IMPLEMENTING BALANCED SCORECARD IN HIGHER EDUCATION INSTITUTES

INTRODUCTIONrnA need is felt across education industry to apply measurement technique to effectively plan, manage and lead higher education institutes. Taking a step forward in this direction encompassing practice and theory the Balance Scorecard concept that is traditionally applied to businesses to measure the returns can be applied to the higher education institutes. This will help in better understanding and measuring the underlying forces of learning and growth, internal processes, customer perspective and financial aspect in the sphere of higher education. Business scorecard concept will help in forecasting intellectual, organisational,rntechnological and fiscal needs with reference to instructional design and delivery to build professional communities Higher Education institutes need to evolve and embrace the associated changes of massive and rapid growth in technology that has raised the demand for innovative study methods. Hence the leadership at the higher education institutes is affiliated to the success or failure in the education sector as well as in the society. Balance scorecard approach can suggest alternatives to define and reengineer leadership process as this can be considered as an opportunity to qualitatively and quantitatively measure and translate the effectiveness of knowledge creation that is rational and complete. CONCEPT OF BALANCED SCORECARDrnBalance scorecard – a measurement technique though traditionally is being used to measure financial performance addressing shortcoming in the traditional processes and systems can also be used by leaders to build a common understanding of the institutes vision and mission, guiding faculty towards common goals and identifying improvements required holistically adhering to the strategy alignment and effective measurement framework. There are four drivers that support future success –rnLearning and Growth – involves intellectual, socio-technological, systemic and fiscal procedures that address the organization’s vision, mission, and objectives. Internal Processes – allows management to evaluate internal processes and determine the renewed value chain to form a culture of innovation and creativity fulfilling customer demands and expectations of shareholders. Customer Perspective – provides management with a tool to access customer service areas like time, cost, quality, service, and performance Financial Aspect – involves contribution of institute’s objectives and strategies to bottom line Balance scorecard produces a framework of the strategy and vision of the organisation providing a cause and effect influence by fostering development of learning and growth for the benefit of customer and organisation by improved profitability. Whereas the mission and strategy is translated into detailed set of performance measures capturing financial objectives. Tangible and Intangible assets are important to an organisation, however intangible assets enable an organisation to develop customer relationship, create innovative products, utilize effectively employee skills, an deploy technology. These drivers will enable an institute to – Create a structured plan of action to generate information for continuous improvement fulfilling mission, objectives and goals at the same time providing learning environment promoting academic excellence. While evaluating viability, value and making use of resources in an effective way, these drivers will provide direction prioritizing needs to support resource allocation and future planning. APPLYING BALANCED SCORECARDrnAn integrated approach on goals, targets and progress measures can be derived by applying balanced scorecard measurement system as it combines information from various perspectives so that the trade-off can be balanced for example a financial perspective can be replaced by an academic management perspective. Balanced Scorecard can be used for managing performance quality rather than only monitoring performance and measuring the same. Balanced scorecard can be used as a strategy mapping tool in educational institutes. Human capital is an integral part of any organisation including educational institute, and possess qualities such as loyalty, satisfaction, productivity and competency. This can be framed in an institute under leadership and support system as it is a part of organisational capital comprising of culture, goal alignment, teamwork and leadership. This will cover soft skills or intangible assets. Higher educational institutes traditionally have been following a framework of teaching and learning, service or outreach, research and scholarship, satisfaction and financial systems, but this framework is inefficient to raise alerts or has predictive limitations to be ready for the dynamic environment surrounding these institutes warranting changes to be made in advance. In the customer perspective segment of higher education sector the key stake holders are Parents/Students, Alumni, Faculty, and Society and they can be termed as ‘customers’. The higher education institute needs to address a primary question – In accordance tornthe vision and its achievement, how should an institute appear to the customers? To answer this question BSC can be used / applied in the following way - Considering Customer Perspective the Key Stakeholders expectation can be -rnStudents/ParentsrnInstructional Quality - High level of education offeredrnDiversity of programs offered to provide to intricacy of societal demandsrnSuitable, easy access, flexible schedules Blended Learning course The expected Outputs/Results have to be -rnStanding of institutionrnStudent satisfactionrnSuccess and FailuresrnEducating students as life-long learners Expectation of the Faculty/Staff -rnGrowth opportunities (Personal and Professional)rnQuality adherence to proceduresrnFacilitation to innovate, creative, and suggest changesrnTraining opportunitiesrnCareer advancement Expected Outputs/ResultsrnSalary increase over a given periodrnMentors for new staffrnStaff development /advancement coursesrnCaring culturernOpportunities to attend conferences Expectation of Corporate (institute)rnCreating worthy graduatesrnGraduates ready to work in current environmentrnImparting relevant knowledge Expected Outputs/ResultsrnStudents hiredrnSalary (average /highest/lowest)rnPartnering with Industry and other educational Institutes The internal process is another segment where quality plays a prominent role where satisfaction of faculty / staff, students can effectively contribute to value creation and form a culture of inventiveness. The higher education institute needs to address the question – In order to satisfy shareholders and customer and achieve satisfaction, what are those business processes we must be best? To answer this question BSC can be used / applied in the following way - Staff / Faculty – Assuring Quality – This can be achieved by meeting the standards established locally or regionally, through networking and creating value. Enhanced adult development – having a work based culture, project based instructions, and practicing inter-professional learning method Engaging in heterogeneous programs – serving emerging trends, cost efficient, efficient enrolment, and examination processes. In the component of Learning and Growth, faculty professional growth and development, and boosting of morale is combined to enhance delivery leading to motivation and participation of student. Implementation of technology and exposure of the student to those technologies contribute more participation of the student. Institute needs to address the question – How can we change and improve so that we achieve our vision? To answer this question BSC can be used / applied in the following way - Faculty development, creative and innovative teaching, methodical appraisals – Increased teacher and student motivation Growth in motivators –intrinsic and extrinsic – promoting reflective practice through peer/self- appraisal, staff satisfaction, creating professional communities. Organisational responsibility – Intrinsic motivation with promotion of care and trust The three pillars of financial component – Project, Prosper and Profit are the core of financial planning at a higher education institute enabling the evaluation at various levels and time. Institute needs to address the question – How should we present ourselves to the shareholder? To answer this question BSC can be used / applied in the following way – Project – Forecasting conveys the execution of plans needed in specific areas Prosper – Enriched course with the use of technology by faculty with increased transparency and accountability will help in achieving cost effectiveness Profit – Effective use of tangible and intangible resources will boost cost efficiency and also productivity. CONCLUSIONrnThe four components act as core instigators to defining and reengineering the leadership process to suit the institute’s needs. They are the motivators to invest in faculty and improve service, leading to greater customer satisfaction, customer loyalty, creating positive word of mouth publicity streamlining the cash flows to be reinvested in future development and growth.