Hamied, Mohamed Sayed Abdel; Elbagou y, Ayman
A icle
Balanced sco eca ds: P oposed amewo k o applica ion
a he local sys em le el insigh s om in e na ional
expe iences
Re iew o Economics and Poli ical Science (REPS)
P o ided in Coope a ion wi h:
Cai o Uni e si y, Cai o
Sugges ed Ci a ion: Hamied, Mohamed Sayed Abdel; Elbagou y, Ayman (2025) : Balanced
sco eca ds: P oposed amewo k o applica ion a he local sys em le el insigh s om in e na ional
expe iences, Re iew o Economics and Poli ical Science (REPS), ISSN 2631-3561, Eme ald, Bingley,
Vol. 10, Iss. 1, pp. 34-51,
h ps://doi.o g/10.1108/REPS-08-2020-0109
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Balanced sco eca ds: p oposed
amewo k o applica ion a he
local sys em le el insigh s om
in e na ional expe iences
Mohamed Sayed Abdel Hamied and Ayman Elbagou y
Depa men o Public Adminis a ion, Facul y o Economics and Poli ical Science,
Cai o Uni e si y, Giza, Egyp
Abs ac
Pu pose –The s udy aims o p o ide a clea amewo k o s eps on how o implemen he balanced sco eca d
model a he le el o measu ing and managing local pe o mance, wi h a mix be ween wha heo e ical
app oaches show in his ma e and examples o applied expe iences in di e en con ex s.
Design/me hodology/app oach –The s udy elies on he case s udy app oach, which was used o p esen
pionee expe iences in he ield o applica ion o he model on local go e nmen ’s le el, namely, in he USA,
England and Sou h A ica. This pape was done by e iewing he o iginal balanced sco eca d li e a u e and
w i ings ega ding he public and local go e nmen sec o . This li e a u e o med he basis o analyzing he
a ious sec ions o s udy.
Findings –Balanced sco eca d is one o he impo an models o de eloping and measu ing local
pe o mance. In e na ional expe iences unde s udy con i med ha applica ion o he model equi es he
ollowing: The a ailabili y o bu eauc a ic will a he local le el o apply he model, necessi y o capaci y
building o local go e nmen uni s o apply i , in oduc ion o ins i u ional and s a egic changes o he local
uni s o be able o build hei own pe o mance ca ds, as well as s eng hening local in o ma ion sys ems, and
no s anda dizing he pe o mance ca ds a he di e en local adminis a i e uni s.
O iginali y/ alue –This s udy will be use ul o schola s, policymake s and local execu i e leade s on ways
o apply he balanced sco eca ds a he local go e nmen uni s.
Keywo ds Balanced sco eca ds (BSCs), Pe o mance, Local go e nmen , Local councils, S a egy map
Pape ype Resea ch pape
1. In oduc ion
The local uni s in many coun ies ha e su e ed om cen al con ol, and inabili y o building
hei capabili ies in line wi h he applica ion o mode n app oaches conce ned wi h he
p ocess o e o m. Hence, wi h he ans o ma ion o many in e na ional expe iences o
decen aliza ion hough and local go e nance, i became he esponsibili y o he cen al
go e nmen s o de elop local pe o mance sys ems, in p opo ion o hese e o ming
app oaches.
The beginnings o pe o mance e o m on local uni s e u n o 1906, whe e he e o m a
he municipal go e nmen le el was he d i e behind he mo emen o epo pe o mance o
he ci izen y, and he e has been a g ea in e es in pe o mance measu emen epo s o
municipali ies since 1920. A publica ion en i led Measu ing Municipal Go e nmen appea ed
in 1927 h ough he In e na ional Ci y and coun y Managemen Associa ion (ICMA) in USA
REPS
10,1
34
© Mohamed Sayed Abdel Hamied and Ayman Elbagou y. Published in Re iew o Economics and
Poli ical Science. Published by Eme ald Publishing Limi ed. This a icle is published unde he C ea i e
Commons A ibu ion (CC BY 4.0) licence. Anyone may ep oduce, dis ibu e, ansla e and c ea e
de i a i e wo ks o his a icle ( o bo h comme cial and non-comme cial pu poses), subjec o ull
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The cu en issue and ull ex a chi e o his jou nal is a ailable on Eme ald Insigh a :
h ps://www.eme ald.com/insigh /2631-3561.h m
Recei ed 20 Ma ch 2022
Re ised 1 Ap il 2022
Accep ed 1 Ap il 2022
Re iew o Economics and Poli ical
Science
Vol. 10 No. 1, 2025
pp. 34-51
Eme ald Publishing Limi ed
e-ISSN: 2631-3561
p-ISSN: 2356-9980
DOI 10.1108/REPS-08-2020-0109
(Hildeb and, 2007, pp. 13–14); howe e , he i s scien i ic w i ing on measu ing local
pe o mance can be aced back o 1938, when ICMA published a olume en i led Measu ing
Municipal Ac i i ies: A Su ey o sugges ed C i e ia and Repo ing Fo ms o App aising
Adminis a ion (Kopczynski and Lomba do, 1999, pp. 124–125).
