Mobile money failure - Can the balanced scorecard be of any help?

  • 1 month ago
  • 1 lượt xem
  • 0 bình luận

  • Ít hơn 1 phút để đọc

Giới thiệu

Mobile money has the potential to attract the unbanked and capture money outside the financial system yet failed implementations are of gravy concern. The balanced scorecard is extoled for successfully in turning around the performance of ailing firms and industries. The research undertakes to review literature on the causes of failure in mobile money. In the context of those causes of failure, the paper proposes and explains how the adoption of the balanced scorecard by mobile money innovators can lever their performance and ultimately survival. By demonstrating how the balanced scorecard can align strategy to mission in mobile money deployments, the study contributes towards improved strategy execution in the sector. It also sets a research agenda.

Thông tin tài liệu

Loại file: PDF , dung lượng : 0.69 M, số trang : 5

Chi tiết

Risk governance & control: financial markets & institutions / Volume 7, Issue 1, Winter 2017
MOBILE MONEY FAILURE - CAN THE BALANCED
SCORECARD BE OF ANY HELP?
Last Mazambani*, Emmanuel Mutambara**
* Finance Lecturer Management College of Southern Africa (MANCOSA), Cape Town, South Africa
** Graduate School of Business & Leadership, University of KwaZulu Natal, South Africa
Abstract
Mobile money has the potential to attract the unbanked and capture money outside the financial
system yet failed implementations are of gravy concern. The balanced scorecard is extoled for
successfully in turning around the performance of ailing firms and industries. The research
undertakes to review literature on the causes of failure in mobile money. In the context of those
causes of failure, the paper proposes and explains how the adoption of the balanced scorecard
by
mobile
money
innovators
can
lever
their
performance
and
ultimately
survival.
By
demonstrating how the balanced scorecard can align strategy to mission in mobile money
deployments, the study contributes towards improved strategy execution in the sector. It also
sets a research agenda.
Keywords: Balanced Scorecard, Financial Inclusion, Mobile Money, Strategy Execution, Unbanked, Low-
Income Communities
JEL Classification: O31, Q55
DOI: 10.22495/rgcv7i1art5
1. INTRODUCTION
The paper makes an account of the rise of the
balanced scorecard as a result of faults in traditional
Mobile money has attracted global attention as a
panacea to financial inclusion but the rampant
failure of deployed innovations is a problematic
challenge. Poor performance has dogged a sector
that has unfathomable potential to mobilize other
business sectors (Ibrahim, 2009). There are various
names and definitions coined to financial services
offered through mobile phone technology, but in
this paper mobile money refers to the convergence
of mobile telephony and financial services. Hence
the paper looks at mobile money based on the use of
the handset and the SIM card.
performance measurement. It explains the
mechanics of value creation that result from the
adoption of the balanced scorecard. Next, the paper
searches literature to identify major performance
challenges faced by the mobile money companies.
After that the paper demonstrates how the adoption
of the balanced scorecard can solve the identified
problems of poor performance in mobile money and
help them attain their private goals as well as the
social goal of financial inclusion. Finally, conclusions
are drawn and a research agenda for further studies
is set.
There
have
been
160
live
mobile
money
deployments across the world following after
M-
2. THE RISE OF THE BALANCED SCORECARD
PESA’s success in Kenya but only 14 are successful
(Lonie,
2013).
This
is
partly
because
M-PESA’s
The development and rise of the balanced scorecard
business
strategies
have
been
hard
to
replicate
can be tracked to the discontentment with the use of
(Morawczynski, 2010; Heyer & Mas, 2011) for the
lagging traditional financial performance indicators
majority of the innovators and mainly because there
which are historic, backward looking and could not
is
scarce
strategy
execution
research
to
help
guide the future performance of companies in the
managers examine mobile money success levers in
early 1990s. The traditional financial performance
the formative research area (Chandra et al., 2010;
indicators only give a cross-sectional snap-shot of
Tobbin, 2010). Currently a successful mobile money
the
historic
and
current
performance
without
provider is crudely defined as one that is either
indicating how the business’s future opportunities
breaking-even, has moved into profit or has at least
and threats evolve. These shortcomings led to the
one million active subscribers who perform at least
development
of
a
multi-dimensional
balanced
one transaction per month (Lonie, 2013).
scorecard
performance
measurement
system
in
In this article, the aim is to demonstrate the
1992 by Kaplan and Norton, which included apart
rationale for the adoption of the balanced scorecard
from
financial
indicators,
external
and
future
as a strategic management tool and a performance
looking performance measures; namely customers’,
measure
technique
in
order
to
turnaround
the
process, learning and growth perspectives.
performance of the mobile money sector. There is a
Kaplan and Norton (1996, p.2) content that:
strong likelihood that good performance by mobile
“The
balanced
scorecard
translates
an
money companies will
result in
availing
banking
organization’s
mission
and
strategy
into
a
services to billions of unbanked poor people across
comprehensive
set
of
performance
measures
and
the globe.
41
