The development of a balanced scorecard for the Faculty of Military Science

Walters, Adriaan Neethling (2001-12)

Thesis (MBA)--Stellenbosch University, 2001.

Thesis

ENGLISH ABSTRACT: Managing any government institution has become increasingly complicated as the requirements for accountability, streamlined operations and greater flexibility have multiplied. Being a government institution but at the same time an institution of higher education, managing the Faculty of Military Science becomes a daunting task. It requires sophisticated approaches for implementing strategy and measuring performance. Employees are asked to change how they view their work and focus on results, not activities. While not asking the impossible, it is a challenging task. Formal accountability for outcomes down the line has simply not been a marker of the bureaucratic culture. As leadership looks for ways to support employees in this transition, it is vital that a comprehensive management system is deployed. For employees to focus on the outcomes of their individual performance, they must: • understand what the standards for organisational performance are; • participate in measuring how well those standards have been met; and • be responsible for finding ways to improve organisational performance. The Balanced Scorecard can help. This approach is one that is gaining currency as an easy to use and accessible process for measuring organisational effectiveness. It can be applied at any level and any type of organisation. The objectives and measures for the Balanced Scorecard are derived from the organisation's vision and strategy. These objectives and measures describe the progress of the organisation from four perspectives. These perspectives can vary from organisation to organisation and in the case of the Faculty of Military Science they include, the stakeholder perspective, the customer perspective, the internal processes perspective and the learning and growth perspective. It is a balanced model, because the measures represent an equilibrium between external measures for stakeholders and customers, and internal measures of business processes and learning and growth. The construction of the Balanced Scorecard is a systematic process, which ensures that the organisation's objectives and measures are made clear and that there is consensus in this regard. The success of the process depends on the participation of top management. The most important person in the process is the leader or "architect. A Balanced Scorecard can be constructed in 16 weeks, with high involvement of the leader in the beginning of the process. The Balanced Scorecard must be used as a strategic management system. It helps to clarify and to gain consensus about vision and strategy of the organisation, which should be communicated throughout the organisation. It is also useful in the establishment of objectives for each employee, the allocation of resources and the alignment of strategic initiatives, This study is directed towards the relevant literature on the Balanced Scorecard and the possible use thereof as a management system in an institution for higher education, specifically the Faculty of Military Science. To this end a thorough literature study was undertaken, focusing on the origins of the Balanced Scorecard, the developing and implementation thereof as well as the Balanced Scorecard as a strategic management system. The study further determined the applicability of the Balanced Scorecard to institutions for higher education, looking at the University of California, San Diego, as an example. In the final instance a Balanced Scorecard is proposed for the Faculty of Military Science, with certain recommendations.

AFRIKAANSE OPSOMMING: Toenemende druk op staatsinstellings om meer aanspreeklikheid te aanvaar, aktiwiteite meer vaartbelyn uit te voer en om meer buigsaam in hul optrede te wees, veroorsaak dat die bestuur van sulke instellings toenemend kompleks begin word. Die bestuur van die Fakulteit Krygskunde, 'n staatsinstelling, maar ook 'n instelling vir hoër onderwys, bied dus 'n geweldige uitdaging. Dit vereis daarom 'n gesofistikeerde benadering tot die implementering van 'n strategie en die meet van prestasie. Van werknemers word verwag om hul siening van werk te verander deur te fokus op resultate eerder as op aktiwiteite - 'n uitdaging op sy eie. Aanspreeklikheid vir die bereiking van resultate op lae vlakke in 'n staatsinstelling was nog nooit deel van 'n burokratiese kultuur nie. Vir leierskap om werknemers met hierdie aanpassing te ondersteun, is 'n omvattende bestuurstelsel nodig. Vir werknemers om te fokus op die uitkomste van hul individuele prestasies, moet hulle: • die prestasiestandaarde van die organisasie verstaan; • deelneem om te bepaal tot watter mate die standaarde bereik is; en • verantwoordelikheid neem om te bepaal hoe die prestasie van die organisasie verbeter kan word. Dit wat 'n organisasie meet en hoe die resultate daarvan gekommunikeer word lewer 'n sleutel bydrae t.o.v die voortdurende verbetering van prestasie deur die werknemers. Die "Balanced Scorecard" kan op hierdie gebied 'n groot bydrae lewer. Dit is 'n benadering wat wye veld wen as 'n eenvoudige en toeganklike proses om die effektiewiteit van 'n organisasie te meet. Die benadering kan op enige vlak en enige tipe organisasie toegepas word. Die doelwitte en maatstawwe vir die "Balanced Scorecard" word direk afgelei uit die organisasie se visie en strategie. Hierdie doelwitte en maatstawwe beskryf die organisasie se vordering uit vier perspektiewe. Hierdie perspektiewe kan wissel van organisasie tot organisasie en in die geval van die Fakutteit Krygskunde sluit dit in, die belanghebber perspektief, die kliente perspektief, die interne prosesse perspektief en die leer- en groeiperspektief. Die model word as gebalanseerd beskou omdat dit 'n ewewig tussen die eksterne maatstawwe (vir aandeelhouers, belanghebbers en kliente) en interne maatstawwe (besigheidsporosesse en leer- en groeifasette) handhaaf. Die bou van 'n "Balanced Scorecard" is 'n sistematiese proses, wat konsensus en duidelikheid met betrekking tot die organisasie se doelwitte en maatstawwe verseker. Die sukses van die hele proses berus egter op die ondersteuning en deelname van die topbestuur. Die belangrikste persoon in die hele proses is die leier of "argitek". 'n "Balanced Scorecard" kan binne 16 weke voltooi word, met die leier se betrokkenheid baie hoog aan die begin van die hele proses. Die "Balanced Scorecard" moet as 'n strategiese bestuurstelsel gebruik word. Dit kan help om die visie en strategie duidelik te stel en om konsensus daaroor te bereik. Dit moet aan die hele organisasie gekommunikeer word. Dit is verder nuttig in die opstel van doelwitte vir elke werknemer, die allokasie van hulpbronne en die rig van strategiese inisiatiewe. Hierdie studie is gerig tot die relevante literatuur t.o.v die "Balanced Scorecard" en die potensiele gebruik daarvan as 'n bestuurstelsel by 'n instelling van hoër onderwys, en spesifiek die Fakulteit Krygskunde. 'n Deeglike literatuurstudie is gedoen oor die oorsprong van die "Balanced Scorecard", die ontwikkeling en implementering daarvan, asook die aanwending van die "Balanced Scorecard" as 'n strategiese bestuurstelsel. Die studie het ook die toepaslikheid van die "Balanced Scorecard" ondersoek deur te verwys na die Universiteit van Kalifornie, San Diego as 'n voorbeeld. In die finale instansie word 'n "Balanced Scorecard" voorgestel vir die Fakulteit Krygskunde met sekere aanbevelings.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/49708
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