Designing a knowledge based system for strategic planning: A balanced scorecard perspective


First developed by Kaplan and Norton [Kaplan R. S., & Norton D. P. (1992). The balance scorecard – measures that drive performance. Harvard Business Review, 70(1), 71–79], balanced scorecard (BSC) provides an integrated view of overall organizational performance and strategic objectives. BSC integrates financial measures with other key performance indicators to create a perspective that incorporates both financial and non-financial aspects. BSC has proven a powerful tool for strategic planning and communicating strategy that assists in strategy implementation. Successful strategy implementation is based on effective strategic planning.

Owing to the strategic planning being a virtual necessity in business, this work proposes an integrated approach for the balanced scorecard tool and knowledge-based system using the analytic hierarchy process (AHP) method, and then develops an intellectual BSC knowledge-based system for strategic planning that sets or selects firm management or operational strategies based on the following perspectives: learning and growth, internal/business process, customer, and financial performance. This system can help determine specific strategy weights. The intellectual BSC knowledge-based system facilities efficient automated strategic planning.

Keywords: Knowledge-based system, Balanced scorecard, Analytic hierarchy process

Academicians and researchers involved in strategic management and managerial accounting have devoted increasing attention in the recent decade to the influence of balanced scorecard (BSC) on organizational performance and strategic planning. The BSC designed by Kaplan and Norton (1992) uses a sequence of four perspectives that reflects firm value creation activities. The sequence is as follows:
learning and growth perspective, internal/business process perspective, customer perspective, and finally financial perspective. Core outcome (performance) measures within each perspective are adopted as leading indicators of the core outcome measures in the next perspective.
Since, its initial development by Kaplan and Norton, BSC has been widely adopted by manufacturing and service companies, nonprofit organizations, government entities, and other industries around the world. Firms are increasingly implementing new performance measurement systems to track non-financial metrics, with related research including Andrews (1996), Banker, Chang, and Pizzini (2004), Banker, Potter, and Srinivasan (2000), Frigo (2002), Said, HassabElnaby, and Wier (2003).
Since its introduction in the early 1990s, the BSC has evolved from a performance measurement tool to a strategic management tool. The BSC methodology creates an infrastructure for strategic management activities. The scorecard introduces four new management processes that, separately and in combination, contribute to linking long-term strategic objectives and short-term actions (Kaplan & Norton, 1996a). By combining the financial, customer, internal process, and learning/growth perspectives, BSC helps managers understand numerous interrelationships and causal effects. download دانلود ترجمه مقاله


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