Risk governance & control: financial markets & institutions / Volume 7, Issue 1, Winter 2017
provides the framework for strategic measurement
amongst
the
performance
metrics
in
the
four
and management”.
quadrants the organization will be able to attain its
In translating the organization’s mission and
short-term financial objectives while building long-
strategy,
the
balanced
scorecard
identifies
term
organizational resources and capabilities to
performance
measures
from
four
perspectives
take advantage of opportunities. The causal-effect
(financial,
customer,
process
and,
learning
and
relationship of lower quadrant perspectives to the
growth)
of
the
business
which
management
can
organization’s
financial
performance
is
monitor and control for reaching or surpassing the
demonstrated
in
the
hypothetical
balanced
overarching objective of the organization. Kaplan
scorecard in Figure 1.
and Norton argue that by maintaining a balance
Figure 1. Balanced Scorecard Adapted from Kaplan and Norton
Financial Results
Satisfied
and
Loyal
customers
lead
to
increased
revenues
Customer Satisfaction
Improved processes lead to improved products and
service for customers
Business Processes
Skilled, creative employees question the status quo and
work to improve business processes
Learning and Growth
Learning and growth of employees is the foundation for
innovation and creativity
While the balanced scorecard retains traditional
strategy execution for consistent superior results.
financial
measures
as
the
ultimate
objective,
it
This
is
evidenced
by
adopters
of
the
balanced
however
draws
management
to
pay
a
balanced
scorecard who persistently outperform their non-
attention to leading performance drivers that drive
adopters peers (Lingle & Schiemann, 1996) and the
great financial results in the customer and internal
far and wide spread across nations and adoption of
processes perspective and the continued innovation
the
performance
measurement
and
strategic
in the learning and growth perspective (Niven, 2005).
management
technique
across
industries
(Niven,
Building
a
strong
balanced
scorecard
philosophy
2005).
dictates that in order to achieve superior financial
The
paper
proposes
the
adoption
of
the
results, an organization should consistently meet
balanced
scorecard
philosophy by the embryonic
and exceed its target customers’ needs. It further
mobile money sector in order to refocus its heavy
says to excel at the customer needs; the organization
reliance
on
churning
out
production
oriented
should have a matching value proposition delivered
technological products that continue to miss the
through business processes that meet the needs of
needs
of
the
customers
(Heeks,
2005)
and
the
the targeted market. Finally, the balanced scorecard
objectives of the implementing organizations.
philosophy
reiterates
an
important
facet
that,
business processes that surpass customer
expectations can only be delivered when you put in
3. ILLS IN MOBILE MONEY INNOVATIONS
place employees with the right skills and aptitude
complimented with efficient and effective
organization systems that promote continuous
knowledge acquisition for service innovation,
improvement and improvisation.
The adoption of the balanced scorecard further
inculcates a deeper organization-wide customer-
centric culture that builds future superior
performance based on a rigorous strategic process
of providing products for identified customer needs.
It effectively dismantles departmental silos and
leads the organization to improved and well
coordinated strategy implementation, effective
strategy communication and infuses a goal oriented
teamwork spirit. Used as a performance
measurement technique, the balanced scorecard can
show shop floor workers what is expected of them
while directing management on a real-time basis
toward strategic management issues falling out of
line that needs their attention and improvement
thereby guiding the whole organization to aligned
A review of the literature around mobile money
reveals that the general weakness of the sector is
caused by development of technological services
looking for user problems rather than developing
customer-focused services (Heeks, 2005; Rao, 2001;
Sgriccia et al., 2007; Ivatury & Mas, 2008; Donner &
Tellez, 2008; Duncombe & Boateng, 2009); skipping
of crucial feasibility studies before service
deployment (Moore, 2002; De Marez & Verleye, 2004;
Yovanof & Hazapis, 2008); lack of resources by
innovators creating a mismatch between the mission
and organizational capabilities or preparedness
(Bangens & Soderberg, 2008; Alampay & Bala, 2010;
Heyer & Mas, 2011); and failure to develop a
customizable value proposition (Sgriccia et al., 2007;
Tobbin, 2010) thereby leading to misalignment of
mission and strategy implementation. The
performance of mobile money is also weakened by
the absence of strategy management academic
research in the areas of strategy analysis,
formulation and particularly strategy execution. This
42
Risk governance & control: financial markets & institutions / Volume 7, Issue 1, Winter 2017
has
even
made
mobile
money
performance
There are wide beliefs in the mobile money
measurement a far distant peripheral issue even
sector that the M-PESA (the most successful mobile
though
sustainable
corporate
performance
and
money operator in Kenya) business model can be
measurement
are
a
prerequisite
to
value-based
replicated
in
any
circumstances
and
business
strategic management.
environment but that has so far proved very difficult
and costly (Lonie, 2013). The innovators are not
4. RATIONALE
SCORECARD
OF
ADOPTING
BALANCED
taking cognisant of their particular business context
thereby failing to adapt to their obtaining business
environment and are rushing to deploy the service,
