Balanced Scorecard Approach for London South Bank University

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Performance indicators are found to be very helpful in the case of educational institutions like Universities imparting higher education which is subjected to increased regulatory pressure from the funding organizations, the government, and the public. Moreover, the inflationary tendencies force educational institutions to have closer control over their finances so that the expenditure is contained within the income levels. Financial performance indicators help the institutions in this respect. The application of the balanced scorecard representing a system of performance measurement that controls and monitors the key strategic parameters by evolving a set of performance indicators provide the educational institutions with a perfect tool for ensuring that the functions of the various divisions work towards the achievement of the strategic objectives of the institution. The balanced scorecard approach also helps the institutions to satisfy the expectations towards accountability and to meet the legislative requirements. With this background, this paper envisages presenting a balanced scorecard approach for the London South Bank University (LSBU)During the 1990s Prof. Robert S. Kaplan and Dr. David P. Norton of the Harvard Business School developed the balanced scorecard approach as an aid to strategic business management. The purpose of the approach is to provide alternatives to the financial performance measures for improving the overall performance of the organizations.1 The balanced scorecard approach encompasses an operational framework that is designed to measure the company’s mission and strategic goals in terms of four distinct organizational perspectives. They are:Performance measures are evolved in respect of each of the above areas which can be regarded as very crucial to the success of any organization. By comparing its actual performance against the established standards in each of these areas the organization can ensure the sustenance of its success.