had become a high return-on-investment company but had less potential for further growth. At the University of Wisconsin Hospital and Clinics (UWHC), the use of scorecards dates back at least 2 decades. All of our senior managers, however, understand output targets, particularly when they are displayed with historical trends and future targets. https://doi.org/10.1007/978-3-030-03638-6_23, Kurniawan, E., & Riadi, I. Corporate staff groups were perceived by operating managers as pushing their pet programs on divisions. And I think thats an important distinction. It already had a clearly defined mission, strategy statement, and shared understanding among senior executives about its competitive niche. For instance, one manager reported that while his division had measured many operating variables in the past, now, because of the scorecard, it had chosen 12 parameters as the key to its strategy implementation. Companies like Rockwater can follow a systematic development plan to create the balanced scorecard and encourage commitment to the scorecard among senior and mid-level managers. Different market situations, product strategies, and competitive environments require different scorecards. Heidt, M., Gerlach, J. P., & Buxmann, P. (2019). IT governance and process maturity: A multinational field study. Content analysis in mass communication: Assessment and reporting of Intercoder reliability. David P. Norton From the Magazine (January-February 1992) What you measure is what you get. Presented at the 2008 IEEE Conference on Technologies for Homeland Security. This improvement led to lower inventory and an option to access an additional 35% of the market. We have been deliberately vague on specifying when the target is to be accomplished. The top 12 managers are intimately familiar with the markets, engineering, technology, and other key levers in this segment. Rockwaters strategic objectives had to be translated into tangible goals and actions. Pacific Asia. Pirttimaki, V., & Lonnqvist, A. New Event Manager jobs added daily. McNair Sustaining the Scorecard Management's Focus - use the scorecard to drive meeting agendas Develop a "culture of assessment" Cascade the scorecard Communicate your scorecard Use of Library Scorecards Scorecard = Change Remember! Information & Management, 51(1), 104112. Benefits of using InfoSec performance measurements: Increasing accountability for InfoSec performance, Improving effectiveness of InfoSec activities, Demonstrating compliance with laws, rules, and regulations, Providing quantifiable inputs for resource allocation decisions, Herath, T.C., Herath, H.S.B. We still closely examine the monthly and quarterly statistics, but these statistics now relate to progress in achieving long-term objectives and justify the proper balance between short-term and long-term performance. We definitely wanted the division managers to perform their own strategic analysis and to develop their own measures. Whitman, M. E., & Mattord, H. J. Qualitative studies in information systems: A critical review and some guiding principles. Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. 2. What led you and them to the balanced scorecard? COBIT 5 builds on the previous versions of COBIT (and Val IT and Risk IT), and without loss of information in this article, we focus on COBIT 4.1. Balanced Scorecard, ein Konzept der Unternehmensfhrung. This paper explores the regulatory roles of the use of the balanced scorecard in shaping key dimensions of corporate identities in a public sector shared service provider in Australia. Information Systems Control Journal, 2(1), 3542. tying incentives to performance outcomes directly linked to good strategy execution and financial performance We want to stimulate a thought process about how to do things differently to achieve the target rather than how to do existing things better. As a senior executive at one major company said, Previously, the one-year budget was our primary management planning device. 167172). Brothy, K. (2009). 295301). Akowuah, F., Yuan, X., Xu, J., & Wang, H. (2013). Applying the scorecard approach to staff groups has been even more eye-opening than our initial work with the six operating divisions. Baskerville, R., Spagnoletti, P., & Kim, J. It also added a safety index as a means of controlling indirect costs associated with accidents. (2019). So here we have three businesses, three different processes, all of which could have elaborate systems for measuring quality, cost, and time but would feel the impact of improvements in radically different ways. It complements traditional financial indicators with measures of performance for customers, internal processes, and innovation and improvement activities. (2015). 1989 Barry Sanders Score #257 Gem Mint 10 RC Rookie Detroit Lions. Chambers sees the scorecard as an invaluable tool to help his company ultimately achieve its mission: to be number one in the industry. (2019). https://doi.org/10.1108/ICS-03-2018-0031. Robert S. Kaplan. An information security governance framework. The balanced scorecard: Measures that drive performance. It just makes the two systems more compatible. We wanted to understand what had to be done differently to achieve dramatic improvements in overall organizational effectiveness. Journal of Management Information Systems, 25(3), 337375. Journal of Information Systems, 27(1), 157188. The other three perspectives make the divisions long-term strategic objectives measurable. My conversations with financial people in organizations reveal some concern about the expanded responsibilities implied by developing and maintaining a balanced scorecard. What do we know about