Published Paper Details:

A professor at Harvard University named Robert Kaplan and a consultant from the Boston David Norton developed a new performance Measurement system - Balance Scorecard. Both of them did research study on many companies with the objective of exploring new methods of performance measurement (Kaplan and Norton, 1990). The focus for the study was that performance based on financial measures was unproductive for the modern business. These companies also believe that only financial measures in performance measurement system do not create value. There are various alternatives available but the best alternative is Balance scorecard, featuring performance measures financial and non-financial - customer issues, internal business processes, and employee activities. Both the private and public sectors banks have used this concept and implemented it to improve performance. Many organizations believe that Balance Scorecard is a performance measurement system which includes both financial and non-financial parameters, whereas Kaplan and Norton claim that a Balance Scorecard is linked with vision and mission of the organization and not only collection of performance measures. The current study was undertaken after taking a note of the existing literature and finding the research gaps and intended to study and identify the practices under balanced scorecard specific to banking industry and more specifically to the private sector banks. The present study studied, identified and explored the Internal process perspective of balance scorecard practices in private sector banks. The undertaken quantitative research was exploratory cum descriptive cum diagnostic in its nature. The survey sample consisted of 200 bank executives from middle and top management of 10 private sector banks having retail operations in India. Secondary as well as primary sources were used for the data collection and standard statistical tools were used for the analysis. The findings revealed that all the practices of customer perspective of balanced scorecard are significantly implemented to the private sector banks in specific and the whole banking sector in general.