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 military operation reports and many internal performance measurement systems of these organizations focus cool it on financial measures, such as donations, expenditures, and operat- ing expense ratios. achievement for nonprofits should be measured by how effectively and efficiently they die 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 innumerous measures to track and control local initiatives. These measures, however, do not stir to overall organizational mission and objectives. Note: I would alike to acknowledge the indispensable collaboratio n of David P. Norton of the fit Score dining table collaborative 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 ar inadequate for measuring and managing their performance. Financial reports measure past perfor- mance only communicate little about long-term value creation. To secrete this deficiency, Kaplan and Nort on (1992, 1996) intro- duced a new performan! ce management systemcalled the fit Scorecardfor private sector organizations. The new system apply financial measurements but complemented these with measures from three other perspectives: that of the customer, the internal process, and growth and growth (see Figure 1). The initial focus and application of the equilibrise 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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