The Balanced Scorecard for SMEs: A Circular Approach

  • Stefano BiazzoEmail author
  • Patrizia Garengo
Part of the SpringerBriefs in Business book series (BRIEFSBUSINESS)


Scholarly literature offers methodologies for the implementation of a PMS that are based upon a top-down approach and that aim at translating strategy into action, with little consideration to the tendency of small enterprises not to give much importance to the formalisation of their strategic choices. In this chapter, the authors identify a circular methodology to implement a strategically aligned performance measurement system in SMEs. The proposed methodology is based on the Balanced Scorecard Model and features four main phases: (1) the analysis of current “individual dashboards” to actually show the performances that are kept under control; (2) the clarification of the key success factors (CSFs) underlying the measures under control; (3) the definition of the desired strategy map as a result of the comparison between CSFs that are currently under control and the desired strategy; (4) the translation of the desired strategy map into a dashboard of indicators necessary for the implementation of the strategy.


Circular approach Performance measurement system implementation Performance measurement system design Strategy map 


  1. Bititci US, Carrie AS, McDevitt L (1997) Integrated performance measurement systems: a development guide. Int J Oper Prod Manage 17:522–534CrossRefGoogle Scholar
  2. Bititci U, Mendibil K, Nudurupati S, Garengo P, Turner T (2006) Dynamics of performance measurement and organizational culture. Int J Oper Prod Manage 26:1325–1350CrossRefGoogle Scholar
  3. Bourne MCS, Bicheno J, Hamblin D, Wilcox M, Neely AD (1996) Getting the measure of your business: developing and testing performance measurement systems in manufacturing companies In: Management Accounting Research Group Conference, October 1996, Aston, Birmingham, UKGoogle Scholar
  4. Garengo P, Bernardi G (2007) Organizational capability in SMEs: performance measurement as a key system in supporting company development. Int J Prod Perform Manage 56:518–532CrossRefGoogle Scholar
  5. Garengo P, Bititci U (2007) Towards a contingency approach to performance measurement: an empirical study in Scottish SMEs. Int J Oper Prod Manage 27:802–825CrossRefGoogle Scholar
  6. Garengo P, Biazzo S, Bernardi G (2007) Designing and implementing a performance measurement system in SMEs: a bottom-up approach. In: Proceedings of the EUROMA international conference managing operations in expanding Europe, Ankara, 17–20 June 2007Google Scholar
  7. Garengo P, Nudurupati S, Bititci U (2007a) Understanding the relationship between PMS and MIS in SMEs: the key role of organizational development. Comput Ind 58:677–686CrossRefGoogle Scholar
  8. Hudson M, Lean J, Smart A (2001) Improving control through effective performance measurement in SMEs. Prod Plann Control 12:804–813CrossRefGoogle Scholar
  9. Hudson-Smith M, Smith D (2007) Implementing strategically aligned performance measurement in small firms. Int J Prod Econ 106:393–408CrossRefGoogle Scholar
  10. Kaplan R, Norton D (1993) Putting the balanced scorecard to work. Harv Bus Rev 71:134–147Google Scholar
  11. Kaplan R, Norton D (1996a) The balanced scorecard: translating strategy into action. Harvard Business School Press, BostonGoogle Scholar
  12. Kaplan R, Norton D (1996b) Using the balanced scorecard as a strategic management system. Harv Bus Rev 74:75–85Google Scholar
  13. Neely A, Adams C, Kennerley M (2002a) The performance prism: the scorecard for measuring and managing stakeholder relationship. Prentice Hall, LondonGoogle Scholar
  14. Neely A, Bourne M, Mills J, Platts K, Richards R (2002b) Getting the measure of your business. Cambridge University Press, CambridgeGoogle Scholar
  15. Niven PR (2002) Balanced scorecard step-by-step: maximizing performance and maintaining results. Wiley, New YorkGoogle Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2012

Authors and Affiliations

  1. 1.DIMEGUniversity of PaduaPadovaItaly
  2. 2.DIMEGUniversity of PaduaPadovaItaly

Personalised recommendations