The Balanced Scorecard: A Strategic Tool in Implementing

Homeland Security Strategies

Sharon Caudle

INTRODUCTION

Starting in the early 1990s, Robert S. Kaplan and David P. Norton advocated a
“balanced scorecard” as a top-down management system. The system would translate an
organization’s mission and existing business strategy into a limited number of specific
strategic objectives that could be linked and measured operationally.1 The balanced
scorecard stressed the few critical drivers of future organizational performance –
capabilities, resources, and business processes – and the results of those drivers –
outcomes for customers and the growth and profitability of the organization. Specific
objectives were linked in cause and effect relationships derived from the strategy,
measured, and communicated to the organizational members for strategy
implementation. Many public, private, and not-for-profit organizations have adopted
the scorecard as part of their strategic management approach.2
This article describes and illustrates the balanced scorecard as a tool to better
implement homeland security strategies. In the following sections, the article (1)
introduces the balanced scorecard approach, (2) describes an extended enterprise public
sector balanced scorecard that can be used by individual organizations or in partnership
with other organizations, (3) advocates and illustrates a homeland security scorecard
and homeland security strategy mapping, and (4) concludes with a discussion of basic
ingredients for successful scorecard implementation.

THE BALANCED SCORECARD APPROACH

In their many articles and books, Kaplan and Norton advocated the balanced scorecard
as a management system designed for organizations to manage their strategy.
Specifically, the scorecard was a way to (1) clarify and translate vision and strategy; (2)
communicate and link strategic objectives and measures; (3) plan, set targets, and align
strategic initiatives; and (4) enhance strategic feedback and learning. The scorecard was
primarily intended for a “closed system” – a strategic business unit responsible for an
entire value chain in producing and distributing products for defined customers.
Departments and functional units within the strategic business unit would produce their
own mission and strategy to support that of the strategic business unit. However, the
scorecard was also useful for implementing strategy with other organizations, such as
suppliers.3
The heart of the balanced scorecard is a framework of four major categories or
perspectives for strategy implementation – financial, customer, internal business, and
innovation and learning:
• The financial perspective asks how the organization should appear to shareholders
so that the company can succeed financially. This perspective indicates if the
business is improving the bottom line, measuring items such as profitability and
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shareholder value. Financial objectives reflect economic consequences of actions

already taken in the other perspectives.
• The customer perspective asks how an organization should appear to customers to
achieve the organization’s vision. Customer objectives identify customer and market
segments where the business would compete and what performance would be
expected for these targeted segments. The scorecard focuses on customer concerns
primarily in four categories: time, quality, performance and service, and cost.
• The internal business perspective asks what business processes the organization
should excel at to satisfy shareholders and customers. This perspective measures the
internal business processes, core competencies, and technologies that would satisfy
customer needs.
• Lastly, the innovation and learning perspective asks how the organization would
sustain its ability to change and improve to achieve the organization’s vision. The
learning and growth perspective identifies the organization’s infrastructure needed
to support the other perspectives’ objectives. This perspective measures a company’s
ability to innovate, improve, and learn, such as the ability to launch new products.
Kaplan and Norton’s books and articles through 2004 evolved the balanced scorecard
from a set of measurement techniques, to a management system, and then to an
organization and change framework for what they called a strategy-focused
organization. A strategy-focused organization would follow five principles: (1) translate
the strategy to operational terms, (2) align the organization to the strategy, (3) make
strategy everyone’s everyday job, (4) make strategy a continual process, and (5) mobilize
change through executive leadership. In subsequent books published in 2006 and 2008,
they provided additional guidance on aligning all organizational units to an enterprise’s
strategy and establishing strong linkages from strategy to operations. They posited that
strategy should come from choosing the business’s market and customer segments,
critical internal business processes that delivered value to the targeted customers, and
selecting individual and organizational capabilities in support. Companies could also
choose strategy by exploiting their unique capabilities, resources, and core
competencies.
According to Kaplan and Norton and others,4 scorecard success relies on crafting
clear cause-and-effect relationships across the four perspectives, creating a balance
among the different measures of performance drivers and results, and communicating
strategy and the processes and systems necessary to implement that strategy. Strategy
mapping makes explicit the cause-and-effect links by which initiatives and resources –
tangible and intangible – create outcomes at the top of the scorecard, such as financial
and customer expectations for private sector organizations. Kaplan and Norton point
out that simply building scorecards and bucketing initiatives and measures into the
discrete balanced scorecard perspectives without understanding the linkages is invalid.
The power of strategy mapping lies in systematically and logically linking across the
perspectives to create value. The initiatives and resources (and related measures) must
show how outcomes will be achieved through the initiatives in the individual
perspectives.
Constructing strategy maps based on Kaplan and Norton’s scorecard perspectives
started with a clear hierarchical relationship framework. The hierarchy began with

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defining financial objectives, then determining the target customers and their
requirements to achieve the financial outcomes. Those determinations were then
followed by defining the activities in internal business processes that would create the
desired customer outcomes. Then the learning and growth factors were identified to
execute the internal business processes. Every measure in the cause-and-effect
relationships ultimately ties to outcomes. The hierarchy and a portion of a strategy map
derived from Kaplan and Norton’s 2001 and 2004 work is shown in Figure 1 to illustrate
more robust linkages in the cause and effect relationships.

