Evaluation of strategic performance in oil companies through the integration of Balanced Scorecard and benchmarking technologies
Abstract
The economic entities confront various pressures and challenges due to the quick changes in the contemporary business environment that requires from these entities to evaluate their performance in a more comprehensive way rather than depending only on the financial perspective, in spite of its importance. The traditional measurements of performance evaluation are no longer considered sufficient to cope with the transformations of contemporary business environment; for this, performance measurements should be emanated from the strategy of economic entity in a way fits the surrounding environment specialty, and hence the fundamentals required to develop and improve performance, and the priorities of achieving these fundamentals should be determined. In according to the results of these measurements, strategic objectives will be achieved, corrective procedures required will be made, and an agreement will be on the most important target benchmarks and standards to compare the results of performance measurement and to be judged to fulfill competitive advantage and the purposes of business owners.
So, what is required of economic entities is to evaluate their strategic performance by using modern techniques such as balanced scorecard with its five perspectives which are (financial, customer, internal business processes, learning & growth and social environment perspective); and financial and non-financial measurements of strategic performance evaluation to create integration in comparing them with the performance of similar entities, product, processes or strategies of a similar entity if there are possible potentials.
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