A Scorecard for Small Business Performance

Roy A. Cook, Janet Bear Wolverton

Abstract


Evaluating organizational performance  of small businesses has frequently  been a neglected managerial function.   When evaluation efforts have been undertaken, they have ranged from  simple  internal  reviews  to co1nplex  and  often  costly  audits conducted  by independent parties.  However, most individuals working in a small business rarely take the time or make the effort to undertake a comprehensive review of their business activities.  To begin the process of answering  the important question  of how well a small  business is performing,  a straightforward approach that is easy to prepare and interpret on a regular basis is required. Realizing that most individuals involved with small businesses are pressed for  time, an  easy-to-use  evaluation  instrument  designed  to focus  attention  on strategic performance indicators (SPIs) has been developed. These SPIs focus attention on the primary functional areas of a business: management, marketing, and finance.  Each question has been designed to help the reviewer think about the importance of strategic performance indicators to the overall success of the business.


Full Text:

PDF

References


Barnes, P. ( 1987). The analysis and use of fi nancial ratios: A review article. Jou rnal of Busi ness Finance & Accountin g, l.:!, 449-461 .

Berry, L. L., Connant, J. S., & Parasu raman, A. ( 1 991 ). A framework for cond ucti ng a services marketing audi t. Journal of the Academy of Marketi ng Science, l.2. 255-268.

Bonoma, T. V. & Clark, B. H. ( 1 990). Assessi ng marketi ng performance. In T. V. Bonoma & T. J. Kasni k ( Eds), Marketin g management text & cases. Homewood, IL: Irwin.

Brassy, R. (1986, Summer). What di rectors say about thei r role i n managi ng executi ve pay. Directors & Boards, pp. 38-40.

Flamholtz, E. G.. Searfoss, D. G .. and Coff, R. ( 1 988, September). Developi ng h uman resource accounting as a human resource decision support system. Accounti ng Horizons, pp. 1 -9.

Grady, M. W. (1991. June). Performance measu rement: Implement i ng strategy. Management Accounti n g, pp. 49-53.

Hennanson, D. R. & Hermanson, H. M. (1994. J une). Do the n umbers make sense? Accounting analysis for your business. NBDC Report, pp. 1 -4.

Humphreys, N., Robi n, D. P., Reidenbeck, R. E., and Moak, D. L. ( 1993). The ethical decision maki ng process of small busi ness owner/managers and thei r customers. Journal of Small Busi ness Management, J.!(3), 9-22.

Kotler, P.. Armstrong, G. & Starr, R. G., Jr. ( 1991 ). Principles of marketing, (5th ed.). Englewood Cliffs, NJ: Prentice Hal l.

Larrabee, M. ( 1988, Winter). Audi ti n g the marketi ng fu nction. I nternal A ud it i n g, pp. 36-45. Lawder, K. (1989, June). Ratios I O I : Back to the basics of fi nanci al analysis. Busi ness Credi t,pp. 28-30.

Leifeld, N. ( 1992. September). Inside the baldridge award gu ideli nes. Qual i ty Progress, pp. 51- 55.

Peterson, R. T. ( 1992). A longi t udi nal analysis of marketi ng factors rel ated to small business success. Journal of Busi ness & Entrepreneurshi p, 1_, 7 1 -75.

U.S. Department of Labor Bureau of Labor Statistics. ( 1 994, March). Month l y Labor Review. Walsh, E. F. ( 1990, November). A primer for pl an n ing. Sales & Marketi ng Management, pp. 75-78.

Watts, L. R. & Ormsby, J. G. ( 1 990, October). The effect of operational and strategic plann ing on small firm perfonnance. Journal of Small Busi ness Str ategy, , 27-35.

Yallapragada, R. R. & Breaux, A. P. (1989, January). Fi nancial statement analysis. The National Pu blic Accountant, pp. 32-37.


Refbacks

  • There are currently no refbacks.


sbi-web_120