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Master Thesis Center Management Business Essay

Atkin and Brooks (2009) state governments that the most crucial function of Facility Management is to provide, operate, maintain and improve promoting services to be able to create a host that supports the primary processes or -objectives of a involving organizations. In addition they say that in practice, facilities management can cover a variety of supporting services and products.

According to Cotts et al (2009) the most recent definition of center management is: "a profession that includes multiple disciplines to ensure functionality of the build environment by integrating people, place, process and technology". This definition seems more to be inclined to overall business strategy due to integration of individuals, place, process and technology to ensure good facilities management. Considering the interesting definition on business strategy by Johnson et al. (2009) we see that strategy provides the direction and range of an organization over the long term, for achieving benefits in a changing environment throughout settings of resources and competences with the purpose of fulfilling stakeholders' expectations. This definition on strategy shows us the same things of pursuits as this is by Cotts et al, specifically the aspects of the construction of resources and competences (for example people, place, process and technology) for recognizing effective management.

Barrett and Baldry (2003) say that facilities management has customarily been thought to be the poor relation within the true estate, architecture, executive and development sector. It is because it was seen in the old fashioned sense of for example wedding caterers, cleaning, vehicle repairs and maintenance. Based on the aforementioned definitions I could state that nowadays facilities management includes more than only providing services. It's also about changes, encouraging processes and investing in the overall business strategy of a business. Maybe it's important to find a certain balance in every aforementioned aspects in the number of definitions, for noticing the most efficient way in taking care of facilities.

Aforementioned definitions screen that the fundamental principle of center management is often apt to be complex and mostly it influences multiple disciplines to ensure features of the build environment. Center management also concerns the support of the principal procedures and it generally requires a approach. Used, facility management bring recourses, skills, technology and ideas alongside one another to attain business aims and deliver business benefits. Simply said; center management can move an organization from where it is currently, to where it requires to maintain the near future to matches its business strategy and -aims (Atkin and Brooks, 2009). But how are these sophisticated daily facilities management shows be measured in order to know if facilities provide value for money and offer qualitative support to the principal process in the working environment?

Brian Atkin and Adrian Brooks (2009) areas, that quality of facilities management manifests itself in lots of ways. If users or customers were asked to define what quality designed to them in the context of a facility, there would be as many different explanations as there have been users. To be able to overcome this potential problem, facilities professionals need to focus meticulously on users and customers to elicit their view on what quality methods to them. In many situations, it is possible to substitute the word performance for quality. Facilities performances are means of focussing on what users and customers really expect and indicate by quality. Inside the context of services and facilities, quality is something that may be defined and decided as performances.

Performance measurement stresses the quantifying of an action, whereas way of measuring is the quantification and action causes performances. Performance way of measuring emphasizes the process of quantifying the effective control and monitoring of facility techniques and services (Maas and Pleunis, 2006). To put it simply, performance dimension includes activities to ensure that facility targets and goals are regularly being achieved in a highly effective and useful manner. Performance measurement is developed as a way of monitoring and maintaining organisational control, which is the procedure of making certain an company pursues strategies that lead to the accomplishment of overall goals and objectives (Amaratunga et al. , 2000).

The procedure for performance management is the next: from the strategy, insurance plan, and objectives set out by the facilities organization, goals can be created. These goals must be made enforceable and measurable. By appointing critical success factors (CSF), you'll be able to define which standards must be met to accomplish these facilities goals. For monitoring and controlling these goals, key performance indications (KPI) should be identified. Key performance indicators are specified measurable results and provide as the basis for monitoring procedures and management reviews (Maas and Pleunis, 2006).

Interesting philosophies that contain been discussed in the educational world as well as in the business world are about performance dimension systems as an instrument for delivering tactical objectives, like the EFQM Brilliance Model (Western Basis of Quality Management, 1992) or the Well-balanced Scorecard (Kaplan and Norton, 1992). These models are found out and accepted within the last decade by many organizations as the included management models for effective operating and directing organizations (Ahuis and Diepman, 2006). In this research project, the focus sits on the Balanced Scorecard as a management framework for dimension of operational performances.

In a newspaper about performance evaluation in facilities management, written by Dilanthi Amaratunga, David Baldry, and Marjan Sarshar (2000), lots of factors are defined based on their research which need further clarification and analysis in further research. Among these points is about reviewing of common goals, critical success factors and performance way of measuring relevant to facilities management, in the framework of the application of the well balanced scorecard. They say that research is essential for id if the Balanced Scorecards is suitable to other levels within the facilities management unit and awareness of the implications of using different Balanced Scorecards at different levels in a facilities management organisation. They have stated the expectation that the outcome of further research will permit academics and practising professionals to assess if the Balanced Scorecard is likely to be successful in facilities management.

Therefore, in this job, I will check out performance evaluation in facilities management, whilst the main discussion is about the use of the well-balanced score-card (BSC) theory as a trusted management construction for dimension of functional performance within facilities departments. Furthermore, this thesis recognizes this construction as a proper management system for facilities management. The main purpose of the research is to attempt to apply a well-balanced Scorecard in to the daily facilities management procedures of a case study and to learn about performance assessment and its outcomes, for case which performance indicators or ratio's are most effective to find for facilities performance dimension. [1]

In compliance with aforementioned, it is expected that development of a proper balance of performance actions to support the critical success factors of your facility management organizations is sophisticated and it affects multiple disciplines. Because of this, the study question of this project thus is the following:

To what level will the Balanced Scorecard be auseful device to measure performance dimension for center management and which success factors and key performance indications are most effective to find for efficient facilities performance measurement?

