Improvement of the BSC model with KPI-tree method through a dairy farm case study

Abstract

In the dairy sector, the operation of the various control systems operates at the strategic level in the same way as other industries, but at the level of the task control, they operate specifically way. The Balance Scorecard is an excellent tool for measuring our strategic performance, but does not necessarily provide a clear feedback on causality and subsystems related to indicators. In our research, we highlight the deficiencies and the development possibilities of the balance scorecard through the operation process and conrol system of a dairy farm operating in Hungary. The model will be further developed using the KPI-tree method, which will be illustrated in through an example of a causal relationships with a financial KPI.