Hi Carolyn-
In my Social Entrepreneurship class we discuss this topic and reference a book of the same title by Andrew Savitz who is a thought leader in the for profit world on this subject.
Kindest regards,
Ramon Venero
Doctoral Student
Huizenga School of Business
Nova Southeastern University
venero@nova.edu+1.202.623.9012
Sent via BlackBerry by AT&T
From: Carolyn Fausnaugh <
cfausnau@fit.edu>
Date: Fri, 17 Apr 2009 09:10:13 -0400
To: <
MG-ED-DV@AOMLISTS.PACE.EDU>
Subject: Re: The crisis - balanced scorecard contribution
Kim and all
Has anyone run across the idea of "triple bottom line" ? At the beginning of 2000, I was teaching in Australia and ran across this idea. I have it somewhere in my files, but have not done any more with it, or even heard of it again.
Carolyn
Carolyn J. Fausnaugh PhD, CPA
Asst Professor of Strategy & New Ventures
Florida Institute of Technology
Melbourne, Florida 32901
Phone: 321-674-7375; Fax: 321-674-8896
From: Management Education and Development Discussion on behalf of Kim Warren
Sent: Fri 4/17/2009 7:51 AM
To: MG-ED-DV@AOMLISTS.PACE.EDU
Subject: Re: The crisis - balanced scorecard contribution
I have used BSC within strategy teaching for some years, and come across BSCs in many companies. My impression is that, whilst it is a valuable extension to standard financial reporting systems, it has some limitations as a tool for managing strategy – limitations that the down-turn has exposed quite sharply. As usually implemented ...
- there is no coverage of competitive conditions or competitor behaviour – nor can I find any suggestion in the BSC or Strategy Maps books that they should do so.
- there is no coverage of trends or changes in overall supply/demand conditions – and again, no suggestion they should do so.
- there is no attention to prospective performance – i.e. how we are likely to perform on key indicators in coming periods [as distinct from our performance targets].
More seriously, although the causal logic generally seems to make sense to executives [Learning/Growth >> Internal Processes >> Customer Consequences >> Financial Outcomes] there is no rigorous, formal, verifiable structure to that logic – i.e. no solid 'theory' – to ensure the strategy map is robust. Consequently, BSCs seem to reflect what teams think, or would like, some of the causal relationships to be – which may be entirely different from what another team might come up with. [I address this issue and suggest the basics of a more rigorous approach in chapter 4 of my book .. see www.strategydynamics.com/c4 ]
As a result, I can't as yet see how a company's BSC could have led them to anticipate the current crisis, to plan for it, or to work out what to do to survive and escape from it. I imagine many of us would be grateful to hear of cases where BSC has been helpful in coping with current difficulties, and how that has happened.
Kim
Yes, I find the BSC a promising approach, especially if the system links between the components are really worked out. I find that many companies who claim to do BSC are still doing MBO with no system links underpinning it.
-------------------------------
Benito L. Teehankee, DBA
Sen. Benigno S. Aquino Jr. associate professor in business and governance
Ramon V. del Rosario Sr. Graduate School of Business
De La Salle University
Manila, Philippines
Office: +632-5234295
From: Jack Ring <jring@AMUG.ORG>
To: MG-ED-DV@AOMLISTS.PACE.EDU
Sent: Tuesday, April 14, 2009 10:34:23 AM
Subject: Re: The crisis - ethics or competence?
----- Original Message -----
Sent: Saturday, April 11, 2009 3:18 AM
Subject: Re: The crisis - ethics or competence?
I think Michael makes a crucially important point about the need to expand objective functions in several important dimensions. However, students with a practical bent will automatically ask how this is to be done. I surveyed our MBA curriculum and the tools and problem-solving methods taught are strongly biased for a single objective -- whether it be in management science or management accounting. What methods can be taught to students which support a multi-stakeholder, mutli-objective perspective? Has anybody in the list used analytic hierarchy process (AHP) for this, for example? What about system dynamics as Kim suggests?
Have you looked at Balanced Scorecard? I do not hold this up as an exemplar but it does deal with N attributes. Of course, Drucker told us years ago that the minimum set is Market Standing, Productivity, Innovation and Liquidity.
The AHP is mathematically flawed (unless you can assure that all options are transitive).
Better you should consider Bayesian Belief Networks.
</
cfausnau@fit.edu>