A study on the balanced scorecard implementation of the SDIF

Nizamulmulk Gunes 1 & Erdinc Percemli 2
1 Assoc. Prof., Department of Audit, Savings Deposit Insurance Fund, Istanbul, Turkey
2 Department of Audit, Savings Deposit Insurance Fund, Istanbul, Turkey

Article History
Received: 7 November 2021 Revised: 27 February 2022 Accepted: 3 March 2022 Available Online: 20 March 2022

Keywords: balanced scorecard, strategic performance management, strategy map.
JEL classification: D23, L38

Citation: Gunes, N. & Percemli, E. (2022). A study on the balanced scorecard implementation of the SDIF, Review of Socio-Economic Perspectives, Vol 7(1), 1-13.

Abstract
There are several management methods and tools transferred from private sector to public sector in order to attain efficiency and effectiveness with the movement of New Public Management. One of those methods is the Balanced Scorecard (BSC). While the BSC is highly recommended to both private and public organizations, it must be acknowledged that public organizations have a completely different structure and nature in some respects. Furthermore, developed countries’ organizations could not have the same traits as developing countries’ organizations do.
This is an empirical case study which aims to investigate and analyze the experience of the BSC implementation in Savings Deposit Insurance Fund (SDIF) -a kind of Financial Regulatory Organization (FRO)- from Turkey within focal points of applicability, success criteria, challenges, and benefits. In order to achieve this objective, qualitative research method was applied by analyzing organization’s data and conducting interviews. This research concludes that the BSC concept has some unclear points both theoretically and practically. Also, it is not an easy and straightforward system to implement. On the other hand, it can be assessed as a beneficial tool for public organizations, particularly in developing countries, to get the habit of setting objectives, making plans to reach those objectives, measuring performance against those plans and reviewing.

References

Akdeniz, I. (2010). Strategy Development Units in Public Financial Management Reform (Original name: Kamu Mali Yonetimi Reformunda Strateji Gelistirme Birimleri). Maliye Dergisi, 159 (2), 463-475.

Atkinson, A. A., Kaplan, R. S., Matsumura, E. M. & Young, S. M. (2007). Management Accounting, New Jersey: Pearson.

Baker, M.J. & Foy, A. (2008). Business and Management Research-How to Complete Your Research Project Successfully. Argyll: Westburn Publishers.

Bessire, D. & Baker, C.R. (2005). The French Tableau de Bord and The American Balanced Scorecard: A Critical Analysis. Critical Perspectives on Accounting, 16 (6), 645-664.

Bourguignon, A., Malleret, V. & Norreklit, H. (2004). The American Balanced Scorecard Versus the French Tableau de Bord: The Ideological Dimension. Management Accounting Research, 15 (2), 107-134.

Brooks, I., Weatherston, J. & Wilkinson, G. (2011). The International Business Environment-Challenges and Changes. Harlow: Financial Times/ Prentice Hall.

Bryman, A. & Bell, E. (2007). Business Research Methods. Oxford: Oxford University Press.

Carpenter, M., Bauer, T. & Erdogan, B. (2015). Principles of Management and Organizational Behavior. NY: Flat World Knowledge.

Dinesh, D. & Palmer, E. (1998). Management by Objectives and the Balanced Scorecard: Will Rome Fall Again?. Management Decision, 36 (6), 363 - 369.

Easterby-Smith, M., Thorpe, R. & Jackson, P. (2012). Management Research. London: Sage Publications.

Erkan, V. (2008) Kamu Kuruluslarinda Stratejik Planlama-Turkiye Uygulamasi ve Kuruluslarda Basariyi Etkileyen Faktorler, Ankara: Turkiye Istatistik Kurumu Matbaasi. Available at: http://www.sp.gov.tr/upload/xSpKutuphane/files/CQZMm+KamuKuruluslarindaStratejikPlanlama.pdf [Accessed on November 2021].

Gatti, M. (2015). Exploring the Challenges of Measuring Intangibles: The implementation of a Balanced Scorecard in an Italian Company. International Journal of Management Cases, 17(4), 120–133.

