Developing a Territory Balanced Scorecard approach to manage projects for local development: Two case studies

This paper applies Kaplan and Norton's Balanced Scorecard theory to propose a tool to compare twin local development projects implemented under international cooperation schemes. This tool, called the Territory Balanced Scorecard (TBSc), allows the competitive potential of the territorial system to be measured by means of a rating. Consequently, using the TBSc, it is possible to interpret the characteristics of the supply territory and, by an ad-hoc approach, plan the required increase in headquarters functions and the competences linked thereto. This paper follows a rationale grounded on the territorial setting and offers a methodological decision support tool that enhances the ability of decision makers acting at Local Authority level. A feature of the TBSc model is the fact that, although it is designed for the public sector (mission-oriented), it does enable us to obtain profit-driven indicators that are designed to highlight the economic and territorial strategic ancillary benefits in terms of competitiveness. The TBSc can be considered a valuable strategic tool in management and local development systems and the result also implicitly contains the plan for creating a potential network (in this case among islands in the Mediterranean) in order to delineate a set of principles and analytical and programming devices that would assist in reshaping local economic systems. (C) 2011 Elsevier Ltd. All rights reserved.