Strategy Map

  • It has only been in recent times that businesses and nonprofit organizations have started using the balanced scorecard principle and it could be because at first it seems that it is made for organizations that make profit. In the public sector optimizing financial resources are central and public businesses do not only exist to make maximum profits. 
  • The original structure of the balanced scorecard and the strategical map there a four views in the pecking order and finance is right at the top. When the main aim is not to maximize profit using the scorecard is not appropriate and it will probably be dismissed. The balanced scorecard serves as a useful tool for forming strategies and it is essential that one realizes that it is only that. It is a tool that is adapted to specific needs of an organization and cannot be used as a blanket solution in the same way for every company.
  • It is a known fact that public sector companies are not there to make a profit. Therefore the strategy for public companies may not be measured by the amount of profit they make. A scorecard then needs to have a different criteria and emphasizing different aspects. So instead of having finances at the top of the structure customer needs could go at the top. What is important is that the scorecard is adapted to fit the priority of that organization. It is however important still to keep the four views and the cause and effects relationships. It is likely that there will be more than one theme and each theme should have its own scorecard. This makes the overall procedure much easier.
  • One of the main problems with public sector businesses is defining who the customer is. Here the consumer does not provided the funding. Public organizations have funding from different shareholders such as government. Funding organizations and other agencies. It might be necessary to consider different sectors as customer perspectives before considering the other aspects of the scorecard.