Examining the effects of balanced scorecard on profitability and efficiency: An application in a textile company

With the intensifying competitive environment, approaches to performance evaluation beyond financial indicators have gained importance for the growth of businesses. In addition to financial measures, attention has been directed to non-financial indicators, thereby enabling a multidimensional analysis of corporate performance through a strategic focus. Strategic management, which contributes to strengthening business competitiveness, has gained prominence in the professional sphere, and rapid changes have compelled organizations to develop new capabilities. In fact, due to the technological and competitive pressures encountered across all sectors, performance measurement, monitoring, management, and improvement have become and continue to be critical issues for businesses. Traditional performance measurement systems fall short in keeping up with these changes, as they are financially oriented and focused on evaluating past performance. Accordingly, the need for new performance measurement systems has increased. Due to the problems encountered in traditional structures, the "Balanced Scorecard" (BSC) method was developed by Robert S. Kaplan and David Norton in 1992. This system has been successfully implemented across a wide range of fields including manufacturing enterprises, government units, non-profit organizations, service institutions, and other industries. The BSC reflects the evolving nature of technology and competitive advantage in the final decades of the 20th century. In addition to traditional financial indicators, the BSC integrates non-financial measures from the perspectives of customer, internal business processes, and learning and growth, thus enabling the development of a performance measurement system tailored to needs and strategies. In this regard, the BSC can be defined as a management system that unites the knowledge, skills, and energy of employees within an organization to achieve long-term strategic objectives. Thanks to the BSC, an enterprise's performance can be evaluated holistically in a single report from four distinct perspectives: financial, customer, internal business processes, and learning and growth. The aim of this study is to accurately identify a business's objectives and indicators using the BSC method, carry out performance measurement processes, and determine whether the proposed solutions positively affect the company's profitability and efficiency. For this purpose, the BSC method was applied through case studies in a company engaged in the production of sports textile products. As a result of these case studies, the BSC dimensions were defined individually, analyses were conducted, and it was determined that the implementation of the BSC method led to an increase in the company's efficiency and profitability.