DEVELOPING A PERFORMANCE MEASUREMENT SYSTEM INTEGRATING ECONOMIC VALUE ADDED AND THE BALANCED SCORECARD IN PHARMACEUTICAL COMPANY

The purpose of this paper is to show how the balanced scorecard (BSC) could be a prominent innovation in strategic performance measurement systems in a pharmaceutical industry. The BSC implementation through economic value added (EVA) has led to increase in the value of the company using analytical hierarchy processing (AHP) method. Since the core idea is to implement BSC into pharmaceutical company, the research described here helps to develop an individualized balanced scorecard, combined with EVA, which brings additional value to a company. The paper has practical relevance for the effectiveness of the balanced scorecard inside a pharmaceutical company, particularly as it is gaining additional importance due to the fact that the concept brings increasing value for a company. Pointing out the importance and particularity of industry, where balanced scorecard and economic value added are implemented, the paper is especially of interest for managers of pharmaceutical company and related ones.