The 1950s, 1960s and 1970s wi nessed he domina ion o inpu s and measu emen models
ha a e based on inancial analysis ools, such as cos -bene i analysis and budge ing
sys ems. Then, du ing he end o he 1980s, new app oaches began o appea and came o be
used a public o ganiza ions (Lus haus and Ad ien, 1998, p. 3). The adi ional me hods ha
we e dependen on inancial a iables began o ace many c i icisms, and new app oaches
began o eme ge, a combina ion o inancial and non inancial indica o s, which p o ided a
balanced iew o measu e pe o mance. On he op o hese app oaches ha appea ed in he
ea ly 1990s was he balanced sco eca d (BSC) model de eloped by Robe Kaplan and Da id
No on (Kaplan and No on, 1992, pp. 71–79).
The BSC model has ou pe spec i es: he inancial, he cus ome , he in e nal p ocesses
and he lea ning and g ow h pe spec i e. The app oach is based on dependen pe o mance
indica o s and leading pe o mance indica o s; i links he sub-s a egic goals wi h each
o he , and he key pe o mance indica o s wi h each o he , in wha is known as he cause and
e ec ela ionships included in he s a egy map (Kaplan and No on, 1992, pp. 71–79).
The main ques ion is wha a e he phases h ough which his model can be applied o wo k
a he le el o local go e nmen uni s? By ocusing on analyzing h ee s udy cases in he USA,
England and Sou h A ica, his pape discusses applying he model a he local le el.
2. Concep s de ini ion
The BSCs is a mul i-dimensional amewo k, which p esen s a p obable sequence o phases
o i s implemen a ion. Indeed, he s uc u e o he BSC may also help o explain i s success ul
unc ioning (Mbala, 2016, p. 26).
The model could be de ined in o h ee dimensions, as Kaplan and No on (1992,1996)
desc ibed, and as Mashoko (2011) a gued, which is discussed in he ollowing sec ions.
2.1 As a pe o mance measu emen ool
BSC as a pe o mance measu emen ool was in oduced in he ea ly 1990s by Robe S.
Kaplan and Da id P. No on o he Ha a d Business School, as a new app oach o
pe o mance measu emen . I allows mange s o look a hei pe o mance h ough ou
impo an pe spec i es, including inancial, cus ome , in e nal business p ocesses and
inno a ion and lea ning. Th ough hese ou pe spec i es, BSC minimizes in o ma ion
o e load by limi ing he numbe o measu es used, and by mixing inancial and non inancial
measu es in he ou pe ious pe spec i es. BSC helps mange s unde s and, a leas
implici ly, many in e ela ionships, and he eby helping hem o o e come adi ional no ions
abou unc ional ba ie s and ul ima ely leading o imp o ed decision-making and p oblem-
sol ing. The e o e, BSC can keep o ganiza ions looking and mo ing o wa d (Kaplan and
No on, 1992, pp. 71–73, 79; Abdul Majid and Som, 2008, pp. 82–85).
2.2 As a s a egic pe o mance managemen sys em
Kaplan and No on desc ibed he BSCs as a s a egic managemen model which is capable o
ansla ing ision and s a egy o all pa s o he o ganiza ion, whe e he mange s using he
model do no ha e o ely on sho - e m inancial measu es as he sole indica o s o he
o ganiza ion’s pe o mance, he BSC allows hem o in oduce ou new managemen
p ocesses ha , sepa a ely and in combina ion, con ibu e o linking long- e m s a egic
objec i es wi h sho - e m ac ions (Kaplan and No on, 1996, p. 75).
Ope a ional
app oach o
BSCs
35
Impo ance and bene i s o BSC as a s a egic managemen sys em comes om i s abili y
o o e come he common ba ie s o s a egy execu ion, including: he pa icipa o y
ansla ion o ision, mission and s a egy in o clea objec i es, measu es and ini ia i es ia
he s a egy map ha in ol es he cause and e ec ela ionships among ou ypes o
measu es p esen ed in cus ome , inancial, lea ning and g ow h and inally, in e nal
p ocesses measu es. Addi ionally, cascading he sco eca d in o di e en le els o manage s
and employees o achie e wha is known as he alignmen o he o ganiza ion s a egy and
using he BSC enable he o ganiza ion o o e come p oblem o esou ces alloca ion, because
his model links inancial budge s wi h i s s a egic goals (Mashoko, 2011, pp. 7–8; Kaplan
and No on, 1996, p. 78).