Derived from Kaplan and Norton (2001,

2004)

The Strategy Improve

Financial
Returns
Financial
Broaden
If we succeed, how will we
The Strategy Map Revenue Mix
look to our shareholders?

Customer Increase
To achieve our vision, Customer
Confidence in
how must we look to our Our Financial
customers? Advice

Understand
Develop the Cross -Sell the
Internal Customer
Offering Product Line
To satisfy our customers, at Segments

what business processes must

we excel? Employee
Satisfaction
Improve
Organizational Learning Customer Reward
To achieve our vision, how Information
Broaden Skills
System
Alignment
must our organization learn
and improve?

Figure 1. Sample Strategy Map Portion

In this simplified example, organizational learning efforts such as improving customer

information efforts serve as inputs to internal business processes such as understanding
customer segments, leading to customer value for financial advice and subsequent
financial returns. In their 2004 book, Kaplan and Norton expanded on strategy
mapping for the learning and growth perspective (also called intangible assets) and
internal business processes. Strategy mapping, in their view, should pay particular
attention to these two perspectives and the individual categories under each as they
were so important to the lagging financial and customer outcome areas. Learning and
growth described the organization’s intangible assets in terms of human capital such as
employee skills, information capital such as information systems, and organization
capital such as culture. Internal business processes included operations management,
customer management, innovation, and regulatory and social constraints.

TAILORING THE PERSPECTIVES TO THE PUBLIC SECTOR

Kaplan and Norton recognized that balanced scorecards for pubic sector organizations
would not necessarily mirror those of private companies. Government and nonprofit

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organizations would rarely place the financial perspective at the top of the hierarchy.
For the public sector, the value creation process targeted public sector customers and
taxpayers and fiduciary outcomes. They recommended placing financial and customer
perspectives at the top in a co-equal status, both dependent on the mission of the
organization. This framework is shown in Figure 2.

The Mission : “To achieve our mission, what

critical few things will we focus on?”

Financial : “If we succeed, how Customers : “To achieve our

will we look to our financial vision, how must we look to
donors?” our customers?”

Internal : “To satisfy our customers,

financial donors and mission, what
business processes must we excel at?”

Learning & Growth : “To achieve our

vision, how must our people learn,
communicate, and work together?”

Figure 2. Nonprofit/Public Sector Scorecard

Kaplan and Norton defined mission as a “concise, internally-focused statement of the

reason for the organization’s existence, the basic purpose toward which its activities are
directed, and the values that guide employees’ activities.”5 Kaplan, in his 1999 work,
noted that for a government agency, financial measures did not indicate if an agency
was delivering on its mission. Placing the mission at the top of the scorecard oriented
the objectives in the four perspectives toward achieving the mission.6 He replaced the
customer and financial perspectives with three areas at the same level: the direct and
indirect cost of providing service, the value and benefit of service to citizens, and the
support of legitimizing authorities such as the legislation and ultimately taxpayers.
Internal processes and learning and growth would support all three areas and complete
the hierarchy.7
Other authors have taken a similar tack with public and nonprofit sector scorecards,
but with additional variations. For example, Niven placed mission at the top of his
scorecard, followed by the customer perspective. Financial and internal processes
perspectives supported the customer perspective, but at an equal, horizontal level.
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Employee learning and growth was at the bottom of the scorecard, viewed as the central
driver in meeting mission goals.8 Rohm’s basic design emphasized mission as the key
driver, with a customer and stakeholder (government mandates and limitations)
perspective directly under mission and the financial perspective and employees and
organizational capacity (employee skills and information technology) perspective at the
same level, underneath the customer and stakeholder perspective. Internal business
processes were at the bottom.9

AN EXTENDED ENTERPRISE PUBLIC SECTOR BALANCED SCORECARD

These public sector scorecards speak to application to a single organization. Kaplan and
Norton devoted much of their work to applications within a single company where the
scorecard would cascade from the corporate level to strategic business units, then to
departments and functional units, and then to employees. However, Kaplan and Norton
saw the merits of using the balanced scorecard for joint ventures or strategic alliances.
In their view, the scorecard could define the goals for a shared agenda and relationships,
make explicit the strategic linkages integrating the performance of multiple
organizations, and define how to measure the contribution and performance of each
party. An alliance-balanced scorecard was seen as mitigating alliance partner conflict by
bringing the partners together to clarify the alliance goals and the strategy for achieving
those goals. However, what might be improved perspectives for a public sector
scorecard that could, for an individual organization or for strategic alliances or a
network of organizations, more fully integrate roles, responsibilities, and contributions
for strategy implementation?10 This is an important question as homeland security
strategy implementation requires both individual independent effort as well as the
interdependent actions of other “mission delivery” partners.
Drawing on the described private sector and public sector scorecards, an extended
enterprise scorecard that considers independent and/or interdependent action might
include five perspectives, described in Table 1. These include (1) public stewardship, (2)
clientele11 impact, (3) day-to-day processes, (4) human capital support, and (5) enabling
support. For each scorecard perspective, several topics can be considered to determine
objectives and then subsequent measures and initiatives for strategy mapping. For
example, public stewardship would include understanding and balancing key
stakeholder needs and expectations; day-to-day processes would consider the evaluation
and enhancement of delivery partner capabilities. Such a scorecard could aid in
designing the objectives and measures for implementing independent and shared
strategy and clarify and communicate what activities and tasks are jointly linked or
individually performed.

