A proactive balanced scorecard

This paper describes a methodology for the development of a proactive balanced scorecard (PBSCM). The balanced scorecard is one of the most popular approaches developed in the field of performance measurement. However, in spite of its reputation, there are issues that require further research. The present research addresses the problems of the balanced scorecard by utilizing the soft computing characteristics of fuzzy cognitive maps (FCMs). By using FCMs, the proposed methodology generates a dynamic network of interconnected key performance indicators (KPIs), simulates each KPI with imprecise relationships and quantifies the impact of each KPI to other KPIs in order to adjust targets of performance.

Research highlights
► We present the limitations of existing balanced scorecard methodologies and tools.
► We propose the Proactive Balanced Scorecard Methodology as a solution to limitations identified that applies the theory and techniques of fuzzy cognitive mapping to balanced scorecard.
► We explain the phases of the methodology in business and we present a real life example for demonstration purposes.