2.3 As a communica ion ool
The BSC model is i s buil on a pa icipa o y me hodology in de eloping an o ganiza ional
sco eca d and s a egy map; hen, i cascades o di e en o ganiza ional le els and manages
i s implemen a ion. All o hese p ocesses depend on high deg ee o pa icipa ion and sha ing
knowledge and expe iences be ween op managemen and di e en le els o o ganiza ion,
such as manage s and employees (Mashoko, 2011, p. 8).
3. Con ex and he BSCs de elopmen s
BSCs we e p esen ed as a managemen sys em ha enables o ganiza ions o ansla e and
achie e hei ision and s a egy, and p o ide a comp ehensi e and in eg a ed sys em o
pe o mance measu emen , in o de o con inuously imp o e he o ganiza ional pe o mance
and he esul s o be achie ed (Akba zadeh, 2012, p. 86).
Because o he limi ed abili y o adi ional app oaches –which ely on inancial indica o s –
o p o ide manage s in o ganiza ions wi h comp ehensi e in o ma ion ha enables hem o
make long- e m s a egic decisions, Kaplan s essed a he beginning o 1983 he need o ind
new pe o mance measu es o keep pace wi h de elopmen s in he business; he explained ha
he e a e missing dimensions in he p ocess o measu ing o ganiza ions pe o mance, namely
non inancial measu es and indica o s (I ne and La cke , 1998, pp. 214–217; I
so ai _
e, 2008,p.18).
In 1987, a book i led “The Rele ance Los : The Rise and Fall o Managemen Accoun ing”
was published, c i icizing accoun ing sys ems ha a e based on p o iding his o ical
in o ma ion ha does no enable senio managemen o make u u e decisions o build
expec a ions necessa y o he con inued compe i i eness o he o ganiza ion’s pe o mance
(Johnson and Kaplan, 1987, pp. 5–13).
Then, he expe imen al s a o using BSCs began h ough a esea ch p ojec ha included
12 la ge companies. This p ojec was supe ised by Kaplan and No on in 1990, and he main
goal was o p esen a new me hod o model o pe o mance managemen ha combines
inancial and non inancial measu es, wi h an emphasis on he impo ance o accoun ing and
inancial measu es in decision-making in he sho e m, and hei impo ance o in es ing in
asse s ha a e easily alued; bu wha abou in es ing in he in angible asse s o he
o ganiza ion, such as inno a ions in p oduc s and ope a ions, de eloping employee skills and
cus ome sa is ac ion? (Koo anaee e al., 2013, p. 49).
As a esul , Kaplan and No on published hei a icle in which hey in oduced he
concep o “BSCs”in 1992, explaining ha he issue does no lie in choosing a se o indica o s
and measu es and sac i icing he es o hem, o he compa ison be ween inancial and
non inancial measu es. Making decisions and p o iding a clea comp ehensi e pe o mance
canno ake place om only one pe spec i e, bu he balance mus be achie ed. They linked
he model o he plane’s cockpi , which gi es he cap ain he de ails o he en i e plane’s
pe o mance, and ha BSCs enable manage s o manage and e alua e pe o mance h ough
REPS
10,1
36
ou app oaches o impo an hemes, which can be cla i ied by answe ing ou main
ques ions, as ollows:
(1) How do cus ome s see us? Cus ome pe spec i e.
(2) Wha mus we excel a ? In e nal p ocesses pe spec i e.
(3) Can we con inue o imp o e and c ea e alue? Inno a ion and lea ning pe spec i e.
(4) How do we look o s akeholde s? Financial pe spec i e (Kaplan and No on, 1992,
pp. 71–72).
Kaplan and No on did no s op a me ely in oducing he concep , bu he BSCs wen
h ough ou main de elopmen s, beginning in 1992, which o med he i s gene a ion, in
which he concep was explained, and i s ou main pe spec i es we e p esen ed as a
pe o mance d i e ; bu he sco eca d when i s in oduced was gene ic, and i did no ocus
s ongly on causal ela ionships among he ou pe spec i es (Kaplan and No on, 1992,
pp. 71–79; Lawi e and Cobbold, 2002, pp. 3–6).