It is evident from the above sector-wide ills that
companies operating in this industry more than
need to embrace an all-encompassing performance
measurement system such as the balanced
scorecard. There is evidence in both practice and
theory that the mobile money sector can improve
performance by adopting the balanced scorecard as
did other industries (Voelpel et al., 2006). In the
current circumstances, there is no evidence of the
adoption of the widely applauded comprehensive
multi-dimensional scientific performance
measurement system which align corporate vision to
strategy, thereby assuring the attainment of the
objectives of the company.
The poor performance of mobile money is
blamed on the dearth of research on the financial
needs of the low-income communities and the fact
that the process of implementation of mobile money
innovations is technological driven rather than
customer focused (Donner & Tellez, 2008;
Duncombe & Boateng, 2009). The focus on driving
through the customers any product that the mobile
technology can produce is synonymous to the long
banished production orientation. Without taking into
consideration the needs of the customers the mobile
money service might be misplaced and fail to
acquire any value proposition (Heeks, 2005).
The gist of the balanced scorecard is
straightforward. It says, in order to attain an
organization’s financial goal or some social goal in
case of not-for-profit organizations, an organization
needs to offer a value proposition that meets and
exceeds the needs of its targeted customers. The
company has to deliver the proposed value
proposition using internal processes that
conveniently, efficiently and effectively meet the
expectations of the targeted customers. Finally, the
organization has to attract the right employees,
information technology resources and fully utilize
its organizational capital to manage and innovate
around the internal processes in order to deliver a
superior service or product that captures a
sustainable market share. It is evidently clear in this
account that the adoption of the balanced scorecard
makes customer needs the centre focus of the whole
organization thereby instilling a deep-rooted and
systematic adaption of the marketing concept and
orientation. Furthermore, it is argued that
adaptation of the marketing concept and orientation
are embedded salient beneficial achievements in a
company that adopts the balanced scorecard. Mobile
money organisations have been blamed for their
failure to meet customer needs, hence the adoption
of the balanced scorecard may help them refocus
their strategies towards meeting customer needs. It
also enforces a customer-focused marketing
philosophy throughout the other functional areas
such as finance and accounts, research and
development, production, operations, among others.
skipping critical feasibility studies (Donner & Tellez,
2008; Moore, 2002; De Marez & Verleye, 2004;
Yovanof & Hazapis, 2008). A systematically deployed
balanced scorecard looks at both the internal and
external business environment before determining
how a company can take advantage of the
opportunities existing in the market. The balanced
scorecard leads to studies that determine the
viability of the business and keeps the strategies
evolving to the ever changing business environment.
The balanced scorecard also aids understanding of a
deployed strategy by reducing it into a one page all-
in-one picture, thereby making it easy to
comprehend and customize to local circumstances.
Current research in mobile money is funded
quasi-academic and lacks academic rigour
(Duncombe & Boateng, 2009). Lack of contextual
research related to the environment around which
the mobile money service is delivered, restricts the
knowledge of critical factors for mobile money
development and adoption (Donner & Tellez, 2008).
The adoption of the balanced scorecard is tailored
for the specific circumstances of the adopting
company (Marr et al., 2004) and evolves as
circumstances change which further aid our
understanding of which strategies works in various
contexts.
The BSC is founded on an organization’s
objectives. It measures objectives towards the
attainment of the organization’s overall goals by
quantifying the business strategy (Kaplan & Norton,
1996; Bilkhu-Thompson, 2003). It outlines how an
organization competes for value creation in the
market place. It therefore assists managers to
proffer and pursue a superior value proposition that
meets the market’s intrinsic needs. It is also a tool
that provides pointers to areas in the distribution of
the service that needs improvement. Its
comprehensiveness supports quick real-time
decisions with regards to changes and challenges in
the service, processes, customers and market
channel development.
Mobile money as an embryonic product
innovation can be challenging to its implementers
and innovators. Adopting the BSC will help
organizations focus on developing leading
performance indicators that foster a culture of real-
time decision making far beyond the capabilities of
traditional lagging indicators such as historic
financial reports and customer satisfaction surveys
(Love et al., 2008). Love, et al. (2008) also concur that
the balanced scorecard makes it easy for leaders to
comprehend the organization-wide systems and
operational processes. The BSC can easily facilitate
the understanding of how the product is deployed,
what equipment and expertise is required and
processes necessary in order to deliver the promised
value proposition. By employing a comprehensive
future looking balanced scorecard, mobile money
operators will consistently improve their
43

Download

capchaimage
Xem thêm
Thông tin phản hồi của bạn
Hủy bỏ