Enhancing strategy design and planning in public utilities through “dynamic” balanced scorecards: insights from a project in a city water company

Bianchi, Carmine; Montemaggiore, Giovan Battista

doi:10.1002/sdr.395

Cited by 68 publications

(65 citation statements)

References 15 publications

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“…In particular, it does not support an understanding of how end results can be affected by performance drivers, how performance drivers can, in turn, be affected by the use of policy levers aimed to influence strategic resource accumulation and depletion processes, and how the flows of strategic assets are affected by end results. In order to provide decision makers with proper lenses to interpret such phenomena, to understand the feedback structure underlying performance, and to identify alternative strategies to change the structure for performance improvement, system dynamics modeling has been used (Bianchi, 2012;Bianchi & Montemaggiore, 2008;Kaplan & Norton, 1996;Richmond, 2001;Ritchie-Dunham, 2001). Figure 2 illustrates how the end results provide an endogenous source in an organization to the accumulation and depletion processes affecting strategic resources.…”

Section: A Dynamic View Of Performance Managementmentioning

confidence: 99%

Performance Management in Local Government: The Application of System Dynamics to Promote Data Use

Bianchi

Rivenbark

2014

International Journal of Public Administration

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The purpose of this article is to demonstrate how system dynamics can be used to enrich performance management in local government, focusing specifically on how the development of conceptual and simulation system dynamic models can foster a shared view of the relevant system among stakeholders to overcome factors that limit data use. Responding to this purpose, we present a normative case study on how key drivers can be used to foster a shared view of the residential refuse collection system for supporting policy and process changes. A major finding from our research, however, is that performance management cannot overlook the broader forces of citizenship outcomes that impact the community.Keywords: local government, performance management, system dynamics, data use INTRODUCTIONWhile some scholars have suggested that the forces of New Public Management are now in decline (Hughes, 2003), a clear success story of this reform is the use of performance measurement in the public sector for tracking the outputs and outcomes of service delivery. In fact, research has demonstrated that well-managed performance measurement systems are critical for accurately and systematically demonstrating operational accountability in governmental organizations (Rivenbark, 2007). However, we must be cautious in how we think about the use of performance measurement systems because of their two distinct parts as described by de Lancer Jules and Holzer (2001). The first part involves adoption, where public officials develop performance measures, track them over time, and report them on a periodic basis. The second part involves implementation, where public officials actually use performance information to make policy and process changes for improving service delivery.Correspondence should be addressed to Carmine Bianchi, Via Ugdulena, 1 -90100 Palermo, Italy. E-mail: bianchi.carmine@gmail.com Color versions of one or more figures in the article can be found online at www.tandfonline.com/lpad. The problem is that success is clearly more associated with adoption rather than implementation.Ammons and Rivenbark (2008) addressed this issue by studying the patterns of implementation from 14 municipalities associated with the North Carolina Benchmarking Project. While the authors concluded that the record of these municipalities actually using performance data remains modest, certain factors did emerge that promoted the move from adoption to implementation of performance measurement systems. These included the focus on the higher order measures of efficiency and effectiveness, the willingness to benchmark against other organizations, and the need to imbed performance measures within other management systems. A more recent study also suggests that managerial involvement in the Government Performance and Results Act of 1993 and the Program Assessment Tool has produced relatively few aspects of performance information use in federal agencies (Moynihan & Lavertu, 2012). This research, however, identified a number of organizational factors that incr...

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Section: A Dynamic View Of Performance Managementmentioning

confidence: 99%

Performance Management in Local Government: The Application of System Dynamics to Promote Data Use

Bianchi

Rivenbark

2014

International Journal of Public Administration

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“…Bianchi and Montemaggiore developed a dynamic BSC for strategy design in an Italian water company (Bianchi and Montemaggiore, 2008 (Smith and Connolly, 2008).…”

Section: A Reference Framework: the Balanced Scorecardmentioning

confidence: 99%

Proposal for a Performance Dashboard for the Monitoring of Water and Sewage Service Companies (WaSCs)

Franceschini

Turina

2011

Water Resour Manage

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“…In spite of the host of advantages that firms might gain if they adopt the SBSC, it has some deficiencies, which stem from the nature of the conventional BSC concept. Such shortcomings basically refer to the inability of BSC to take into account the dynamic and complex aspects of the firms' environments that influence the execution of their strategies (Barnabè 2011; Bianchi and Montemaggiore 2008;Capelo and Dias 2009;Norreklit 2000). To deal with these limitations, many authors propose system dynamics (SD) as an appropriate methodology that overcomes BSC deficiencies (Akkermans and van Oorschot 2005;Nielsen and Nielsen 2008;Wolstenholme 1998).…”

Section: Introductionmentioning

confidence: 96%

A dynamic sustainability Balanced Scorecard methodology as a navigator for exploring the dynamics and complexity of corporate sustainability strategy

Tsalis

Nikolaou

Grigoroudis

et al. 2015

Civil Engineering and Environmental Systems

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The majority of recent empirical research regarding corporate environmental literature seeks to identify the potential relationships between environmental management practices and the financial performance of the firms. In addition, another major part of the research concerns the effect of corporate social responsibility practices on corporate financial performance. The majority of these studies focus on the effect of either social or environmental aspects on firms' economic performance through various statistical techniques in an ex post and static base (at the end of year -annually). To contribute to this literature, this article aims at developing a dynamic sustainability Balance Scorecard methodology to investigate the evolutionary trends of the relationships among environmental, social, and economic performance of firms. The main contribution is the development of an integrated mental model in order to improve managers' and scholars' comprehension of corporate sustainability performance. The proposed methodology is mainly based on the corporate environmental and social management literature, system thinking, system dynamics, and Stella software. Some computational examples are also presented based on three scenarios.

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Enhancing strategy design and planning in public utilities through “dynamic” balanced scorecards: insights from a project in a city water company

Cited by 68 publications

References 15 publications

Performance Management in Local Government: The Application of System Dynamics to Promote Data Use

Performance Management in Local Government: The Application of System Dynamics to Promote Data Use

Proposal for a Performance Dashboard for the Monitoring of Water and Sewage Service Companies (WaSCs)

A dynamic sustainability Balanced Scorecard methodology as a navigator for exploring the dynamics and complexity of corporate sustainability strategy

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