Kaplan and No on quickly ealized he di icul ies ha aced his model. BSC was spa se
and ocused on he high-le el s uc u e; he e o e, hey de eloped he model, pu o wa d he
concep o s a egic objec i es, how o ind cause-e ec ela ionships be ween s a egic
objec i es in he ou pe spec i es and de ined sub-measu es o each one. This phase began
in 1993 wi h he publica ion o an a icle i led Pu ing he Balanced Sco eca d o Wo k
(Kaplan and No on, 1993, pp. 2–16; Rabe, 2019, p. 14; Na ayanamma e al., 2016, pp. 79–80).
Some p oblems eme ged, especially a he le el o choosing measu es and se ing
objec i es, in addi ion o he issue o he cascading he BSCs o he lowe le els o he
o ganiza ion. So he e was a hi d gene a ion, ha wi nessed he con i ma ion o he s a egic
ole o he model and how o ansla e he o ganiza ion’s s a egy h ough BSCs; he
simpli ied e sion o he s a egy map was hen p esen ed. The mos impo an ea u e o
de elopmen was wha was known as a s a emen o he o ganiza ion’s u u e des ina ion
acco ding o speci ic ag eed upon da es (Kaplan and No on, 1996, pp. 75–85; Kaplan and
No on, 2000, pp. 167–176; Kaplan and No on, 2001b, pp. 147–160).
The ou h de elopmen emphasize on he necessi y o he abili y o he model o achie e
apid esponse o unce ain y and isk a iables, and he abili y o lea n when implemen ing
he s a egy, a he han con ol and managemen only, in addi ion o an impo ance o he
en i onmen al and social impac on he o ganiza ion pe o mance (K
ad
a o
ae al., 2014,
p. 175).
Hence, he i s gene a ion mainly a ge s con ol o he o ganiza ion by de ining a se o
measu es o he ou pe spec i es. I is use ul o ope a ional pe o mance, bu i lacks he
s a egic ole, while he second gene a ion ocuses on pe o mance d i e s and KPIs, which
make he di e ence in pe o mance. The hi d gene a ion is mo e ocused on he s a egic
dimension o he o ganiza ion’s pe o mance, and impo ance o a s a egy map ha links he
pe o mance h eads, acco ding o he des ina ion s a emen o he o ganiza ion, while he
ou h gene a ion, ocuses on lea ning while implemen ing he s a egy mo e han jus
con olling and managing, and esponding o changing ci cums ances and isk ac o s.
Figu e 1 shows he BSC model as de eloped by Kaplan and No on (2007, p. 4).
4. Adap ing he model o local go e nmen uni s
Kaplan emphasized ha he di e ence in he con ex in which he model a ose is no an
obs acle o he di ec ion o public o ganiza ions o use i , as he applica ion o he model o
public o ganiza ions may achie e bene i s ha may ou weigh i s applica ion in he p i a e
sec o (Kaplan, 1999, pp. 3–5).
Ope a ional
app oach o
BSCs
37
Howe e , he go e nmen al o ganiza ions quickly aced di icul ies in he implemen a ion
p ocess, which p omp ed many o hem o a oid elying on he model a he beginning, as
he e we e p oblems in unde s anding he componen s o he model i sel , which was
e lec ed in he di icul y o hese o ganiza ions in de ining hei s a egy p ecisely. As he e
we e p oblems in he way o dealing wi h he ou pe spec i es, especially he inancial and
he cus ome s pe spec i es, he success o public o ganiza ions inancially is comple ely
di e en om he success o p i a e sec o , in addi ion o o he p oblems ha ha e been
linked o us , absence abou he quali y and accu acy o in o ma ion equi ed, he lack o
cla i y o eal incen i es abou he e u ns om he use o hese models o employees and he
ime and e o ha his model equi es o implemen a ion, in addi ion o he absence o
sys ems and da abases used as he basis o p o iding he ca ds wi h he necessa y
in o ma ion (Kaplan, 1999,p.3;Ni en, 2002, pp. 293, 297–299; Pe e a e al., 2007, pp. 58–59;
Holze e al., 2009, pp. 31–40).
In his con ex , he Ci y o “Cha lo e”, No h Ca olina, se an example o he i s use o he
BSCs a he le el o public o ganiza ions, and Paul Ni en conside ed i he bes example o he
success o he BSC o he public and non-p o i o ganiza ions, whe e he ci y used his model
in 1996, and i s app oach o his model was d i en by he impo ance o he concep o
measu ing pe o mance and c ea ing a dis inc alue o he ci izen. I achie ed g ea bene i s
as a sys em, no only o measu e pe o mance bu also as a s a egic managemen sys em and
an e ec i e communica ion ool (Ni en, 2003, p. 271).
