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This article demonstrates how decision-makers can be guided in the process of defining performance target values in the balanced scorecard system. We apply a method based on sensitivity analysis with Monte Carlo simulation to the municipal solid waste management system in Loulé Municipality (Portugal). The method includes two steps: sensitivity analysis of performance indicators to identify those performance indicators with the highest impact on the balanced scorecard model outcomes; and sensitivity analysis of the target values for the previously identified performance indicators. Sensitivity analysis shows that four strategic objectives (IPP1: Comply with the national waste strategy; IPP4: Reduce nonrenewable resources and greenhouse gases; IPP5: Optimize the life-cycle of waste; and FP1: Meet and optimize the budget) alone contribute 99.7% of the variability in overall balanced scorecard value. Thus, these strategic objectives had a much stronger impact on the estimated balanced scorecard outcome than did others, with the IPP1 and the IPP4 accounting for over 55% and 22% of the variance in overall balanced scorecard value, respectively. The remaining performance indicators contribute only marginally. In addition, a change in the value of a single indicator’s target value made the overall balanced scorecard value change by as much as 18%. This may lead to involuntarily biased decisions by organizations regarding performance target-setting, if not prevented with the help of methods such as that proposed and applied in this study. [ABSTRACT FROM PUBLISHER]

Abstract: The evaluation of municipal solid waste (MSW) services using management systems (ISO 9001, ISO 14001, and OHSAS 18001) is important for improving the quality of such services. In this study, we prioritize and select performance indicators (PIs) for MSW service evaluation and organize them in a Balanced Scorecard (BSC) tool. The tool is applied for the period 2008–2011 to the public administration organization responsible for waste management in Loulé Municipality, Portugal, a region characterized by strong tourist seasonality. MSW management priorities are well established through EU directives and the application of PIs should allow service objectives to be quantified, including reducing the production of waste, increasing the quantity of recyclables, improving clients’ satisfaction with the service, improving workers’ motivation, decreasing the quantities of waste in landfills, and reducing service costs. The results indicate that the use of indicators and BSC tool can assess the strategic objectives of the organization and monitor its performance over time. The overall BSC assessment ratings were 51.7%, 66.1%, and 70.1% for 2009, 2010, and 2011, respectively, indicating an improvement in overall service performance over time. The results demonstrate that monitoring seasonal variations of PIs in tourist regions is important since these variations can help to explain annual changes in the factors affecting waste services management, their impacts on overall service quality, and the best time for measures to be applied. Based on this case study, the BSC can effectively contribute to improvements in the quality and cost of MSW services in areas characterized by strong seasonal variations in population and waste. [Copyright &y& Elsevier]

Abstract: Municipal solid waste management is an area where improvements are needed, in accordance with European Union regulations, in order to ensure sustainable development principles and best management practices. In this context, Portugal implemented a strategy in 2003 under the title “New Public Management”, the main objective of which is to create value for citizens, with a particular focus on improving performance in the public management of wastes and allocating resources. This strategy is based on the introduction of market mechanisms, thus adopting management tools common in the private sector. The objective of this paper is to propose and implement a management tool − the Balanced Scorecard (BSC) − suited for the needs of the Public Administration (PA) service in the waste sector. The BSC was applied to the Urban Hygiene and Solid Waste Division of the Loulé Municipality in the south of Portugal. Four perspectives were used, namely, clients, internal processes, learning and growth and finances. Results indicate an overall management performance of 52.45%, which was considered a good result since it was the first implementation approach. Out of the four BSC perspectives, the learning and growth perspective (15% weighting of overall management performance) and the financial perspective (10% weighting) had the smaller achievement performances, of just 4% and 1.75% of the indicators achieved, respectively. The internal process perspective (50% weighting) and the client perspective (25% weighting) had higher achievement performances at 34.2% and 12.5%, respectively. Overall, in the Portuguese PA service, the BSC is able to: i) contribute to the precepts of modern public waste management; ii) focus on the strategic management of the client–customer relationship; iii) guarantee the best combination of improvement in service, through monitoring and a follow-up process; and iv) achieve management objectives. [Copyright &y& Elsevier]