Is the balanced scorecard relevant to nonprofit organizations?
Nonprofit organizations are committed to a mission, and they need to focus their limited resources efficiently in order to achieve mission effectiveness and value for their members and sponsors. The balanced scorecard system has a multiple focus on several perspectives, including financial performance. For a nonprofit organization, profit is not a determining goal of strategy; but good stewardship is important, so this perspective or “lense” is used to describe the financial aspect of performance. In this case, the balanced scorecard provides a comprehensive framework that will help association directors and managers better define strategies, track performance, and provide data to show their various stakeholder groups how well they are performing in terms of mission value and outcomes.
