Factors Contributing To The Unsuccessful Implementation Of The BSC In A South African Provincial Treasury Department

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Chengedzai Mafini
David R.I. Pooe
Hebert Nqcobo

Keywords

Organisational performance, performance management, Balanced Scorecard, Government Department, South Africa

Abstract

This study investigated the factors that contributed to the unsuccessful implementation of the Balanced Scorecard in a provincial government department in South Africa. The study was inspired by the unsatisfactory attempt to introduce the Balanced Scorecard as a performance measurement system in that department in the year 2009. Data were collected through a questionnaire comprising of two sections. The questionnaire was administered to 81 managers and employees who were on the approved establishment of the department in 2009. The factors contributing to the failure of the program were extracted using principal components analysis. An analysis of the descriptive statistics for each factor was also conducted. The findings of the study indicate that the failure of the Balanced Scorecard project may be linked to four factors; namely, inconsistencies within the project team, an ineffective communication strategy, myopic planning and poor execution. Among these factors, planning contributed the highest to the demise of the project. Using these findings as an anchor, the study recommended a number of strategies that may be adopted in in the event that public organisations intend to implement Balanced Scorecard programs in the future.

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