The balanced scorecard, like all other strategic management tools, had been originally developed keeping the business perspective in mind and thus was majorly applicable to the for-profit business. But not for profit businesses like the Fullerton School System have also adopted this technique with some minor changes so as to for the not for profit model. The traditional balanced scorecard addresses the company strategy from four main perspectives that include the financial perspective, customer perspective, internal process perspective and the learning and growth perspective. The financial perspective addresses all the financial dealings including revenues, net income, etc. whereas the customer perspective addresses issues regarding the customer satisfaction, customer retention, and other aspects about customers. The internal process inventory covers the aspects related to the internal business processes which in turn determines the outcomes and thus has to be addressed separately. The learning /growth perspective addresses the development and career progression of the employees in line with the HR functions associated with employee satisfaction and employee motivation. The balanced scorecard model used for the public sector organization which was applied in the case of Fulton Country School included five dimensions which were mission perspective, support perspective, process (operational Capacity), learning and growth and financial perspective.
1. The case argues that Dolinger tried to implement private sector practices to improve performance. However, the balanced scorecard needed adaptations from how it is used in a for-profit firm. What are the two biggest differences between the balanced scorecard in Fulton County School System and a typical for-profit firm?
2. Give two possible improvements to the existing balanced scorecard and explain why these changes would improve the balanced scorecard at Fulton County School System.
3. The lectures on the balanced scorecard identified some problems with the balanced scorecard in general. Explain the most important shortcoming for the Fulton County School System.