I am looking for the most effective and efficient effects of performance evaluation in facilities management.

When I point out outcomes, I really do not specifically indicate only the application of the Balanced Scorecard in practice. With outcomes, After all a critical review of the best to find goals, critical success factors and performance way of measuring relevant for professional performance dimension within the job of facilities management. The Balanced Scorecard will be used as a helpful platform for evaluating which final results are better to find.

I will make an effort to answer my research question by looking at a given case, where I will conduct a case study research in collaboration with the facility management department of Centraal Boekhuis. This case study will give attention to evaluating how Centraal Boekhuis works with performance dimension related to its facilities management strategy, and exactly how it best could work with the well-balanced scorecard. The explanation for this case study may possibly be within qualitative data, for example the study of business records and information that are in stock within the company about facilities strategy, its business strategy and performance measurement. The exploratory part of the research identifies the testing of the Balanced Scorecard within Centraal Boekhuis, to see if the well-balanced scorecard does apply for facilities management performance evaluation and which goals, critical success factors and performance way of measuring relevant for professional performance way of measuring are better to be find.

In the theory section, I am going to extensively explain the theory on performance dimension, performance dimension in service management, performance evaluation, the healthy scorecard, and the idea on facilities strategy, critical success factors, and key performance signals. Interesting literature on goals, critical success factors and performance dimension relevant for professional performance way of measuring are critically analyzed and compared with my own analysis findings on these issues. However, I'll first give some necessary record information and make clear why I have chosen to study the current circumstance situation of Centraal Boekhuis for my research project.


This project aims to contribute to the vocation of service management generally, and the idea which will be used might be appropriate to several (service management) organizations. However, the project is a case study on Centraal Boekhuis. In order to make sure that readers who are not sure of Centraal Boekhuis can follow the arguments, a short summary of Centraal Boekhuis will be provided. I am going to also offer some record information on the center management section of Centraal Boekhuis. At the end of this section I will describe why I have chosen to review the current circumstance situation of Centraal Boekhuis for my research study.


Centraal Boekhuis is a (leading) logistics company in stocking, safe-keeping, distribution and travelling of books. A lot more than 500 publishers and over 1500 booksellers use the service facilities for circulation, vehicles, information and administration. For publishers is Centraal Boekhuis the admittance in to the Dutch and Flemish (publication) markets. For booksellers in holland and Flanders, Centraal Boekhuis is theprovider of the range of Dutch-language books, basic as well as educational or clinical literature, and a selected selection of foreign-language catalogs.

Besides caring for stocking, storage, distribution and travelling of books, Centraal Boekhuis offers administrative or financial services. For publishers the business organizes complete stock and sales saving, invoicing and business collection agencies. Booksellers as well benefit from a broad selection of information technology services. The majority of Centraal Boekhuis' services are integrated in a single automated system (CB Online), so customers have access to the operational and management information they want, centered on their company's business techniques.

Upon get, Centraal Boekhuis will also arrange the storage, distribution and transfer of office materials, stationary and handmade cards. All logistic activities and processes are linked with the move centre's delivery network. The centre's range of services includes processing special offers and returned goods, (temporary) storage, order picking and undertaking special mailing promotions with value-added logistics.

The Transport Centre of Centraal Boekhuis organizes travel from and countries outside the Benelux. In Britain is a consolidation point bounded, where shipments from 1600 English publishers intended for Dutch bookshops are gathered and forwarded to holland. This permits Centraal Boekhuis to provide customers attractive services. Shipments from Germany and America are transferred along similar lines.


For over 135 years Centraal Boekhuis have been the logistic partner in the Dutch reserve trade. In 1871 the Vereeniging ter Bevordering truck de Belangen des Boekhandels (VBBB) in Amsterdam place the foundations for Het bestelhuis truck de Nederlandsche Boekhandel, presently called Centraal Boekhuis. Publishers send their boxes with books compared to that warehouse of literature, where the containers were distributed over the Netherlands.

Many years later, in 1926, the VBBB made a decision to found Centraal Boekhuis in Amsterdam. Well-established publishers were obliged to store their catalogs in the central depot of Centraal Boekhuis in Amsterdam. From now on the booklet stores and publishers could order their books with Centraal Boekhuis from one central point in holland. In 1973, because insufficient space, Centraal Boekhuis grounded their company in Culemborg, where the company nowadays is still grounded. For the reason that same time is Het Bestelhuis and Centraal Boekhuis merged into one company: Centraal Boekhuis B. V.