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Table 1. Extended Enterprise Balanced Scorecard Perspectives

Perspective and Question Topics

Public Stewardship: Mission in line with legislative mandates.
“To meet the legislative Key stakeholder needs and expectations understood and balanced.
intent, how should we Needs and expectations of the society at large defined and satisfied within
provide effective policy and funding constraints.
resource stewardship for our Management and program policies translated to implementation goals and
stakeholders and society at actions and results communicated.
large?” Financial and investment performance constraints and compliance needs
managed.
Investment management in line with strong financial integrity needs.
Clientele Impact: Legal, regulatory, and ethical policy requirements for clientele results.
“To achieve our mission, how Clientele clearly defined.
should we serve and impact Clientele responsibilities in achieving results.
our clientele—those who Clientele satisfaction with program products, services, or regulatory
receive our products, interventions.
services, funding, regulatory Clientele involved in defining goals, targets, measures, and strategies
intervention, or guidance?” within legislative or policy parameters.
Day-to-Day Processes: Core processes and their value chains identified, managed, and improved
“To meet our commitments, internally and externally.
how should we identify, Multiple/duplicate programs integrated for best policy results.
secure, and sustain employee Emphasis on comprehensive processes and interrelationships, instead of
and delivery partner (strategic stove-piped functional tasks.
alliance) commitment, Delivery partner roles and their contributions in processes identified—
knowledge, and skills?” from alliances to transactional roles.
Human Capital Support: Workforce skills and competencies aligned with program goals and human
“To meet our commitments, resource systems.
how should we craft the right Employee skills managed for retention and any necessary development.
organizational alignment and Delivery partners empowered in program human capital decisionmaking.
technological support?” Delivery partner capabilities evaluated and enhanced, if necessary.
Enabling Support: Organizational structure and design effective, including the impact on, and
“To meet our commitments, integration with, delivery partners.
how should we craft the right Organizational roles adequately clear, with a strong commitment to
organizational alignment and carrying them out.
technological support?” Leadership to develop and sustain an organizational climate centered on
results.
Access to information resources within the organization and in extended
business processes.
Capital assets optimized for expectations.
Other adequate technological investment to support program mission
goals.

The hierarchy for the extended enterprise balanced scorecard, shown in Figure 3, places
public stewardship and clientele impact at the top directly under mission, with day-to-
day processes in the middle, and the final two – human capital support and enabling
support – as the foundation of the scorecard.

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Internal/External Balanced Scorecard Measurement and

Measures Evaluation

What mission
The Mission objectives must we
achieve?

Are the outcomes

Public Clientele responsive to necessary
Results of
Past Stewardship Impact public stewardship and
Performance clientele needs?

Do processes provide the

Day to Day capability and value to utilize
Processes human capability, technology,
Drivers of and organizational alignment
Future to meet mission objectives?
Performance

Are support capacities and

Human Capital Enabling development responsive to
Support Support current and anticipated
outcome requirements?

Figure 3. Extended Enterprise Balanced Scorecard Perspective

DEVELOPING THE HOMELAND SECURITY OBJECTIVES AND

STRATEGY MAPPING
However, the next question is how to use these five perspectives for homeland security.
What might be homeland security’s scorecard objectives, and “cause and effect”
relationships to implement the strategy across the five perspectives, whether for a single
organization or for several delivery partners? There are several sources of information
available to develop the extended enterprise homeland security scorecard, including
publicly published national homeland security strategies and preparedness guidelines.
National Strategies for Homeland Security
The first source of information is the content of the 2002 and 2007 National Strategy
for Homeland Security.12 At present, these two national strategies provide the common
language and coordinating mechanisms across all parties involved in homeland security
– federal (defense and civilian), state, local, public, private, nongovernmental, and
international. The 2002 National Strategy included the definition of homeland security
and its missions, what should be accomplished, and the most important goals, current
accomplishments, and recommendations for non-federal governments, the private
sector, and citizen action. The 2007 National Strategy’s stated purpose was to guide,
organize, and unify the nation’s homeland security efforts, building on the earlier
strategy.