The de elopmen in oduced by he ci y on he BSC, he s a egy i used which is d i en
by cus ome o ien a ion and he c ea ion o an in e connec ed se o s a egic p io i ies ha
achie ed a dis inc alue o ci izens a e used as a e e ence o many cases a he le el o
public o ganiza ions as a whole (see Figu e 2)(Kaplan, 1999,p.4;Iqbal, 2007, pp. 42, 45).
As a esul o he pionee ing expe ience o he Ci y o Cha lo e, Kaplan de eloped BSCs o
be sui able o go e nmen al public o ganiza ions, and iden i ied h ee high-le el objec i es
ha he public o ganiza ions mus ake in o accoun when designing a BSC, including
(Kaplan and No on, 2001a, pp. 136–137):
(1) Cos incu ed: This objec i e emphasizes he impo ance o ope a ional e iciency, by
measu ing he cos incu ed o p o ide public se ices. This cos mus include wo
ypes o cos s: he di ec cos s bo ne by he go e nmen al o ganiza ion and he social
cos ha imposes on he ci izen and o he o ganiza ions h ough i s ope a ions. He e,
he local council conce ned wi h p o iding public se ices should minimize bo h
ypes o cos s.
Financial
To succeed
inancially, how
should we
appea o ou
sha eholde s?
Ini ia i es
Ta ge s
Measu es
Objec i es
In e nal Business P ocess
To sa is y ou
sha eholde s
and cus ome s,
wha p ocesses
mus we excel
a ?
Ini ia i es
Ta ge s
Measu es
Objec i es
Cus ome
To achie e ou
ision, how
should we
appea o ou
cus ome s?
Ini ia i es
Ta ge s
Measu es
Objec i es
Lea ning and G ow h
To achie e ou
ision, how will
we sus ain ou
abili y o
change and
imp o e?
Ini ia i es
Ta ge s
Measu es
Objec i es
Vision and
S a egy
Sou ce(s): Kaplan and No on (2007, p. 4)
Figu e 1.
The BSCs model: ou
pe spec i es
REPS
10,1
38
(2) Value C ea ed: Wha a e he bene i s ha he o ganiza ion achie es o he local
communi y, i mus p o e o he local ci izens ha he e a e angible ou pu s ha a e
achie ed and would bene i hem. The BSC p o ides he public o ganiza ion wi h
mechanisms ha enable i o measu e he bene i s achie ed wi h ega d o he
ou pu s, such as he ou pu s associa ed wi h he quali y o he educa ion p ocess,
imp o ing he en i onmen and public heal h. Also, he e mus be a balance be ween
he bene i achie ed and he co esponding cos .
(3) Legi imizing Suppo : I is impo an o public o ganiza ions o main ain all he
suppo i e bodies, whe he he legisla i e body ha plays an impo an ole in
app o ing he unding p og ams o hese o ganiza ions o con inue hei ac i i ies,
o ci izens, who ep esen an impo an sou ce bo h a he le el o gi ing legi imacy o
he wo k o hese o ganiza ions, h ough he ballo boxes, o a he le el o being a
sou ce o unding, as a ecipien o he se ice, o a axpaye .
Hence, he go e nmen al o ganiza ion, acco ding o his model, has o de e mine how o
achie e he expec ed alue, a minimal cos , while main aining suppo om i s unding
au ho i y. The s udy in he nex sec ion will analyze some o he pionee in e na ional
expe iences in he applica ion o his model a he le el o local go e nmen o ganiza ions, in
an a emp o p o ide a guiding amewo k by analyzing wha hese expe iences ha e gone
h ough.
5. Expe ience o using he BSCs a he local go e nmen o ganiza ions
This sec ion discusses how o implemen he BSCs by analyzing he s ages ha some o
he pionee in e na ional expe iences ha e gone h ough in he USA, England and
Sou h A ica. The c i e ion in selec ing cases was he signi ican success o hose
o ganiza ions in adop ing he model and he p esence o a clea amewo k o he s ages
o implemen a ion.
5.1 S udy cases analysis
This sec ion aims o highligh expe iences o local go e nmen o ganiza ions in he use o
BSCs, whe e he ocus was on h ee s udy cases, including he Ci y o Cha lo e, USA,
He o dshi e Coun y, England, and Ehlanzeni Dis ic Municipali y, Sou h A ica. The h ee
cases ep esen ed pionee ing expe iences in he use o BSCs a he le el o local councils in
hei coun ies.
