The effect on managers of the introduction of a balenced scorecard at a local level in a large network organisation.

Abstract

The purpose of the research is to understand how unit managers react to and are able to engage with a newly devised centralised performance measurement system(PMS) based on the balanced scorecard(BSC). The theoretical contribution of this study is to establish the behaviours which may contributeto or hinder the way in which the BSC is accepted and used at a unit level. The knowledge gained and tested in actual practice will prove invaluable.This will not only allow managers to identify and therefore react to areas of probable negativity, but also allow them to encourage and endorse the more positive aspects. The observed research which adopts a process of collaborative inquiry covers a period of 10 months and adopts a longitudinal case study approach. During this time, emphasisis paid upon the role of the reviewing senior manager and those managers responsible for the unit score cards, examining their initial exposure to and deployment of the scorecard, along with its use in eight of the seventeen delivery units. The findings identify that three core elements exist within a performance environment.These consist of the performance strategy, its PMS and the performance encounter where performance improvement are ultimately realised. Within the centre core there exists both an emotional and behavioural reaction determining either the success or demise of the overall performance management and its measurement system. The research concludes by evaluating the lessons derived from the interactions within the performance environment.The study focuses on how considerations such as personal control and influence,when linked to understanding, knowledge and contribution impact on the level of perceived ownership and accountability felt by individuals. By addressing these areas organisations are able to ensure a more successful use of a centrally devised BSC approach across its exposure,deployment and usage.