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Both the 2002 and 2007 national strategies defined homeland security in terms of
preventing or mitigating terrorist attacks, minimizing attack damage, and recovering
from attacks. The 2002 version further defined these as three overarching goals. For
example, prevention included deterring potential terrorists, detecting terrorists,
preventing them and their weapons from entry and eliminating the threats they pose.
These goal areas were addressed through six mission areas, including domestic
counterterrorism, catastrophic threat defense, and emergency preparedness and
response. In addition, the 2002 strategy posed initiatives for four foundational areas –
law, science and technology, information sharing and systems, and international
cooperation – that covered all of the six mission areas. The 2007 National Strategy
included the same three goals, but formally added a fourth of continuing to strengthen
the foundation to ensure long-term success by creating and transforming homeland
security principles, systems, structures, and institutions.
The goal areas in both national strategies included specific initiatives and related
activities. For example, one 2002 national strategy major initiative for border and
transportation security is to create “smart borders.” Activities to meet this initiative
included screening and verifying the security of goods and identities of people,
improving the quality of travel documents and their issuance, assisting other countries
to improve their border controls, and improving administration of immigration laws.
The initiatives and activities in both of the national strategies can be sources of
overarching objectives that address the five perspectives and the topics described in
Table 1 for an extended enterprise public sector scorecard. Table 2 presents a few
examples of possible balanced scorecard national security homeland security objectives
and sub-objectives.

Table 2. Homeland Security Scorecard Objectives and Sub-Objectives Examples

Public Stewardship: Effective policy and resource stewardship.

• Invest in resources that eliminate, control, or mitigate risks according to a risk-based approach.
• Institutionalize a comprehensive homeland security management system.
Clientele Impact: Serving and impacting clientele.
• Ensure the continuity of government operations and essential functions in the event of crisis or disaster.
• Secure borders against terrorists, means of terrorism, illegal drugs, and other illegal activity.
Day to Day Processes: Working internally and externally.
• Develop and disseminate accurate, timely, actionable, and valuable information to homeland security
partners and the public and resolve information gaps.
• Periodically assess threats and vulnerabilities to critical infrastructure and key assets.
Human Capital Support: Securing employee and delivery partner commitment, knowledge, and skills.
• Rebuild analytical, language, surveillance, and other human resource capabilities of those organizations
involved in homeland security.
• Prepare health care providers and citizens for catastrophic events.
Enabling Support: Crafting organizational alignment and technological support.
• Harness the scientific knowledge, analytical and modeling tools, and technology to prevent and counter
terrorism.
• Make organizational changes to support homeland security.

Expanding this table out to define a fuller set of objectives and sub-objectives for each
perspective is useful for the scorecard design phase of strategy mapping. As discussed
earlier, a strategy map provides clarity regarding the relationships between and among

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the perspectives. Figure 4 illustrates a simplified, very high-level national homeland

security strategy map.

HOMELAND A nation prepared with coordinated

SECURITY capabilities to prevent, protect against,
MISSION respond to, and recover from all hazards in a
way that balances risk with resources and
need.

1. Plan and provide scalable and

1. Develop both short -term and long -term
robust all -hazards readiness, response and recovery actions after
Public mitigation, and recovery assistance Clientele
Stewardship an incident. Impact
and capabilities.
2. Secure borders against terrorists,
2. Base homeland security assistance
means of terrorism, illegal drugs, and
strictly on an assessment of risks
other illegal activity.
and vulnerabilities.

1. Develop and disseminate accurate, timely, actionable, and val uable

information to homeland security partners and the public.
Day to Day
2. Coordinate national and international policy, law enforcement , and other
Processes actions to prepare for and prevent terrorism.
3. Reduce and mitigate infrastructure vulnerability from acts of terrorism or
natural catastrophes.
4. Provide emergency response and recovery services.

1. Develop human capital 1. Strengthen doctrine and actions to guide the

Human Capital capabilities. Enabling
national response.
Support 2. Prepare health care providers Support
2. Improve information sharing and systems.
for catastrophic terrorism. 3. Harness the scientific knowledge, analytical and
modeling tools, and technology to prevent and
counter terrorism.
4. Make organizational changes to support homeland
security.

Figure 4. Illustrative High-Level National Homeland Security Strategy Map

Figure 5 shows a more detailed strategy map for the intelligence and information
sharing and dissemination component of the 2007 National Strategy information. The
public stewardship, clientele impact, day-to-day processes, human capital support, and
enabling support examples are specific to intelligence and warning. The strategy
mapping in the figure draws on objectives and sub-objectives in pertaining to
intelligence and warning. For example, day-to-day process objectives target the
intelligence and warning process, from identifying data needs to partnerships with other
delivery partners.

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A nation prepared with

HOMELAND coordinated capabilities to Intelligence and Information
SECURITY prevent, protect against, respond Sharing and Dissemination
MISSION to, and recover from all hazards
in a way that balances risk with
resources and need.
1. Share relevant intelligence and
1. Develop and maintain operationally
information systematically between
sound policies to comply with
federal, state, local, and regional
regulatory, statutory, privacy, and
entities in a usable format and in a
Public other issues that govern the Clientele
timely manner.
Stewardship gathering and disclosure of Impact
information and intelligence.

