Analyzing Balanced Scorecards and KPIs in Oil and Gas Decision Making

This report investigates the influence of Balanced Scorecards and Key Performance Indicators (KPIs) on the decision-making processes within the Oil & Gas industry. The study employs a descriptive research approach, utilizing primary and secondary data collection methods, including questionnaires distributed to industry professionals and literature review from books, journals, and online sources. The report aims to determine the role of Balanced Scorecards in decision-making, assess the impact of KPIs on decision effectiveness, and recommend strategies for the effective utilization of these tools. The research highlights the importance of ethical considerations, data validity, and reliability, and discusses a detailed plan outlining the research activities, including data collection, analysis, and report compilation. The findings will provide insights into how Balanced Scorecards and KPIs can enhance strategic planning and operational efficiency in the Oil & Gas sector.

The Effect of Balanced Scorecards and
KPIs on Decision Making in the Oil & Gas
Industry
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ABSTRACT
Balanced score card adaptation by the business firm is beneficial for the sustainable
development and it may lead business to impressive level of success. With an improved focus on
balanced score card the number of operational activities can be managed in appropriate manner.
It is regarded as one of the most efficient way in order to improve the work performance and
overcome issues. It facilitates managers to track execution of activities in appropriate manner so
that goals and objectives can be accomplished effectively. On the other side, key performance
indicators are also considered as key successive factors that may bring number of sustainable
development. Effective controlling and monitoring can be taken into account by analysing
number of factors that plays vital role in development. KPI's also facilitates in performance
measurement. In addition to this, it can be said that with a use of KPI's the oil and gas sector
firms can have effective measurement of performance.
The present study being carried out is descriptive in nature where main focus is to
analyse the impact of balanced score card and KPI's on the decision making process of oil and
gas sector. In this, the data has been collected with a help of primary and secondary sources.
Moreover, qualitative approach has been accessed to have effective accomplishment of research
objectives.
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TABLE OF CONTENTS
ABSTRACT.....................................................................................................................................2
BACKGROUND.............................................................................................................................4
PROBLEM STATEMENT .............................................................................................................4
AIM AND OBJECTIVES ...............................................................................................................5
Aim..............................................................................................................................................5
Objectives....................................................................................................................................5
METHODS......................................................................................................................................5
PLAN...............................................................................................................................................6
OTHERS..........................................................................................................................................7
REFERENCES................................................................................................................................8
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BACKGROUND
Balanced scorecard is considered as a strategic planning and management system that
provides a great support to working of organisations. In other aspect, it is mostly accessed by
various businesses and worldwide entities to have proper alignment of business activities to the
vision and strategy of the organisation. It also facilitates in improvement of internal and external
factors such as communication, monitoring, etc. Other than this, key performance indicators are
also essential part of every business. It is referred as a business metric that is accessed to evaluate
factors that are crucial to the success of an organisation (Anderson, 2012). It has been identified
that the KPI's of business firm might be different as per nature of business. Number of studies is
being conducted in regard to balanced score care and KPI's but they have not presented any kind
of statement in respect to its impact on the decision making process. It is one of key rational
behind the selection of subject. In this respect, the oil and gas industry is considered as critical
aspect for completion of project because sector is more focused towards use of balanced score
card and KPI's (Inkpen and Moffett, 2011). Business entities are facing number of issues in
respect to the decision making process so with an assistance of this study conflicts can be
identified in appropriate manner.
PROBLEM STATEMENT
Problem statement is considered as one of critical aspect for the study because it provides
information about the issues that research may overcome. It has been noticed that the oil and gas
sector is facing various issues in regard to decision making process. With an improved focus on
balanced score card and KPI's the businesses can overcome issues for better success. In addition
to this, the improper application of balanced score card is also one of critical issue for the
organizations (Anderson, 2012). It is significant for entities to have effective understanding of
key aspects in appropriate manner by focusing on current study. It will assist in continuous
development of business and lead activities accomplishment to impressive level of success.
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AIM AND OBJECTIVES
Aim
Key motive behind current study is to investigate the effect of Balanced Scorecards and
KPIs on Decision Making process. In order to have effective understanding about the subject the
Oil & Gas Industry will be considered as critical aspect.
Objectives
 To determine the role of balanced score card in decision making process of oil and gas
industry.
 To assess the impact of KPI's on effectiveness of decisions.
