Achieving National Defense Strategy Through Balanced Score Card (BSC): A Catharsis of Defencse Services' Core Functionalities

Abstract

In the corporate world Balanced Score Card (BSC) as management tool is very aptly being utilized for maintaining and updating Business Organization, introduced to rest of the world by two Harvard based scholars; Norton and Kaplan in 1996. However, the potential as well as its feasibility for defense services has not yet been well established; except for US military claiming to have earned Hall of Fame award for successful implementation of BSC. The Balanced Scorecard system, tries to transpose vision and the strategy of organization into such a comprehensive system of indicators which at the same time also defines the strategic framework of performance assessment and management. It tries to establish a balance between .e.g four different perspectives: Financial, Customer, Internal Business Processes, and Learning and Growth in case of corporate management. At the same time it also establishes a link between strategy and operative management. This unique empirical study has been under taken, to carry out a thorough catharsis of core functionalities of Pakistan Defence Forces to explore and recommend relevant core management perspectives as underlying foundation stone on the basis of which, BSC for respective force i.e. Army, Navy and Air force can be developed. With this scope in mind pertinent research objectives were set aside for this study. To achieve these research objectives, this study after an extensive literature research developed a conceptual model of proposed BSC perspectives, Based on sound reasoning embedded in Resource Based Theory. In the light of basic conceptual model, various hypotheses were formulated for the verification of model through triangulation using qualitative and quantitative data. Firstly qualitative testing of the study based on in-depth interviews was undertaken employing cross case analysis. The converging themes and views of the interview cases vindicating various hypotheses were classified in separate groups. Many insightful facets came to light most importantly the possible challenges to be faced while adopting BSC as a management tool have been documented as management implications. To further verify the converging themes of the interview cases classified in separate groups according to their support/leaning for the various hypotheses established during qualitative analysis, quantitative testing of the conceptual model was undertaken. To employ quantitative testing of the model, a cross-sectional primary data was gathered from target population which consisted of officers of the rank of Colonel and above in all three armed services of Pakistan. The fitness of conceptual model and confirmation of hypothesis was carried out employing simple and multiple regression modeling using computer based SPSS software. In the wake of quantitative analysis, it emerged that, Purpose of Defense Forces, Resources, Enabling Processes and Building for Future are the predictors of Achievement of National Defence Objectives. Purpose of Defense Forces, Resources, Enabling Processes and Building for Future being core functionalities have been recommended as the perspectives of BSC for Pakistan Defense Services. The quantitative testing also brought to light two other important predictors of Dependent Variable (Achievement of National Defence Objectives).i.e. Leadership and Management as Moderating Variable, whereas, Creation of Positive Synergy as Intervening variable. Being a unique study of its nature it has made useful contribution to the existing body of knowledge about the Defense Forces management, which includes most fundamentally statistical research settings drawn from resource based theory and extensive literature research satisfies all conditions with a desired level of fit to data. Basically this study has used Resource based theory and its causal framework to gain a better understanding of the predictors of Achievement of National Defence Objectives as result of overall functioning of Defense Services. Major contribution of study is the conceptual framework and its robustness that has been well tested both through quantitative as well qualitative testing. The findings of this study need to be thought 3 through carefully with certain degree of caution while applying it in geographical areas other than Pakistan, as this being unique empirical attempt of its nature within Pakistan. However, for other nations a various range of factors or exogenous factors might inherently affect the results. This also invites the future researchers as to how the predictors of this research can be incorporated in the conceptual models of other management settings.