Administrative Issues Journal


Nonprofit executives and board members rate measurement of performance as one of three key organizational concerns. The academic literature, however, does not identify a dominant methodology for organizational effectiveness and governance. The intent of the Balanced Scorecard approach to organizational strategic planning is to translate the vision and strategy into performance measures. By placing the customer domain and the mission at the top of the Balanced Scorecard, the organization is identifying accountability between itself and society. The Balanced Scorecard has proven successful in nonprofit organizations due to its ability to align intangible assets to strategy. Successful outcomes are unlikely if the Balanced Scorecard is implemented without a full understanding of its complexity and potential restrictions.



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