Modifying Balanced Scorecard as a Strategic Tool of Public Sector Organisations: Evidence from a Community Health Centre in Indonesia

Abstract

To improve public health services, Indonesia has decentralised Community Health Centres, commonly known as "Puskesmas" to local governments. As a public sector organisation funded by central and local governments these Centres must be accountable to the people. Therefore, central and local governments have required these Centres to provide better public health services to citizens. However, little is known on how these Centres develop and implement their strategies. Thus, the aim of this study is to explore the practices of developing and implementing strategies in these Centres. Methodology Approach: The study employed qualitative research approach. To collect data, interviews and document analysis were conducted in a Centre as a case study. Then, the collected data were analysed thematically. Specifically, the study reviewed the Centre's strategic plan year 2016-2020 as well as its vision and missions, strategic objectives, and the evaluation of this plan. Also, the study assessed on how balanced scorecard helped the case study in realising its vision, missions, and objectives. Findings: Using the lens of Kaplan and Norton's balanced scorecard, the study shows the formulated strategies in the case study. The case study used balanced scorecard as a tool to create and evaluate strategies, as well as measuring performance. Results of the evaluation were used to establish the next strategic plans. Originality/Value: The study gives insights on how balanced scorecard was used in a community health centre. It identifies several issues in strategy implementation and proposes modified balanced scorecard for analysing the strategic plans of community health centres in less developed countries. [ABSTRACT FROM AUTHOR]