1. Identify all stakeholders, entities, and officials for inclusion in the information sharing
framework.
2. Develop a clearly defined process for preventing, reporting, and addressing the
inappropriate disclosure of information and/or intelligence.
3. Develop a clearly defined mechanism/process for sharing intellig ence between federal and
Day to Day
state sources and with private -sector entities consistent with their formal intelligence
Processes
requirements.
4. Establish alternative, supplemental, and back -up mechanisms for routing information
and/or intelligence to the necessary agencies.

1. Identify appropriate personnel for 1. Adhere to horizontal coordination across

receipt of security clearances at an jurisdictions among law enforcement and
appropriate level. other agencies at all levels through effective
Human Capital • Design and conduct exercises to and timely information sharing. Enabling
Support test unit and joint intelligence and 2. Develop information sharing network Support
information sharing. standards: survivable, interoperable,
• Train appropriate personnel on compatible, secure, and accessible.
sharing and disseminate processes
and procedures.

Figure 5. Intelligence and Information Sharing and Dissemination High-Level Mapping

Homeland Security Presidential Directive 8 Implementation

However, much more strategy map granularity is required to confirm and verify
necessary and sufficient relationships in the balanced scorecard hierarchy beyond that
provided by the national strategies. For example, a strategy map would describe what is
needed to develop necessary and sufficient human capital capabilities in supporting the
effective functioning of day-to-day processes. Perhaps more importantly, such a
mapping would expose any gaps in objectives and sub-objectives in each perspective
that do not have a cause-and-effect relationship from the drivers of future performance
– day-to-day processes, human capital support, and enabling support – to the results of
past performance – public stewardship and clientele impact. These strategy maps would
communicate specific individual or shared tasks to employees of a single organization or
delivery partners to determine shared or individual efforts.
Robust tools for building out a homeland security balanced scorecard are the
various policy and operational documents developed to implement Homeland Security
Presidential Directive (HSPD) 8. Issued by the president in December 2003, HSPD-8
called for the secretary of the Department of Homeland Security (DHS), in coordination
with other federal officials and in consultation with state and local governments, to
develop a national domestic all-hazards preparedness goal.13 The directive’s intent was
to establish measurable readiness priorities and balance threats and consequences with
resources required to prevent, respond to, and recover from them. The goal would
include readiness measures, standards for preparedness assessments and strategies, and
a system to assess the nation’s overall preparedness to respond to major events,
especially terrorist acts. Responding to the HSPD-8 mandates, DHS issued the Interim
National Preparedness Goal in March 2005 that established the national vision for

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homeland security and priorities. The Goal was to be used in concert with the planning
tools of national planning scenarios and a target capabilities list. According to the Goal,
capabilities-based planning would provide those capabilities needed to address risk-
based target levels of capabilities. 14, 15
In September 2007, DHS replaced the interim Goal with the National Preparedness
Guidelines. The Guidelines explain that capabilities set critical tasks and specific
performance standards, depending on conditions, to achieve the mission areas and are
derived from all-hazards scenarios mission areas. Mission areas include prevention,
protection, response, and recovery, with “common” mission areas of communications,
community preparedness and participation, planning, risk management, and
intelligence/information sharing and dissemination.16 Further explained in an updated
Target Capabilities List, capability definitions speak to outcomes as well as elements
that drive of future performance.17 For example, the capability definition for on-site
incident management is “the capability to effectively direct and control incident
activities by using the Incident Command System (ICS) consistent with the National
Incident Management System (NIMS).” The outcome is that an “event is managed
safely, effectively and efficiently through the common framework of the Incident
Command System.”18 Each capability has related tasks and measures. Capability
elements, according to the Guidelines and List, define what resources are needed to
perform critical tasks to the specified levels of performance. These elements include the
following:19
• Personnel: Paid and volunteer staff who meet relevant qualification and
certification standards necessary to perform assigned missions and tasks.
• Planning: Collection and analysis of intelligence and information, and
development of policies, plans, procedures, mutual aid agreements, strategies, and
other publications that comply with relevant laws, regulations, and guidance
necessary to perform assigned missions and tasks.
• Organization and Leadership: Individual teams, an overall organizational
structure, and leadership at each level in the structure that comply with relevant
laws, regulations, and guidance necessary to perform assigned missions and tasks.
• Equipment and Systems: Major items of equipment, supplies, facilities, and
systems that comply with relevant standards necessary to perform assigned missions
and tasks.
• Training: Content and methods of delivery that comply with relevant training
standards necessary to perform assigned missions and tasks.
• Exercises, Evaluations, and Corrective Actions: Exercises, self-assessments,
peer-assessments, outside review, compliance monitoring, and actual major events
that provide opportunities to demonstrate, evaluate, and improve the combined
capability and interoperability of the other elements to perform assigned missions
and tasks to standards necessary to achieve successful outcomes.
These capability elements can be seen as the drivers of future performance in the
extended enterprise scorecard – day-to-day processes, human capital support, and
enabling support. For example, personnel and training elements provide human capital
support and equipment and systems provide enabling support. An organization or group

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of delivery partners could take each mission area described in the Guidelines and build
out a scorecard at the mission or capability level. A simplified example of such a build-
out of a scorecard from the target capabilities is shown in Figure 6 for the prevent
mission area capability of information gathering and recognition of indicators and
warnings.

