The impact of balanced scorecards in a public sector environment

Abstract

Purpose -Many papers discuss the use of the balanced scorecard yet few provide empirical evidence within a longitudinal context. Still fewer studies present balanced scorecard evidence from within public services. This study seeks to consider the impact of implementing and using the balanced scorecard within a public service city council environment. Design/methodology/approach -The paper reviews the recent literature within the area of public sector performance measurement. A longitudinal case study approach is adopted using interview and documentation analysis to consider the impact of balanced scorecards in a public sector organisation. The impact of balanced scorecards was evaluated at three levels: strategic planning, team management, and individual staff performance. Findings -The empirical evidence suggests that the use of scorecards within the case organisation enables employees to clearly appreciate their role, and focus on delivery of performance-related measures which support organisational strategy. Clarity of role appears to have a positive influence on the achievement of the organisation's business plan and excellence goals regarding the delivery of customer service. Research limitations/implications -As with any single longitudinal case study, issues of generalisability to other settings and environments can occur. Practical implications -This paper indicates the potential benefits and pitfalls of introducing and developing the balanced scorecard within a public sector organisation. Originality/value -This research is set within a public service environment and by providing empirical case evidence contributes to the literature within this area.

A BSC-DEA approach to measure the relative efficiency of service industry: A case study of banking sector

“…It is possible to achieve operational elevation and create valuable processes merely by creating appropriate work environment for the personnel and encourage them and reinforce creativity, learning and development in the organization (Growth and learning perspective). (McPhail et al 2008;Greatbanks & Tapp, 2007;Davis & Albright, 2004;Huang, 2009;Hung-Yi et al 2009). The idea of using integrated BSC-DEA has been used for different organizations.…”

Performance Measurement in a South African Government Social Services Department: A Balanced Scorecard Approach

“…Chang (2006) also provides a critique of the BSC in the health service and suggests that it is used more as an information system than a strategic performance measurement tool. Greatbanks and Tapp (2007) also report that a modified BSC was unsuccessfully used to manage performance in an Australian City Council.…”

Strategic Planning in Brazilian Small-Scale Municipalities: is the Balanced Scorecard a feasible tool?

“…There is evidence that BSC has been employed in the USA and Canada (Askim, 2004), Great Britain (Kaplan and Norton, 2001), Australia (Yetano, 2009, Farneti and Guthrie, 2008, Hoque, 2008, Italy (Farneti and Guthrie, 2008), New Zealand Norton, 2001, Greatbanks andTapp, 2007), Norway (Chan, 2004, p. 216), among other countries. Despite being widespread in developing countries, there is few empirical evidence in literature about the application of the balanced scorecard (BSC) in developing countries (Gomes andLiddle, 2009, Ruas, 2003), but no evidence whatsoever for the specific case of Brazilian small-scale municipalities.…”

“…In this vein, "…measurement system should make the relationship (hypotheses) among objectives (and measures) in the various perspectives explicit so that they can be managed and validated (Kaplan and Norton, 1996, p. 30). For example, investments in learning will lead to a better internal business processes, which, in turn, is likely to improve customer's satisfaction and loyalty, and therefore ending up in a higher return on investments, which would satisfy shareholders (Greatbanks and Tapp, 2007).…”

“…Due to the lack of evidence and the idiosyncratic nature of the tool it is not clear whether this approach to performance appraisal is generalisable across all jurisdictions. There is evidence that BSC has been employed in the USA and Canada (Chan, 2004), Great Britain (Wisniewski and Olafsson, 2004), Australia (Yetano, 2009, Farneti andGuthrie, Hoque, 2008), New Zealand (Greatbanks and Tapp, 2007), Italy (Farneti and Guthrie, 2008), and Norway (Askim, 2004), among other countries. However, there is limited research on its use in developing countries.…”