Scorecarding in the public sector: fad or tool of choice?

• Author: Lawson, Raef A.
• Position: Best Practices - Survey

Fourteen years after the concepts of the balance scorecard were introduced by Robert S. Kaplan and David P. Norton,' the question remains--"Is scorecarding in the public sector just a passing management fad?." In short, the answer is--"no"

Due to the nature of the mission and goals of most government agencies, an enterprise scorecard system can be an excellent tool for successful planning, executing, monitoring, and reporting of progress in achieving performance goals in the public sector.

WHAT IS A SCORECARDING SYSTEM?

The terms "scorecard" and "balanced scorecard" are often used interchangeably Several definitions of a scorecarding system follow:

* A method of visualizing important metrics relating to the health and/or strategy of an organization presented in a report, dashboard, or scorecard format.

* "A strategic management tool that helps measure, monitor, and communicate your strategic plan and goals through the organization in a way that is understood by everyone. (2)"

* "A framework for implementing strategy that translates an organizations' mission and strategy into a set of performance measures. (3)"

The On-Line International Scorecard Study was designed to investigate the use and adoption of scorecarding worldwide in the public and private sectors. (For more information or to participate in the study, go to www.scorecardsurvey.imanet.org.) Available on the Web in eight languages, the survey is sponsored by professional and consulting organizations from around the world. (4) The role of these non-financial sponsors is to solicit the participation of their members and clients in the survey

Useful information on the changing use and increasing popularity of scorecarding in the both the public and private sectors came from the 2005-2006 survey, and its predecessor two years before. What accounts for the increased popularity of scorecarding in the public sector? It is due, in part, to three main factors:

1. The increased demand for government accountability and delivery of efficient services with ever-tightening funding sources.

2. An increase in the skill level of government managers. Many of the "best and brightest" now make the government their preferred career choice.

3. The increasing availability of enterprise-class scorecarding software to facilitate the scorecarding process in extremely complex government operations.

   GOVERNMENT ACCOUNTABILITY

   The discipline of performance accountability and reporting is quickly becoming a sophisticated "best practice" at all levels of government. This is being driven by several forces, including:

   * Greater public awareness and demand for visibility and accountability

   * Mandates and policies such as the Government Performance and Results Act (GPRA) (5) and...