Welcome to Reality - A study of the balanced scorecard as a communication

Abstract

Background and problem: During the past decade more and more companies have experienced the importance of communicating strategy to their employees in an understandable way. The balanced scorecard, created by Kaplan and Norton, is one of the management models providing tools to do this. The need for knowledge about how to create good internal communication in order to fully utilise the balanced scorecard model makes this an interesting subject to study. Purpose: The purpose of this thesis is to describe how the balanced scorecard can be used as a tool for communicating strategy within organisations using Kungälv Hospital as an example of how the theories are applied in the reality outside the textbooks. Delimitations: This thesis focuses only on how the balanced scorecard is used as a communication tool towards employees and not towards other stakeholders. The perspective is on the use of the balanced scorecard as a communication tool and not on implementation. Methodology: A qualitative research method was used to gain a deeper understanding of the subject. By conducting interviews with employees at different managerial levels we would obtain a broader picture of how the balanced scorecard is used as a communication tool in Kungälv Hospital. Analysis and conclusions: The understanding of the strategies as well as of the balanced scorecard varies among them employees at Kungälv Hospital and depends mainly on training received and involvement in the creation of the scorecard. Meetings and the intranet constitutes the main channels of communication and the messages sent are adapted in terms of language in order to ensure correct reception. The balanced scorecard as a communication tool has created a common direction of the work in the hospital even if the understanding of the tool could be improved. Suggestions for further research: Other interesting areas of study could be how motivation is affected by the use of the balanced scorecard as a communication tool or making a comparison of the use of the balanced scorecard in other units connected to Västra Götaland Region. II