information security governance? The measurement of business intelligence. Pirttimki, V., Lnnqvist, A., & Karjaluoto, A. It helps you focus. At present, AMD sees its scorecard as a systematic repository for strategic information that facilitates long-term trend analysis for planning and performance evaluation. b) Improve: implement the documented best practice as a standard way. And if the scorecard does indeed provide a transparent vision into a units strategy, then the information, even the measures being used, might be highly sensitive data that could reveal much of value to competitors. Elucidating the role of IT/IS assessment and resource allocation in IT/IS performance in hospitals. But, on balance, the scorecard could only encapsulate knowledge that managers in general had already learned. Most companies have several divisions, each with its own mission and strategy, whose scorecards cannot be aggregated into an overall corporate scorecard. (n.d.). Accounting Research Journal, 32(2), 252272. We now have six converts who are helping us to spread the message throughout the organization. It is particularly useful in producing timely feedback for business control and evaluation. The enterprise goals have been developed using the BSC dimensions and the list is not exhaustive (ISACA). Measuring and improving IT governance through the balanced scorecard. Accessed 22 October 2020. The balanced scorecard: A foundation for the strategic management of information systems. Information governance: A model for security in medical practice. ISO International Organization for Standardization. Sheikhpour, R., & Modiri, N. (2012). But its main impact today is to help sustain programs that our people have been working on for years. Recently, the company has been attempting to integrate the scorecard metrics with hoshin planning, a procedure that concentrates an entire company on achieving one or two key objectives each year. Todays managers recognize the impact that measures have on performance. International Journal of Security and Its Applications, 10(3), 111120. Sherwood, J., Clark, A., & Lynas, D. (1995). Information & Management, 51(1), 138151. In the 1970s, we were a bunch of guys in wet suits diving off barges into the North Sea with burning torches, Chambers said. The number seven stupid measurement mistake is a lot of companies have scorecards only for senior management, and they present these to the lower level employees, but you find their eyes glaze over, and they are just not that interested because they really can't see how anything they do on a daily basis makes any difference in the overall measur. The scorecard highlighted areas where, despite apparent consensus on strategy, there still was considerable disagreement about how to make the strategy operational. b) pioneering helps build a firm's reputation with buyers and creates brand loyalty. Interdependency analysis in security investment against strategic attacks. Leverage your professional network, and get hired. Why Replacing Legacy Systems Is So Hard in Global Software Development: An Information Infrastructure Perspective. Did you encounter any problems as you launched the six pilot projects? Unfortunately, benchmarking is one of those initially good ideas that has turned into a fad. (2017). To create a scorecard for employee performance, follow these steps: 1. Four characteristics stand out: 1. In fact, a critical test of a scorecards success is its transparency: from the 15 to 20 scorecard measures, an observer should be able to see through to the business units competitive strategy. This case study employs qualitative interviews of senior managers and employees, secondary data and participant observation. (2014). 1989 Score Barry Sanders #257 Rookie Card RC HOF PSA 4 looks much nicer. A critique of the balanced scorecard as a performance measurement tool. The group then moves from the mission and strategy statement to answer the question, If I succeed with my vision and strategy, how will my performance differ for shareholders; for customers; for internal business processes; for my ability to innovate, grow, and improve?, Begin by Linking Measurements to Strategy. How to tackle security issues in large existing/legacy systems while maintaining development priorities. Today they are used to build business plans and are incorporated into senior executives compensation plans. In addition, Apple has found that its balanced scorecard has helped develop a language of measurable outputs for how to launch and leverage programs. They knew that the heightened visibility and transparency of the scorecard took away the internal trade-offs they had gained experience in making. The real benefit comes from making the scorecard the cornerstone of the way you run the business. The Balanced Scorecard is used by both small and large organizations: 61% of respondents had less than 500 employees, and 9% had over 10,000 employees. The team believed that spending quality time with key customers was a prerequisite for influencing results. Information systems management, 24(4):361372. (2007). Over the years, UWHC advanced to using an electronic software . About 95% of those companies that have tried benchmarking have spent a lot of money and have gotten very little in return. SAGE Open Medicine, 7, 18. Holistic performance model for cyber security implementation frameworks. Apple conducts a comprehensive employee survey in each of its organizations every two years; surveys of randomly selected employees are performed more frequently. Historically, we have had two corporate departments involved in overseeing business unit performance. Computers & Security, 40, 