Prevent Information Gathering and Recognition of

Mission Indicators and Warnings

1. Develop and provide States and tribal Clientele

Public 1. Develop and maintain operationally sound authorities with information needs clearly Impact
Stewardship policies to comply with regulatory, statutory, defined by the Federal community based
privacy, and other issues that may govern on the threat environment in a timely
the gathering of information manner.
2. Establish short, medium, and long term 2. Communicate information needs from
coordinated information gathering policies, Federal community and States to local law
procedures, and systems enforcement, Tribal, private -sector, and
other appropriate personnel as needed
and in a timely manner

Day to Day 1. Develop and maintain procedures to process the inflow of gathered information from all
Processes sources in a timely fashion
2. Gather homeland security information during routine day -to-day activities and pass to
appropriate authorities
3. Utilize a predefined notification process to advise law enforcement of suspicious activity

1. Develop and maintain systems and/or

1. Develop and initiate terrorism
technology to process the inflow of gathered
indicator sets and relationships
information from all sources in a timely
Human Capital training programs Enabling
2. Provide training feedback to fashion
Support Support
Federal trainers 2. Catalog information provided to all sources
and retain in a database to enable timely
retrieval

Figure 6. A Capability Level Scorecard Example

Whether national strategies or the guidelines and capabilities are used separately or in
conjunction with each other, building the scorecard can quickly highlight gaps and
duplication. For example, at the capability level, is the full set of tasks provided for
human capital support and enabling support adequate to support the effective and
efficient operation of the day-to-day processes for information gathering? By their very
nature, developing goals and objectives and capabilities independent of a scorecard
framework that makes explicit relationships and linkages are highly likely to have
implementation difficulties.

INGREDIENTS FOR SUCCESSFUL IMPLEMENTATION OF A

BALANCED SCORECARD
The above sections discuss the underlying concepts, frameworks, and other mechanics
for developing a scorecard that might be useful for homeland security. These concepts
and frameworks are not necessary and sufficient for successful implementation of a
scorecard. Success will be dependent on pragmatic organizational factors as well. In
their work, Kaplan and Norton have highlighted major organizational ingredients for a
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highly successful balanced scorecard program. In his 2000 work, Kaplan defined
barriers in the public sector that need to be overcome if stretch performance targets are
to be set and sustained through a balanced scorecard. Other authors such as Monahan,20
Lundlin,21 and Mathys and Thompson22 also derived lessons learned germane to any
homeland security balanced scorecard program. More recently, the Government
Accountability Office described how partnerships might be enhanced in countering
transnational terrorism.23 Drawing on these sources, the organizational ingredients for
success include (1) consensus on strategy and key performance expectations and
requirements, (2) top leadership direction, (3) integrating the plan and related balanced
scorecard into investment decisions, (4) making strategy a component of every day jobs
and operations, and (5) ensuring strategy development and implementation is a
continuous process.
Expectations and Requirements
The first ingredient is organizational or partner consensus on the strategy and
performance expectations to meet the strategy goals. Complicating the homeland
security consensus process are delivery partners involving many levels of government,
the private sector, nongovernmental organizations, international organizations, and
multiple disciplines and functional areas. Many partners have different strategic and
tactical agendas, resources, or perceptions of the extent of the problem that should be
addressed and by what solutions. There are certainly differing interpretations as to what
homeland security is.24 However, agreement would be needed on the shared value of
working together within and across organizations and resulting strategy and
performance expectations. Defining common ground is one of the aims of the
implementation of the national preparedness goal.
Top Leadership
The second ingredient is leadership from the top, where the senior executive team
directs the balanced scorecard effort, not a limited number of middle managers or
inexperienced consultants. Senior executive leadership creates the climate for change
and a common focus for the change activities. Leadership can align the changes and
strategic initiatives with short and long-term resource allocations. For national
homeland security, for example, senior executive leadership should come from the
Executive Office of the President, the Homeland Security Council, and the Department
of Homeland Security, with strong partnerships with state and local government and
private sector national associations, as well as international actors. In turn, each
organization involved in homeland security will need top leadership support and
direction. This is particularly important to ensure consistency in policy and operational
objectives.
Investment Support
The third ingredient is integrating the plan and related balanced scorecard into
investment decisions through the budgetary process. This is in line with the growing use
of performance-based budgeting at federal, state, and local levels.25 In addition, federal
homeland security grant processes and other budgeting decisions can serve to address
building capabilities that are directly tied to the five perspectives of the public sector
balanced scorecard. Lack of funding is a severe challenge to be overcome if strategy via
the balanced scorecard is to be effectively implemented.

