Measuring the Performance of Jordanian Banks through Balanced Scorecard Approach

Abstract

Balanced Scorecard (BSC) is a performance measurement system that converts an organization’s value drive such as customers, services, financial performance, operational efficiency and innovation to a series of defined metrics, and records.  It is a management system that enables organizations to clarify their vision and strategy, translate them into action and provides feedback to improve strategic performance and results. It results in improved processes, motivated/educated employees, enhanced information systems, monitored progress, and greater customer satisfaction. The present research investigates the effect of using balanced scorecard (BSC) approach on the organizational performance of selected Jordanian banks. Multiple linear regression has been used for data analysis. The findings revealed that balanced scorecard approach has a significant impact on the organizational performance of banks under study.

Keywords: balanced scorecard (BSC), regression, organization, performance, banks.