3859. I see the scorecard as a strategic measurement system, not a measure of our strategy. https://doi.org/10.1371/journal.pone.0163050. Campara, D., & Mansourov, N. (2008). (2007). Human Communication Research, 28(4), 587604. The management team wanted a metric that would clearly communicate to all members of the organization the importance of building relationships with and satisfying customers. With the scorecard, we ask each division manager to go outside their organization and determine the approaches that will allow achievement of their long-term output targets. Understand the Question First, Then Look at the Metrics. Information Security in Value Chains: A Governance Perspective. What follows is a typical project profile: The organization must first define the business unit for which a top-level scorecard is appropriate. It is a top-down reflection of the companys mission and strategy. When will these measurements be collected? In this interview conducted by Robert S. Kaplan, Larry D. Brady, executive vice president of FMC, talks about the companys experience implementing the scorecard. It addresses current and future success. At Rockwater, such improvements came from product and service innovation that would create new sources of revenue and market expansion, as well as from continuous improvement in internal work processes. https://doi.org/10.4018/irmj.2011010103, Xu, F., Luo, X. R., Zhang, H., Liu, S., & Huang, W. W. (2019). It wasnt linear, but output seemed to improve each time we improved throughput times. Why not split the company up into independent companies and let the market reallocate capital? Team-based employee remuneration: A balanced scorecard group target and weight selection-based bonus allocation. Butler, J., Henderson, S., & Raiborn, C. (2011). Benchmarking has become popular with a lot of companies. EMBA Pro Balanced Scorecard Analysis Approach to Manager's Primer in Electronic Commerce Case Study. Apples management stressed these categories in the following order: Historically, Apple had been a technology- and product-focused company that competed by designing better computers. The output performance targets must be real cash savings, not reduced inventory levels or cycle times. (2005). This helps managers see where they have made trade-offs between performance measures in the past, and helps ensure that future success on one measure does not come at the expense of another. A maturity level framework for measurement of information security performance. https://doi.org/10.1057/palgrave.ejis.3000589. Information Systems Frontiers, 19(5), 12051228. A newly formed team develops an implementation plan for the scorecard, including linking the measures to databases and information systems, communicating the balanced scorecard throughout the organization, and encouraging and facilitating the development of second-level metrics for decentralized units. How to effectively manage both strategy and operations. But in order to drive both product/service innovation and operational improvements, a supportive climate of empowered, motivated employees was believed necessary. B) measure managers' performance and effectiveness in executing the company's strategy. International Journal of Strategic Decision Sciences (IJSDS), 9(4), 4769. https://doi.org/10.1007/s10796-022-10246-9, DOI: https://doi.org/10.1007/s10796-022-10246-9. IGI Global. This usually takes place at an annual offsite meeting during which the management team either . Senior executives understand that their organization's measurement system strongly affects the behavior. Towards a framework for strategic security context in information security governance. The division can shift to a build-to-order schedule and eliminate the excess inventory caused by building to forecasts. Omoyiola, B. O. Shareholder value is included as a performance indicator, even though this measure is a resultnot a driverof performance. Rockwater executives felt that implementing these ratings gave them a direct tie to their customers and a level of market feedback unsurpassed in most industries. Information & Computer Security, 26(1), 1038. The template lists certain guidelines based on which the vendors' performance can be measured. The balanced scorecard metrics are revisited annually as part of the strategic planning, goal setting, and resource allocation processes. ; Project scorecard, eine Weiterentwicklung der Balanced Scorecard fr strategische Projekte. To put it another way, Apple uses the measures to adjust the long wave of corporate performance, not to drive operating changes. A balanced scorecard (BSC) is a management tool used for strategic planning. It also had many performance measures from many different sources and information systems. It forced division managers to answer these questions: How do we become our customers most valued supplier? https://doi.org/10.1108/RMJ-03-2016-0007. Frequently, the group proposes far more than four or five measures for each perspective. https://doi.org/10.1016/j.im.2013.09.004, Lombard, M., Snyder-Duch, J., & Bracken, C. C. (2002). https://doi.org/10.1108/ICS-02-2019-0033. An approach to map COBIT processes to ISO/IEC 27001 information security management controls. With the help of the scorecard, the division eventually achieved consensus concerning the highest priority areas for achievement and improvement and identified additional areas that needed attention, such as quality and productivity. The balanced scorecard has helped Rockwaters management emphasize a process view of operations, motivate its employees, and incorporate client feedback into its operations. With all the diversity in our business