THE SUPERIORITY OF THE BALANCED SCORECARD FOR SELF-FINANCING PUBLIC UNIVERSITIES

Abstract

In the context of the global higher education landscape, particularly in Vietnam, undergoing a strong shift towards a self-financing model, public universities face increasingly high demands for operational efficiency, educational quality, and accountability. Traditional performance evaluation methods, which primarily focus on financial indicators or inputs, have shown numerous limitations, failing to fully reflect the multifaceted value a university creates.

This paper analyzes the superiority of the Balanced Scorecard (BSC) as a comprehensive strategic management solution for self-financing public universities. The BSC is not merely a performance measurement tool; it is a system that helps translate vision and mission into specific objectives, communicate strategy, and align activities. The paper highlights how the BSC adapts its traditional perspectives (Financial, Customer, Internal Process, and Learning & Growth) to suit the unique characteristics of nonprofit higher education.

The prominent advantages of the BSC include: clear strategic management and communication support, helping universities balance academic and financial goals; comprehensive and balanced performance evaluation, providing a multi-dimensional view of performance; enhanced accountability and transparency with stakeholders; fostering organizational learning and continuous innovation to adapt to a changing environment; and aligning objectives and resources to optimize operational efficiency.

Although BSC implementation may face challenges related to culture, data, and capabilities, with strong leadership commitment and a well-structured roadmap, the BSC will be an essential tool for self-financing public universities to enhance efficiency, transparency, and sustainable development.