The daily management of Centraal Boekhuis is directed by the Senior Management Team (SMT). The lead path of the 5 Older Managers is directed by a CEO, particularly Hans Willem Cortenraad. They have weekly meetings to go over the company' insurance policy and exactly how this policy is most beneficial aimed to the lines managers. The Senior Managers are directly responsible for the many divisions within the company. The line managers will lead the division plan to their employees. In a very schematic way it will thus be structured:

Chief Executive Officer:

  • H. W. CortenraadChief Professional Officer

Senior Management Team:

  • Jaco Gulmans RECRUITING Management
  • Ronald Janssen Information Communication Technology
  • Harry truck der Linden Funding & Controlling
  • Marinus Ploos vehicle Amstel Consideration Management & Marketing
  • Cees Pronk Logistics
  • Egbert Guis Job Management

Centraal Boekhuis in numbers (2009)

  • Full time employees: 579
  • Web publishers: 500
  • Booksellers: 1500
  • Available Dutch game titles: 80, 000
  • Variety of copies shipped per time: 60, 000, 000
  • Range of delivery addresses each day: 2500
  • Number of packages carried per calendar year: 4, 500, 000
  • Variety of pallets carried per season: 300, 000


The daily service management of Centraal Boekhuis is overall directed by the Senior Manager RECRUITING (HR). The Senior Administrator HR informs the Table of Directors, and the Senior Management Team about the course and strategies of the Individual Resources- and facilities division. The manager of the center services section will point the division insurance plan of the facilities services. The center services administrator is thus responsible for proper, tactical and functional control of the facilities team (Centraal Boekhuis, insurance policy plan Facility Management, 2010).

The key characteristics of just how facilities services are proposed by the service management team of Centraal Boekhuis, is to support the customers' needs in stocking, storage space, distribution and travel of catalogs. Centraal Boekhuis have many facilities services, which range from building management, reception, mail room, security, accommodation management, catering but also facility services like maintenance management and specialized services. Most of the supporting service services of Centraal Boekhuis are outsourced for creating a higher service level.

Besides the day-to-day procedures of the facilities of Centraal Boekhuis, the service management department of Centraal Boekhuis also provides services like Custodial Services, Mail Services, and Utilities and Energy saving. The facilities service department offers a service table, a central service point, which provides a proclamation service for the internal customers. The facility desk is a service for customers where they can record questions, problems or recommendations relating to facilities services. The center desk subsequently will try to resolve the concerning reports.

The mission assertion of the center management office of Centraal Boekhuis displays that the facility department makes a differentiation between strategic, tactical, and functional management, with also carrying on connection with the main business and the environment of the business.

Maas and Pleunis (2006) identifies that proper facilities management should be based on strategic, tactical and operational management levels, as well as there must be a certain concentrate on internal and exterior processes, aspects and improvements. The facilities management department of Centraal Boekhuis has lately changes its way of directing and controlling the facilities services. The department has been split into three management levels (proper, tactical and functional) and will make utilization of management tools in order to direct and take care of the facilities section efficiently.

The panel of directors of Centraal Boekhuis (2009) has produced a covering insurance policy on performance dimension for the strategy period 2009-2011, whereas this coverage among other activities is focused on active control of functions with help of high quality management information. This policy is eventually also mentioned for the facilities management section of Centraal Boekhuis for the plan-period 2010 (Center policy, 2010 - 2012, Centraal Boekhuis). The problem is that facility management for Centraal Boekhuis is intricate and influences multiple disciplines. Therefore it is difficult to spell it out performance evaluation in facilities management, which is hard to define which goals, critical success factors and performance dimension are relevant to measure facilities shows optimally.


In this section, I will first present a hypothesis about performance dimension for center management. Then, I'll explicate the idea which the hypothesis is based. I will do it by first offering some home elevators performance measurement and its history, and then present important ideas on performance way of measuring in facility management, including theory on the well-balanced scorecard and facility management strategy. In order to make the hypothesis plausible, the theories which I will discuss are mainly focussed on performance way of measuring in relation with center management.


I will test the next hypothesis:

"The balanced scorecard can be usedfor performance measurement for center managementwhilst the process of using the well balanced scorecard will in result function as a helpful framework in finding the most effective success factors and key performance indications for successful facilities performance way of measuring. "

This hypothesis says the seek out the most effective and efficient benefits of performance evaluation in facilities management. WHENEVER I mention outcomes, I do not specifically indicate the use of the Balanced Scorecard used. With outcomes, I mean a critical review of the better to find goals, critical success factors and performance indications relevant for performance measurement within the occupation of facilities management. The Balanced Scorecard will be used as a helpful framework for examining which final results are better to find in facilities management.


When studying the books about performance dimension it is well known that this topic is broadly discussed. Performance measurement is a subject which is often discussed in the business world as well as in the academic world. It is for that reason that there are many meanings to be find in the literature about performance way of measuring. Many of them will be cared for in this research. Relating to Leeny et al (1995), performance way of measuring is literally the procedure of quantifying action, where measurement is the procedure of quantification and action causes performance. Sink talked about performance measurement in 1991 as a "puzzle. . . complex, annoying, difficult, challenging, important, abused and misused" function. Performance of your business or firm is a function of the efficiency and effectiveness of the activities which it undertakes, thus performance measurement can be defined as the process of quantifying efficiency and effectiveness of activities. Though, these definitions shows that performance way of measuring remains a very broad subject.

For example, as exhibited by Neely in 2002, there have been appearing new reports and articles about performance dimension at a rate of one every five hours per morning since 1994. It would be no surprise that modern times researchers have developed new approaches of measuring performance, such as activity-based costing (Kaplan and Cooper, 1997) and shareholder value (Rappaport, 1986). Other research workers are suffering from performance measurement theories, like the performance pyramid by Lynch and Mix (1990) or the macro process model as mentioned by Dark brown (1996). Perhaps one of the most recent developed and broadly discussed platform for performance measurement is the performance prism, produced by Neely et al. (1996, 2002).

