Implementing a performance management system in a public organisation: barriers and outcomes

Abstract

Purpose This study sought to examine the implementation of a balanced scorecard (BSC)-inspired model in a public organisation. We explored how the new model was integrated into existing practices, how managers coped with its introduction and what factors shaped that response. Design/methodology/approach An explanatory and in-depth single case study was conducted, gathering evidence from 12 interviews and diverse internal documents and making direct observations in four internal meetings. Findings It can be seen that an interplay between change and stability emerged. Change happened when the management control division was able to integrate the BSC with other mandatory practices, but an array of factors prevented most managers from coupling the newer practices with their decision-making processes, meaning that their older practices were maintained. These factors are linked to organisational rigidity, education, a lack of connection to the reward system, training, a lack of involvement on the part of the board of directors, time consumption and data gathering. Research limitations/implications This study is based on a single case study, so the results are very context-specific, which cautions against generalisation. Practical implications To avoid old and new practices coexisting, managers should emphasise training on the one hand and implement a more user-friendly system, on the other. Originality/value This study contributes to literature about the challenges that emerge when implementing a BSC model in public organisations, an area that still requires further investigation. The study adds to the literature by reflecting on its integration with previous practices and the hurdles experienced that inhibit a more successful outcome.