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

ADVANCES IN MANAGEMENT ACCOUNTING, Marc. J. Epstein, John Y. Lee, eds., Emerald Publishing, 2010

Posted: 18 Feb 2011 Last revised: 25 Jan 2018

See all articles by Hemantha Herath

Hemantha Herath

Brock University

Wayne G. Bremser

Villanova University

Jacob G. Birnberg

University of Pittsburgh - Katz Graduate School of Business

Date Written: February 16, 2011

Abstract

The balanced scorecard (BSC) allows firms to place importance on both financial and non-financial 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.

Keywords: Balanced Scorecard, Joint Decision Making, Balanced Scorecard Targets

Suggested Citation

Herath, Hemantha and Bremser, Wayne G. and Birnberg, Jacob G., Facilitating a Team Culture: A Collaborative Balanced Scorecard as an Open Reporting System (February 16, 2011). ADVANCES IN MANAGEMENT ACCOUNTING, Marc. J. Epstein, John Y. Lee, eds., Emerald Publishing, 2010, Available at SSRN: https://ssrn.com/abstract=1762897

Hemantha Herath (Contact Author)

Brock University ( email )

St. Catharines, Ontario L2S 3A1
Canada

Wayne G. Bremser

Villanova University ( email )

Villanova, PA 19085
United States

Jacob G. Birnberg

University of Pittsburgh - Katz Graduate School of Business ( email )

Pittsburgh, PA 15260
United States
412-648-1719 (Phone)
412-648-1693 (Fax)

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