Indicators of Activities and Performance – Balanced Scorecard in Central Government Bodies

This publication is intended as input into the discussion in recent years regarding the use of performance indicators to manage the activities of central government bodies and companies. Also taken into account is the decision of the Icelandic Ministry of Finance to increase the use of performance indicators in budgetary procedures.
The report is largely based on the Balanced Scorecard methodology, in which an attempt is made to connect performance indicators to the goals of companies and other organisations and to assess the operation’s performance on the basis of its success in achieving those goals. Not only is an attempt made to assess financial benefits, as in traditional private enterprises, but also taken into account are customers’ expectations, their satisfaction with the service and their opinion of the company or organisation as a whole; the staff’s competence at maintaining and increasing their knowledge and skills; and the internal processes necessary to meet customers’ expectations and improve the operation in question. Taking such factors into account is natural for central government bodies whose main purpose is not financial gain, but to provide the public with the best possible service.