The Effectiveness of Balanced Scorecard in Aligning Strategic Objectives with Performance Measures in Palestinian Banks

EasyChair Preprint 14586

Abstract

This study investigates the effectiveness of the Balanced Scorecard (BSC) in aligning strategic objectives with performance measures in Palestinian banks. The BSC, a widely adopted strategic management tool, provides a framework for translating an organization's vision and strategy into a coherent set of performance measures across four perspectives: financial, customer, internal processes, and learning and growth. In the context of Palestinian banks, the study explores how the BSC facilitates the alignment of strategic goals with measurable outcomes, ensuring that all aspects of the organization work towards common objectives.

Using a mixed-method approach, the research collects both qualitative and quantitative data from multiple banks in Palestine. The findings indicate that the BSC is effective in fostering alignment between strategic objectives and performance measures, leading to enhanced organizational performance, improved decision-making, and greater accountability. However, the study also identifies challenges such as the need for continuous monitoring, the importance of employee engagement, and the impact of external factors such as economic and political instability in the region.

Overall, the research concludes that while the Balanced Scorecard is a valuable tool for strategic alignment in Palestinian banks, its effectiveness is contingent upon the commitment of management, the adaptability of the framework to local contexts, and the ongoing refinement of performance measures to reflect dynamic organizational and environmental changes. The study offers recommendations for banks to optimize the implementation of the BSC and suggests areas for future research in the field.

Keyphrases: Balanced Scorecard, Customer perspectives, Learning and Growth, Palestinian banks, Strategic Alignment, Strategic Management, financial perspectives, internal processes, mixed-method approach, organizational performance, performance measures

@booklet{EasyChair:14586,
  author    = {Dylan Stilinki},
  title     = {The Effectiveness of Balanced Scorecard in Aligning Strategic Objectives with Performance Measures in Palestinian Banks},
  howpublished = {EasyChair Preprint 14586},
  year      = {EasyChair, 2024}}