About Balanced Scorecard and Customer Relationship Management with Adriana Knapkova, Lubor Homolka, Drahomira Pavelkova at the PMA 2014 Conference
The presentation “Utilization of Balanced Scorecard and Customer Relationship Management and the Effect of Their Joint Use on the Financial Performance of Companies in the Czech Republic” was offered in the second day of the PMA 2014 Conference by Professor Adriana Knapkova, Vice dean of Faculty of Management and Economics, prof. Dr. Ing. Drahomíra Pavelková and Ing. Lubor Homolka, from Tomas Bata University in Zlín.
Their research study focused on evaluating the synergetic effect of joining the Balanced Scorecard (BSC) methodology and Customer Relationship Management (CRM) in order to achieve higher financial performance.
They surveyed 167 enterprises in the Czech Republic to see the impact of the above mentioned performance tools, and assessed their financial performance by Return on Equity (ROE) and Return on Assets (ROA).
The main benefits of combining BSC and CRM, according to the three researchers, are:
- Applying CRM can more accurately define the BSC Customer perspective and the specific objectives, such as shareholder value, customer satisfaction, communication with customers, customer knowledge;
- The BSC methodology can be used to assess the effectiveness of CRM, as it includes both financial and non-financial perspectives.
The research study did not confirm that the joint use of BSC and CRM contribute to higher financial performance. One of the provided explanations is that companies in the Czech Republic had less time to use BSC and CRM, so they are be reflected in financial performance.