The original performance model
for the Balanced Scorecard works well in the private sector
because it focuses on companies whose primary goal is increasing
net income. This same model can be adapted to government agencies
who are defined as “revenue producing “ agencies. Examples
of these agencies include the (federal) IRS or (state) Department
of Revenue and Taxation.
Like private sector firms, their goal is generating revenue.
These organizations can benefit from the lessons learned in
the private sector by focusing on customers, internal processes,
and knowledge growth which support the financial indicators.
Most public sector organizations, however, are not in the
“revenue producing” business and the model for the resulting
Balanced Scorecard must be customized. In these agencies,
the financial (budget) perspective is not at the top of the
model, but is typically aligned more closely to other perspectives.
In addition, we have found that a stakeholder perspective
is found in many public sector organizations. It is the position
and influence of this outside stakeholder perspective that
provides the financial motives for most government agencies.
Because of this difference, the performance model for these
government organizations is typically the following.
It is important to note, however, that the model must be customized
to meet the needs of the organization to which it will be
applied.
For further information contact
Debrah Whitaker at 1-800-281-5458 or email dwhitaker@BSC4GOV.com
