—This paper compares two Balanced Scorecard
models, an optimal construction based on a time-managed
approach to identify the evolution of the key contributors to the
current organization’s strategy and a model based on Kaplan
and Norton methodology. Both Balanced Scorecards are
generated using financial and non-financial strategic indicators
collected directly from the company. The paper proposes a
process to construct an optimal structure of a Balanced
Scorecard model based on the Partial Least Square equations.
The optimal model is based on a modified version of bootstrap
technique that seeks and chooses the most predictable
cause-and-effect sequence among all possible combinations. The
Kaplan’s model is grounded on the authors’ methodology as
presented in their articles and books. The comparison between
the two models will be analyzed and validated using a practical
example from a Swiss medical establishment. It will be
concluded that the Optimal Balanced Scorecard (OBSC) is
superior to the Kaplan’s model in terms of statistical validation
and, thus, OBSC advantage to accurately represent and study
the company’s strategy.
—Balanced scorecard (BSC), key performance
indicators, performance measurement, structural equation
modeling (SEM), partial least squares (PLS), principal
component analysis (PCA), bootstrap.
Bernard Morard, Christophe Jeannette, and Alexandru Stancu are with
the HEC Department (Haute Ecole Commerciale), University of Geneva,
1205 Geneva, Switzerland (e-mail: firstname.lastname@example.org,
Cite: Bernard Morard, Alexandru Stancu, and Christophe Jeannette, "A Comparison between Two Balanced Scorecards: Optimal vs. Kaplan and Norton Model," Journal of Economics, Business and Management vol. 3, no. 2, pp. 302-308, 2015.