Chrismal Perera | Monash University (original) (raw)
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Over a decade after Robert Kaplan and David Norton introduced the Balanced Scorecard as a strateg... more Over a decade after Robert Kaplan and David Norton introduced the Balanced Scorecard as a strategic planning model in 1992, documented successes from the private sector can be found in much of today's business literature. However, little information is available on how to implement the Balanced Scorecard in a nonprofit organization so that exceptional ongoing results can be achieved. Unique from the private sector, nonprofits are often required to minimize administrative and operating costs under the watchful eyes of congregants or donors. Tight operating budgets, heavy workloads, and confusion about how to effectively perform strategic planning are all contributing factors which can cause leaders of nonprofits to shy away from strategic planning initiatives. However, without a mission and values-driven strategy in place to guide long and short-term decision-making, a nonprofit's ability to increase operational capacity, operate within budget allocation, enhance employees' skill base, and meet stakeholders' needs is compromised. This article discusses what the Balanced Scorecard is, describes implementation guidelines, and proposes practical scenarios of how to implement the Balanced Scorecard for a new outreach ministry within a nonprofit religious organization. Also, due to the widespread popularity of Rick Warren's (1995) Purpose-Driven Church model, a scenario is presented combining the Balanced Scorecard with the Purpose-Driven Church model to demonstrate the power and flexibility of the Balanced Scorecard as a strategic planning and performance measurement tool.
Over a decade after Robert Kaplan and David Norton introduced the Balanced Scorecard as a strateg... more Over a decade after Robert Kaplan and David Norton introduced the Balanced Scorecard as a strategic planning model in 1992, documented successes from the private sector can be found in much of today's business literature. However, little information is available on how to implement the Balanced Scorecard in a nonprofit organization so that exceptional ongoing results can be achieved. Unique from the private sector, nonprofits are often required to minimize administrative and operating costs under the watchful eyes of congregants or donors. Tight operating budgets, heavy workloads, and confusion about how to effectively perform strategic planning are all contributing factors which can cause leaders of nonprofits to shy away from strategic planning initiatives. However, without a mission and values-driven strategy in place to guide long and short-term decision-making, a nonprofit's ability to increase operational capacity, operate within budget allocation, enhance employees' skill base, and meet stakeholders' needs is compromised. This article discusses what the Balanced Scorecard is, describes implementation guidelines, and proposes practical scenarios of how to implement the Balanced Scorecard for a new outreach ministry within a nonprofit religious organization. Also, due to the widespread popularity of Rick Warren's (1995) Purpose-Driven Church model, a scenario is presented combining the Balanced Scorecard with the Purpose-Driven Church model to demonstrate the power and flexibility of the Balanced Scorecard as a strategic planning and performance measurement tool.