BSC in Norway

 

Stemsrudhagen (2003) conducted a research study among the Norwegian manufacturing companies, exploring the structures of the performance measurement systems in use. The study builds its arguments on the Balanced Scorecard structure, trying to identify the degree to which performance measurement systems in Norway match the Balanced Scorecard properties. The Balanced Scorecard framework was used as a benchmark due to the fact that is the management concept that enjoyed the greatest academic and practical attention and success since the beginning of the 90s both in Norway and throughout the world (Stemsrudhagen, 2003).

 

Three research questions were formulated in order to address the proposed research proposition.

  • Whether the performance measurement systems in use have logics and dimensions rooted in the company’s strategic intention
  • Whether the performance measurement systems comprise the dimensions originally proposed by Kaplan and Norton for the Balanced Scorecard
  • How important are financial and especially non-financial measures to performance measurement systems

 

For the purpose of the research a sample of 182 Norwegian companies was identified. A questionnaire that resembled the essence of the research questions was built and sent to the company’s chief accountants.  The response rate of the survey was estimated to be 45, 6 % which equals 83 usable questionnaires. The main findings of the research are presented in the table below.

 

Variables

Findings

The use of measures in Norwegian industry

  • The companies make use of information on all dimensions which are inherent to the original Balanced Scorecard
  • The financial measures are the ones with the widest use among company managers.
  • While the measures relating to Customer and Internal processes mark evenly, the measures in the Learning & growth perspective tend to be less used

The dimensions of the performance measurement systems

  • Four underlying dimensions were identified, closely resembling those of the original Balanced Scorecard.
  • The four dimensions explain 26.5% (Financial) ; 10.3% (Customer), 7.7% (Internal processes) and 7,2% (Learning & growth) of the measures used by the Norwegian companies

The patterns of the performance measurement systems

  • The use of different measures is primarily a matter of management culture
  • In the companies with a performance measurement culture, the use of performance measurement has a greater intensity than in other management cultures

Source: Stemsrudhagen, 2003


For more details on the study, it can be accessed at the link listed below:

 

References

  • Stemsrudhagen, J., I. (2003), The structure of the balanced scorecard: empirical evidence from Norway, working paper No. 24/03, Institute for research in economics and business administration, Bergen, available at: http://bora.nhh.no/bitstream/2330/390/1/A24_03.pdf.

BSC in practice : By country

 

Certified KPI Professional training

smartKPIs Premium

Performance Management Books