Making decisions using the balanced scorecard and the simple multi‐attribute rating technique

Abstract

Purpose -The purpose of this article is to address the measure selection problem and to propose the use of a multi-criteria approach to address the problem more effectively. The main objective of this research is to propose a methodology (not a new performance measurement framework) that will support existing measurement framework(s) during the process of performance measurement systems' design, implementation and use, and to advance the decision-making process. Design/methodology/approach -Conforming to the most favoured approach, the balanced scorecard is adopted to illustrate the proposed methodology. This paper briefly illustrates the application of the proposed methodology. This illustration is based on a real case study from a Greek financial institution, which has considered the proposed methodology in order to select appropriate measures. The paper begins with a brief literature review on the balanced scorecard, the theory of MCDM and smart technique. In section three the proposed methodology is presented and each of the stages involved. The paper then illustrates the proposed methodology. Findings -The greatest significance of the methodology suggested here is that it provides a structure to guide decision makers through the process of measure selection. Criteria must be identified and considered systematically, as must alternatives (i.e. measures). Originality/value -While the smart was chosen to select appropriate measures for the balanced scorecard, the basic approach used in formulating the problem serves also as a framework for the application of other multi-criteria approaches to this problem as well as to other performance measurement frameworks. Ultimately, better quality decisions will result; both as a consequence of the support provided by the multi-criteria tools and as a result of a structure that will help the decision makers to better understand the issues associated with the problem involved.

Model for Optimal Project Portfolio for the Construction of Railway Infrastructure on Corridors V and X

“…The SMART model, however, is independent of the alternatives. Since the ratings of alternatives are not relative, changing the number of alternatives considered will not in itself change the decision scores of the original alternatives, which is particularly useful when new alternatives or features are added to the existing comparison [9].…”

Multi-criteria approach using simulation-based balanced scorecard for supporting decisions in health-care facilities: an emergency department case study

“…Other multi-criteria analysis methods have also been applied in the design and evaluation of BSCs. For example, the Simple Multi-Attribute Rating Technique (SMART) can be used to select appropriate measures for the development of a BSC system in a financial institution (Valiris et al, 2005).…”

“…Registration S.T. The ED managers were asked to rank the alternatives with respect to each criterion in order, from the most to least preferred, on an easy-to-use value scale (Valiris et al, 2005).…”

Healthcare capacity measurement

“…After the readjustment of the clinic capacity (Column D), it was revealed that the real problem facing the clinics was the over utilisation of existing resources and that the so-called unused capacity presented in previous reports was a result of faulty measurement (c.f. Valiris et al, 2005;Bayou, 2001) From the literature on capacity planning/management and performance drivers in healthcare the authors recognised two core challenges:…”

“…From an operations perspective Valiris et al (2005) distinguished four main reasons for problematic capacity measurement: i) the product or service mix; ii) the time period -sustainable output does not necessarily equal the outcome of the process during a short period of time; iii) the product or service specification, and iv) capacity leakages. The complexity of most operations is certainly a decisive factor.…”