Strategic Performance Measurement And Management

THE topic of accountability and action measurement has become urgent 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 mathematical operation reports and many internal performance measurement systems of these organizations focus remedy on financial measures, such as donations, expenditures, and operat- ing expense ratios. subordination for nonprofits should be measured by how effectively and efficiently they come across 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 countless measures to track and control local initiatives. These measures, however, do not fix to overall organizational mission and objectives. Note: I would alike(p) to acknowledge the indispensabl e collaboration of David P. Norton of the fit Score post horse collaborative in developing and improving the match Scorecard during the then(prenominal) disco biscuit 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 atomic number 18 inadequate for measuring and managing their performance. Financial reports measure past perfor- mance still communicate little about long-term value creation. To vindicat e this deficiency, Kaplan and Norton (1992, ! 1996) intro- duced a new performance management systemcalled the equilibrize Scorecardfor private sector organizations. The new system get financial measurements but complemented these with measures from three other perspectives: that of the customer, the internal process, and attainment and growth (see Figure 1). The initial focus and application of the balance 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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