Though, regarding to Neely et al. (1995), performance way of measuring is rarely defined. When learning their feedback regarding performance measurement definitions, they propose the next definitions in which they clarify performance measurement: performance dimension, a performance solution and a performance measurement system. These definitions can be described as the following:

  • "Performance dimension can be explained as the procedure of quantifying the efficiency and efficiency of action. "[2]
  • "A performance solution can be explained as a metric used to quantify the efficiency and/or efficiency of action. "
  • "A performance dimension system can be defined as the group of metrics used to quantify both efficiency and performance of activities. "

There is also an interesting eye-sight on performance solution by Hronec (1993) where he identifies performance steps as the essential quantifications on how well the actions within an activity or the outputs of an activity achieve a specific goal. Subsequently, the need for integration of the different measures is reinforced by Hronec too (1993), whereas a performance system is thought as a "tool for balancing multiple options (cost, quality and time) across multiple levels (organization, techniques and people)".

As mentioned preceding, a performance way of measuring systemcan be defined as the group of metrics used to quantify both efficiency and effectiveness of activities. [3] The especially performance dimension frameworks are the well-balanced scorecard (BSC) by Kaplan and Norton, (1992 and 1996a) and the business enterprise excellence model, produced by the European Groundwork of Quality Management in 1992. Corresponding to analyze of Bernard Marr and Gianni Schiuma (2002), the dominance of the Balanced Scorecard idea is tremendous. The Balanced Scorecard seems to be the most important concept in the field of performance measurement. Additionally it is for that reason that my research focuses on putting the well balanced scorecard to the test as a performance measurement system for facilities management.

However, at the end of every of the management processes of these frameworks, the users of the frameworks have only chose what to assess, but nothing at all has been executed yet. Achieving execution and embedding of performance way of measuring can be carried out with help of a performance way of measuring system. Performance way of measuring systems are developed as a means of monitoring and keeping organizational control (Nani et al, 1990), which essentially is the procedure of making certain an organization pursues strategies that lead to the accomplishment of overall goals and aims (Kaplan and Norton, 1996).

Kaplan (1991) explained that an effective performance way of measuring system should provide timely and accurate opinions on the efficiency and effectiveness of procedures. When applying a performance measurement system including the balanced scorecard in practice, it is thus important to look at what to measure and apply a certain concentrate on continuous improvement. Oftentimes the continuous improvement is mainly shaped by the management style of constant improvement Plan, Do, Check, Work (PDCA), or also called the Deming Circle. The Deming Group (1950) is known as after Edwards Deming, but formerly it was developed by Walter Shewhart (1939). The model provides representation of the iterative procedure for continually focusing on improvements, and it is developed by the facets Plan-Do-Check-Act. This principle states that to attain goals, a continuing development process must be notified of: making plans of actions, the execution of organized actions, examining the results of the genuine planned activities, and, if necessary, timely changes of the strategies.



Performance dimension is ultimately about noticing and putting into action strategy (Neely, 1994). Therefore, a more exploratory examination about (facility management) strategy is necessary to place strategy realization in the context of performance way of measuring.

The traditional literature about business strategy is often about the overall explanations of business strategy, where organizations give attention to where they would like to be on the long term (objective and perspective) and how this is achieved (goals and goals) (Alblas & Wijsman, 2001) to be able to get competitive advantages. The existing books about strategy details more that strategy is approximately the value of achieving edge in a changing environment throughout configuration of resources and competences with the purpose of fulfilling stakeholders' objectives (Johnson et al. , 2009). Aforementioned shows that the existing books on business strategies discusses the value of the characteristic aspects change and settings (Kloosterboer, 2005). The relative context between business strategy and changes is an important aspect that must definitely be considered before I continue my research.

According to Bryan Atkin and Adrian Brooks (2009), Change Management is the main element towards innovation of organizations. To make improvement and achieve greater efficiency and better value for money also to become more effective or competitive, organizations have to do things differently and have to make changes. Atkin and Brooks (2003) characterize service management as an important aspect for managing and lowering the inherent risks associated with change and creativity. Therefore changing organizations need facility management for making those proper changes.

In accordance with research performed by Johnson et al. (2009), formulating strategy can be thought of as having three main elements: understanding the proper position of a business, making strategic choices for the near future, and taking care of strategy into action. These three elements in growing strategy are trusted in the business world and many organizations just follow these steps in order to be successful to make strategy.

Understanding the tactical position can be involved with identifying the effect on: strategy of the exterior environment (product and marketplaces), an organization's tactical ability such as resources and competences (strengths and weaknesses), and the anticipations and impact of stakeholders (corporate and business governance). The proper choices element will involve your options for strategy in conditions of the guidelines in which strategy might move and the techniques by which strategy might be pursued, for example, proper choices about coming into new markets or strategic options about developing new products. Strategy doing his thing is concerned with the techniques where organizations go after their strategies and this chosen strategies are actually put into practice. Critical success factors (CSF) and key performance indicators (KPI) are required to control how strategy is implemented and ensure that strategies are executed matching to plan.

Also Critical Success Factors (CSF) for the facilities department must be recognized. These critical success factors are expressions of accomplishment that signify either improvement towards - or success in getting - goals (Ahuis and Diepman, 2006). A crucial success factors helps a administrator to put into action strategy by justifying the explained goals. Subsequently, with help of Key Performance Indications (KPI), goals are obtained and understood. Key Performance Indicators help a business define and measure progress toward organizational goals and are quantifiable measurements that indicate the critical success factors of an organization (Geelen, 2004), such as ratio's and regular information of costs.

