BSC AS CONTROL AND EVALUATION INSTRUMENT OF BANKS’ INNOVATION STRATEGIES

Using the methodological principles of the Balanced Scorecard the author developed the foundations of a system for monitoring and evaluation of banking innovation strategy which is an important tool for its implementation. The elements of this system are the strategic innovation map built in terms of four perspectives that reflect the logic of the formation of bank’s innovation results, and a set of key performance indicators that measure the specific results of strategy’s implementation on certain check dates.The Balanced Scorecard of Innovation (BSCI) includes criteria that reflect the following innovative objectives: in perspective of learning and growth – staff professional development, increasing of innovation activity, the creation of innovation culture, innovative leadership development; in perspective of internal business processes - creating a highly effective innovative process, improving the brainstorming, ensuring the efficient activities of cross-functional teams, formation of the optimal innovation portfolio; in customer perspective - increasing the number of customers, their satisfaction and loyalty, improving of serviceability; in financial perspective - creating innovation bonus by increasing benefits from innovations and reducing operating costs.The proposed key performance indicators are the basis for creating individual maps for bank’s employees which are designed separately for each level of bank’s organizational structure and are used in the incentive system of staff’s innovation activity. To maximize the effectiveness of BSCI implementation it should be integrated with the whole system of bank management - planning, management accounting, reporting, and information support.