Time Scorecard: An Integrative Performance Measurement Framework for Time-Based Companies

Time-based competition (TBC) has received much attention in the literature and in industry. With time being the most important competitive factor, many companies take time-based strategy (TBS) to gain competitive advantage and long-term competitiveness. New strategy needs urgently new strategy management tool-performance measurement system to manage the implement of the TBS. So the balance scorecard (BSC), as a traditional strategy management tool, should also evolve with the change of competitive environment and company's strategy. While rigorous research has been conducted in relation to the TBC and performance measurement systems, little research has been done regarding application of performance measurement systems to manage TBS. The purpose of this paper is to present an integrative performance measurement framework for time-based companies. The contemporary performance measurement frameworks are reviewed, mainly including BSC. In addition, since time is of human essence and a better understanding of the nature of time helps enhance managerial effectives, the dimensions of time for TBC is then discussed. Critical success factors(CSFs) of time-based companies are presented. According to the dimensions of time and CSFs of time-based companies, a time scorecard (TSC) is developed and a theoretical model for using the TSC to manage time effectively is put forward. The TSC helps implement TBS on six perspectives (financial, customer, internal process, learning, supplier and leadership) from three interrelated aspects (including vertical time, negative time and zero time) in two dimensions of time(vertical time and horizontal time). The TSC presented in this paper is not only a conceptual model, but also a measurement model. Furthermore, this approach has the potential to give a deeper understanding of which areas should be monitor in the time-based companies and help companies to develop, cascade and implement the ZT strategy. Finally, since the cause-and-effect relationship exists in these six perspectives and in the three aspects of time, an organization can research the true reason through the vertical and horizontal analysis if the any item has deviation.