USING BALANCED SCORECARD IN MEASURING THE PERFORMANCE OF ONLINE BANKING: CULTIVATING STRATEGIC MODEL MAP IN FINANCIAL SECTOR-CASE OF BAHRAIN
The balanced scorecard is a system that focuses the efforts of employees, from different levels of the organization, towards achieving the company’s vision and strategic objectives. The purpose of this study is to use the balanced scorecard in measuring the performance of online banking and to focus on how to cultivate the strategic model map in the Bahraini financial sector. A qualitative method was used in this study, with the semi-structured interview questions classified into three main elements covering the financial sector: Strategic Vision and Mission, Strategic Objectives based on the four perspectives of Balanced Scorecard (BSC), and the Online Banking Performance Measurement System. Three local banks participated out of 11 conventional retail and Islamic retail banks in Bahrain. The study provides a basis for integrating measures of the BSC and offers guidelines for implementation of a performance management system and how to adjust the strategic model map to fill the existing gaps. A generic online banking strategy model map is formulated to show the strategic objectives and relevant measures of the scorecard perspectives. Representatives of major banks in Bahrain were interviewed to explore the ways in which they measure the performance of their online banking divisions. The study concludes by proving a list of recommendations to the financial sector.
ADEL ISMAIL AL-ALAWI