Mission
Value/Bene i o
Se ice – Including
Posi i e Ex e nali ies
Cos o P o iding
Se ice – Including
Social Cos
In e nal P ocesses
Lea ning & G ow h
Suppo o
Legi imizing Au ho i ies:
- Legisla u e
-Vo e s/TaxPaye s
Cus ome pe spec i e
Financial pe spec i e
Sou ce(s): Kaplan (1999, p. 4)
Figu e 2.
The BSC o public-
sec o o ganiza ions
Ope a ional
app oach o
BSCs
39
The Ci y o Cha lo e is he bes and i s model o applying he BSCs in he public sec o
a he le el o local go e nmen in he wo ld, whe e i used his model in 1996. The si ua ion in
he USA a ha ime was wi nessing many changes a he local go e nmen le el o e o m
pe o mance managemen sys ems o go e nmen ins i u ions, especially wi h he
eme gence o he new public managemen and he app oach o ein en ing he
go e nmen . Thus, he ci y ended o adop he model in ecogni ion o i s leade ship, a
he ime, o i s impo ance, and ha o pe o mance measu emen as a i al issue. They
maximized he bene i o he model, no only as a sys em o measu ing pe o mance bu also
as a s a egic managemen sys em, as well as an o ganiza ion-wide communica ion ool
(Ni en, 2003, p. 271; Kaplan, 1999,p.3;A balanced sco eca d hall o ame, 2005,p.1;Hoque
and Adams, 2008, pp. 2, 3, 4, 22; Osbo ne, 1993, pp. 349–356).
The He o dshi e Coun y Council’s use o BSCs began in 2003, when he model was i s
in oduced o he coun y council using he “Excel pla o m”(Woods and G ubnic, 2008,
p. 353). Al hough he beginning o he implemen a ion o he model a he coun y council le el
as a whole was in 2003, he coun y had p e ious expe ience o his model h ough applying
i o He o dshi e Fi e and Rescue Se ice in 1998, which is pa o He o dshi e Coun y
Council (Business in elligence, 2004, p. 21).
The e ha e been a emp s o e o m he English local go e nmen sys em since 1983.
These include: he es ablishmen o he Audi Commission, as an independen body, which
unde ook he collec ion and publica ion o pe o mance indica o s on which he
comp ehensi e pe o mance assessmen sys em was buil in England; hen he con inued
a emp s o e o m he local pe o mance sys em h ough he issuance o he Local
Go e nmen Law in 1999; hen he p esen a ion o he whi e pape on local go e nmen in
2001 du ing he Blai ’s go e nmen , o p o ide a amewo k o wha was called “A
Comp ehensi e Pe o mance Assessmen sys em” o local go e nmen , which was adop ed
in 2002, o measu e he pe o mance acco ding o pe o mance indica o s, based on he “bes
alue”sys em. This con ex o e o ms is wha cons i u ed a majo ac o , no only o he
He o dshi e Coun y bu also o all local go e nmen au ho i ies in England, o adop
mode n and ad anced pe o mance measu emen sys ems ha mee he equi emen s o he
new cen al sys em o comp ehensi e pe o mance assessmen (Haub ich and Nclean, 2006,
p. 274; Boyne, 2002, p. 22; Game, 2006, pp. 4–6; Hold -Olesen, 2007, pp. 11–13).
In Sou h A ica, he Ehlanzeni Dis ic Municipali y Council s a ed using he model in
2007. The e was an emphasis on simila i y be ween he me hodology o he model’s wo k and
he legisla i e e o ms ha ook place a he s a e le el. This aimed a e o ming he local
go e nmen pe o mance sys em, s a ing wi h he s a e cons i u ion in 1996, which ga e o
municipali ies he igh o s uc u e and manage hei adminis a ion, budge ing and
planning p ocesses in such a way ha p io i y is gi en o he basic needs o he communi y,
wi hin s eng hening he capabili ies o local councils (Magagula e al., 2019, pp. 1–2; Nde u
and Mulle , 2018, p. 1).
The main objec i e o he e o ms was o imp o e he e iciency and quali y o public
se ice deli e y. In 1998, a policy documen known as he whi e pape o local go e nmen
was issued, and a icula ed he amewo k o enhance he capabili ies o he local
go e nmen s in Sou h A ica. The documen hen acqui ed he manda o y o m wi h he
p omulga ion o he Municipal S uc u es Ac in he same yea . Then he Ac was amended in
2000 o de e mine he na u e o he pe o mance managemen sys em a he local go e nmen
le el, acco ding o key pe o mance indica o s linked o he so-called in eg a ed de elopmen
plans. This was hen ollowed by he issuance o a se o egula ions ha included in de ails
he equi emen s o he p ocesses managemen sys em a he municipal le el in 2001, as well
as he issuance o a se o o he ac s, such as Municipal Finance Managemen Ac in 2003, he
In e go e nmen al Rela ions F amewo k Ac in 2005. The choice o many municipali ies o
his model was d i en by he abili y o BSCs o limi he subjec i i y o he pa icipan s in he
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de elopmen and o mula ion o he o ganiza ion’s s a egy, o enhance he abili y o o icials
wi hin he o ganiza ion o assess he s a egic impac o all implemen ed p og ams wi hou
bias and in acco dance wi h clea indica o s and measu es (Magagula e al., 2019, pp. 3–4;
Mbala, 2016, p. 54; Ronche i, 2006, p. 28).
