한국지방행정연구원

Basic Report

Year
2005
Author

The Application of the Balanced Scorecard(BSC) for Performance Evaluation in Local Governments

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    The purpose of this study is to examine the actual conditions of performance evaluation in local governments and to suggest thereby the proper ways in applying the BSC to performance management of local governments in Korea.
   Chapter 2 develops the theoretical framework for this study, examining the existing literature on performance evaluation and the BSC, proposing an approach to the key concepts of the BSC.
   Chapter 3 examines the actual conditions of performance evaluation in Korea's local governments focusing on the self- evaluation institution. The limitations of existing self-evaluation are illuminated.
   Chapter 4 considers how the BSC is applied to the performance management in the public sector, especially in the local governments, benchmarking relative cases, focusing on the framework, process and procedure of performance management.
   Chapter 5 explores the applicability of the BSC to performance evaluation in the local government according to the theoretical outline mentioned in Chapter 2. The conditions to apply the BSC to local governments in Korea are analyzed with regard to institutions, organizations and actors.
   Chapter 6 suggests the proper ways in applying the BSC to local governments considering the analysis mentioned in chapter 5. First, a new approach is suggested to apply the BSC to performance evaluation in local governments: ‘the strategic self-evaluation BSC’ compared with the strategy-focused BSC and the evaluation-focused BSC. Second, the ways to take four perspectives are introduced in the public sector. Third, the specific procedures are developed in applying the BSC to performance evaluation of local governments.
   Chapter 7 is the concluding chapter summarizing the points we have made throughout this study and shows future policy implications on performance evaluation in local governments.
  
   The policy implications are suggested as follows:
   First, the autonomy of local governments should be reinforced to succeed in performance management based on the BSC. A case study on Charlotte confirmed this point.
   Second, strategic planning should be spread over all the local governments in that the BSC is basically built upon strategic planning. For this, it requires that the Basic Law on the Evaluation of Government Activities should include clauses or items on strategic planning in local governments.
   Third, the institutional setting requirements for the BSC should be made. Most of all, the BSC should be harmonized with other existing tools for performance management and evaluation.
   Fourth, the BSC should be introduced with great caution. We must consider the preconditions of the BSC and design the framework and the procedure as appropriate to Korea's local governments.