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

successful as the weakest dimension and therefore clearly indicates the dimension
the entrepreneur needs to focus on. Finally the model clearly illustrates how all
dimension are linked, something the BSC is often criticized for by theory (Nørreklit,
2000; Kunc, 2008).
For each stakeholder a separate matrix will be developed where measurable targets
and objective are set. The matrix will be similar to the BSC matrix of the MFC (2007)
(see figure B-1 at appendix B). Developing SMART objectives with appropriate lead
and lag indicators will be a crucial step and the proposition is that this is done during
sessions with the business advisor of the MF-point. When a target is reached the
square in the model grows to the next level. Accordingly each aspect of the model
will be discussed and linked with findings from the literature review.
6.2.2. Social
Based on the work of Meadows and Pike (2009) this aspect was identified as an
important element. This has been supported by empirical evidence. The suggestion
was made that each business, regardless of size, should have a clear economic,
social, or ecological objective. When a business makes a clear contribution towards
the society it secures its ‘licence to operate’, something the business depends on
from the society. Taking a holistic view, each separate stakeholder is part of the
society, when the business satisfies the society all the separate stakeholders are
implicitly satisfied as well. This makes it easier to focus the operational activities.
6.2.3. Financial
Since the time of Friedman, business models have had a strong focus on the
financial aspect and on maximizing shareholders return. The traditional BSC (from
Kaplan and Norton) is no exception. Empirical evidence indicates that times are
chancing and different, more appropriate PMS are needed. However contested
empirical evidence suggests releasing the financial aspect from its predominantly
important role and moving it towards a facilitating, more serving role towards the
other dimensions. Sufficient capital is of crucial importance, therefore satisfying
investors and liquidity are of major importance, but the financial return should not be
a mean of itself.
Elmar Hoogendoorn 71
Sustainable Microfinance