Balance Score Card Essay

13830 Words Oct 7th, 2014 56 Pages
5
Performance measurement
Nonprofit organizations need to view revenue as a resource needed to achieve their missions. Obviously, revenues must exceed expenses over the long-term or an NPO will not survive. —Glenn Rowe

Key Topics: balanced score card, customer feedback, competitive comparison, strategic objectives, blue ocean strategy

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hat makes an organization “good” at what it does? Or, as Jim Collins (2001) would ask, “What makes an organization great?” Most would acknowledge that accountability, effectiveness, and achievement of desired performance outcomes are minimal requirements for any organization’s success. These requirements demand a measurement system relative to an organization’s mission, vision, values, and
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For example, many donors and foundations require performance measurements at various stages of funding. This fact—along with increased calls for nonprofit accountability from monitoring organizations such as Wise Giving Alliance (www.bbb. org/us/wise-giving), Charity Navigator (www .charitynavigator.org), the Better Business Bureau, (www.bbb.org), and Guidestar (www2. guidestar.org) as well as the government (e.g., IRS form 990) and the general public (via blogs and other social media)—translates into a need for performance measurement and transparency across the nonprofit sector. In Canada, in addition to reporting to the Canada Revenue Agency (www.cra-arc.gc.ca), NPOs can belong to organizations on a voluntary basis that encourage transparency and performance measurement. Compassion Canada (www .compassion.ca) states on its website that NPOs have come under greater scrutiny by “watchdog agencies.” In addition, donors are now researching institutions they support in much more depth. Consequently, accountability standards are much more stringent. Compassion Canada is a member of Imagine Canada (www.imaginecanada.ca) and the Canadian Council of Christian Charities (www .cccc.org). Both of these organizations are NPOs themselves, and their goal is to strengthen standards of accountability for NPOs in Canada. Imagine Canada states that it has more than 350 NPOs involved in its Ethical Code Program

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