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The use of the balanced scorecard in bank strategic management

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  • Daria Balkovskaya
  • Liubov Filneva

Abstract

In this study, we employ 'step-by-step' algorithm for constructing a strategy map of the balanced scorecard (BSC) for banking institutions using the example of one of the Russian regional banks. The key evaluation indicators of banking performance are selected through the relevant literature analysis while considering the peculiarities of a sample bank. Further, the decision making trial and evaluation laboratory (DEMATEL) method is employed in order to identify causal relationships between the KPIs, i.e., direction and strength of their mutual influence, as well as to define the most strategically important indicators. Finally, both the KPIs and logical links between them are illustrated on the strategy map, so that bank managers could easily draw up various strategies on that basis. The DEMATEL method resulting in a clear map helps managers to prioritise their strategic steps in the limited resources context, and thus navigate their bank's strategy in a most effective way.

Suggested Citation

  • Daria Balkovskaya & Liubov Filneva, 2016. "The use of the balanced scorecard in bank strategic management," International Journal of Business Excellence, Inderscience Enterprises Ltd, vol. 9(1), pages 48-67.
    • Handle: RePEc:ids:ijbexc:v:9:y:2016:i:1:p:48-67
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    References listed on IDEAS

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    1. Jitesh Thakkar & S.G. Deshmukh & A.D. Gupta & Ravi Shankar, 2007. "Development of a balanced scorecard," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 56(1), pages 25-59, January.
    2. Deniz Turhan & Ozalp Vayvay, 2011. "A performance-based decision-making tool for supply chain reengineering," International Journal of Business Excellence, Inderscience Enterprises Ltd, vol. 4(3), pages 298-320.
    3. Monire Jalili & Kamran Rezaie, 2010. "Quality principles deployment to achieve strategic results," International Journal of Business Excellence, Inderscience Enterprises Ltd, vol. 3(2), pages 226-259.
    4. Joseph H. Callaghan & Arline Savage & Steven Mintz, 2010. "A re-balanced scorecard: a strategic approach to enhance managerial performance in complex environments," International Journal of Business Excellence, Inderscience Enterprises Ltd, vol. 3(3), pages 341-362.
    5. V.N. Sundharam & Vinay Sharma & I.S. Stephan Thangaiah, 2013. "An integration of BSC and AHP for sustainable growth of manufacturing industries," International Journal of Business Excellence, Inderscience Enterprises Ltd, vol. 6(1), pages 77-92.
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    Cited by:

    1. Jui-Te Chiang & Chei-Chang Chiou & Shuh-Chyi Doong & I-Fang Chang, 2020. "Research on the Construction of Performance Indicators for the Marketing Alliance of Catering Industry and Credit Card Issuing Banks by Using the Balanced Scorecard and Fuzzy AHP," Sustainability, MDPI, vol. 12(21), pages 1-24, October.

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