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Designing and implementing a balanced scorecard: lessons learned in nonprofit implementation.

Andra Gumbus1, Tom Wilson

  • 1College of Business, Sacred Heart University, Fairfield, CT, USA.

Clinical Leadership & Management Review : the Journal of CLMA
|September 10, 2004
PubMed
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This guide provides a step-by-step approach to designing and implementing the balanced scorecard (BSC) performance measurement system. It offers practical lessons for avoiding common pitfalls in government and nonprofit organizations.

Area of Science:

  • Management Science
  • Public Administration
  • Nonprofit Management

Background:

  • The balanced scorecard (BSC) is recognized as a significant management innovation.
  • Numerous case studies document its use in various organizations.
  • Effective performance measurement is crucial for public and nonprofit sectors.

Purpose of the Study:

  • To provide a practical, step-by-step guide for designing a balanced scorecard.
  • To identify and offer solutions for common implementation challenges.
  • To tailor BSC design and implementation guidance for government and nonprofit settings.

Main Methods:

  • Literature review of existing balanced scorecard case studies and implementation guides.
  • Analysis of common design and implementation issues specific to public and nonprofit sectors.

Related Experiment Videos

  • Development of a sequential, actionable framework for BSC creation and rollout.

    • Main Results:

    • A clear, actionable framework for designing a balanced scorecard is presented.
    • Key implementation challenges in government and nonprofit contexts are identified.
    • Strategies and lessons learned are provided to mitigate these challenges.

    Conclusions:

    • Successful balanced scorecard implementation in government and nonprofit settings requires careful design and proactive management of potential issues.
    • The provided step-by-step guide and lessons learned can enhance performance measurement effectiveness in these sectors.
    • Adopting a tailored approach to BSC design is critical for public and nonprofit success.