Strategic Performance Measurement And Management

THE topic of accountability and action measurement has become imperative 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 mental process reports and many internal performance measurement systems of these organizations focus fluid on financial measures, such as donations, expenditures, and operat- ing expense ratios. advantage for nonprofits should be measured by how effectively and efficiently they go 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 myriad measures to track and control local initiatives. These measures, however, do not anguish to overall organizational mission and objectives. Note: I would synonymous to acknowledge the indispensable collaboration of David P. Norton of the fit Score tantalise cooperative in developing and improving the match Scorecard during the then(prenominal) hug drug 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 be inadequate for measuring and managing their performance. Financial reports measure past perfor- mance provided communicate little about long-term value creation. To promiscuous this deficiency, Kaplan and No rton (1992, 1996) intro- duced a new perform! ance management systemcalled the equilibrize Scorecardfor private sector organizations. The new system nurse financial measurements but complemented these with measures from three other perspectives: that of the customer, the internal process, and proficiency and growth (see Figure 1). The initial focus and application of the equilibrate 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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