I will now discuss the career of facility management in the context of commercial strategy. The fact of center management is to support the execution of the organization's strategy to deliver support to the principal process (Maas and Pleunis, 2006). The study of recent literature shows us that center management is nowadays recognized as one of the most crucial business procedures within organizations (Barrett and Baldry, 2003). It is for example that organisational changes and the application of facility management for realising those changes must be linked to the overall business strategy of an organization, in order to accomplish business strategy, goals, and targets. Simply said; service management can move an organization from where it is now, to where it needs to be in the future to fulfills its business strategy. To meet the organizations goals, facilities management departments need to do an improved job of developing service strategies (Atkin and Brooks, 2009). The strategy of the service management office thus must be aligned with the organization business strategy, with also continuing connections with the main business and the surroundings of the business (Maas and Pleunis, 2006). A service strategy must be aligned with-and responsive to-business plans and aims while demonstrating the significant value associated with the facility belongings of the organization. Without an knowledge of the strategy of a business and where it is heading, it's very difficult to learn whether or not facilities are monitored properly and the way the facilities team can best support the business's goals and aims. Such a technique alignment will advise the facility administrator what changes to facilities are needed to support the organization more effectively.

The strategic degree of facility management concerns the long-term course of the service management department. Also the strategy of center management departments involves a mission, eyesight, goals, and targets. The vision of the service management department is the desired future status of the department. The goals of the service management department are a general and concrete aim based on the mission and eye-sight of the department. Whether or not the strategic actions and thus the eye-sight and mission of a policy plan will actually be realized, is determined by the level to which management clubs manages this insurance policy plan into daily practice. Critical success factors and key performance indicators helps the center management team to identify and measure improvement into the management process.

These critical success factors are expressions of achievement that symbolize either improvement towards - or success in reaching - goals. Such a crucial success factors helps the facility department to put into action service strategy by justifying the explained goals (Ahuis and Diepman, 2006). Subsequently, with help of Key Performance Indicators (KPI) goals are obtained and became aware, and it can help the facility section to determine and measure improvement toward departmental goals. Also in this framework will be the key performance indicators quantifiable measurements that echo the critical success factors (Maas and Pleunis, 2006). Strategy development and planning are ongoing techniques. Armed with the info of abovementioned, the center director can fine tune the final results, refine the steps, confirm the info, and do it again (Maas and Pleunis, 2006). This technique gives a representation of - which is in line with - the iterative procedure for continually focusing on improvements of the Deming Circle, as also explained in the first paragraph of the chapter.

As mentioned before, Critical Success Factors (CSF's) will be the critical factors or activities necessary for guaranteeing the success of a technique of an organization. Also on departmental level are critical success factors needed to state set up (center) manager manages its insurance policy plan efficiently into daily practice. The following critical success factors helps to implement center strategy and determine set up strategy of the facilities office can be achieved. Corresponding to Herman B. Kok (1999), there are eight success factors [4] to be talked about for service management strategy, namely:

  • Cost control management;
  • Integrated services;
  • Integrated quality management;
  • Professionalism;
  • Customer Target;
  • Customized work;
  • Versatility;
  • Market conformity.



During the research study research of this thesis I will put the Balanced Scorecard to the test, whereas I am going to try to find the best to find critical success factors and performance indicators relevant for performance dimension within the occupation of facilities management. Thus, the Balanced Scorecard will be utilized as a helpful framework for assessing which effects are better to find in facilities management. It is for that matter important to give a literature research about the Balanced Scorecard, to be able to provide information about this framework and to be able to asses how to apply this framework in a research study situation.

During the overdue 1980s and early on 1990s, managers began to reject financial steps and were searching for new means of measuring organizational shows. As also stated by Medori (1998), only using financial performance procedures for steering organizations will lead to inadequacies. Many organisations recognise that only using cost systems is limited for keeping up with today's powerful competition (Kaplan and Norton, 1992). Traditional performance dimension systems are not providing managers with the info they have to measure and deal with other important competencies that drive competitive benefit. Traditional financial systems are showing to be of progressively more limited use to professionals who wish to control and improve critical business functions. That's the reason many organizations spotlight the value for keeping record on shows in other key areas of their business, other than only financial competencies.

The way of the healthy scorecard is therefore fundamentally different then that of the traditional performance dimension systems. While financial procedures are included, the scorecard goals also other leading signals. Morris (1999) talks about why that is important: "in business, it's important to have a well-balanced approach. You shouldn't just assess financial focuses on or performance targets to determine how well you are doing. You must look across the board".

The Balanced Scorecard is produced by Robert Kaplan and David Norton in the year 1992 whereas they offered their first article, "The Balanced Scorecard - Procedures that Drive Performance. " Since 1992, Kaplan and Norton have produced other articles and literature, all elaborating on the original article about the Balanced Scorecard. The Balanced Scorecard approach insists that management track four different types of actions: Financial methods, Customer actions, Internal Business (Process) options, and Invention and Learning actions. By using the Balance Scorecard way, organizations identifies corporate and business objectives within each of the four categories. Eventually, the management then aligns hierarchy by assigning each director his / her own scorecard with more specific targets in each of the four categories. When properly used, the system focuses every manager on a healthy set of performance options.

