Anatolii Kamashev, Head of the Financial Department of the Shevchenkivska Village Council, Mykolaiv Region, Ukraine

ORCID: 0000-0002-4328-8775
e-mail: kamashevan1706@gmail.com

The Balanced Scorecard Concept in the System of Strategic Management of Territorial Community Development

Abstract. Introduction. In the context of decentralization reforms and the strengthening of local self-government, improving the effectiveness of strategic management of territorial community development has become increasingly important. In practice, strategic planning at the local level often faces significant challenges, including the absence of clear performance indicators, weak alignment between strategic objectives and managerial decisions, and difficulties in monitoring the implementation of socio-economic development programs. These issues limit the practical value of strategic documents and reduce the ability of local authorities to manage development processes in in a results-oriented manner. Therefore, there is a need for management tools that integrate strategic planning with measurable performance evaluation. The Balanced Scorecard (BSC) approach is considered one of the most effective instruments capable of linking strategic priorities, operational activities, and assessment mechanisms within a single management framework.

Purpose. The purpose of the study is to substantiate an approach to forming a strategic management system for the comprehensive development of territorial communities based on the principles of the Balanced Scorecard and to develop a structured system of indicators for evaluating the effectiveness of strategic decisions.

Results. The paper proposes a Balanced Scorecard model adapted to the functioning conditions of territorial communities. The suggested approach structures strategic management into four interconnected blocks: “Finance,” “Socio-Economic Infrastructure Sectors,” “Staff Training and Development,” and “Level of Population Satisfaction.” The sequence of forming the system of indicators is defined, including the identification of strategic objectives, decomposition into tactical tasks, development of monitoring and evaluation mechanisms, and integration with budgeting and communication processes. The logical relationships between the proposed blocks are substantiated, demonstrating how financial capacity influences infrastructure development, how institutional competence affects managerial performance, and how the level of population satisfaction serves as an integrative indicator of strategy implementation effectiveness. Key indicators for evaluating the achievement of strategic community goals are generalized, while special attention is given to the integration of infrastructure-related indicators into the strategic monitoring system. The proposed model ensures better coordination between strategic planning and practical management actions and increases the applicability of the Balanced Scorecard within local governance systems.

Conclusions. The proposed approach enhances the validity of managerial decision-making, improves transparency and consistency of strategic planning, and facilitates the transition from formal planning practices to systematic results-oriented management of territorial community development. The adaptation of Balanced Scorecard principles to community-level governance allows combining financial, infrastructural, organizational, and social dimensions within a unified evaluation framework, thereby strengthening strategic coordination and supporting sustainable long-term development of territorial communities.

Keywords: strategic management, territorial community, Balanced Scorecard, performance indicators, local governance, strategic planning, infrastructure development.

References:

1. Madsen, D. Ø. (2025). Balanced Scorecard: History, implementation, and impact. Encyclopedia, 5(1). https://doi.org/10.3390/encyclopedia5010039.
2. Lueg, R., & Carvalho e Silva, A. L. (2021). Diffusion of the balanced scorecard: Motives for adoption, design choices, organisational fit, and consequences. Accounting Forum, 46(3), 287–313. https://doi.org/10.1080/01559982.2021.1930341.
3. Barros, R. S. (2025). Research on the balanced scorecard for government entities: A literature review. Journal of Public Budgeting, Accounting & Financial Management. https://doi.org/10.1108/JPBAFM-10-2022-0162.
4. Rdiouat, Y., Bahsani, S., Lakhdissi, M., & Semma, A. (2021). Measuring and improving information systems agility through the balanced scorecard approach. arXiv. https://arxiv.org/abs/2109.07281.
5. OECD. (2023). Government at a glance 2023: Public governance indicators. OECD Publishing. https://www.oecd.org/governance/government-at-a-glance/
6. European Commission. (2021). Better regulation guidelines. https://commission.europa.eu/law/law-making-process/planning-and-proposing-law/better-regulation_en.
7. Pastukh, K. (2021). Stratehichne planuvannia rozvytku terytorialnykh hromad. Naukovyi visnyk: Derzhavne upravlinnia, 1(7), 195–215. https://doi.org/10.32689/2618-0065-2021-1(7)-195-215.
8. Khokhuliak, O. (2023). Udoskonalennia instrumentariiu stratehichnoho planuvannia staloho rozvytku terytorialnykh hromad. Ekonomika i rehion (Economics and Region), 4(87), 110–118. https://doi.org/10.26906/EiR.2022.4(87).2789.
9. Olefirenko, O. (2024). Stratehichne planuvannia yak nevidiemna skladova rozvytku terytorialnykh hromad. Dnipro Scientific Journal of Public Administration, Psychology and Law, 6. https://doi.org/10.51547/ppp.dp.ua/2024.6.9.
10. Ministry for Communities and Territories Development of Ukraine. (n.d.). Strategic planning of regional development. https://mindev.gov.ua/diialnist/polityka-rehionalnoho-rozvytku/stratehichne-planuvannia-rehionalnoho-rozvytku.