5.2 Implemen a ion s ages o he BSCs
This sec ion explains he s ages which he case s udies wen h ough o apply he BSC. The
expe iences o he s udy cases, which we e analyzed, showed ha he e a e h ee basic s ages
o applying he model.
5.2.1 The p ojec planning phase. The expe iences o he h ee case s udies e ealed ha
one o he mos impo an success ac o s o implemen ing his model is p epa ing a good
plan o he p ojec be o e announcing he ac ual implemen a ion. This s age includes se en
basic s eps, which a e:
(1) C ea ing a o mal suppo i e amewo k: P o iding suppo by execu i es and elec ed
membe s o he local council om he beginning is he key o he success o he new
model. No ha ing s ong suppo o execu i e managemen , om he i s momen ,
will inc ease he o ces o esis ance o he new model, and he lus e o he model will
ade wi h ime. Wi hou his suppo , employees will ansla e his end as an
indica ion o he i ele ance and unimpo ance o he model, and i does no seem o be
wo h he ime and esou ces dedica ed o i (Cha an and Bossidy, 2004, p. 195; Simon
and Da ila, 1998, p. 70). This can be illus a ed on a case-by-case basis, as ollows:
Ci y o Cha lo e: The champion o he BSC a ha ime was “Pam Sy e ”. She was
Depu y Ci y Manage in 1994, be o e becoming Ci y Manage , and she hen ook
o e he p ocess o con incing he council membe s o he model and he g ea
bene i s expec ed om i s applica ion h ough many mee ings. The e we e also
he Mayo o he ci y and he elec ed council membe s who encou aged he sea ch
o bes p ac ices o he p ocess o measu ing and managing pe o mance, and
hey we e con inced o he impo ance o BSCs in helping hem ocus on s a egic
aspec s, and decisions making based on accu a e in o ma ion (Ni en, 2003,
p. 284).
He o dshi e Coun y: The BSC champion o using he model was he chie
execu i e o he coun y council. The BSC became widely discussing in cen al
go e nmen le el, and he chie execu i e p esen ed s ong incen i es o he
impo ance o he model due o his in e na ional ame, and he elec ed membe s
ound he model a good oppo uni y o comply wi h he comp ehensi e
pe o mance assessmen sys em ha was adop ed a ha ime (Woods and
G ubnic, 2008, p. 353).
Ehlanzeni Municipali y: The suppo p ocess o he model was a ailable a he
highes le el, whe he om he Municipali y Mayo o he elec ed membe s. The
p ocess o suppo and con ic ion wi h his model was d i en by he s ong logic
and jus i ica ion ep esen ed in ca ying ou a s ong esea ch p ocess on he
me hodology and bene i s o he model, why i was chosen ins ead o o he models
o implemen a ion a he municipal le el and he success achie ed by he model
a he in e na ional le el; so, he e was a semi ag eemen o implemen and use he
model (Mashoko, 2011, pp. 35–36).
(2) Ma ke ing he BSCs and conduc ing aining sessions: The in ol emen o employees
and he communi y is he second s ep. One o he heo e ical ounda ions upon which
he model is based is he pa icipa o y app oach. The h ee cases ha e me on he
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BSCs
41
he pa icipa o y app oach among he in e ela ed depa men s. Bu i has wi nessed
di icul ies in cascading ca ds on he lowe le el depa men s due o some
sho comings in he unde s anding o he employees on he s a egy, o due o
hei inabili y o comp ehend hei ole in a clea and accu a e way (Mashoko, 2011,
p. 42). This is he same issue ha he He o dshi e Coun y aced, whe e he BSCs
we e no able o go down o he le el o ce ain se ices in he coun y, and he
o ganiza ional cul u e o some employees was conside ed o be he main eason o
ha . He e, each depa men o uni p o iding a ce ain se ice was esponsible o
de eloping i s own sco eca d, whe eas Cha lo e Ci y succeeded in de eloping BSCs
o all i s o ganiza ional uni s o e he pe iod o a yea and hal since he beginning o
implemen ing he model (A balanced sco eca d hall o ame, 2005,p.3;Woods and
G ubnic, 2008, p. 355).
