According to the criteria set out in the Call for Paper the paper is to be included in the thematic area of “Strategic planning and management control systems”. The concept of Balanced Scorecard (BSC), formulated by Kaplan and Norton (Kaplan & Norton, 1992; 1996; 1997), is well known in all the world, but in the 60s a similar report was already been developed in France: the Tableau(x) de Board (TDB) (Epstein & Manzoni, 1997; 1998; Lebas, 1996; Pezet, 2009). The revolutionary contribution of both reports was the idea of suggesting to management an integrated model of performance measures, as a useful tool for the development and implementation of company’s strategy. The BSC model provides a powerful communication tool that enables managers to express priorities and goals to achieve. The achievement of these goals is measured by means of performance indicators related to four perspectives: Financial, Customers, Learning and Growth and Internal Processes. Furthermore, top managers should point out the existing cause-effect relationships that link performed actions with obtained results. The idea of the TDB is the construction of a model in order to integrate financial indicators and physical-technical parameters in the same dashboard. This model is a useful tool which, gives information in a synoptic way about the progress of business, and moreover it can help managers forecast company’s performance. Both reports are analyzed in a lot of studies and they are included in an abundant and plentiful literature, focused on management accounting and on performance measurement, in particular on Performance Measurement Models (PMM) (Malina, Selto, 2004; Nealy, 2006), which is made up not only by academics, but also by practitioners, for example by controllers and managers. Some researches (Gray and Pesquex, 1993; Innes, 1996; Epstein & Manzoni, 1998) are focused on a comparative analysis between the two models, BSC and TDB, although, as is well-known, the BSC model, and its later developments (Kaplan & Norton, 2004) have hold the top position in performance measurement models field, as the expense of TDB. The purpose of the paper is to analyze the definition and the use of the TDB in the context of a medium sized company: the Kedrion Spa. The Kedrion is a family-owned Italian biotechnology company, specialized in the development, production, and distribution of plasmaderivatives. Kedrion is present in many international markets through a network of distributors, authorized production plants and with plasma collection centers. (www.kedrion.com). The Kedrion’s established position on the domestic and international markets increases the interest on the analysis of the company’s performance measurement models. Some research questions emerge from this analysis: 1) what is the role of TDB in the implementation of the Kedrion’s strategy and what is the contribution to the achievement of leadership position? 2) What are the reasons for the Kedrion’s choice of the TDB model? 3) What are the benefits in the context of strategic planning and management control systems? Methodology/approach: The paper is an interpretative case study. The explanatory, longitudinal analysis will be expanded to another similar pharmaceutical companies, in order to formulate some generalizations, which still stand for the whole sector. Expected results: 1) Analysis of the possible differences between the TDB model, developed by the Kedrion, and the earlier version of the TDB; 2) Analysis of the operational consequences derived from the implementation of the TDB, which is popularized only in the French business context. 3) Comparative study between Kedrion and another pharmaceutical companies, in order to deepen some aspects arised from the implementation of the Kedrion’s mission and the management incentive system, connected to the achievement of particular performance goals. The contribution of the paper to the literature is motivated by the lack of surveys in non-French companies about the TDB implementation. Moreover, the pharmaceutical sector is principally analyzed in the accounting field (for example studies on investments in Research & Development) or in the corporate governance thematic area (in particular, researches on Corporate Social Responsability) than in the context of performance measurement models.
Doni, F. (2012). Performance Measurement Models in the pharmaceutical sector: the Kedrion case. In Management Control Journal Workshop on Controlling and Reporting for Strategy (pp.1-23).
Performance Measurement Models in the pharmaceutical sector: the Kedrion case
DONI, FEDERICA
2012
Abstract
According to the criteria set out in the Call for Paper the paper is to be included in the thematic area of “Strategic planning and management control systems”. The concept of Balanced Scorecard (BSC), formulated by Kaplan and Norton (Kaplan & Norton, 1992; 1996; 1997), is well known in all the world, but in the 60s a similar report was already been developed in France: the Tableau(x) de Board (TDB) (Epstein & Manzoni, 1997; 1998; Lebas, 1996; Pezet, 2009). The revolutionary contribution of both reports was the idea of suggesting to management an integrated model of performance measures, as a useful tool for the development and implementation of company’s strategy. The BSC model provides a powerful communication tool that enables managers to express priorities and goals to achieve. The achievement of these goals is measured by means of performance indicators related to four perspectives: Financial, Customers, Learning and Growth and Internal Processes. Furthermore, top managers should point out the existing cause-effect relationships that link performed actions with obtained results. The idea of the TDB is the construction of a model in order to integrate financial indicators and physical-technical parameters in the same dashboard. This model is a useful tool which, gives information in a synoptic way about the progress of business, and moreover it can help managers forecast company’s performance. Both reports are analyzed in a lot of studies and they are included in an abundant and plentiful literature, focused on management accounting and on performance measurement, in particular on Performance Measurement Models (PMM) (Malina, Selto, 2004; Nealy, 2006), which is made up not only by academics, but also by practitioners, for example by controllers and managers. Some researches (Gray and Pesquex, 1993; Innes, 1996; Epstein & Manzoni, 1998) are focused on a comparative analysis between the two models, BSC and TDB, although, as is well-known, the BSC model, and its later developments (Kaplan & Norton, 2004) have hold the top position in performance measurement models field, as the expense of TDB. The purpose of the paper is to analyze the definition and the use of the TDB in the context of a medium sized company: the Kedrion Spa. The Kedrion is a family-owned Italian biotechnology company, specialized in the development, production, and distribution of plasmaderivatives. Kedrion is present in many international markets through a network of distributors, authorized production plants and with plasma collection centers. (www.kedrion.com). The Kedrion’s established position on the domestic and international markets increases the interest on the analysis of the company’s performance measurement models. Some research questions emerge from this analysis: 1) what is the role of TDB in the implementation of the Kedrion’s strategy and what is the contribution to the achievement of leadership position? 2) What are the reasons for the Kedrion’s choice of the TDB model? 3) What are the benefits in the context of strategic planning and management control systems? Methodology/approach: The paper is an interpretative case study. The explanatory, longitudinal analysis will be expanded to another similar pharmaceutical companies, in order to formulate some generalizations, which still stand for the whole sector. Expected results: 1) Analysis of the possible differences between the TDB model, developed by the Kedrion, and the earlier version of the TDB; 2) Analysis of the operational consequences derived from the implementation of the TDB, which is popularized only in the French business context. 3) Comparative study between Kedrion and another pharmaceutical companies, in order to deepen some aspects arised from the implementation of the Kedrion’s mission and the management incentive system, connected to the achievement of particular performance goals. The contribution of the paper to the literature is motivated by the lack of surveys in non-French companies about the TDB implementation. Moreover, the pharmaceutical sector is principally analyzed in the accounting field (for example studies on investments in Research & Development) or in the corporate governance thematic area (in particular, researches on Corporate Social Responsability) than in the context of performance measurement models.
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