units, senior management really cant have a detailed understanding of the relative impact of time and quality improvements on each unit. Power & Associates, a customer-survey company, now works for the computer industry. During a yearlong research project with 12 companies at the leading edge of performance measurement, we devised a "balanced scorecard"a set of measures that gives top managers a fast but . Information security governance reporting. Balancing performance measures for information security management: A balanced scorecard framework. Chew, E., Swanson, M. M., Stine, K. M., Bartol, N., Brown, A., & Robinson, W. (2008). I sense that a number of companies are turning to scorecards in the same way they turned to total quality management, high-performance organization, and so on. https://doi.org/10.1287/mnsc.2013.1763, Chang, K., & Wang, C. (2011). At first, several divisional managers were less than enthusiastic about the additional freedom they were being given from headquarters. Linking measurements to strategy is the heart of a successful scorecard development process. https://doi.org/10.15394/jdfsl.2007.1017. https://doi.org/10.3127/ajis.v21i0.1427, Huang, S.-M., Lee, C.-L., & Kao, A.-C. (2006). Recognize that HR Metrics Alone Offer Limited . International Journal of Business Information Systems, 5(1), 3457. FMC Corporation is one of the most diversified companies in the United States, producing more than 300 product lines in 21 divisions organized into 5 business segments: industrial chemicals, performance chemicals, precious metals, defense systems, and machinery and equipment. https://www.aisel.aisnet.org/sais2013/11/, Hasan, S., Ali, M., Kurnia, S., & Thurasamy, R. (2021). Doesnt such a review emphasize short-term performance? The manager interpreted this finding as verifying what many other managers were reporting: the scorecard improved the understanding and consistency of strategy implementation. https://doi.org/10.1007/s10796-018-9845-8. In addition, the focus of competition had shifted. Walsham, G. (2006). Technological Forecasting and Social Change, 40(2), 131150. What is the value added of a corporate office that concentrates on making division managers accountable for financial results that can be added up across divisions? (2007). IT security auditing: A performance evaluation decision model. For the financial perspective, Apple emphasized shareholder value; for the customer perspective, market share and customer satisfaction; for the internal process perspective, core competencies; and, finally, for the innovation and improvement perspective, employee attitudes. Every time we promoted a new program, people in each division would sit back and ask, How is that supposed to fit in with the six other things were supposed to be doing?. The companys strategy, however, was to emphasize value-based business. https://doi.org/10.1016/j.mar.2013.07.005. As a highly diversified company that redeploys assets from mature cash generators to divisions with significant growth opportunities, the return-on-capital-employed (ROCE) measure was especially important for us. Consequently, the article attempts to develop a more inclusive framework for information security governance, a research gap recently identified in the literature. Evaluation of cybersecurity management controls and metrics of critical infrastructures: A literature review considering the NIST cybersecurity framework. Journal of Accounting and Public Policy, 37(6), 545563. Security, 16, 139147. 1.5 million cybersecurity professionals needed globally by 2020, Ottawa conference hears | CBC News. In P. Dowland, S. Furnell, B. Thuraisingham, & X. S. Wang (Eds. (2009). The authors have no other relevant financial or non-financial or competing interests to declare that are relevant to the content of this article. In contrast, significant lead-time reductions could be achieved for our packaging machinery business. Information security governance: Guidance for boards of directors and executive management. Return-on-capital-employed and cash flow reflected preferences for short-term results, while forecast reliability signaled the corporate parents desire to reduce the historical uncertainty caused by unexpected variations in performance. Too often I see maps and scorecards that are packed full of objectives, KPIs and initiatives that are designed to capture everything the organization does. https://doi.org/10.1109/MITP.2016.27. Veiga, AD., Eloff, JH. Garigue, R., & Stefaniu, M. (2003). Focusing on T-Q-C measurements, however, encourages managers to seek narrow process improvements instead of breakthrough output targets. Does it tie in to the balanced scorecard measurements? Socio-technical systems cybersecurity framework. Isnt it inconsistent to assess a divisions strategy on a monthly or quarterly basis? c) Define: define what constitutes a defect. Chapter Ahuja, S., & Chan, Y. E. (2015). Internal studies had revealed that the indirect costs from an accident could be 5 to 50 times the direct costs. Organizations use three types of measurements: Those that determine the effectiveness of the execution of the InfoSec policy, Those that determine the effectiveness and/or efficiency of the delivery of InfoSec services, Those that assess the impact of an incident or other security event on the organization or its mission. We have just started to ask our staff departments to explain to us whether they are offering low cost or differentiated services. New Senior Project Manager jobs added daily. With a BSC, you have the ability to describe and measure your company strategy and then track how you achieve results. Leverage your professional