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Abstract
This study explores the ability of a Balanced Score Card (BSC) to create synergy for an organization to achieve its ultimate strategic aims and objectives. The study is focused at the management perspectives for the BSC of Pakistan Defence Services as underlying foundation stone on the basis of which, BSC for respective force i.e. Army, Navy and Air force can be developed. 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 using quantitative approach. The fitness of conceptual model and confirmation of hypothesis was carried out using quantitative techniques i.e employing simple and multiple regression modeling using computer based SPSS software. In the wake of quantitative analysis, it emerged that, 'National Purpose', 'Resources', 'Enabling Processes' and 'Building for Future' are the predictors of Achievement of National Defence Objectives, while operating as constituents of BSC create synergetic effect which ensures realization of National Defence Objectives.
Keywords: Synergy, Resource Based Theory, Strategic Objective BSC Perspectives, Enabling Processes, National Defense Objectives
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1.Introduction
Synergy means 'Collective Action' and has its roots in the Greek word 'synergos', which means working together (Merriam - Webster Online Dictionary 2006). Ansoff (1965) introduced the concept of synergy in the strategic management. He used the term synergy to describe the effect that combined return of a whole is greater than the sum of the return from the individual parts. The synergy may be defined as, 'Synergy is the effect that the combined return of the, "whole" is greater than the sum of the returns from the individual parts. Combining the parts into coherent whole is costly. Or we can say synergy creation needs to be managed and commits resources (c.f Porter 1985; Prahalad & Doz 1987, 1998; Sirower 1997). Therefore, the synergetic potential can never be fully translated into actual synergies.
Recent corporate reports Benecke, G. (2006) suggest that multi business organizations are continuously striving to achieve synergies among their various business units (Muller-Stewens & Knoll 2006). While raising their efficiencies and cutting costs, good corporate companies around the globe are also endeavoring to achieve growth through better inter departmental collaboration (Cooper, 1998) and Shaver, J.M. (2006). Many of these organizations...