Research into the Appropriateness of the People Perspective of the Balanced Scorecard

Author: Van Rooyen, Lynette
Supervisor: Professor Pierre Gerber
Date: September 2007

The research was conducted at the Auditor-General whose Constitutional mandate, sections 181 and 188 of the Constitution of the Republic of South Africa Act 108 of 1996, is to ensure accountability in public spending through auditing and to report on the findings in the public domain. This organisation is endeavouring to become a world-class player in public sector auditing. This can be accomplished through the implementation of the key strategic imperatives in which the corporate strategic objectives are translated into a strategy map. The achievement or non-achievement of the goals and/or objectives, as defined in the balanced scorecard quadrants will be measured, with specific emphasis on the people perspective (learning and growth) only.

The Auditor-General has various offices, that is, four business units responsible for the national public sector, nine provinces responsible for the provincial public sector, an international division and the AFROSAI-E secretariat with its head office in Pretoria. The legislative mandate of the office prompts the Auditor-General to audit and report on not only its core business (public sector auditing) but also its administrative function. The people perspective of the balanced scorecard encapsulates both the core business and support services dimension.

The support services division consists of the following: Operation and Transaction Management, Strategic and Special Projects, Reputation and Stakeholder Management, Strategy and Governance.

The purpose of the research is to identify the reasons why the business themes and goals defined in the people perspective of the balanced scorecard of the Auditor-General, based on the corporate strategy as formulated in July 2001, have not been fully realised. Appropriate recommendations for the successful achievement of such goals are made.