A Critical Analysis of Performance of Higher Educational Institutions Through Balanced Scorecard

Abstract

Numerous studies have examined the effectiveness of the Balanced Scorecard (BSC) in organizations. It has been observed that many institutions adapt the BSC framework by modifying its perspectives to align with their vision, mission, and strategic themes. Some researchers have emphasized its applicability to Higher educational institutions (HEIs). This paper critically analyses the application of the BSC framework in assessing HEI performance, focusing on its effectiveness, challenges, and implications for institutional governance. HEIs, including universities, colleges, and vocational training institutes, are primarily engaged in delivering tertiary education through undergraduate, postgraduate, and professional programs. This paper reviews recent studies from leading academic journals that have applied the Balanced Scorecard framework in HEIs. It identifies the most relevant perspectives like Strategy Map (SM), Business Model Canvas (BSM), SWOT analysis for these institutions and provides a contextual analysis. When effectively implemented, the framework can be used to monitor institutional performance and facilitate strategic adjustments in response to emerging challenges. The four perspectives of the BSC—financial, customer (student and stakeholder), internal process, and learning & growth—are explored to provide a comprehensive understanding of how HEIs can leverage this tool to enhance performance and sustainability. The paper provides a contextual evaluation of these components and highlights that, when implemented effectively, the Balanced Scorecard can function as a robust tool for monitoring institutional performance. It further supports higher education institutions in making well-informed strategic decisions to address both internal dynamics and external pressures. The study explores the four core BSC perspectives—financial, customer (encompassing students and stakeholders), internal processes, and learning and growth—in depth, illustrating how HEIs can apply this integrated framework to enhance their operational efficiency, strengthen institutional adaptability, and ensure long-term sustainability in a rapidly changing and competitive academic landscape.