1. Balanced Scorecards in
Linking Quality to
Strategy: Benefits of
Balanced Scorecards in
the Public Sector
Seminar on “Quality Manager in the Public Sector” Romania, March 2008

2. Origin of Balanced Scorecards
The original Balanced Scorecard (Kaplan and Norton, 1992) was focused on reporting performance and very private-sector oriented
Now, it is a tool for strategy development and testing and is applicable for public and nonprofit sectors, as well

3. Operational and process
A DEVICE TO BUILD
CAUSE AND EFFECT
WITHIN YOUR BUSINESS
A GOAL SETTING TOOL +
Financial
Financial
Customer
Customer
Operational and process
STRATEGY
Operational and
process
Learning and
innovation
Learning and
innovation
Figure 3.2 General flow of the Balanced Scorecard. (SOURCE: The Balanced Scorecard, David Norton, Renaissance Strategy Group, Lincoln, MA, and Robert Kaplan, Harvard Business School). 13

4. Community First
Customer First
Funding the Future
Performance Counts
People Matter

5. Developing the Scorecard
What are we trying to achieve? (Community Priorities)
What key things do we need to get right to achieve them? (Strategic Objectives)
How do we know if we are getting there? (Measures and Targets)

6. The Barking and Dagenham Balanced Scorecard Strategy Map
Raising
Pride
Developing
Rights &
Responsibilities
Improving
Health,
Housing,
Social Care
Cleaner,
Greener,
Safer
Promoting
Equal Opps,
Celebrating
Diversity
Regenerating
Local
Economy
Better
Education
& Learning
for all
Meeting
Customer
Needs
First
Providing
Accessible,
Services
Standards
Investment
through
Partnerships
Allocating
resources to
support
priorities
Every
Pound
Counts
Supporting
Innovation,
Risk &
Reward
Building
Confidence,
Enhancing
Reputation
Strategic
Leadership
Embed
the Core
Competencies
Project
Management
Skills
Empowering
Decisions,
Informing
Choice
Performance
&
Accountability
Redesign Processes & Programmes to put Customers
Excellence
Integrated
Financial &
Service
Planning
Community
Role
Community First
Customer First
Funding the Future- Financial & Resource Perspective
Performance Counts - Organisational Processes Perspective
People Matter - Learning & Growth Perspective

7. The Scorecard Performance Indicators
% of interactions with the public that are delivered electronically e.g. by telephone, internet.
% of staff who are set performance targets as a result of appraisal/appointment
% of reports to members that are appropriate & of good quality
% of Balanced Scorecard actions implemented on time and as planned
% of partnership strategies/action plans delivered on time & as planned
% of residents with a positive perception of the Borough
The level of the “Equalities standard” for local government to which the Council performs
The level of the “Equalities standard” to which B&D public sector bodies perform
Numbers of citizens involved in Council consultations
Number of deaths by Heart Disease in B&D
% of homes that meet the decency standard as a percentage of total public & private stock
% of residents with a positive perception of public safety
% of residents with a positive perception of the overall appearance of the Borough
% of education & learning indicators at above national average
% of education & learning indicators at or above top quartile
Average income of B&D citizens
Community
First
% of residents satisfied with the quality of services
% of access indicators at or above top quartile
% of quality & service outcome indicators at or above top quartile
% of community strategy actions delivered on time & as planned
Customer First
% of cost indicators in best quartile
% of Capital schemes delivered on time & within budget
% of overall budget which is re-directed to priorities
% of capital funding generated from external sources
% of revenue funding generated from external sources
Funding the Future
Performance Counts
1-10 rating by key stakeholders against reputation drivers
% of staff satisfied with the quality of their appraisal & personal development planning
% of managers trained in project management techniques
% of staff who are satisfied that the leadership of their manager enables them to place their work in the context of the Community Priorities and/or strategic objectives
% of BV inspections that indicate confidence in the Council’s ability to make improvement
People Matter

8. Service Scorecards
Each of the 29 Service Heads produce a scorecard, which translates the corporate scorecard to the service level and takes account of specific service pressures e.g from government departments.
Each Service Scorecard sets out:
strategic service objectives and measures
an implementation plan of how the targets will be delivered.

9. Example of a Balanced Scorecard in a UK hospital
Patients and Community
Objectives
Measures
Targets
Service Delivery
Organisational Development
Financial

11. Group exercise Strategic objective Performance indicator Target
Customers
Staff
Financial resources
Performance
[Your choice]