Balanced Scorecard in Public Organizations
Balanced Scorecard is a performance measurement system commonly used in the
private sector for translating the strategic goals into a set of indicators. In this conceptual
framework performance indicators are distributed among four perspectives: financial,
customer, internal process, learning and growth. Balanced Scorecard provides an assessment
tool for the management to implement the strategy and enables a long-term success.
Due to the New Public Management movement public organizations have taken more
and more efforts recently to improve their efficiency and effectiveness by implementing a
wide range of management tools. This rises the question of applicability of Balanced
Scorecard methodology in public sector. The paper aims to discuss the difficulties of the
adaptation and presents public organizations already aligned with BSC approach.