APPLYING MULTICRITERIA DECISION AID IN A WEIGHTED BALANCED SCORECARD METHOD FOR SUPPORTING DECISION MAKING IN CHANGE MANAGEMENT

Ioannis Salmon, Ilias Pappas, Athanasios Spyridakos, Issak Vryzidis

Abstract


The Balance Scorecard (BSc) constitutes one of the most important tools developed in recent years supporting the strategic planning and change management of large firms and organisations. The main advantages of BSc are that: a) provides a multi-dimensional measurement system for organizational success based on the four pillars (Financial, Customers, Internal process and Learning and Innovation) which are further analysed in objectives, indices, goals and actions, b) supports the linking of the four pillars with the strategic vision and business goals, c) a value system of indices is developed aiding the top management to track the achievements according to the desired progress. This research work presents the utilization of the Multicirteria Decision Aid WAP method into the BSc in order to identify priorities of the objectives expressed in weight vectors at each BSc level. The WAP method could estimate robust weight vectors in regards with the preferences of the Decision Maker (DM), requiring limited preference information and utilizing Linear Programming techniques. The proposed enrichment of the BSC method with weight vectors from the WAP method has advantages since: a) the preferences of the DM according to the strategic goals are taken into consideration, b) provides flexibility to handle the changes process while can be adapted according to the DM attitudes, c) enriches the rationality of the value system while the weights vectors are reflecting the DM preferences eliminating the arbitrary, d) supports the decision making process for the appropriate action plan selection to be adopted increasing the effectiveness of the change management. The proposed methodological adaptation of the BSc is illustrated through a real world case study concerning a large firm which is attainting to expand in other international markets.


Keywords


Change Management, Balanced Scorecard, Multicriteria Decision Aid

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References


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