Authors: Daria Balkovskaya; Liubov Filneva
Addresses: Department of Economics, National Research University Higher School of Economics, Nizhny Novgorod, B. Pecherskaya, 25/12, 603155, Russia ' Department of Economics, National Research University Higher School of Economics, Nizhny Novgorod, B. Pecherskaya, 25/12, 603155, Russia
Abstract: In this study, we employ 'step-by-step' algorithm for constructing a strategy map of the balanced scorecard (BSC) for banking institutions using the example of one of the Russian regional banks. The key evaluation indicators of banking performance are selected through the relevant literature analysis while considering the peculiarities of a sample bank. Further, the decision making trial and evaluation laboratory (DEMATEL) method is employed in order to identify causal relationships between the KPIs, i.e., direction and strength of their mutual influence, as well as to define the most strategically important indicators. Finally, both the KPIs and logical links between them are illustrated on the strategy map, so that bank managers could easily draw up various strategies on that basis. The DEMATEL method resulting in a clear map helps managers to prioritise their strategic steps in the limited resources context, and thus navigate their bank's strategy in a most effective way.
Keywords: balanced scorecard; BSC; key performance indicators; KPIs; strategy maps; DEMATEL; banking industry; strategic management; Russia; regional banks.
International Journal of Business Excellence, 2016 Vol.9 No.1, pp.48 - 67
Received: 02 Apr 2014
Accepted: 30 Apr 2014
Published online: 01 Dec 2015 *