Title:

Balanced scorecard in the public sector - the balancing of conflicting objectives.

Level:

Final assignment for Bachelor of Science in Business Administration.

Authors:

Erika Sundström and Lisette Lundstedt.

Tutor:

Stig Sörling and Tomas Källquist.

Date:

2014-05-20.

Purpose:

The purpose of our study, from a management perspective, is to increase understanding of how the public sector can develop and use the balanced scorecard to balance conflicting objectives.

Method:

Hermeneutic approach, Literature review, Qualitative case study.

Result and conclusion:

Under certain conditions, the balanced scorecard can help to deal with conflicting objectives in a public organization. Stakeholders and objectives are important factors for a balanced control. This is due to the fact that many different stakeholders often leads to the creation of conflicting objectives. Numerous and unclear objectives lead to both conflict and uncertainty. The organization’s structure and culture are other factors that also influence. If an organization would like balanced steering, then the balanced scorecard can be designed and used to contribute to this. To identify the key stakeholders and their interests is a success factor. This should then be considered in the design and choice of perspective in the scorecard. It is important to have a limited number of objectives in every perspective. They should be clear and measurable. It is important to priorities while keeping in mind that not everyone can be entirely satisfied. Continuous monitoring of the objectives are also used to control the operation. The understanding of the management process is important. Good communication and information contribute to a greater understanding and that stakeholders feel involved, which may contribute to an increased balance.

Suggestions for future research:

To get a wider perspective on how the balanced scorecard can help to create a balance between conflicting objectives, it would be interesting to do a similar study in another Swedish municipality. It would also be interesting to do a similar study at a later date. This is to see if there are any differences depending on how developed the steering is in the municipality.

Contribution of the thesis:

The study helps to provide a better understanding of how the balanced scorecard can contribute to create a balance between conflicting objectives within a public organization. Stakeholders and objectives are important factors that are crucial to how the balanced scorecard can deal with conflicting objectives and create a balance.

Keywords:

Balanced Scorecard, Public sector, Balancing, Conflicting, Objectives, Management perspective, Use, Design.