Abstract
This paper examines how the Balanced Scorecard and Strategy Maps could be modified and used for this purpose. The paper suggests incorporating Balanced Scorecards in the Internal Process perspective, ‘internal’ implying here not just ‘internal to the firm’, but also ‘internal to the inter-organizational system’. We recommend that other such factors be introduced separately under a new ‘perspective’ depending upon what the board wants to emphasize without creating any unwieldy proliferation of measures. Tracking the Strategy Map over time by the board of directors is a way for the board to take responsibility for the firm’s performance. The paper makes a distinction between action variables and monitoring variables. Monitoring variables are further divided on the basis of two considerations: a) whether results have been met or not and b) whether causative factors have met the expected levels of performance or not. Based on directorial responsibilities and accountability, we take another look at how the variables could be specified more completely and accurately with directorial recommendations for executives.
| Language | English |
|---|---|
| Pages | 141-158 |
| Number of pages | 18 |
| Journal | Current Issues of Business and Law |
| Volume | 6 |
| Issue number | 1 |
| DOIs | |
| Publication status | Published - 2011 |
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Keywords
- board of directors
- directorial accountability
- business judgement rule
- strategy maps
- balanced scorecard
Cite this
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Governance tools for board members : adapting strategy maps and balanced scorecards for directorial action. / Sankaran, Kizhekepat; Iyer, Srijayan.
In: Current Issues of Business and Law, Vol. 6, No. 1, 2011, p. 141-158.Research output: Contribution to journal › Article
TY - JOUR
T1 - Governance tools for board members
T2 - Current Issues of Business and Law
AU - Sankaran, Kizhekepat
AU - Iyer, Srijayan
PY - 2011
Y1 - 2011
N2 - The accountability of members of the board of directors of publicly traded companies has increased over years. Corresponding to these developments, there has been an inadequate advancement of tools and frameworks to help directorial functioning. This paper provides an argument for design of the Balanced Scorecard and Strategy Maps made available to the directors as a means of influencing, monitoring, controlling and assisting managerial action. This paper examines how the Balanced Scorecard and Strategy Maps could be modified and used for this purpose. The paper suggests incorporating Balanced Scorecards in the Internal Process perspective, ‘internal’ implying here not just ‘internal to the firm’, but also ‘internal to the inter-organizational system’. We recommend that other such factors be introduced separately under a new ‘perspective’ depending upon what the board wants to emphasize without creating any unwieldy proliferation of measures. Tracking the Strategy Map over time by the board of directors is a way for the board to take responsibility for the firm’s performance. The paper makes a distinction between action variables and monitoring variables. Monitoring variables are further divided on the basis of two considerations: a) whether results have been met or not and b) whether causative factors have met the expected levels of performance or not. Based on directorial responsibilities and accountability, we take another look at how the variables could be specified more completely and accurately with directorial recommendations for executives.
AB - The accountability of members of the board of directors of publicly traded companies has increased over years. Corresponding to these developments, there has been an inadequate advancement of tools and frameworks to help directorial functioning. This paper provides an argument for design of the Balanced Scorecard and Strategy Maps made available to the directors as a means of influencing, monitoring, controlling and assisting managerial action. This paper examines how the Balanced Scorecard and Strategy Maps could be modified and used for this purpose. The paper suggests incorporating Balanced Scorecards in the Internal Process perspective, ‘internal’ implying here not just ‘internal to the firm’, but also ‘internal to the inter-organizational system’. We recommend that other such factors be introduced separately under a new ‘perspective’ depending upon what the board wants to emphasize without creating any unwieldy proliferation of measures. Tracking the Strategy Map over time by the board of directors is a way for the board to take responsibility for the firm’s performance. The paper makes a distinction between action variables and monitoring variables. Monitoring variables are further divided on the basis of two considerations: a) whether results have been met or not and b) whether causative factors have met the expected levels of performance or not. Based on directorial responsibilities and accountability, we take another look at how the variables could be specified more completely and accurately with directorial recommendations for executives.
KW - board of directors
KW - directorial accountability
KW - business judgement rule
KW - strategy maps
KW - balanced scorecard
UR - http://www.vta.ttvam.eu/index.php/vta/article/view/14
U2 - 10.5200/1822-9530.2011.08
DO - 10.5200/1822-9530.2011.08
M3 - Article
VL - 6
SP - 141
EP - 158
JO - Current Issues of Business and Law
JF - Current Issues of Business and Law
SN - 1822-9530
IS - 1
ER -