Integrating balanced scorecard and the QEST for multidimensional organizational performance measurement: The case of a bank in Iran

Document Type : Research Paper

Authors

1 Department of Industrial Engineering, Sanandaj Branch, Islamic Azad University, Sanandaj, Iran

2 Department of Industrial Engineering, university of Kurdistan, Sanandaj, Iran

3 School of Management and Enginering, Xuzhou University of Technology, Xuzhou, China

4 School of Economics and Management, Tsinghua University, Beijing, China

Abstract

This paper introduces a new method for organizational performance measurement. The model integrates the QEST (Quality factor + Economic, Social & Technical dimensions) and the BSC (Balanced Scorecard) models. Although the model is originally defined to measure performance in the banking industries, it can be used for almost any organization and any multi-attribute decision-making problem. It not only has a new look to the BSC perspectives but enables organizations to obtain a more reliable assessment. The model takes advantage of the QEST-3D and the BSC that lets the proposed model be easy to generalize. The research’s motivation is to obtain performance measurement based on not only the values of the indicators but the proportion of the values ​​of the leading indicators and the lagging ones obtained by BSC. The financial perspective is considered a lagging indicator, while the other indicators are considered leading. To obtain reliability analysis, the model has been tested in 17 branches of a bank in Kurdistan province for three recent years, as a real case. The results that are compared with what is obtained from the pre-qualified TOPSIS (The Technique for Order of Preference by Similarity to Ideal Solution) successfully illustrate the accuracy and practicality of the proposed model. The results show that based on the correct logic proposed in the proposed method for separating and analyzing the perspectives taken from the BSC, the strategy-oriented ranking made by the proposed method is more reliable and logical than the ranking performed by the TOPSIS.

Keywords

Main Subjects

References

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Journal of Industrial and Systems Engineering
Volume 13, Issue 4
November 2021
Pages 181-198

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History

  • Receive Date: 21 April 2021
  • Revise Date: 24 June 2021
  • Accept Date: 28 June 2021

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