Designing A Balanced Scorecard To Measure A Bank'S Performance A Case Study

The balanced scorecard overcomes the limitations of traditional performance measures by complementing financial measures of past performance with measures of future drivers of performance.The balanced scorecard is more than just a measurement tool; it is a system that focuses the efforts of staff, from different levels of the organization, towards achieving the company’s vision and strategic objectives.Representatives of major banks in Bahrain were interviewed to explore the ways in which they measure the performance of their online banking divisions.

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The results obtained confirm the need of a control system based on a comprehensive framework that translates company's strategy into a coherent set of performance measures for the bank (corporate) and, as aconsequence, for the bank's branches (organizational units) as well.

The paper ends with conclusions, especially regarding the care required in choosing the suitable operative tools to translate BSC into practise, implications and suggestions for future researches.

Next section is devoted to the presentation of the case study: specifically, the section outlines the competitive position and the organizational structure of the bank, that is wide spread in Piedmont (North of Italy), compared with the other main Cooperative Banks in Italy.

The section includes short comments about the bank's control needs, also considering Risk Management and the way Basel 2 Accord has caused a more extensive need of managerial information.

Traditional measurement systems have been based on accounting models and have measured the financial performance of firms.

However, in a global competitive environment, performance needs to be measured through financial and operational perspectives.

This paper aims at studying the implementation of a management control system in a Piedmont Cooperative Bank: the system is based on Balanced Scorecard model (BSC) suggested by Kaplan and Norton(1996, 2001) applied in the services sector.

The paper starts with the research method and the theoretical background concerning the business model of Cooperative Banks.

The ability of an organization to utilize its intangible assets has become more important than investing in physical or tangible assets.

This requires better understanding of customers’ needs, internal business processes, and innovative ways to improve.

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