Balanced Scorecard in Universities

Abstract

Objective: Performance measurement and reporting leading to greater transparency and accountability of universities have become a challenging issue. Increasingly, universities have been required to provide performance indicators—empirical evidence of their value creation — to the different group of stakeholders. One of the approaches that may be applied by universities is the Balanced Scorecard (BSC). The objective of this paper is to indicate the BSC as a useful tool for the evaluation of the universities’ performance. Methodology: This study is based on the following research methods: descriptive, deductive, and the literature review. It refers also to case studies that are quoted in the context of their practical BSC application experience and it presents the pioneer approach of California University in BSC adoption. The rationale of this paper follows the principal-agent theory that is a foundation of the accountability concept. It refers also to the new managerialism, new public management, and entrepreneurial university. Findings: Based on the literature review concerning the analysis of the examples of universities implementing BSC, this paper argues that BSC provides a framework for the performance measurement that allows for the increased transparency and accountability of these institutions. Value added: The pioneer BSC framework presented in this paper can be used as the basis for the development of general performance measurement in universities. Recommendations: It is recommended that the universities that want to boost their transparency and be accountable for their outcomes apply and develop the BSC framework to which we refer to in this paper.

Implementation of Balanced Scorecard

“…Universities are subject to quality assessment procedures valuing academic, research as well as business criteria. To make universities more competitive and sustainable over time it is necessary to introduce and develop strategic management models to govern internal results as well as strengthen external relations (Fijałkowska & Oliveira, 2018). In higher education, there are time-honored traditions related to performance measurement that today are driven by the need for external accountability requirements which must be implemented in a system of accounting and financial reporting (Fijałkowska, 2017) Traditionally, performance measurement and reporting, which are the requirements for effective accountability, draw on a financial model based on profitability, cash flow, and sales growth among others.…”

“…The objective of the concept is to overcome the disadvantages of traditional measurement performance systems, which are based only on financial results (Pietrzak, Paliszkiewicz & Klepacki, 2015). The implementation of the BSC may contribute to greater transparency and accountability of the HEI (Fijałkowska & Oliveira, 2018). Papenhausen and Einstein (2006) describe the implementation of the BSC at the University of Massachusetts -Dartmouth College of Business emphasizing the need for active contributions from everyone at the university to make the BSC successful.…”

“…Al-Hayaly and Alnajjar (2016) used the BSC to study knowledge management processes and their impact on organizational performance in private universities in Jordan. There are several universities all around the world that have implemented the BSC, highlighting a large range of universities especially in the US, UK, Australia, Canada, and Jamaica (Fijałkowska & Oliveira, 2018).…”

“…This need to monitor effective performance management has gained increasing recognition also in Higher Education Institutions (HEI) as the Balanced Scorecard (BSC) has been recognized as one of the most implemented strategic performance measurement guides (Guenther & Heinicke, 2019; Hansen & Schaltegger 2016), among a broad range of existing management tools, such as Tableau de Bord, SMART and several other wellknown management tools. Among the existing management control tools, the BSC was selected for this research, given that in HEI it has been widely implemented (Fijałkowska & Oliveira, 2018). As communication assumes a relevant role, BSC can promote communication among members (Kaplan, 2008(Kaplan, , 2010b(Kaplan, , 2010aOliveira et al, 2020).…”

What is the Relationship between the Four Dimensions of the Balanced Scorecard and Organization Performance of Ghanaian Public Universities?

“…In view of the above, several universities in the developed and developing worlds have adapted or are making the effort to adapt to the changing circumstances as they re-structure their institutions and give priority to the improvement of their institutional performance and accountability (Fijatkowska & Oliveira, 2018). Such advances have unavoidably resulted in the development of bureaucratic or businesslike processes and methods (Jauhiainen et al, 2015).…”