Philosophy Doctor in Economic Science

Lukyanova Yelena Yurievna

Institute of Economics and Management of State Higher Educational Establishment ‘Crimean University for the Humanities’ (Yalta), Crimea

Balanced Scorecard as a Proper Way of Domestic Economy Entropy Reducing on Microeconomic Level

Domestic economy is characterized as a volatile one. The modern economic entities’ surroundings are difficult to predict because of externals high level entropy. The business units’ up-to-date target is to form and implement an economic security management system for its sustained development. Balanced scorecard can be one of the core tools to achieve the target.

There are known several researches results on risk management and threats protection, disaster recovery, crisis response, and business continuity by R. Jarrow, J. Lynn, J. Watters, confidentiality, authentication, and integrity, economic evaluation and investment decision methods by J. Stapleton, F. Stermole, J. Stermole, balanced scorecard by A. Asefeso, B. Freeman,

M. Frigo, R. Kaplan, P. Niven, D. Norton, security, loss prevention, investment decision by I. Bogdanov, M. Fleychuk, O. Datsko, D. Goncharov, L. Harris, I. Konopleva, M. Mokiy, J. Pinto, Ch. Piros, Ph. Purpura, T. Tishuk, and others. However, balanced scorecard as a core tool for economic security management wasn’t suggested before for the mentioned entropy conditions.

The theses purpose is to suggest balanced scorecard as a proper way of domestic economy entropy reducing on microeconomic level.

The balanced scorecard is a strategic planning and management system that is used extensively in business and industry, government, and nonprofit organizations worldwide to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals. Strategic management activities transform the static plan into a system that provides strategic performance feedback to decision making and enables the plan to evolve and grow as requirements and other circumstances change.

Nowadays domestic economic entities are facing different problems during balanced scorecard implementation process; nevertheless it is an effective tool for modern process-oriented and risk management system creation, and contributes business units’ sustained development. BSC perspectives suggests organization view from four perspectives (the learning and growth perspective, the business process perspective, the customer perspective, and the financial perspective) that help to develop metrics, collect data and analyze the correlations of influence on internals and externals entropy effect reduction.

It is suggested sequence of balanced scorecard implementation for entropy effect reducing on microeconomic level in domestic economy conditions:

1) to develop and submit balanced scorecard system implementation rationale for business and management evaluation;

2) to design BSC concept for business units and economic entity;

3) to allocate balanced scorecard elements for business units and economic entity;

4) to use balanced scorecard basic and additional principles for business units and economic entity;

5) to adopt and apply balanced scorecard methodical approach for business units and economic entity;

6) to optimize business units and economic entity management with balanced scorecard applying;

7) to form business units and economic entity strategic management office;

8) to apply software systems for creating, implementation, using and supporting of balanced scorecard in business units and economic entity;

9) to make a program of balanced scorecard applying in unpredicted internals and stochastic externals;

10) to explore BSC applying in regionalization and globalization trends;

11) to research balanced scorecard problems and development trends on the modern stage of domestic economy and possible ways to overcome them;

12) to benchmark successful projects examples in foreign and domestic balanced scorecard implementing.

Balanced scorecard as a management tool can promote business units’ security development from diversified treats and protect its tangible and intangible assets with special system of legal, economical, organizational, social, ecological, and IT arrangements. BSC also can define and concretize microeconomic security goal, decompose it to measurable tasks, and find treats and risks impact points. Information mentioned above helps economic entity to provide and overcome possible problems, barriers and damages in its sustained development strategy.

BSC-based economic security evaluation and analysis system includes complex of coherent, interconnected blocks and stages of activity, which are systemized and adopted to the very tasks of techniques, methods, models. It makes possible to identify, assess and reduce the economic risk impact to a corporate resources optimal costs acceptable level. The main business unit functional areas (economic entity property, corporate finance, human resources, technology, innovation and information, microeconomic organizational structure) will correlate to its business processes and balanced scorecard perspectives. Also renewed business units become more competitive. This theses information can be useful for regional authorities on improving economical and management innovations, business leaders and economic universities students.

Literature:

1. ISO 31000:2009 [Electronic Source] – Mode of Access: http://www.iso.org.

2. ISO 9001:2008 [Electronic Source] – Mode of Access: http://www.iso.org.

3. Jarrow R., Chatterjea A. An Introduction to Derivative Securities, Financial Markets, and Risk Management / Jarrow R. , Chatterjea A. – NY. : W W Norton & Company Incorporated, 2013. – 798 p.

4. Stapleton J.J. Security without Obscurity: A Guide to Confidentiality, Authentication, and Integrity / J.J. Stapleton, Boca Raton : CRC Press, 2014. – 342 p.