Sustainable Microfinance - Balanced Scorecard's added value for ...

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increase in client satisfaction (lag indicator). Lead indicators allow a company to manage their strategy operationally. They can also help to indicate intermediate changes in processes or indentify intangible assets that are necessary to achieve the desired final result. Each perspective should have lead and lag indicators, creating a two-directional cause and effect chain. 3.2.5 Purposes When a BSC is designed in this way, it is more than just a strategic measurement system; it will also be a strategic control system that acknowledges the different expectations of the various stakeholders. The key principles behind the scorecard are (Lynch, 2009, p. 508; Hopper et al., 2007, p. 178): • Translating the vision – through clarifying and gaining consensus; • Communicating and linking – by setting goals and establishing rewards for success; • Business planning – to align objectives, allocate resources and establish milestones; • Feedback and learning – to review the subsequent performance against the plan. The ultimate purpose of the BSC is to translate the vision and strategy of an organization into measureable objectives with a practical meaning for management. 3.2.6 Process The first step in achieving these purposes is, to clarify and translate the vision and strategy into specific strategic objectives and related measures. The next step is to translate the overall strategy and objectives into specific objectives and measures for each team or employee (holding a key position in the organization). These objectives and performance measures will later be the basis for the rewards. The following step is to communicate these specific objectives in relation to the overall vision and strategy to all teams and employees (Kaplan and Norton, 1996a, p213). The final step is gaining feedback and learning form it. 3.2.7 Success of the BSC Lee (2006, p. 52) argues that the following characteristics legitimise the BSC as a useful framework for improving performance: Elmar Hoogendoorn 33 Sustainable Microfinance
• Derived from strategy; • Stimulates continuous improvement; • Clearly defined purpose; • Simple to understand and use. Researchers and commentators have identified widespread satisfaction with the BSC as a tool for implementing and communicating strategy. For example, the following benefits have been recognized: the clarity of focus which it brings to the critical factors determining performance (Kanji and Sa, 2002; Ritter, 2003); its value as an information system for diagnosis and control (Pandey, 2005); its contribution to the effectiveness of strategy implementation through the translation and communication of strategy in the form of tangible measures (Kanji and Sa, 2002); its use as a substitute for traditional budgeting (Ax and Bjornenak, 2005); and its flexibility and fit to different organizations (Kanji and Sa, 2002). 3.2.8 Criticism on the BSC However, research has also shown that BSC users are not very knowledgeable about the cause and effect relationships that should govern the selection of performance measures. In practice, users simply have a belief in the relationship between measures rather that testing and identifying the nature of actual relationships. Implementations have met a series of practical problems (Ahn, 2001). The BSC has also been criticized because the temporal link between the variables is not clear (Nørreklit, 2000; Kunc, 2008). If a cause and effect relationship requires a time lag between cause and effect, then it is problematic that time is not part of the scorecard. The effect of the measures will occur at different times as different areas of performance involve different time scales (Hopper et al., 2007). Herrscher (2006) argues for what he calls ‘the’ ’really’ ’integrated BSC’ that links functions, responsibilities, inputs and outputs. Nørreklit argues that some stakeholders, such as suppliers and public authorities, are excluded from the traditional BSC model and proposes that ‘a coherent strategy is one in which the properties of the different areas of strategic focus (finance, market requirements, technology, internal business processes, etc) are integrated and harmonized, allowing the ends planned to be achieved through the working together of the Elmar Hoogendoorn 34 Sustainable Microfinance
Page 1 and 2: ! ! Sustainable Microfinance Balanc
Page 3 and 4: Keywords and Abstract Sustainable M
Page 5 and 6: Condensed Table of Contents ! ! Key
Page 7 and 8: 3.3 Lessons from previously develop
Page 9 and 10: List of Figures ! Figure I-1: Thesi
Page 11 and 12: List of Abbreviations BDS Business
Page 13 and 14: 1. Overview This chapter serves as
Page 15 and 16: In 2007, the Dutch Ministry of Econ
Page 17 and 18: collect information or seek specifi
Page 19 and 20: In some regions entrepreneurs are a
Page 21 and 22: • What different players in the D
Page 23 and 24: 2. Theory and Literature Review - M
Page 25 and 26: investors expect to gain from the f
Page 27 and 28: 2.4 Microfinance in (Western) Europ
Page 29 and 30: A MFI in the survival mode can bare
Page 31 and 32: The main factors that negatively af
Page 33 and 34: that are needed in order to transfo
Page 35 and 36: According to Lämmermann, et al. (2
Page 37 and 38: 2.5.6 Success of BDS Lämmermann, e
Page 39 and 40: The final conclusion relates to the
Page 41 and 42: Kaplan and international strategy c
Page 43: investments in learning will lead t
Page 47 and 48: emaining drivers of the model are;
Page 49 and 50: Greatbanks and Tapp (2007) Manville
Page 51 and 52: that fail to effectively plan for t
Page 53 and 54: objectives (obligations) establishe
Page 55 and 56: Section II. Research Design The pre
Page 57 and 58: the use and usefulness of PMSs by s
Page 59 and 60: Figure 4.1: Step model of inductive
Page 61 and 62: 4.5 Methods of Data Collection In o
Page 63 and 64: All eight groups are interesting fo
Page 65 and 66: must take into account with the rel
Page 67 and 68: Section III. Findings and Discussio
Page 69 and 70: KH VS TB RL OE MB CS AP Total App.
Page 71 and 72: street and within an area of 500 me
Page 73 and 74: A final aspect that is exceedingly
Page 75 and 76: For the model Stefano (2010) propos
Page 77 and 78: know a lot about this topic', often
Page 79 and 80: 5.3 Summary Based on the empirical
Page 81 and 82: 6. Discussion 6.1 Introduction This
Page 83 and 84: 6.2.4. Sustainability Entrepreneur
Page 85 and 86: 6.2.9. Network & Business Developme
Page 87 and 88: The discussion is ended with a fina
Page 89 and 90: • Since the development of microf
Page 91 and 92: 7.2.3 The Model: ‘Equally’ Bala
Page 93 and 94: cannot be controlled by the researc
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Appendix A - Thesis Proposal Accord
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1. Abstract The Thesis Project will
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efficiency, and aggressive enforcem
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entrepreneurs, compared to the curr
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The Thesis Project has several obje
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Based on the results from the liter
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8. Table of contents Preface List o
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References Armendáriz, B. 2009, 'M
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Work program March April Week numbe
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Figure B-2 Simplified Strategy Map
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Figure B-5 Comprehensive Performanc
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Organizational Development • What
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RL start at the core; 'why do you w
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Appendix E - Social ! KH jobs creat
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Appendix F - Financial ! Liquidity
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OE through friends and family and a
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MB that has to do with you financia
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RL You can test it, by launching fo
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Appendix I - Internal Business Proc
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OE he has an advantage and should f
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Appendix L - Network ! Professional
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Appendix M - Business Development S
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Appendix N - General BSC model ! Us
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Appendix O - Relation and Link ! Eq
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Appendix P - Most Important Financi
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Appendix R - Sustainability of Micr
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Appendix S - Qredits ! KH The main
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Bibliography Affleck, A. and Mellor
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Derban, W., Binner, J. and Mullineu
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the case of the tourism industry,
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Kunc, M. (2008), 'Using systems thi
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McKinsey & Company, p. 3., Availabl
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Shrader, C.B., Mulford, C.L. and Bl
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Woodworth, W. and Woller, G. (1999)
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