ASSESSMENT OF ECONOMIC ACTIVITY OF ENTERPRISE BASED ON THE BALANCED SCORECARD

Authors

  • M. Martynenko Simon Kuznets Kharkiv National University of Economics
  • N. Lysytsia Simon Kuznets Kharkiv National University of Economics
  • Yа. Polyakova Simon Kuznets Kharkiv National University of Economics
  • O. Bolotova Simon Kuznets Kharkiv National University of Economics

DOI:

https://doi.org/10.18371/fcaptp.v4i35.222076

Keywords:

assessment, economic activity, balanced scorecard (BSC), key performance indicator (KPI), correlation and regression analysis

Abstract

Assessment of the economic activity of the enterprise in modern business relations requires the necessity of addition of non-financial components to the traditional tool of assessing the financial performance of the enterprise. The purpose of the article was using BSC as a methodological tool for assessing and transforming an enterprise’s mission into short-term tasks and indicators. This allows the authors to identify the most relevant reserves for improving the economic activity of the enterprise. Correlation-regression analysis of the parameters is included in the assessment of the economic activity of the enterprise by basic perspectives. This allows us to make a detailed analysis of internal business processes and external possibilities of enterprise. Division of all researched indicators into key performance indicators (KPI) and auxiliary indicators, depending on the degree of influence on enterprise development has been made. The key performance indicators that have the greatest correlation with others are as follows: net revenue, balance sheet, current assets, fixed funds, raw materials, finished products, cash. It has been established, that the key reserves for the successful development of the enterprise are concentrated mainly in internal processes and the financial perspective of enterprise development. This makes it possible to optimize the process of making managerial decisions in conditions of limited economic resources and uncertainty. Auxiliary indicators are more likely to be parameters supporting the required level of certain KPI in the long term perspective. Using the full range of indicators in the assessment of economic activity of enterprise will allow balancing the direction of sustainable development of enterprise.

Author Biographies

M. Martynenko, Simon Kuznets Kharkiv National University of Economics

Doctor of Economics, Professor

N. Lysytsia, Simon Kuznets Kharkiv National University of Economics

Doctor of Sociology, Professor

Yа. Polyakova, Simon Kuznets Kharkiv National University of Economics

Ph. D. in Economics, Associate Professor

O. Bolotova, Simon Kuznets Kharkiv National University of Economics

Ph. D. in Economics, Lecturer

References

Chakravarthy, B. S. (1986). Measuring strategic performance. Strategic Management Journal, 7, 437—458.

Dearden, J. (1987). Measuring profit center managers. Harvard Business Review, September / October, 65, 84—88.

Juran, J. M. (1993). Made in U. S. A.: A Renaissance in Quality. Harvard Business Review, July — August, 45.

Merchant, K. (1985). Control in Business Organizations. Boston (Ma., USA): Harvard Graduate School of Business.

Horvat, P. (2004). Sbalansirovannaya sistema pokazatelej kak sredstvo upravleniya predpriyatiem [Balanced scorecard as a means of enterprise management]. Standarty i kachestvo — Standards and Quality, 2, 50—53 [in Russian].

Kaplan, R. S., & Norton, D. P. (1996). The Balanced Scorecard: Translating Strategy into Action. Boston (Ma., USA): Harvard Business School Press.

Voelper, S., Leibold, M., Eckhoff, R., & Davenport, T. (2006). The tyranny of the Balanced Scorecard in the innovation economy. Journal of Intellectual Capital, 7 (1), 43—60.

Balanced scorecard institute. (n. d.). www.balancedscorecard.org. Retrieved from http://www.balancedscorecard.org.

Ventcel, V. S. (1969). Teoriya veroyatnostej [Probability Theory]. Moscow: «Nauka» [in Russian].

Shmojlova, R. A. (Ed.). (2001). Teoriya statistiki [Theory of Statistics]. Moscow: Finansy i statistika [in Russian].

Atkinson, A., & Epstein, M. (2000). Measure for measure: Realizing the power of the balanced scorecard. CMA Management, September, 22—28.

Barkdoll, J., & Kamensky, J. (2005). Key Factors that Make a Balanced Scorecard Successful. PA Times, 28 (7), 35—42.

Klochkov, A. K. (2010). KPI i motivaciya personala. Polnyj sbornik prakticheskih instrumentov [KPI and motivation of personnel. Full collection of practical instruments]. Moscow: Eksmo [in Russian].

Downloads

Published

2020-12-24

Issue

Section

The models and process technology of the financial information