Balanced Scorecard Implementation in the Public Sector: Lessons Learnt in a Large Local Government Authority

Over the last decade the balanced scorecard (BSC) has emerged as a popular strategic performance measurement system as it assists organisations in effectively implementing strategy and in measuring organisational performance. In fact, the BSC has become more extensively used in both the private and public sectors. This topic has attracted much attention in the public sector as evidenced by studies in the healthcare industry, universities, and local government institutions or ‘municipalities’. This paper identifies some of the main challenges and lessons learnt by a large Local Government Authority (LGA) within Australia in relation to the design and implementation of a comprehensive BSC designed for a large LGA. This study is based on a review of annual reports and semi-structured interviews with the senior managers of various programs and divisions within the LGA. Future research opportunities are also identified in this area