Holistic scorecard: strategic performance measurement and management in the software industry

Purpose – Though a few critics have questioned the effectiveness of the balanced‐scorecard approach in measuring business performance this approach has taken the academic and business community by storm. However, the approach proposed by Kaplan and Norton is not all‐encompassing as they have overlooked certain critical perspectives in their scorecard. The purpose of present study is to make a small, yet significant stride, to fill this lacuna. Design/methodology/approach – The present work presents such issues and proposes a conceptual, theoretical framework, called holistic scorecard, for managing performance in the software industry. At the crux of the scorecard are six perspectives that portray a ubiquitous approach for strategic performance management. Findings – Six perspectives, as well as critical success factors and key performance indicators, are provided. The relevance of these perspectives, especially from the software industry viewpoint, has been authenticated. With respect to each perspective, measures have been proposed that efficiently and effectively address the vital facets of an organisation's business excellence at both the macro and micro levels. Practical implications – Provides an integrated scorecard for measuring and managing business performance. Originality/value – The successful diffusion of performance enhancement measures and initiatives throughout the organization is necessary to achieve world‐class competitiveness. The proposed framework aspires to provide a basis for achieving this.