ISSN Ekonomika ir vadyba: aktualijos ir perspektyvos (9) Mykolas Romeris University
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1 ISSN Ekonomika ir vadyba: aktualijos ir perspektyvos (9) Mykolas Romeris University services continue to rise, services remain variable and authorities is large and as diverse as education ser vices about removing abandoned cars, monitoring air and improvement of performance across this range of services requires a structured and strategic approach. more complex environments, higher expectations, the more effective approaches, attention has been turned to developing more holistic models for performance management, measurement and improvement. An ef fective performance management model provides a up the local government modernisation agenda and provide a coherent platform for organisations to drive select performance improvement tools can be used to in an organisation or partnership. In modern business ships, and an innovative culture are critical in pro initiatives. It is based on four balanced perspectives, effect. A proper balanced scorecard can predict the series of linked performance measures based on four goals, improved collaboration, and unrelenting focus ment measures. The scorecard enables public authori to four questions of critical concern: standing of international cultural values? participate in transfer learning? be reallocated? The balanced scorecard forces public authori planners can continue to add performance measures the Balanced Scorecard method as a tool for evaluat Tasks of this article are: Scorecard method. perspectives. Scorecard method and strategic planning as tool for evaluating performance of local Research method
2 issue of linking operational performance to strategic performance target or focus attention on all the critical anced Scorecard as a more sophisticated approach for to survive and prosper in a competitive environment, derived from their strategies and capabilities. The Bal steps and then presents information so that the critical success factors can be evaluated and compared. across four balanced perspectives, the Balanced In, and ton introduced the balanced scorecard, a concept for on the human issues, the balanced scorecard helps to strategic management cators of future performance. a decade s experience since the original article. concise report featuring a set of measures that relate set, the Balanced Scorecard has been promoted as a Scorecards comprised simple tables broken into four have since suggested alternative headings for these perspectives, and also suggested using either addi
3 tives plotted on a strategic linkage model or strat of perspectives as is found in the earlier designs, but causal links on the diagram. Having reached some relate, the Balanced Scorecard s measures are chosen but it has been much more successful than the design ous improved versions of Balanced Scorecard design methods have emerged examples being The Perfor mance Prism, Results Based Management and Third Generation Balanced Scorecard for example. These more advanced design methods seek to solve some of the remaining design issues in particular issues relating to the design of sets of Balanced Scorecards Balanced Scorecard topics confuse the design process elements and the Balanced Scorecard itself: in par ticular, it is common for people to refer to a strategic card. Balanced Scorecard is a performance manage ment tool: although it helps focus managers attention on strategic issues and the management of the imple Balanced Scorecard itself has no role in the formation cial environment. Financial considerations for public meet the needs of their constituencies. Therefore, in Customer: This perspective captures the abil all customer service and satisfaction. In the govern mental model, the principal driver of performance is This perspective focuses on the internal business results that lead to ternal business processes are the mechanisms through This perspective looks that are undergoing radical change. In order to meet changing requirements and customer expectations, Strategic planning presents a unique challenge. resources, but staff assigned to the strategic planning this formidable task. Is planning a science or is it an
4 card concept is built upon the premise that measure of current capabilities. Strategic initiatives in the context of marketing Strategic objectives are numerical measure The creation of a strategy map and scorecard scorecard tool. It is critical to note that the scorecard itself is causal relationships is the anchor to the success of the achieve desired strategic results. comprehensive architecture for describing the strat gies or initiatives that management intends to adopt strategic vision / direction and the operational activi ties of the organisation ensuring better execution of using the associated performance metrics, the cause are both explicit and testable. As such, it should be scorecard represents a chain of assumed cause and ef tive. For each performance measure it must be clear ties. Once maps have been constructed, linking ac tions and their impacts, operations can be managed to achieve desired outcomes. it can be seen that the organisation s mission is to improve shareholder value, and that this is achieved
5 / feedback, decrease in numbers of complaints and processes perspective: innovate, increase customer value, achieve operational excellence and be a good neighbour. Thus it might be expected that the organi sation: Enhances the performance dimensions of ex Reassesses internal logistics of production Monitors the environmental impacts of activ ities (supporting the good neighbour initia The above activities and changes are all and the corporate culture. diverse as education services to removing abandoned teries. Management and improvement of performance across this range of services requires a structured and strategic approach. Before selecting a particular per formance management model, improvement tool or asking a series of questions, including: prove? covering all the organisations activities or de the changes? sidered important for the success of the particular or ganisation. The Balanced Scorecard is a holistic model that can be used at various levels across the organisation, sures across a range of corporate perspectives. These the model. The balanced scorecard can be used at communicate strategies and priorities throughout the organisation; and budgets; monitor progress and introduce initiatives to improve performance. The Balanced Scorecard supports other perfor mance management models and improvement tools, of the scorecard and the latter for diagnosing strengths nesses of the component parts of the department. The agreements. metropolitan councils. health; links targets and measures to operational
6 ensure balance; facilitates communication and understanding of business goals and strategies at all levels; in allocating resources and helps organisa tions / groups to become more results orien tated. Organisations should not be afraid of tailoring the scorecard to be meaningful at a local level. Pub lic sector services have more complex perspectives to consider than private sector organisations and there The success of the approach is based on the organi existing short term goals rather than encouraging in novation and transformation. Users must make efforts to ensure that staff do not see the scorecard as a mea simple to implement if the organisation has a clear vi sion, mission and strategies in place. It is not steeped are minimal resource implications for implementing the scorecard in authorities. Municipal performance measurement comes indices exist for development programs to feed infor health, housing, recreation and social services. Mea and services to the pubic. The performance measures comes of providing these goods and services. Perfor mance measurement belongs to an institutional cul mation use in the management of public and private sults management. The managing of results process that are needed to understand success. and achieves its strategic goals: Financial perspective Customer perspective Internal business process perspective Learning and growth perspective municipal services, but it broadens the range customer satisfaction, and business process that performance measurement is expected measurement is intended to have an impact on and their programs and services. Performance in developing a meaningful performance
7 Local government measurement use to focus on performance and results. In Evaluation and Program Planning, Harvard Business Review The Balanced Scorecard: Translating Strategy into Action. Harvard Business School Press, Boston. formance management: A balanced approach to per formance management issues in local government. Management Accounting Research Performance Drivers: A Practical Guide to Using the Balanced Scorecard Santrauka
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