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| Balancing Measures: Best Practices in Performance Management |
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When the Government Performance and Results Act was first implemented, many felt that government management was somehow "different," that the same rules that applied to the private sector could not apply to the public, or at least not in the same way. After all, government agencies don't have a bottom line or profit margin. But recent efforts, as this study shows again and again, attest that is not true. The bottom line for most government organizations is their mission: what they want to achieve.
But they cannot achieve this mission by managing in a vacuum, any more than can the private sector. More specifically, the roles of customer, stakeholder, and employee in an organization's day-to-day operations are vital to its success-and must be incorporated into that success.
In their groundbreaking Harvard Business Review article, Robert S. Kaplan and David P. Norton introduced the concept of the Balanced Scorecard to the private sector. This article, and subsequent works by them, discusses private sector efforts to align corporate initiatives with the need to meet customer and shareholder expectations. This study looks at how these efforts relate to, and are being replicated within, the public sector. It examines the ways and means by which government organizations are trying to include customers, stakeholders, and employees in their performance management efforts: to reach some balance among the needs and opinions of these groups along with the achievement of the organization's stated mission. All of the organizations that served as partners in preparing this report have had some level of success in doing this.
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