 To recommend ways through which oil and gas sector can utilize balanced score card and
KPI's for effective accomplishment of decision making process.
METHODS
Research Type: In current study, the researcher will focus on descriptive type of
investigation so that goals and objectives can be accomplished in desired form (Burns, 2008). In
addition to this, the in-depth learning of balanced score card and KPI's can be attained in
appropriate manner. The purpose of using the descriptive research in this study is to
acknowledge the deeper insights about the impact of balanced score card and KPI's on decision
making process of oil and gas industry (Manion, Cohen and Morrison,2009). Using of
descriptive research will help to investigate the key aspects that need to be consider during
adaptation of KPI's and balanced score card.
Data Collection and Analysis: In order to have effective collection of the data for the
current research, the investigator will focus on primary and secondary collection. It will assist in
effective gathering of the information so that results can be attained in appropriate manner.
Questionnaire will be key medium to primary data collection (Creswell, 2013). Moreover, the
use of diverse secondary sources such as books, journals and internet sources is beneficial for the
data collection. For effective analysis of the collected data the thematic approach will be used by
the investigator. In this, different themes will be designed as per objectives of the research
(Saunders, 2013).
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Approach: Qualitative approach of research will be accessed in order to investigate the
effect of balanced score card and KPI's on decision making of oil and gas sector. In addition to
this, the nature of subject is also according to the approach so selection of approach is
appropriate and it may lead to optimistic outcome.
Sampling: In order to provide a support to primary investigation, the questionnaire will
be asked to the professionals of oil and gas industry. It will facilitate in gathering of primary data
and analyses the information for meeting objectives (Daniel, and Sam, 2011). The sample size
for the current study will be 5 managers of oil and gas sector organizations.
PLAN
Key Activities
1st
Wee
k
2nd &
3rd
Week
4th
Week
5th
Wee
k
6th
Week
7th
Week
8th &
9th
Week
10th
Week
11th
Week
12th
Week
Preparing for
Introduction
Research
Design
Research
Methodology
Literature
Review
Accessing of
Secondary Data
Examining of
collected Data
Collection of
Primary Data
Analysis of
primary and
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secondary data
Conclusions and
Recommendatio
ns
Completion of
remaining work
Revise and draft
Final
Submission
OTHERS
As per the detailed study, there are few other factors that need to be consider by the
researcher in order to meet objectives of the research. Ethics is considered as essential section of
the research so an ethical protection will be complied in the study. In this respect, the purpose of
research will be provided to all participants so that ethical aspects standards can be maintained in
appropriate manner (Manion, Cohen and Morrison, 2009). Before accessing the information
from them, their consent will be taken and their personal information will not be disclosed. Issue
of plagiarism will also be considered in desired form in order to make sure that the ethical
aspects are properly covered.
In addition to this, the validity and reliability of information also need to be considered so
that objectives can be accomplished. Proper citation and sources will be provided in regard to the
statements for maintaining the standards of validity and reliability (Burns, 2008). Moreover,
accessibility of the data is considered as one of critical aspect because it is decisive factor of
data. If information is not accessed from valid and reliable sources than the overall results of the
study can be impacted in negative manner.
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REFERENCES
Books and Journals
Anderson, G., 2012. Oil and gas in federal systems. Oxford University Press.
Burns, B. R., 2008. Introduction to Research Method. Pearson Education.
Creswell, J. W., 2013. Qualitative, Quantitative, and Mixed Methods Approaches. 4th ed. SAGE
Publications, Inc.
Daniel, S. P. and Sam, G. A., 2011. Research Methodology. Gyan Publishing House.
Inkpen, A.C. and Moffett, M.H., 2011. The Global Oil & Gas Industry: Management, Strategy &
Finance. PennWell Books.
Manion L., Cohen, L. and Morrison, K., 2009. Research methods in education. Routledge.
Saunders, M. et. al., 2013. Research Methods for Business Students. Harlow: Prentice Hall.
Online
Quantitative,Qualitative, and Mixed Research. 2015. [pdf]. Available through:
<http://www.uk.sagepub.com/upm-data/38123_Chapter2.pdf >. [Accessed on 9 June,
2016].
Sampling Designs. 2009. [pdf]. Available through:
<http://www.ssc.wisc.edu/~jraymo/links/soc357/class8_F09.pdf >. [Accessed on 9 June,
2016].
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