INTELLECTUAL ECONOMICS 2008, Number 1(3)
Željko Dobrović, Martina Tomičić, Neven VrčekTOWARDS THE EFFECTIVE E-GOVERNMENT IMPLEMENTATION OF BALANCED SCORECARD IN PUBLIC SECTOR
Mykolas Romeris University Publishing Centre. Vilnius. Lithuania 2008 Nr.1(3), p. 7–17
Abstract
Effective e-government presupposes proper application of the information and communications technology (IC T) as well as an effective management system in order to improve the economics of the public sector. The budget with which the public sector organizations start their new strategic planning cycle should be partially used to enable their organizational efficiency. This is done through the implementation of the new IC T and employees’ education. Having improved business processes supported by IC T and educated employees will cause the citizens to be satisfied with the level of service of that public organization. As a consequence, this will justify the budget allocated for the public organization and its mission will thus be fulfilled. Such a chain of cause and effect, that can significantly improve public sector economics, is in the very nature of a Balanced Scorecard (BSC ) methodology, when used for managing the organization. A clear definition of goals and natural strategy definition and implementation using BSC will lead the organization towards its goals by executing the right activities with the optimal resources usage. For the BSC management model to be successfully implemented and effectively applied in public sector organizations, the following four preconditions are indispensable: (1) guidelines and strategic goals sent by the government to state and public organizations need to be clear and unambiguous; (2) a public organization’s management needs to have an insight into the application of the BSC method and partly change their managerial habits; (3) operative procedures of the application of the BSC method in an organization need to be clearly defined; (4) an organization needs to have a central information system (IS ) to which the application/software that the BSC model is to be implemented in will be connected.
JEL Classification H-110.Keywords: ce-government, performance measurement, public sector, Balanced Scorecard, implementation methodology, management, measurement software.