Matching to Ahaus and Diepman (2006), the Balanced Scorecard is something or platform which integrates actions of client satisfaction, process performance, product or service innovation and money. Or also explained by Kaplan and Norton (1992), the healthy scorecard is needed for "a balanced display of both financial and operational measures". The balanced scorecard translates an organisation's objective and strategy into a thorough set of performance measures that provides the framework for strategic performance dimension and management. The well balanced scorecard measures are designed around the next four perspectives:

  • Customer - what do existing and clients value from us?
  • Internal processes - what techniques must we excel at to achieve our financial and customer point of view?
  • Learning and development - can we continue to improve and create future value?
  • Financial - how do we create value for our shareholders?

The Balanced Scorecard approach can be unveiled by proclaiming a perspective on the four perspectives. The eye-sight will be made by requesting the questions listed above. Subsequently, the eye-sight will be further developed by stating measurable success factors, performance indicators, and focuses on. [5]

The balanced scorecard seeks linkages between the financial benefits (lag signals) and the non-financial outcomes (lead signals). The Balanced Scorecard Also looks for linkage between departmental goals, personal goals, and goals of the entire strategy (Ahaus and Diepman, 2006). The four perspectives of the scorecard permit a balance between short-tem and long-term goals. It also will try allowing balance between desired benefits and the performance drivers of those effects, and balance between the objective actions and softer, more subjective methods. The multiplicity of measures on a well-balanced scorecard seems somewhat confusing for some managers, but properly produced scorecards include a unity of goal because all the options are aimed towards achieving a strategy (Kaplan and Norton, 1992). The Balanced Scorecard is structured as exhibited in the shape below (see body 3).

In any business customers are incredibly important. The customers determine the sales of any group. It is for that matter that the customer perspective talks about the company through the eyes of its customers. The central question in the client perspective is exactly what do existing and clients value from us? The Balanced Scorecard needs that managers translate their general objective on customer support into specific methods that echo the factors that really matter to customers (Kaplan and Norton, 1992). The customers' perspective concerns four categories: time, quality, performance and service, and cost. To be able to get opinions in how well organizations are doing, customer satisfaction way of measuring, for example, is one of the generic outcome steps.

The internal functions perspective is about what functions must excel to achieve financial and customer concentrate.

Therefore, the internal processes perspective records on the efficiency of internal processes and strategies. Customer-based measures are important, nonetheless they must be translated into options of the particular organisation should do internally to meet its customers' objectives (Kaplan and Norton, 1992). When an organization controls its processes sufficiently, the business is able to react to market demands and can achieve the desired financial outcome. An effective balance between people, resources, and methods, will in the medium term business lead to results. The measures should be centered on the internal operations that will have the greatest impact on customer satisfaction and reaching the organisation's financial objectives.

The previously referred to perspectives are developed for the brief and medium term. The training and growth point of view focuses on the continuity of an organization in the long term. The learning and growth point of view deals with research and development issues such as intellectual property, market advancement and skills development. The question which organizations should ask themselves is: can we continue steadily to improve and create future value? The innovation and learning perspective is required so as to discover that the customer perspective and the internal process perspective are constantly changing. Competition requires that companies make continual advancements to their existing procedures and have the ability to introduce entirely new operations with expanded features (Kaplan and Norton, 1992). The organisation thus must continually seek to learn, to innovate, and to improve every part of the company and its business, just to maintain their current and future competitive situation (Amaratunga et al. , 2000).

The financial performance steps define the long-run targets of the business product (Kaplan and Norton, 1992). Financial performance steps indicate whether the organisation's strategy, implementation, and execution are contributing to bottom-line improvement. The main question of the financial point of view is just how do we create value for our shareholders? The financial point of view revolves around questions like: are we in a position to survive as a business? Can we continue to grow as a business? Can we offer our shareholders value for money? What should we do to make our shareholders happy? Ultimately, the shareholders of an organization are most interested in to the income performance of the company. Because of the financial passions of the commercial organization it is important to translate performances of an organization in the normal unity of money. But regarding to Kaplan and Norton, financial measurements by themselves are insufficient. It is therefore that the restrictions of financial control systems are usually more than paid out by the other perspectives of the Balanced Scorecard. However the financial perspective, however, is the main instrument of any business with a revenue target.

In 1997, the scientist Kurtzman mentioned that 64% of the firms he analyzed have implemented a kind of performance way of measuring that is in accordance with the well-balanced scorecard. Recent research show that companies use the well balanced scorecard as a means to a variety of goals. The Balanced Scorecard is principally used for:

  1. the execution of business strategy;
  2. the clarification of strategy;
  3. the identification of tactical opportunities;
  4. the positioning of the budget with the strategy;
  5. better matching the strategy with the business;
  6. the company to regularly audited and where necessary, to adjust strategies.

As mentioned before, performance measurement endeavors to handle how organisations should manage strategy into action. Strategy could significantly influence organisation's success simply by making clear how strategy can be put in place into daily methods of an organisation's (Kaplan and Norton, 1993). The Balanced Scorecard is focussing how to translate the organisation's strategy into measurable goals (Ahaus and Diepman, 2006). By first analyzing the strategy of a business, then subsequently setup performance methods to screen performance, and then eventually set up targets for improvement, it is possible to link dimension to strategy. The next figure illustrates this process (see body 4 on another page about linking dimension to strategy, Kaplan and Norton, 1993).

