BSC and benchmark development for an e‐commerce SME

Purpose – To report how an SME developed strategic and operational balanced scorecards (BSCs) as well as benchmarks for use in e‐commerce. Design/methodology/approach – The report begins with the initial management meeting, in which participants set goals for the firm, specified causal linkages among those goals, and identified appropriate strategies for attaining them. It then explains the perspectives chosen to structure the BSCs. Next, it summarizes results from analyzing proposed operational goals, concrete action plans, and key performance indicators to ensure inclusion of all potentials for growth. The report gives concrete examples of how management bundled proposed goals and actions into projects, budgeted them, and committed responsible actors. In addition, it describes how the firm used BSC development to institute a continuous learning process, while providing feedback to various stakeholders both within the firm and across its parent holding company. Findings – For many small‐ and medium‐sized enterprises, the development, introduction, and use of BSCs and benchmarks certainly seem feasible. Although relatively few have done so thus far, the managers of these firms likely would find it worthwhile to analyze their businesses on the basis of BSC‐perspectives. Originality/value – This report covers step by step the successful implementation of BSC and benchmarking methodologies in an e‐commerce firm, while overcoming many of the handicaps associated with doing so in SMEs.