A Strategic Model for Consolidating BSC Measures Based on the Desirability Function: A Case Study of a Website Company

Following the idea of “what you measure is what you get,” this paper discusses the necessity to improve managing and planning firms’ service based on performance evaluation, The Balanced Scorecard (BSC) has been used as a tool for suggesting measures that can evaluate performance of a company by considering both financial and non-financial perspectives. The current BSC technology does not provide techniques to formally define, verify, implement, consolidate and analyze the performance measures. Therefore, we developed a model for deriving and analyzing the BSC score. This model provides a normalization process to reflect characteristics of the BSC performance measure and a computation process to derive the total score. The model proposed in this paper would provide executives with the single total score as well as the corresponding information model for interpreting the information provided. The model developed here consists of the following three phases: collection phase, calculation phase and decision making phase. The suggested model is illustrated through a case study in each phase. The results of the case study proved usefulness of our model.