Balanced Scorecards in education: focusing on financial strategies

Purpose The purpose of this paper is to demonstrate the use of the Balanced Scorecard in a higher education distance learning environment, and to highlight the importance of financial strategies. Design/methodology/approach Following a review of the existing literature, case studies and management best practices, the authors use their university as an example to develop a second‐generation Balanced Scorecard including a strategy map and scorecard. Findings Higher education organizations with well‐defined financial strategies that are linked to educational outcomes will be well positioned for success even as their funding models change. Research limitations/implications The scorecard was created for a publicly funded university and thus some features may be less relevant to privately funded universities. Practical implications This paper demonstrates a working, second‐generation Balanced Scorecard and provides practitioners with a proven example of a strategy map and its resultant scorecard. In addition, considerations for the development of a scorecard in higher education are provided as well as working financial strategies for a university. Originality/value The paper demonstrates the use of a BSC within a higher education distance learning environment and highlights the importance of financial strategies for higher education at a time when most universities are focused on performance metrics associated with learning.