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Everyday Use
The fourth ingredient is making strategy a component of every day jobs and operations.
This is accomplished by making strategy the reference point for all management
processes within and across all delivery partners. These processes would include
communication channels and modes across and down the organization; the alignment
of organizational goals, individual incentives, and investments; work process design;
and linkages across program and operational units and those of delivery partners.
Public sector organizations will require incentives to take a longer-term view of their
role and not take the “lower hanging fruit” of an operational excellence strategy. More
and more public sector organizations now can provide incentive pay to employees to
provide a lever to align employees to the scorecard’s strategic objectives and measures.
Agreements reached for strategic alliances such as for homeland security will need to
make strategy a component of the alliances. The balanced scorecard provides an ideal
mechanism to set high-level, interagency homeland security objectives that should allow
multiple organizations – public and private – to work together.
Continuous Process
The final ingredient is to make strategy development and implementation a continuous
process, not a one-time event. There should be a feedback loop that provides
performance information across the perspectives for learning and adaptation. This is
particularly important in the public sector as performance targets are a matter of public
record. Organizations should anticipate that failing to meet the targeted performance
will be very visible to the general public. For homeland security, a continual process of
assessment and corrective action should be part of needs assessment, program
objectives, and oversight.

CONCLUDING THOUGHTS
This article has dealt with the basics of the balanced scorecard and presented an
extended enterprise scorecard that can be applied to homeland security. It has also
discussed a limited number of the organizational factors important to successful
implementation. The article is intended to prompt ongoing dialogues regarding applying
the scorecard as a strategy implementation tool useful for a single organization and for
shared efforts with homeland security delivery partners. In particular, focusing on the
five extended enterprise perspectives and using the national homeland security
strategies and national preparedness guidelines components for scorecard build-out
should be emphasized. They can clarify independent and interdependent initiatives,
relationships, and linkages for homeland security mission areas and capability
development. The cause-and-effect relationships make strategy explicit to an
organization’s employees and to other delivery partners and provide a readily-
understood framework for resource allocation and leveraging resources and capabilities.
Lastly, the balanced scorecard makes much more transparent the process of assessing if
there are gaps, duplication, or overlaps in initiatives and capabilities to implement
strategy.

Future research is required to fully inform application of the balanced scorecard for
homeland security strategy implementation. For example, are the five perspectives

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presented in the extended enterprise scorecard sufficient or are further enhancements

or designs needed? Should homeland security scorecards start with national homeland
security strategies or other strategy documents? What expertise and other resources are
needed to develop and sustain complex homeland security strategy maps and their
ongoing assessment? And, perhaps most importantly, what scorecard design and
organizational factors can respond to the complexities of homeland security delivery
partner relationships and responsibilities and resulting strategy agreement? These
relationships include those across federal agencies, from federal to other levels of
government, from state to local, and from local to local. Relationships also must be
defined from national to international delivery partners.

Sharon Caudle is a faculty member at the Bush School of Government and Public Service,
Texas A&M University. She currently teaches core classes in the Master of Public Service and
Administration Program and in homeland security under the auspices of the University’s
Integrative Center for Homeland Security. Before joining the Bush School, she was with the
U.S. Government Accountability Office’s (GAO) Homeland Security and Justice Team in
Washington, DC. She earned her master’s and doctorate degrees in public administration
from The George Washington University in Washington, DC, and a master’s in homeland
security and homeland defense from the Center for Homeland Security and Defense, School of
International Studies, Naval Postgraduate School, in Monterey, CA. Dr. Caudle may be
contacted at scaudle@bushschool.tamu.edu.

1R. S. Kaplan and D. P. Norton, “The Balanced Scorecard – Measures that Drive Performance,” Harvard
Business Review 70, no. 1 (1992): 71-79; R. S. Kaplan and D. P. Norton, “Putting the Balanced Scorecard
to Work,” Harvard Business Review 71, no. 5 (1993): 134-147.
2A. Gumbus and R. N. Lussier, “Entrepreneurs Use a Balanced Scorecard to Translate Strategy into
Performance Measures,” Journal of Small Business Management 44, no. 3 (2006): 407-425.
3This article draws on the following Kaplan and Norton work: R. S. Kaplan, “The Balanced Scorecard for
Public-Sector Organizations,” Balanced Scorecard Report, reprint B9911C (1999), 3-5; R. S. Kaplan,
“Overcoming the Barriers to Balanced Scorecard Use in the Public Sector,” Balanced Scorecard Report,
reprint B0011D (2000), 3-4; R. S. Kaplan and D.P. Norton, “The Balanced Scorecard – Measures that
Drive Performance,” Harvard Business Review 70, no. 1 (1992):71-79; R. S. Kaplan and D. P. Norton,
“Putting the Balanced Scorecard to Work,” Harvard Business Review 71, no. 5 (1993), 134-147; R. S.
Kaplan and D. P. Norton, The Balanced Scorecard: Translating Strategy into Action (Boston: Harvard
Business School Press, 1996); R. S. Kaplan and D. P. Norton, “Linking the Balanced Scorecard to
Strategy,” California Management Review 39, no. 1 (1996) 53-79; R. S. Kaplan and D. P. Norton, “Using
the Balanced Scorecard as a Strategic Management System,” Harvard Business Review 74, no. 1 (1996),
75-85; R. S. Kaplan and D. P. Norton, “Having Trouble with Your Strategy? Then Map It,” Harvard
Business Review 76, no. 1 (1996): 167-176; R. S. Kaplan and D. P. Norton, The Strategy-Focused
Organization: How Balanced Scorecard Companies Thrive in the New Environment (Boston: Harvard
Business School Press, 2001); R. S. Kaplan and D. P. Norton, Strategy Maps: Converting Intangible
Assets into Tangible Outcomes (Boston: Harvard Business School Press, 2004); R. S. Kaplan and D. P.
Norton, Alignment: Using the Balanced Scorecard to Create Corporate Synergies (Boston: Harvard
Business School Press, 2006); and R. S. Kaplan and D. P. Norton, The Execution Premium: Linking
Strategy to Operations for Competitive Advantage (Boston: Harvard Business School Press, 2008).
4N. Olve, J. Roy, and M. Wetter, A Practical Guide to Using the Balanced Scorecard (Chichester, Sussex:
John Wiley & Sons, Inc, 1999).

