Proceedings of the 3rd European Conference on Intellectual Capital

Angelos Vouldis and Angelica Kokkinaki
Figure 2: The balanced scorecard institute’s 9 step framework (from Rohm & Halbach, 2005)
Step one is an Assessment <strong>of</strong> <strong>the</strong> organisation’s foundations, its core beliefs, market opportunities,
competition, financial position, short and long-term goals, and an understanding <strong>of</strong> what satisfies
customers. Step two is <strong>the</strong> development <strong>of</strong> overall Business Strategy. Step three is a decomposition
<strong>of</strong> business strategy into smaller components, called Objectives. In step four, a Strategic Map <strong>of</strong> <strong>the</strong>
organisation’s overall business strategy is created. In Step five, Performance Measures are
developed to track both strategic and operational progress. In step six, new Initiatives are identified
that need to be funded and implemented to ensure that our strategies are successful. Step seven
involves automating <strong>the</strong> Balanced Scorecard system, and consists <strong>of</strong> analysing s<strong>of</strong>tware options and
user requirements to make <strong>the</strong> most cost-effective s<strong>of</strong>tware choice for today and to meet enterprise
performance information requirements in <strong>the</strong> future. Step eight involves cascading <strong>the</strong> corporate
scorecard throughout <strong>the</strong> organization to business and support units, and ultimately to teams and
individuals.
Blokdijk (2008) states some <strong>of</strong> <strong>the</strong> following main reasons that balanced scorecard may fail.
Leadership from <strong>the</strong> management <strong>of</strong> <strong>the</strong> organisation is essential. Management with <strong>the</strong>ir commitment
and participation <strong>of</strong> <strong>the</strong> development <strong>of</strong> this business approach will motivate employees to <strong>the</strong>ir daily
tasks and will eventually lead to business success. Communication is ano<strong>the</strong>r important reason
required at every level <strong>of</strong> an organisation. Training and communication required as <strong>the</strong>
implementation <strong>of</strong> <strong>the</strong> balanced scorecard approach likely to mean huge changes in an organisation.
Timing is crucial for <strong>the</strong> development <strong>of</strong> any business operation. A strategic and timing plan needs to
visualise <strong>the</strong> sequence and order <strong>of</strong> activities or events that need to happen to create <strong>the</strong> desired
future state.
3. <strong>European</strong> Foundation for Quality Management (EFQM) Excellence Model®
The <strong>European</strong> Foundation for Quality Management Model (EFQM) is widely recognized as a
comprehensive organisational development and improvement framework used for evaluating
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