The sample template shown in figure 4 is provided by Kaplan and Norton in 1992, however they highlight that the precise format of the Balanced Scorecard will most likely differ for every corporation and situation. The largest job for organisations who are attempting to introduce a Balanced Scorecard is to devise a set of measures explicitly linked to its own strategy. Therefore, for applying the Balanced Scorecard it is vital that the concerning strategy is accepted within the organisation and by its management. Thus, the Balanced Scorecard works as a framework for applying strategy.

What is my perspective into the future?

To my




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To my

internal processes



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to learn and growth


and learning

If my vision

succeeds, how will I differ?

What will be the critical


Kaplan and Norton have just lately released Strategy Maps: Converting Intangible Belongings into Tangible Benefits, the third reserve in their series (Kaplan and Norton, 2004). Kaplan and Norton define strategy maps as the reasonable structures of cause and effect human relationships between factors for success, converted into the strategy of a business. As also referred to earlier, in some articles and literature, Kaplan and Norton have been buying methodology that looks for to align a (balanced) group of measures to an organization's strategy, where this methodology is named the Balanced Scorecard. Thus, the order where the four perspectives of the Balanced Scorecard are shown is employed as a fixed collection. Results obtained in the lower perspectives are considered motorists for higher strategy perspectives. This creates a string of cause-effect connections that can be schematic visualized using a so-called strategy map. [7]


It isn't completely clear which departments of an organization can exactly use and deploy the well-balanced scorecard used. It is for that matter interesting to review if the Balanced Scorecard will be great for operational performance dimension in facilities management. Yet there are indications that the Balanced Scorecard is appropriate to deploy and use for service management performance measurement. The fundamental ideas root of the balanced scorecard is to ensure that departmental strategic goals and goals are aligned with the long-term strategy of a business for successful applying the goals and goals (Kaplan and Norton, 1992). As explained by Atkin and Brooks, (2009), to meet up with the organizations goals, facilities management departments need to do an improved job of expanding facility strategies. As stated by Maas and Pleunis (2006), for optimal facilities shows, the strategy of the service management section must be aligned with the corporate- business and functional strategy, with also carrying on connections with the core business and the surroundings of the business.

Thus, a center strategy must be aligned with-and responsive to-business programs and targets while demonstrating the significant value from the facility assets of the business (Maas and Pleunis, 2006). These meanings further identify the possibilities of applying Kaplan and Norton's Balanced Scorecard into daily methods of facilities management.

Also the fundamental capability to quickly put into practice strategy into business and adjust strategy, makes the Balanced Scorecard a useful framework for applying strategy. But how could the Well balanced Scorecard be used out there of service management? Amaratunga and Baldry stresses in a article about using the Balanced Scorecard for facilities management, that in par with the original four perspectives of the Balanced Scorecard, the next four questions can be asked in the context of center management, whereas these perspectives should check out several facilities management functions: [8]

  • Customer - just how do the facilities users see us?
  • Internal steps - how efficient and effective is the delivery of facilities management services?
  • Financial - how is the facilities management function been able in terms of value for money
  • Learning and progress - how exactly does the facilities management function continue to improve in itself and also to assist the main business

They say that "given the characteristics of the facilities management environment, recognising and gratifying the needs of the primary business is vital for long term survival. To ensure satisfaction of varied customer needs, it is vital that facilities management recognizes, targets, and displays key performance signals. "

The study studies of Amaratunga et al. (2000) display that, based on the process defined by Kaplan and Norton (1992) for creating a Balanced Scorecard, the data collection within the hierarchy of the facilities management and other customers was set up by three main levels:

  • Facilities management's vision and corresponding objectives;
  • It's relationship to the primary business;
  • Critical success factors with regards to these targets; and
  • Development of a proper balance of performance procedures to support the critical success factors.

Peter Barrett (1992) has recognized in an early on study that we now have certain goals which are common to many facilities management organizations. This research suggests a need for balanced Scorecard approach, which adequately demonstrates the characteristics, goals and critical success factors of the facilities management group. Furthermore, their newspaper addresses the applicability of the Balanced Scorecard into facilities management as a performance assessment tool. They say that "the adoption of the process would be a major change effort generally in most organizations. " Kaplan and Norton (1992) provided an extremely useful generic model in the form of their Balanced Scorecard. They also provide an overview of common strategic aims and steps for the four perspectives of the Balanced Scorecard in a facilities management framework (see also appendix 2). [9]

Other literature on using the well-balanced scorecard within facilities management is displayed by Maas and Pleunis (2006). They state that facilities management's capacity to measure and analyse performance management should be conducted in accordance with four perspectives, specifically the customer perspective, the internal procedures point of view, the financial point of view, and the employees point of view. Three of the four perspectives are derived from the four perspectives of the Balanced Scorecard. Only the give attention to learning and progress is substituted for concentrate on workers because in providing services to the functional process the staff comes in immediate contact with the customer, and therefore it is important that attention is paid to job satisfaction of employees and that you will see attention to the training of staff.

In this particular research, I'll try to determine what the affect of the balanced scorecard haves on performance measurement in facilities management and which success factors and key performance signals are most effective to find. I will test the hypothesis to see if the healthy scorecard can be used for performance way of measuring for center management in case the procedure of using the balanced scorecard can work as a helpful platform in finding the very best success factors and key performance indicators for successful facilities performance measurement.

In summary of the books study, the most crucial aspects to take into consideration when performing the research study of the research are:

  • presenting explanations why performance way of measuring is important in facilities management;
  • present a fresh frame of guide for the most vast applicable goals, success factors and performance signals for performance way of measuring in service management;


See also site 63 of Ahaus and Diepman, 2006, how to make a vision!

