SDMIMD Journal of Management

Modifying Balanced Scorecard as a Strategic Tool of Public Sector Organisations: Evidence from a Community Health Centre in Indonesia


Affiliations

  • University of Bina Nusantara, South Jakarta, Indonesia
  • STAN Polytechnic, Indonesia

Abstract

To improve public health services, Indonesia has decentralised Community Health Centres, commonly known as “Puskesmas†to local governments. As a public sector organisation funded by central and local governments these Centres must be accountable to the people. Therefore, central and local governments have required these Centres to provide better public health services to citizens. However, little is known on how these Centres develop and implement their strategies. Thus, the aim of this study is to explore the practices of developing and implementing strategies in these Centres. Methodology Approach: The study employed qualitative research approach. To collect data, interviews and document analysis were conducted in a Centre as a case study. Then, the collected data were analysed thematically. Specifically, the study reviewed the Centre’s strategic plan year 2016-2020 as well as its vision and missions, strategic objectives, and the evaluation of this plan. Also, the study assessed on how balanced scorecard helped the case study in realising its vision, missions, and objectives. Findings: Using the lens of Kaplan and Norton’s balanced scorecard, the study shows the formulated strategies in the case study. The case study used balanced scorecard as a tool to create and evaluate strategies, as well as measuring performance. Results of the evaluation were used to establish the next strategic plans. Originality/Value: The study gives insights on how balanced scorecard was used in a community health centre. It identifies several issues in strategy implementation and proposes modified balanced scorecard for analysing the strategic plans of community health centres in less developed countries.

Keywords

Balanced Scorecard, Health Services, Strategy Evaluation, Strategic Plans

Subject Discipline

Community Health Centres

Full Text:

References

Akbar, M., Munawaroh, S. and Syahdan, S. A. (2017). Balanced scorecard implementation in public sector organisation, a problem? International Journal Accounting, Finance, and Economic. 1(1). https://journal.stkipsingkawang.ac.id/index.php/IJAFE/article/ view/557.

Baroma, B., Bellisario, A., Chirico, A. and Appolloni. (2013). A Breakthroughs in the Management Accounting Science: Imaging a balanced scorecard thought by lean philosophy rationales, Transit. Stud. Rev. 20:239-51. https://doi.org/10.1007/s11300-013-0279-1.

Cardos, M. and Candela, J. (2009). A review of the learning and growth perspective: A new approach to labour climate, International Journal of Management Science and Engineering Management. 4(4):243-59. https://doi.org/10.1080/17509653.2009.10671078.

David, F. R. and David, F. R. (2017). Strategic Management: A Competitive Advantage Approach. 16th edition. Harlow: Pearson Education Limited. http://dl.booktolearn.com/ebooks2/management/9781292148496_Strategic_ Management_2e1b.pdf.

Gauthier, J., Hagarty, D. and Wilson, C. (2003). Results using the balanced scorecard in the public sector, Journal of Corporate Real Estate. 6(1):53-63. https://doi.org/10.1108/14630010410812234.

Hoque, Z. and James, W. (2000). Linking balanced scorecard measures to size and market factors: Impact on organisational performance, Journal of Management Accounting Research. 12:1-17. https://doi.org/10.2308/jmar.2000.12.1.1.

Hussain, Z. and Farooq, A. (2011). Balanced scorecard perspective on change and performance: A study of selected Indian companies, Procedia - Social and Behavioral Sciences. 24:754-68. https://doi:10.1016/j.sbspro.2011.09.043.

Jaget, P. and Wet, J. H. (2007). An appropriate financial perspective for a balanced scorecard, Southern African Business Review. 11(2):98-113.

Jalaludin, D., Nabiha, A. K. S. and Way, S. P. (2014). Managing environmental and economic performance: A review of theory and practice on performance measurement, The International Journal of Accounting and Business Society. 93-113.

Kaplan, R. S. (2001). Strategic performance measurement and management in non-profit organizations, Non-profit Management and Leadership. 11(3):353-70. https://doi.org/10.1002/nml.11308.

Kaplan, R. S. and Norton, D. (1992). The Balanced Scorecard-Measures that Drive Performance, Harvard Business Review, January-February 1992. https://hbr.org/1992/01/the-balanced-scorecard-measures-thatdriveperformance-2.

Kaplan, R. S. and Norton, D. (1996). The Balanced Scorecard: Translating Strategy into Action, Harvard Business School Publishing, Boston, MA. https://www.hbs.edu/faculty/Pages/item.aspx?num=8831.

Kaplan, R. S. and Norton, D. (2001). The Strategy-Focused Organisation: How Balanced Scorecard Companies Survive in the New Business Environment, Harvard Business School Publishing, Boston, MA. https://www.hbs.edu/faculty/Pages/item.aspx?num=5595.

Low, K. C. P. and Teo, T. C. (2016). The Impact of goal setting on employee effectiveness to improve organisation effectiveness: Empirical study of a high-tech company in Singapore, Journal of Business and Economic Policy. 3(1):82-97.

Mahdavi, A., Martens, B., & Scherer, R. (2014). eWork and eBusiness in Architecture, Engineering and Construction: ECPPM 2014. CRC Press. Chicago.

Marr, B. (2019). Balanced Scorecard: How to Create a Public Sector BSC. Accessed on June 12, 2019. https:// bernardmarr.com/default.asp?contentID=1473.

Nor, W. (2012). Penerapan balanced scorecard pada pemerintah daerah, AUDI Jurnal Bisnis dan Akuntansi. 280-92.

Poister, T. H. (2010). The future of strategic planning in the public sector: Linking Strategic management and performance, Public Administration Review, Special Review. 246-54. https://doi.org/10.1111/j.15406210.2010.02284.x.

Rigby, D. and Bilodeau, B. (2015). Management Tools and Trends 2015, London: Bain & Company. https://www.ydd.org.tr/wp-content/uploads/2017/12/BAIN_BRIEF_ Management_Tools_2015.pdf.

Savkin, A. (2014). Example of Nonprofit Balanced Scorecard with 14 KPIs. Accessed on June 14, 2019. https://bscdesigner.com/nonprofit-scorecard.htm.

Ulandari, L. P. S. and Indrayanthi, P. A. (2016). Basis for development of local public service primary healthcare business strategic plan in Gianyar District, Bali, Kesmas: National Public Health Journal. 11(2):86-93. https://doi.org/10.21109/kesmas.v11i2.846.

Wasisto, B., et al. (2009). Sejarah Pembangunan Kesehatan Indonesia 1973-2009. Kementerian Kesehatan Republik Indonesia (History of Health Sector Development in Indonesia). ISBN 97992-54922.


Refbacks

  • There are currently no refbacks.