Multi-Attribute Strategy and Performance Architectures in R&D: The Case of The Balanced Scorecard
Abstract
Performance multi-dimensionality is an age-old problem. The notion that measurement of an organization's (or a system's) performance must incorporate, to the extent possible, all key dimensions has been discussed in a number of literatures. The problem of performance multi-dimensionality and hence measurement complexity is most severe in research and development (R&D) settings due to the inherent multi-dimensionality of R&D's output and the long-term and intangible nature of the process itself. One of the performance measurement approaches that internalizes the inherent multi-dimensionality of the organizational performance measurement challenge is the Balanced Scorecard. The key insight that triggered the idea of the Balanced Scorecard was the notion that organizational performance cannot be adequately measured by a single metric (or a single category of metrics) such as profit or financial metrics but must incorporate a whole series of metrics across a number of performance dimensions including input, process and output metrics, leading and lagging metrics, and metrics measuring tangible and intangible aspects of performance. While the use of the Balanced Scorecard has spread in the private and nonprofit sectors, it remains under-utilized and under-appreciated in R&D. This dissertation advances the state-of-the-art by asking the critical questions: Do R&D organizations satisfy the basic assumptions underlying the Balanced Scorecard?, and Does the adoption of the Balanced Scorecard in R&D settings realize the kind of "breakthrough" improvements in organizational performance that are hypothesized by the founders of the Balanced Scorecard movement? These answers hold the key to unlocking the potential benefit of this framework in R&D settings. The authors adopt a multi-pronged analytic strategy that builds upon the relative strengths of quantitative and qualitative methods.
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 01, 2006
- Accession Number
- ADA488439
Entities
People
- Athar Osama
Organizations
- RAND Corporation