Journal of Higher Education Policy and Management Performance management in UK universities: implementing the Balanced Scorecard Performance management in UK universities: implementing the Balanced Scorecard

Abstract

ISSN: 1360-080X (Print) 1469-9508 (Online) Journal homepage: http://www.tandfonline.com/loi/cjhe20 In recent years, UK universities have become increasingly concerned with performance management. This trend reflects both growing competition and marketisation within higher education, and the increasing requirements for accountability. In response, insti-tutions have begun to explore the application of formal methodologies for performance management, initially developed in business and industry. One such approach is the Balanced Scorecard. Based on a qualitative study of the application of the Balanced Scorecard in four UK universities and interviews with senior managers, the paper looks at the impact of this technique on the formation, monitoring and evaluation of strategy and policy; issues of motivation, implementation and format are also considered. The paper provides an insight into the application of new management techniques within higher education and identifies key issues to be addressed within the process. Introduction Higher education in the UK faces massive pressures for change. Student recruitment is driven by the need to fill available places, but is also influenced by issues of quality, income generation and equity in participation. Funding is a constant source of concern, for both teaching and research, with institutions looking to both diversify and maximise income streams, whilst also looking to achieve enhanced efficiency and value for money. Globalisation and internationalisation, and new technology, pose additional challenges to UK universities. However, arguably the greatest pressures arise from increasing compe-tition and marketisation, and from the politicisation of higher education. Universities are now in intense competition to recruit students, prompting further consideration of the entire student experience; international student recruitment is especially intense. Funding for research is possibly even more competitive. Across the whole spectrum of activity, given the massification of student numbers and wider recognition of the economic impact of higher education, higher education now faces unprecedented levels of scrutiny from politicians and policy-makers. Against this background, universities are increasingly looking to new forms of inter-nal management. In particular, there is an emphasis on performance, sometimes measured in international terms, in national terms and relative to a peer group of institutions. This emphasis on performance is also witnessed within institutions, with a strong focus on the