Translating strategy into results: public sector applications of the balanced scorecard.

Eagle, Kim^Cooke, Theodeore C.^Rossi, Terri Sue C.

The Origins and Evolution of Charlotte's Corporate Scorecard

Responding to public calls for greater accountability and efficiency, governments at all levels are now using performance measurement in one form or another. However, establishing an effective system for setting priorities, allocating scarce resources based on those priorities, and measuring outcomes is an ongoing challenge for most governments. Despite the difficulty, public administrators, including finance officers, continue to advance the practice of performance measurement in the public sector by trying new ideas and sharing what they learn with their colleagues.

This article discusses the evolution of strategy development and performance measurement in the City of Charlotte, with an emphasis on the lessons learned from nearly 10 years of using the Balanced Scorecard model. Developed for the private sector in an effort to balance measures of organizational performance between financial results and other critical success factors, the Balanced Scorecard has been adapted for the public sector by a number of local governments. (1) From implementing and using the Balanced Scorecard to the most recent challenge of linking strategy to resource allocation, Charlotte's story is one characterized by continuous improvement.

ORGANIZATIONAL TRANSFORMATION

Now the 25th largest city in the country, Charlotte has grown from a population of 395,000 in 1990 to approximately 623,000 today. Charlotte is the nation's second largest banking and financial center, and is the corporate headquarters for both the largest and fourth largest U.S. banks. Several other Fortune 500 companies also call Charlotte home.

The City of Charlotte operates under a council-manager form of government and has an annual operating and capital budget of approximately $1.56 billion. The government is administered by a city manager who serves under the direction of the mayor and the City Council, who are part-time elected officials. Charlotte employs 6,066 employees in 14 key business units.