Document Type : Research Paper

Authors

• Hadi Keshavarznia
• Ali Amiri
• Hojatalah salari
• Saeed Moradpour

Department of Accounting, Bandar abbas branch, Islamic Azad University, Bandar abbas, Iran

Abstract

Balanced scorecard (BSC) is a quantified interpretation of organization strategy, which is delineated as a strategy map and describes the organizational performance on four perspectives of financial, customer, internal business process and learning and growth. The measures and objectives of BSC are derived from mission, vision and organization strategy. Organization strategy indicates how an organization creates value for the shareholders, customers and citizens. Furthermore, strategy is the very factor that guides an organization towards achieving its vision. In the same vein, the internal business process perspective describes the processes and measures that eventually lead to the desired level of performance in financial and customer perspectives. As a result, the existence of cause-and-effect relationships outlined in the form of strategy map are deemed as the guideline for the organization achievement. The cause-and-effect relationships determine the accurate route for strategy realization. Without having such associations, the organization is merely has access to a set of financial and non-financial measures. Taking the above into account, the present research has transformed the key measures in Iran’s banking industry to quantified values and by using Granger causality test, it explores the cause-and-effect associations between the measures of process and financial perspectives. Eventually, it analyzes and describes how organization vision is associated with organization’s operations processes.

Keywords

• Strategy
• Balanced Scorecard
• cause and effect relationships
• Granger causality
• the internal process