5.2.3 Re iew and esul s epo s phase. This is he hi d s age o he p ocess, whe e i could be
classi ied in o wo le els based on he h ee case s udies examined:
(1) The e iew o BSCs esul s: This includes ca ying ou he necessa y upda es on he
componen s o he co po a e BSC, o on he le el o each depa men ’s BSC, which in
u n includes p esen ing he pe o mance epo s, and wha migh esul om ha o
de elopmen o he objec i es o he indica o s o he measu es o he used ca ds.
Acco ding o he eme gence o new u gen needs, his may include he le el o mino
o sligh changes (Ni en, 2003, pp. 279–280; Mashoko, 2011, p. 56).
(2) P esen ing he esul s epo s and e iewing he s a egy: This illus a es ha he
depa men s esponsible o he supe ision on implemen ing he model has
p esen ed he annual e iewing epo s co e ing he esul s achie ed. These epo s
we e submi ed om he chie execu i e o council o an in e nal audi commi ee, as
applied in He o dshi e Coun y. Addi ionally, he pe o mance o he council is
subjec o mon hly ollow up. While allowing he employees o send hei p oposals o
de elop he measu es and indica o s o he sco eca ds, he local council may de elop
schemes o iden i y he oppo uni y o making any de elopmen s on he le el o he
mission o he s a egy, as e ealed in he case o Ehlanzeni Dis ic Municipali y.
This amewo k is cha ac e ized by an openness ha gi es an oppo uni y o each case o
implemen he model acco ding o i s own special conside a ions.
6. Conclusion
The main a gumen o his pape is o p o ide a p oposed model o he s eps ha should be
aken in o accoun by he local councils h ough he p ocess o he BSC implemen a ion. The
pape indica ed ha he e a e h ee basic issues ha cons i u e he con ex o adop ing his
model, and he e a e h ee impo an issues ha mus be aken in o conside a ion when
applying i . The i s h ee dimensions include: eal awa eness o he need o a sys em ha
p o ides a balanced iew no only o measu e pe o mance bu also o manage i , ha
combines he abili y o p o ide an explana ion o angible inancial aspec s and in angible
non inancial aspec s; adop ion o he model was p eceded by he exis ence o will a he
cen al le el o make eal e o ms a he local pe o mance le el and eme gence o a cen al
pe o mance managemen sys em ha equi es local go e nmen o ganiza ions o comply
wi h his sys em, in addi ion o he poli ical will ep esen ed in suppo ing elec ed councilo s
and he bu eauc a ic will ep esen ed in suppo ing he leade ship and execu i e s a o
achie e a eal pe o mance e o m. The o he h ee include: i s , he necessi y o depending
on he scien i ic me hod o ob ain high-le el suppo om di e en s akeholde s, whe he
in e nal o ex e nal, by conduc ing he champion esponsible o in oducing he model o
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ex ensi e esea ch on he model’s componen s and bene i s in o de o possess s ong
a gumen s and e idence o de end he use o he model, and one may seek he assis ance o a
eam ha conduc s such a sea ch p ocess; second, con ac ing wi h a consul ing i m ha
plays he ole o acili a o o he model implemen a ion, and gi ing he needed aining
sessions, in addi ion o p o iding he solu ions ha may appea h ough di e en p ocesses,
especially some s ages ha equi e echnical expe ise, such as building indica o s,
iden i ying app op ia e measu es and de eloping he s a egy map; inally, capaci y building
o he local councils in ol e he employees in BSCs a icula ion o hei depa men s, and
me ging indi idual de elopmen plans wi hin he o ganiza ion’s de elopmen plans and
c ea ing a clea incen i es sys em o make employees ealize he e u ns acc ued o hem om
he success o his model and pe o mance de elopmen . All o hese a e c ucial ac o s o
build a s eady BSC sys em. The u u e agenda o his s udy include u he esea ch abou he
a ailable oppo uni ies o he Egyp ian local adminis a ion sys em o use his model, and
analysis o he cu en local pe o mance sys em o o e come he sho ages and enhance he
pe o mance o local adminis a ion uni s.
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Co esponding au ho
Mohamed Sayed Abdel Hamied can be con ac ed a : [email p o ec ed].eg
Fo ins uc ions on how o o de ep in s o his a icle, please isi ou websi e:
www.eme aldg ouppublishing.com/licensing/ ep in s.h m
O con ac us o u he de ails: [email p o ec ed]
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