The implementation of the balanced scorecard for service delivery performance : the case of Gauteng Metropolitan Municipalities

This qualitative study set out to investigate the extent to which the Balanced Scorecard (BSC) has been implemented for service delivery by South African Metropolitan Municipalities. The Ekurhuleni Municipality, City of Johannesburg (CoJ) and City of Tshwane (CoT), which together form the Gauteng Metropolitan Municipalities (GMMs), were used as multiple cases for this study. A good performance management system should cover activities relevant to the adoption of a performance measurement tool such as the BSC, which was developed by Kaplan and Norton in 1992. These two authors published a framework integrating different components of performance management and measurement system, namely strategy, vision, mission, objectives, measures, targets and strategic initiatives. In short, the BSC framework is the key for its successful implementation, which is evaluated according to the achievement of targets. The problem addressed in the study was the lack of a proper performance management system, as well as the poor design and inappropriate manner of implementing the BSC by the GMMs. The objectives of the study were to examine principal elements such as performance management activities, performance measurement framework, design and implementation of the BSC following the original framework developed by Kaplan and Norton (1992), as well as its impact on the outcomes of service delivery performance. Objectives, measures, targets and initiatives were the core elements for evaluating the municipalities’ performance management, as well as their implementation of the BSC. Moreover, the attainment of targets was the key for examining performance outcomes or the impact of the BSC on service delivery performance. In order to reach the above-mentioned objectives, a literature and document review, including municipalities’ policies and annual reports, were conducted for collecting relevant data. This review involved content analysis, and data were presented in the form of tables and charts. Finally, credibility, transferability, dependability and conformability were used to measure the validity and reliability of the findings. The results showed that the performance management (PM) activities of the GMMs were not adequate for implementing the BSC. Naturally, the selection of measures and targets was catered for through the policy of the Ekurhuleni Municipality, as well as the City of Johannesburg (CoJ). However, the setting of objectives, selection of measures, and setting of targets were all part of the performance management framework of the City of Tshwane (CoT). The BSC was intended to be used as a performance measurement framework for the Metropolitan Municipalities of Johannesburg and Tshwane. Nevertheless, the instrument was poorly implemented by these municipalities. Although the BSC was not adopted by the Ekurhuleni Municipality, the principal activities integrated into the BSC framework were implemented for its service delivery. In addition, during the 2011-2012, 2012-2013 and 2013-2014 financial years, the achievement status of targets was not determined for the Ekurhuleni Municipality. This was also the case for the CoT during 2011-2012. However, the full-achievement, non- achievement, partial-achievement and over-achievement of targets were well defined for the City of Johannesburg during all three financial years under study. In the same way, such finding was indicated only for the two last financial years for the City of Tshwane. The findings of the study indicated that the implementation of the BSC within the Metropolitan Municipalities of Johannesburg and Tshwane did not comply with its original framework. This is due to the lack of an adequate performance management system, which in turn affects performance measurement. Before adopting a performance measurement framework, there should be an appropriate performance measurement system in place to ensure its success. Consequently, future research should focus more on the investigation of standard requirements for measuring performance, especially in the public sector.Management AccountingM. Phil. (Accounting Sciences