Balanced scorecard implementation in an Italian local government organization

Abstract

This article explains how action research was used to analyse the implementation of the balanced scorecard (BSC) model to meet the legislative requirements of strategic control reporting in Italian local government. The BSC model was modified for local government and was used for political action, non-financial measures, budget allocations, and to meet legislative requirements. This article offers some important lessons for policy-makers and practitioners about adopting and implementing a BSC model.

Acknowledgements

The author would like to thank the Faculty of Economics and Business, the University of Sydney, where the article was developed and Professor James Guthrie for his suggestions, and Fiona Crawford and Sara Haddad for their editorial support. The author gratefully acknowledges the helpful suggestions of Professor Jane Broadbent, and two anonymous reviewers.

Notes

∗The data indicated is derived from national research conducted for two consecutive years by a national commission within the State General Accounting Department (Ispettorato Generale di Finanza nell'ambito della Ragioneria Generale dello Stato) and from other related commissions that have a supervisory role and control of public finance. For 2003, the research comprised 20 Italian local governments, and of those analysed, 50% did not observe ‘strategic control’ and not much changed in the findings for the following year. See www.rgs.mef.gov.it/VERSIONE-I/index.asp