Strategic Performance Measurement Using Balanced Scorecard: A Case of Machine Tool Industry

Open access


This paper focuses on implementation, monitoring, and application of balanced scorecard (BSC) techniques in an organization involved in providing machine tool solutions to the industrial sector. The growth of the company considered in real time constituted improvements of both top and bottom lines. In the industry under consideration, it was observed that in our company, the top line was steadily growing but not the bottom line. This is when we started getting down to brass tacks and strategically focusing on growth in overall profits of the company. This included growing revenues by improving of EBITDA (earnings before interests, taxes, depreciation, and amortization) and by increasing efficiency (i.e., cutting costs). These improvements were implemented by chalking out a comprehensive BSC designed to suit the machine tool industry. The four perspectives of the management, namely, internal business process, organizational learning, financial perspective, and customer perspective, have been considered lucidly and enunciate the parameters that affect the BSC very aptly. The BSC designed considered 9 objectives and 27 relative measures of these factors to quantify the various quantitative and qualitative dimensions that affect the company’s performance. A Balanced Lean Index (BL Score) was used to measure the results for company X.

[1] Bible, L., Kerr, S., Zanini, M., 2006. The Balanced Scorecard: Here and Back. Management Accounting Quarterly, 7 (4), pp.18-23.

[2] Kaplan, R.S., Norton, P., 1992. The Balanced Scorecard - Measures That Drive Performance. Harvard Business Review, 70 (1), pp.71-79,

[3] Kaplan, R.S., Norton, P., 1993, Putting the Balanced Scorecard to Work. Harvard Business Review, 71 (5), pp.134-142.

[4] Kaplan, R.S., Norton, P., 1996. Using the Balanced Scorecard as a Strategic Management System. Harvard Business Review, 74 (1), pp.75-85.

[5] Kaplan, R.S., Norton, P., 2000. Having Trouble with Your Strategy? Then Map It. Harvard Business Review, 78 (5), pp.167-174.

[6] Lawrie, G., Cobbold, I., 2004. Third-generation Balanced Scorecard: Evolution of an Effective Control Tool. International Journal of Productivity & Performance Management, 53 (7), pp. 611-623.

[7] Lawrie, G., 2011. Performance Management Using the Balanced Scorecard - The Past, The Present, The Future, [Access: 21 February 2013].

[8] Letza, S.R., 1996. The Design and Implementation of the Balanced Scorecard: An Analysis of Three Companies in Practice. Business Process Re-engineering & Management Journal, 2 (3), pp.54-76.

[9] Letza, S.R., Nicholas COE, 2014. Two decades of the Balanced Scorecard, A review of developments. Poznan University of Economics Review, Vol 14, No.1.

Foundations of Management

The Journal of Warsaw University of Technology

Journal Information

CiteScore 2017: 0.28

SCImago Journal Rank (SJR) 2017: 0.198
Source Normalized Impact per Paper (SNIP) 2017: 0.159


All Time Past Year Past 30 Days
Abstract Views 0 0 0
Full Text Views 1084 1084 149
PDF Downloads 634 634 86