In the early 1990s Harvard Business School researchers Drs. Robert Kaplan and David Norton
determined that 90% of their clients were unable to integrate their strategic objectives into the
daily operations of their organizations. To remedy this, and provide a framework to set goals,
establish tasks and create measurements to assess the real value of the strategy for the
organization, they created the Balanced Scorecard (BSC) performance measurement system.
Over the years since its inception, the Balanced Scorecard has provided a practical model for
nonprofit leaders, offering the tools needed to measure a nonprofit’s operational success. In
short, it enables the user to mix financial and non-financial measures, comparing each to a
target value established by the group, ultimately creating a report to assist in decision making
regarding the organization’s key objectives.
This white paper will define the Balanced Scorecard and explore ways to adapt it to the
nonprofit sector.
In the early 1990s Harvard Business School researchers Drs. Robert Kaplan and David Nortondetermined that 90% of their clients were unable to integrate their strategic objectives into thedaily operations of their organizations. To remedy this, and provide a framework to set goals,establish tasks and create measurements to assess the real value of the strategy for theorganization, they created the Balanced Scorecard (BSC) performance measurement system.Over the years since its inception, the Balanced Scorecard has provided a practical model fornonprofit leaders, offering the tools needed to measure a nonprofit’s operational success. Inshort, it enables the user to mix financial and non-financial measures, comparing each to atarget value established by the group, ultimately creating a report to assist in decision makingregarding the organization’s key objectives.This white paper will define the Balanced Scorecard and explore ways to adapt it to thenonprofit sector.
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