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

6.2.9. Network & Business Development Support
See paragraph 6.2.6 and 6.2.7
6.2.10. Reason, Drive and Contribution
Empirical findings identified three questions as the starting point of the entrepreneur.
The ‘what’ question has been incorporated in the social dimension (see 6.2.2). For
the ‘why’ question, the proposition is that it should primarily be addressed by the
business advisor and secondly be incorporated in the entrepreneurial dimension. For
the ‘where’ question theory states that; in the business sense, performance refers to
the accomplishment of the business’ strategies (actions) in order to achieve the
objectives (obligations) established. The objective may be a targeted level of
profitability (key to survival) or an above average or improved return on investment
(required for growth). Performance measurements quantify action in terms of their
efficiencies and effectiveness, which represent the degree to which the obligations of
the firm are fulfilled (Neely et al., 1995). As with many business models since
Friedman, the emphasis is placed here on the financial aspect. Empirical findings
suggest not to determine the performance of a business based on its financial return,
but to focus on aspects such as satisfaction and measure relevant returns. The best
way to illustrate these points is by quoting Bullens (2010);
‘Why do we make the financial perspective so dominant? Say you are a
customer at Albert Heijn and you need to pay twice as much for your product,
but you are still satisfied. Does Albert Heijn have a problem then?’
‘Why is that financial perspective then so important? I'll give you the
answer. Everybody thinks it is important, because the paradigm we have
created, the financial model dominants for the perception whether we should
be satisfied. At the FNV federation, they think that when they arrange a salary
increase for the people, members of the FNV, that they will be satisfied. That
is their stand while negotiating. Same for interest for shareholders,
companies argue that when shareholders have a higher return they will be
satisfied. That is the dominant thinking. Why not ask are you satisfied? We
developed those financial models when they were needed. By that time we did
not have enough calculation capacity. But do we still need it?’
Elmar Hoogendoorn 74
Sustainable Microfinance