Abstract:
The current trend in business is that the more rapidly customers are able to receive the
services they require; the better the organisation can perform. However, customers’ needs
are becoming progressively more complex due to the increased number of communication
channels and ubiquitous business information. Serving today’s informed customers with
traditional business methods have proven to be too difficult for organisations that are too
rigid to change. Determining how to support business stakeholders effectively and
efficiently, ranging from clients to shareholders can seem daunting; yet it does not have to
be.
The major objective of this study was to use a balanced scorecard (BSC) to improve an
organisation’s financial perspective. A case study of the Tshwane University of Technology
(TUT) Polokwane campus in South Africa was used to inform the study. This study was
motivated by the fact that, as much as the BSC is widely being used to align organisations’
operations to its mission and objectives, many organisations in the developing world still
use traditional financial performance measurement systems. Another motivation for the
study resulted from the fact that despite the strategic positioning of the TUT Polokwane
campus in Limpopo province, the campus is still failing to attract potential students and
high-calibre staff.
The study modified the BSC for non-profit organisations (Kaplan & Norton, 2001) to come
up with a conceptual framework that suits the TUT Polokwane campus environment.
Secondary and primary data were used. Secondary data was obtained by reviewing
relevant documentation that contributed to identifying key performance measures. These
measures were used to develop the instrument for collecting primary data. Primary data
was analysed quantitatively. The results of the study showed that many of the
questionnaire items were good. Three of the six hypothesised relationships between the
six constructs and the improvement of the financial perspective were fully supported, while
the other three were partially supported. Relevant modifications were made to the
measuring items and consequently, the BSC.
The modified BSC that was a result of this study can be used as a reference framework by
universities that wish to implement it within their settings. To the management of the TUT
Polokwane campus this study will serve as a standard to set the business operations
congruent to the university’s mission and vision. This study recommends that future
research should consider using longitudinal surveys since users’ perception and customer
needs change as the business environment changes. The study also emphasised the
need for continuous review and modification of the resultant BSC that will be introduced at
the campus in order to cope with the ever-increasing changes in business and
technological developments.