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5 Kaplan and Norton, Strategy Maps: Converting Intangible Assets into Tangible Outcomes, 34.
6Kaplan, “Overcoming the Barriers to Balanced Scorecard Use in the Public Sector,” Balanced Scorecard
Report.
7 Kaplan, “The Balanced Scorecard for Public-Sector Organizations,” Balanced Scorecard Report.
8P. R. Niven, Balanced Scorecard: Step-by-Step for Government and Nonprofit Agencies (Hoboken, NJ:
John Wiley & Sons, Inc., 2003).
9 H. Rohm, “A Balancing Act,” Perform 2, no. 2 (2002): 1-8.
10Strategic alliances typically combine the resources, skills, and knowledge of organizations that are
viewed as full partners. A fuller discussion of strategic alliances and partnering can be found in Y. L. Doz
and G. Hamel, Alliance Advantage: The Art of Creating Value Through Partnering (Boston, Harvard
Business School Press, 1998). As Doz and Hamel point out, strategic alliances combine and leverage the
resources, skills, core competencies, knowledge, and learning capabilities of organizations that benefit the
alliance partners. Networked government is more fully described in S. Goldsmith and W. D. Eggers,
Governing by Network (Washington, DC: Brookings Institution Press, 2004). Goldsmith and Eggers
describe networked government as typically involving coordination between multiple levels of
government, nonprofit organizations, and for-profit companies.
11Clientele” is used instead of “customer” as many recipients or targets of public services do not want the
services in the traditional sense of customers. For example, prisoners or regulated industries often do not
want government intervention.
12Office of Homeland Security, National Strategy for Homeland Security (Washington, DC: Executive
Office of the President, July 2002); Homeland Security Council, National Strategy for Homeland
Security (Washington, DC: Executive Office of the President, October 2007).
The White House, Homeland Security Presidential Directive/HSPD-8 (Washington, DC: The White
13

House, December 17, 2003).

Department of Homeland Security, Interim National Preparedness Goal (Washington, DC:
14

Department of Homeland Security, March 31, 2005).

15A discussion of homeland security capabilities-based planning issues can be found in S. L. Caudle,
“Homeland Security Capabilities-Based Planning: Lessons from the Defense Community,” Homeland
Security Affairs I, no. 2 (Winter 2005), www.hsaj.org.
16Department of Homeland Security, National Preparedness Guidelines (Washington, DC: Department
of Homeland Security, September 2007).
17Department of Homeland Security, Target Capabilities List: A Companion to the National
Preparedness Guideline. (Washington, DC: Department of Homeland Security, September 2007).
18Department of Homeland Security, National Preparedness Guidelines, p. 5 and Target Capabilities
List: A Companion to the National Preparedness Guidelines, p. 197.
19Department of Homeland Security, Target Capabilities List: A Companion to the National
Preparedness Guidelines, p. 9.
20 K. E. Monahan, Balanced Measures for Strategic Planning (Vienna, VA: Management Concepts, 2001).
21M. Lundlin, “When Does Cooperation Improve Public Policy Implementation,” The Policy Studies
Journal 35, no. 4 (2007).
22N. J. Mathys and K. R. Thompson, Using the Balanced Scorecard: Lessons Learned from the U.S.
Postal Service and the Defense Finance and Accounting Service (Washington, DC: IBM Center for The
Business of Government, 2006).

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23Government Accountability Office, Highlights of a Forum: Enhancing U.S. Partnerships in Countering

Transnational Terrorism, (Washington, DC: The Government Accountability Office, GAO-08-887SP,
July 2008).
24An excellent discussion of the various definitions of homeland security can be found in C. Bellavita,
“Changing Homeland Security: What Is Homeland Security,” Homeland Security Affairs IV, no. 3 (June
2008), www.hsaj.org.
25There are many excellent literatures sources on the spread of performance-based budgeting nationally
and internationally. More comprehensive sources are P. G. Joyce’s, Linking Performance and Budgeting:
Opportunities in the Federal Budget Process (Washington, DC: IBM Center for The Business of
Government, 2004) and the Organisation for Economic Co-Operation and Development, Performance
Budgeting in OECD Countries (Paris: Organisation for Economic Co-Operation and Development, 2007).

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