Implementing a balanced scorecard approach in a catering company : a case study

Abstract

Purpose: The main purpose of this research study is to design a Balanced Scorecard (BSC) for a local catering company. To remain one of Malta’s leading companies in the catering industry which is a highly competitive environment, a strategic performance measurement (PM) system such as the BSC is of vital importance. Furthermore, a risk analysis is carried out to identify the major risks being faced by the catering company under review.

Design: To achieve the research objectives outlined above, a qualitative, case study method was adopted. Semi-structured interviews were held with different personnel at the catering company to obtain an insight into the organisation. Interviewees’ responses were then analysed in the context of the BSC.

Findings: The BSC was designed following Rohm’s (1997) ‘Nine Steps to Success Framework’. Apart from the four main traditional perspectives outlined by Kaplan and Norton, an additional perspective was devised to incorporate the environmental and social elements of the firm. After designing the BSC, three categories of risks which could hinder the catering company from achieving its objectives were outlined, including financial risks, operational risks and strategic risks.

Conclusions: The study concluded that the BSC designed for the catering company under review can add value to the firm by highlighting those areas which require improvement. In addition, it was concluded that the level of communication between top management and employees should be improved when setting measures and targets.

Value: The BSC should be implemented in the catering firm as it enables top management and staff to align their objectives with the overall strategy of the company. Furthermore, given the lack of research of the BSC framework in the Maltese catering industry, this study can be useful for other companies operating in the same industry.