network, and get hired. For the most part, however, the measures are calculated monthly. An introductory overview of ITIL V3. Investing in cybersecurity: Insights from the Gordon-Loeb model. Bailey, E., & Becker, J. D. (2014). Accessed 5 June 2018. Formerly, the company stressed performance for each functional department. PLAY Match Gravity A Click card to see definition Tap card to see definition 1) A late-mover advantage does NOT arise when a) property rights protections in the form of patents, copyrights, and trademarks prevent the ready imitation of initial moves. The theory and practice of performance measurement. https://doi.org/10.1108/ICS-02-2014-0016, Nicho, M. (2018). ), Secure IT systems (pp. A framework for information security governance and management. Van Grembergen, W., & De Haes, S. (2005). Journal of Digital Forensics, Security, and Law. The balanced scorecard facilitator (either an outside consultant or the company executive who organizes the effort) conducts interviews of approximately 90 minutes each with the senior managers to obtain their input on the companys strategic objectives and tentative proposals for balanced scorecard measures. Rastogi, R., & von Solms, R. (2005). Rockwaters senior management team transformed its vision and strategy into the balanced scorecards four sets of performance measures (see the chart Rockwaters Balanced Scorecard): The financial perspective included three measures of importance to the shareholder. The measure, however, helps senior managers in each major organizational unit assess the impact of their activities on the entire companys valuation and evaluate new business ventures. ), Security management, integrity, and internal control in information systems (pp. (2012). Chapter 4: Aligning IT to organizational strategy. Journal of Executive Education, 11(1), 17. During the workshop, the group debates the proposed mission and strategy statements until a consensus is reached. AMD competes in a single industry segment. 3. Those elements were in turn developed into strategic objectives (see the chart Rockwaters Strategic Objectives). It is forward-looking. International Journal of Knowledge Management (IJKM), 15(1), 3752. By emphasizing targets rather than measurements, we could demonstrate our purpose to achieve breakthrough performance. Information Systems Security Journal, 12(4), 3640. Leverage your professional network, and get hired. This input measure was deliberately chosen to educate employees about the importance of working closely to identify and satisfy customer needs. Were the division managers able to develop such output-oriented measures? A comparison of IT governance and control frameworks in cloud computing (p. 16). $29.95. SABSA, White paper, 2009. The balanced scorecard is now used as the language, the benchmark against which all new projects and businesses are evaluated.. Kong, H.-K., Kim, T.-S., & Kim, J. in terms of our ability to innovate and grow? The system would have to focus on measures of customer service, market position, and new products that could generate long-term value for the business. As a result of that review, FMC adopted a growth strategy to complement its strong operating performance. (2017). The balanced scorecard is a management system aimed at translating an organization's strategic goals into a set of organizational performance objectives that, in turn, are measured, monitored and changed if necessary to ensure that an organization's strategic goals are met. What are the critical success factors in each of the four scorecard perspectives? After defining the key success factors, the group formulates a preliminary balanced scorecard containing operational measures for the strategic objectives. The financial measures they chose included return-on-capital employed and cash flow, because shareholders had indicated a preference for short-term results. Accessed 16 Feb 2022. 223236). Project profitability provided focus on the project as the basic unit for planning and control, and sales backlog helped reduce uncertainty of performance. . The new focus emphasized measures that integrated key business processes. A measurement orientation reinforces concerns about control and a short-term focus. PWC IT Consulting Service. Provided by the Springer Nature SharedIt content-sharing initiative, https://doi.org/10.1007/s10796-022-10246-9, access via Gashgari, G., Walters, R., & Wills, G. (2017). Deion Sanders RC 1989 Score #246 Rookie GEM MINT 10. ISO/IEC 27001:2013. Today's top 177 Senior Managementberater jobs in Frankfurt am Main, Hesse, Germany. Williams, P. (2006). Of course, some measures, such as annual market share and innovation metrics, dont lend themselves to monthly updates. (2013). Cartlidge, A., Hanna, A., Rudd, C., Macfarlane, I., Windebank, J., & Rance, S. (2007). volume25,pages 681721 (2023)Cite this article. This structure did not make the balancing of short-term profits and long-term growth an easy trade-off, and, frankly, it let senior management off the hook when it came to sharing responsibility for making the trade-offs. Because of the emphasis on output measures and the previous focus on operations and financial measures, the customer and innovation perspectives proved the most difficult. Performance measurement guide for information security (80055, Revision 1 ed.pp. https://doi.org/10.1007/s10796-017-9745-3, Micheli, P., & Mari, L. (2014). 7180). The IT Service Management Forum (itSMF) Ltd.https://itil.it.utah.edu/itilv3/docs/itSMF_ITILV3_Intro_Overview. I think that its important for companies not to approach the scorecard as the latest fad.
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