Strategic management of a public administration unit using Balanced Scorecard method

Abstract

The strategic planning, finalized in a Development Strategy (DS), is becoming an important tool of the strategic management of an Administrative Territorial Unit (ATU, commune, municipality and county). The performance management through the performance management systems (PMS) is becoming absolute necessary and the used tools are in an on-going process. Balanced Scorecard (BSC) is a strategic planning and management tool that align the internal activities of an administrative or economic entity to its vision and strategy, improve the internal and external communications and monitor the entity’s performance. The objectives of this study are: (1) to develop a BSC model designed for the public administration, and (2) to show how to implement such a tool for a medium sized commune. Consequently, the research approach was developed in two phases. First, the identification of strategic objectives using Delphi technique, and second, the development of a tailored model for a commune, Dudeștii Noi located in the Timiș Country (West Region of Romania). Based on the proposed approach, the commune’s strategic priorities (Infrastructure, Culture/Tourism/Leisure time, Environment and Social/Health/Education) and the strategic objectives were mapped and introduced in a strategy map using BSC. Lead indicators and lag indicators were defined. Finally, the research conclusions indicate some BSC model’s possible developments for larger ATUs (municipalities, counties).