A holistic approach to improve balance scorecard in measuring performance of listed companies

Measuring organization performance is one of the critical issues to be considered in the current competitive environment. The performance measurement enables the organization to assess how they are progressing in achieving strategic objectives, to develop their knowledge that leads to a more systematic and effective decision-making process. Therefore, a reliable measurement tools are required to indicate how well they are performing compared to their mission, how high they are doing to fulfil stakeholders’ expectation, how effective they are achieving their strategies, and where opportunities for improvement exist. When Kaplan and Norton developed the Balance Scorecard (BSC) approach, they effectively describes that financial accounting tools to measure corporate success or failure is often insufficient. The BSC supplemented traditional financial measures with criteria measuring performance from three additional perspectives: customer, internal business process, and innovation & learning. However, the four perspectives of the BSC are not always applicable to all listed companies. With the exception of the financial perspective, public-listed companies a number of perspectives (e.g. community, supplier, etc.). We need to advocate companies to use a set of dynamic performance measures which provide flexibility to adjust the measures depending on their needs or to modify the measures as the company evolves. This paper will provide review of various approaches including shareholder value, customer value, the Balance Scorecard, and the performance measure cube to develop a more holistic and flexible approach in measuring organizational performance of listed companies