Balanced scorecard and business intelligence in management control systems: A government agency approach

Abstract

Objectives: The objective of this paper is to analyse the success of the balanced scorecard (BSC) implementation, performance, and the possibility to add BI tools for BSC in a Portuguese government agency, as an improvement to management control. In this context, this paper seeks to understand how BI can impact BSC and a management control process and whether BI can also be a relevant process to BSC implementation. Data and Methods: A qualitative methodology was used to conduct the research, supported by a case study. The case study was carried on the “Instituto dos Registos e Notariado” (IRN), part of the Portuguese Ministry of Justice. Data were collected through the information from the internal documents assessed together with interviews from all departments and controllers linked to the BSC process. Interviews were the main research technique used in this study. Results: It was found that BI is the possible solution, fitting the needs and helping the main management control framework – the BSC. BI can have a positive impact on BSC implementation and in MCS, specifically, in IRN, that integration could be a relevant process to improve the BSC implementation process. Conclusions: Concluding, BI has proven to be one of the most important tools to consider to have the desirable adherence of a management control system. It also proved to be a competitive differentiator. This paper also shows that BSC and BI together, as a management support tool can improve business performance, because BI is also a support-tool for decision-making. These conclusions are very important for academics and practitioners, contributing to understanding management control in a public organization. Originality/Contributions: The contribution of this article follows the literature in the area between the potential interconnection and complementarity between BSC and BI, reinforcing previous studies on the added value of its utilization by managers. The fact that the analysis is carried out in a Portuguese government agency, through a case study, can deepen the knowledge obtained and contrast it with the results obtained in the analyses in private companies.