TY - JOUR
T1 - Strategic performance management
T2 - a balanced approach to performance management issues in local government
AU - Kloot, Louise
AU - Martin, John
N1 - Funding Information:
The authors acknowledge helpful comments from participants at seminar workshops at Cambridge University, Queensland University of Technology, Brisbane City Council, participants at the European Accounting Conference Bordeaux, AAANZ Cairns, Jane Broadbent and two anonymous reviewers. We also acknowledge the research assistance of Ron Kluvers and funding support from the Faculty of Business, Victoria University of Technology.
PY - 2000/6
Y1 - 2000/6
N2 - The drive for reform in the public sector worldwide has focussed attention on the measurement of performance in public sector organizations. This is particularly true in local government. Local government has traditionally been concerned with measuring the delivery of primary objectives, or results, at the expense of secondary objectives, or the determinants of organizational performance. Current strategic management literature suggests that there should be a strong linkage between strategic plans and performance measures.Kaplan and Norton's (1992) balanced scorecard and Fitzgeraldet al. 's (1991) results and determinants framework can provide this linkage. This paper reports on research into performance management systems in local government using the four dimensions of the balanced scorecard: financial, community, internal business processes and innovation and learning. It shows how the focus in this system of local government has been on the results of council work, ie. financial performance and to a lesser extent on how the community views performance. Local government performance measurement pays much less attention to the determinants, or means of achieving long-term, sustained organizational improvement in internal business processes, and innovation and learning. Whilst these issues are recognized as important, there are few measurement processes in place to manage performance in these areas. Strategic performance management demands an approach that recognizes the importance of a focus on both results and the means of achieving these results. This paper highlights a suggested framework for strategic and balanced local government performance measurement.
AB - The drive for reform in the public sector worldwide has focussed attention on the measurement of performance in public sector organizations. This is particularly true in local government. Local government has traditionally been concerned with measuring the delivery of primary objectives, or results, at the expense of secondary objectives, or the determinants of organizational performance. Current strategic management literature suggests that there should be a strong linkage between strategic plans and performance measures.Kaplan and Norton's (1992) balanced scorecard and Fitzgeraldet al. 's (1991) results and determinants framework can provide this linkage. This paper reports on research into performance management systems in local government using the four dimensions of the balanced scorecard: financial, community, internal business processes and innovation and learning. It shows how the focus in this system of local government has been on the results of council work, ie. financial performance and to a lesser extent on how the community views performance. Local government performance measurement pays much less attention to the determinants, or means of achieving long-term, sustained organizational improvement in internal business processes, and innovation and learning. Whilst these issues are recognized as important, there are few measurement processes in place to manage performance in these areas. Strategic performance management demands an approach that recognizes the importance of a focus on both results and the means of achieving these results. This paper highlights a suggested framework for strategic and balanced local government performance measurement.
KW - Local government
KW - Performance measurement
KW - Strategic management
UR - http://www.scopus.com/inward/record.url?scp=0007218262&partnerID=8YFLogxK
U2 - 10.1006/mare.2000.0130
DO - 10.1006/mare.2000.0130
M3 - Article
AN - SCOPUS:0007218262
SN - 1044-5005
VL - 11
SP - 231
EP - 251
JO - Management Accounting Research
JF - Management Accounting Research
IS - 2
ER -