Strategic Performance Measurement And Management

THE topic of accountability and action measurement has become pressing for nonprofit organizations as they encounter increasing competition from a proliferating number of agencies, all competing for scarce donor, foundation, and govern- ment funding. Yet the public slaying reports and many internal performance measurement systems of these organizations focus yet on financial measures, such as donations, expenditures, and operat- ing expense ratios. victory for nonprofits should be measured by how effectively and efficiently they observe the needs of their constituencies. Financial considerations can play an enabling or constraining role entirely will r arly be the primary objective. At the more micro, programmatic level, organizations may have unnumberable measures to track and control local initiatives. These measures, however, do not come to to overall organizational mission and objectives. Note: I would tally to acknowledge the indispensable collaboration of Davi d P. Norton of the fit Score handbill collaborative in developing and improving the match Scorecard during the then(prenominal) ten dollar bill years, and I also wish to thank Ellen L. Kaplan, who facilitated the circuit card implementation in most of the nonprofit organizations described in this article.

Even for-profit companies have recently recognized that finan- cial measurements by themselves ar inadequate for measuring and managing their performance. Financial reports measure past perfor- mance besides communicate little about long-term value creation. To salve this deficiency, Kaplan and Norton (1 992, 1996) intro- duced a new performance ma! nagement systemcalled the match Scorecardfor private sector organizations. The new system support financial measurements but complemented these with measures from three other perspectives: that of the customer, the internal process, and achievement and growth (see Figure 1). The initial focus and application of the match Scorecard was in the for-profit (private) sector. But the...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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