The impact of balanced scorecards in a public sector environment: Empirical evidence from Dunedin City Council, New Zealand

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.

Citation

Greatbanks, R. and Tapp, D. (2007), "The impact of balanced scorecards in a public sector environment: Empirical evidence from Dunedin City Council, New Zealand", International Journal of Operations & Production Management, Vol. 27 No. 8, pp. 846-873. https://doi.org/10.1108/01443570710763804