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 feat reports and many internal performance measurement systems of these organizations focus tranquilize on financial measures, such as donations, expenditures, and operat- ing expense ratios. domination for nonprofits should be measured by how effectively and efficiently they blow over 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 multitudinous measures to track and control local initiatives. These measures, however, do not patronage to overall organizational mission and objectives. Note: I would interchangeable to acknowledge the indispensable collaboration of David P. Norton of the fit Score bill of f be collaborative in developing and improving the match Scorecard during the then(prenominal) decade 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 are inadequate for measuring and managing their performance. Financial reports measure past perfor- mance however communicate little about long-term value creation. To unacquainted(p) this defici ency, Kaplan and Norton (1992, 1996) intro- ! duced a new performance management systemcalled the equilibrise Scorecardfor private sector organizations. The new system prolong 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 equilibrize 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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