Kaplan, R.S. and Norton, D.P. (1992). The Balanced Scorecard: Measures That Drive Performance. Harvard Business Review, 70(1), 71-79.

Kaplan, R.S. and Norton, D.P. (1993). Putting the Balanced Scorecard to Work. Harvard Business Review, 71(5), 134–147.

Kaplan, R.S. and Norton, D.P. (1996). Using the Balanced Scorecard as a Strategic Management System. Harvard Business Review, 74(1), 75–85.

Kaplan, R.S. and Norton, D.R., (2000). Having Trouble With Your Strategy ?. Harvard Business Review, 78(5), 167–176.

Kaplan, R.S. & Norton, D.P. (2001). Transforming the Balanced Scorecard from Performance Measurement to Strategic Management. Accounting Horizons, 15(1), 87–104.

Kaplan, R.S. and Norton, D.P. (2001a). The Strategy Focused Organisation - How BSC Companies Thrive in the New Business Environment. Boston: Harvard Business Press.

Kaplan, R.S. and Norton, D.P. (2001b). Transforming the Balanced Scorecard from Performance Measurement to Strategic Management: Part I. Accounting Horizons, 15(1), 87–104.

Kaplan, R.S. and Norton, D.P. (2004a). How Strategy Maps Frame an Organisation’s Objectives. Financial Executive, 20(2), 40–45.

Kaplan, R.S. and Norton, D.P. (2004b). Measuring the Strategic Readiness of Intangible Assets. Harvard Business Review, 82(2), 52–63.

Kaplan, R.S. and Norton, D.P. (2005). The Office of Strategy Management. Harvard Business Review, 83(10), 72–80.

Kaplan, R.S. and Norton, D.P. (2006). How to Implement a New Strategy without Disrupting Your Organization. Harvard Business Review, 84(3), 100-109.

Niven, P.R. (2008). Balanced Scorecard Step-by-Step For Government and Non-profit Agencies. New Jersey: Wiley

Norreklit, H. (2003). The Balanced Scorecard: What is the score? A rhetorical analysis of the Balanced Scorecard. Accounting, Organizations and Society, 28(6), 591–619.

Northcott, D. & Taulapapa, T.M. (2012). Using the Balanced Scorecard to Manage Performance in Public Sector Organizations. International Journal of Public Sector Management, 25 (3), 166 - 191.

Olve, N.G., Roy, J. & Wetter, M. (1999). Performance Drivers-A Practical Guide to Using the Balanced Scorecard. West Sussex: Wiley.

Othman, R., Domil, A.K.A, Senik, Z.C., Abdullah, N.L & Hamzah, N. (2006). A Case Study of Balanced Scorecard Implementation in a Malaysian Company. Journal of Asia-Pacific Business, 7(2), 55-72.

Pollitt, C. & Bouckaert, G. (2011). Public Management Reform- A Comparative Analysis: New Public Management Governance, and the Neo-Weberian State. Oxford: Oxford University Press.

Radnor, Z. & McGuire, M. (2004). Performance Management in the Public Sector: Fact or Fiction?. International Journal of Productivity and Performance Management, 53(3), 245–360.

Rigby, D. & Bilodeau, B. (2015). Management Tools & Trends Survey. Boston: Bains & Company.

Saunders, M., Lewis, P. & Thornhill, A. (2012). Research Methods for Business Students. Harlow: Pearson.

Sharma, B. & Gadenne, D. (2011). Balanced Scorecard Implementation in a Local Government Authority: Issues and Challenges. Australian Journal of Public Administration, 70(2), 167–184.

Speckbacher, G., Bischof, J. & Pfeiffer, T. (2003). A Descriptive Analysis on the Implementation of Balanced Scorecards in German-Speaking Countries. Management Accounting Research, 14(4), 361–387.

Umashev, C. & Willet, R. (2008). Challenges to Implementing Strategic Performance Measurement Systems in Multi-Objective Organizations: The Case of a Large Local Government Authority. Abacus, 44(4), 377-398.

Wake, N.J. (2015). The Use of the Balanced Scorecard to Measure Knowledge Work. International Journal of Productivity and Performance Management, 64(4), 590–602.