Journal article
A balanced scorecard analysis of performance metrics
European journal of operational research, v 154(2), pp 423-436
16 Apr 2004
Featured in Collection : UN Sustainable Development Goals @ Drexel
Abstract
Many organizations have invested substantial resources in recent years to implement a balanced scorecard of performance metrics. From a historical focus exclusively on financial metrics of performance, the emphasis has shifted recently to a consideration of a portfolio of nonfinancial performance metrics related to customers, business process and technology. In this paper, we investigate the best practice frontier relationship between a financial performance metric (return on assets––ROA) and three nonfinancial performance metrics (number of access lines per employee, percentage of digital access lines and percentage of business access lines) reported and used in the US telecommunications industry. Analyzing detailed data from over fifty local exchange carriers for a period of five years (from 1993 to 1997), we find that managers must tradeoff contemporaneous ROA when increasing the percentage of business access lines. We also find that managers do not have to trade off ROA with the other two nonfinancial performance metrics because these metrics are contemporaneously congruent.
Metrics
Details
- Title
- A balanced scorecard analysis of performance metrics
- Creators
- Rajiv D. Banker - The University of Texas at DallasHsihui Chang - The University of Texas at DallasSurya N. Janakiraman - The University of Texas at DallasConstantine Konstans - The University of Texas at Dallas
- Publication Details
- European journal of operational research, v 154(2), pp 423-436
- Publisher
- Elsevier
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Accounting
- Web of Science ID
- WOS:000187779600007
- Scopus ID
- 2-s2.0-0344308283
- Other Identifier
- 991020535068904721
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- Web of Science research areas
- Management
- Operations Research & Management Science