Based on the books of Baarde and Goede (2001), the research on behalf of this thesis is categorized in an initial study, a books review, and a case study research. For the execution of the research study research are various data (re)sources used, specifically in-depth interviews and the study of business records and reports of Centraal Boekhuis.

The preliminary research analysis has given multifarious insights in for example the company of the case study, but also insights about the performance measurement, the Balanced Scorecard, functional facilities shows, and facilities strategy. In the preliminary research research is a critically literature review completed and several managers of the human resource section have been interviewed for creating a basis for this research. The merchandise of the research study are a precise strategy of the research study research, a description of the business.

This following describes which research technique is chosen to research aforementioned topics. Furthermore just how on how data is collected and analyzed may also be referred to in this chapter. I will also define the study method where I express more descriptive how data will be gathered, who it will be accumulated from, and the way the accumulated data will be analysed.

The case study research can be categorized in descriptive- and exploratory research study methods (Sanders et al, 2009). The descriptive review of this case study is described by the study of qualitative data, for example the analysis of business documents and information that are in stock within the company about facilities strategy, its business strategy and quality management. The exploratory area of the research describes the research methods in depth interviews with management.

In order to check how Centraal Boekhuis works with performance measurement related to its facilities management, and exactly how it best can work with the healthy scorecard and Total Quality Management, the next will be completed. I will organise in-depth interviews with about five representatives of the human resources section of Centraal Boekhuis. In these interviews, I am going to attempt to find out more about the execution of performance dimension and quality management, related to the facilities strategy of the facilities office. I'll also elaborate on the concepts of Balanced Scorecard and Total Quality Management. The RECRUITING division of Centraal Boekhuis includes several layers of management and operations levels. Therefore I am going to interview numerous professionals as well as facilities participants to make the results more reliable and appropriate to analyze. The next employees of the Individual Resource office will be interviewed:

  • Jaco Gulmans (Senior Manager RECRUITING)
  • Karel ter Burg (Facility Administrator)
  • Leo van 't Pad (Building maintainer and planner)
  • Irene Mercx (Facilities administrator)
  • Arno Hartog (head of the Maintenance Division)

The final titles and the precise range of interviews is of course dependant on the determination of the department to cooperate. The in-depth interviews are an essential part of my research. In these interviews, I've the likelihood to 'keep on requesting', to get deep into the subject. Only in these interviews, the representatives can really clarify how Centraal Boekhuis executes performance way of measuring related to its facilities strategy and the Balanced Scorecard and Total Quality Management.

The determined research way for the study and evaluation of the contents of Total Quality Management and Balanced Scorecard can be characterized mainly as conceptual evaluation. The discussions depends on books review.

Besides relevant books, the genuine research depends on a case study with in-depth interviews.

The answers of the in-depth interviews will be examined. In this analysis, I will of course be looking for the response to my research question: From what level will the Balanced Scorecard be auseful device to assess performance dimension for center management and which success factors and key performance signals are most reliable to find for reliable facilities performance measurement?

With face-to-face interviews, it is hard to forecast what you would be studying exactly. However, by asking 'to the point' questions, the interviews will be centered on the organization and its own facilities performance dimension and quality management, that may certainly lead to answers which are highly relevant to my research - whatever the exact email address details are. The results of the in-depth interviews will be weighed against the current situation of Centraal Boekhuis, so it is possible to generate applicable efforts and results for Centraal Boekhuis.

The analysis plan for thesis is not totally clear yet, because I really do not know very well what kind of data I am going to have to work with. If the interviews and web research are not representative I am going to elaborate on my literature study and I will review some interesting assertions issued by respected managers, or other interesting claims relevant to the study. If available, I will examine relevant data provided by organizations on performance dimension and quality management in connection with center management. Inside the months June and July the comprehensive interviews will need place. I will use any data related to business strategies, center strategies, quality management, and performance measurement in stock within Centraal Boekhuis, et cetera.

If aforementioned data does not become available, I am going to look for different ways to make my statement plausible. I'll review the results of research that is done by others, in which the several things of my thesis will be taken care of the matter. Moreover, I'll also use research of others, like the one of Hannula et al. on Total Quality Management and Balanced Scorecard or the study of Baldry et al. (2000) on performance evaluation in Facilities Management using the balanced scorecard way.




Ahaus & Diepman (2006), Balanced Scorecard & INK-managementmodel, released by: Kluwer, Deventer NL (third release)

Alblas & Wijsman (2001), Gedrag in organisaties, Posted by: Wolters Noordhof, Groningen NL (third edition)

Amaratunga, Baldry, Sarshar (2000), Evaluation of facilities management performance - what next? Printed by: MCB UP Ltd

Amaratunga, Baldry, Sarshar (2000), Performance evaluation in facilities management: using the healthy scorecard approach, Published by: RICS Research Foundation, London UK

Atkin & Brooks (2009), Total Facilities Management. Printed by: Wiley Blackwell, Hoboken US (third edition)

Baarda & de Goede (2001), Basisboek Methoden en Technieken, Handleiding voor het opzetten en uitvoeren vehicle onderzoek. Shared by: Wolters Noordhoff, Groningen NL (third release)

Barrett (1992), Development of a PostOccupancyBuilding appraisal Model, in Barrett

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