Balanced Scorecard: Step-by-Step for Government and Nonprofit Agencies, 2nd Edition

2

Adapting the Balanced Scorecard to Fit the Public and Nonprofit Sectors

Roadmap for Chapter 2 “Adapt or perish, now as ever, is nature’s inexorable imperative.” So said English author and historian H.G. Wells many years ago. Applied to the Balanced Scorecard, this colorful language suggests that if you expect to achieve success with this tool, you must adapt it to fit your organization. Detailing that process is the subject of this chapter.

Chapter 1 focused on the Balanced Scorecard as it was originally conceived with the for-profit world in mind. As private-sector firms around the world began to harness the power of the Balanced Scorecard, public and nonprofit agencies, in their own quest to improve results, turned to the Scorecard with intrigue. Curiosity soon led to actual use as early adopters discovered that with some modifications, the Balanced Scorecard readily adapted to their circumstances and provided swift and tangible benefits. In this chapter, we explore the nature and history of public and nonprofit performance measurement, and discover how the Balanced Scorecard can fill voids in their measurement efforts.

We’ll begin by looking back at performance measurement initiatives in both the public and nonprofit sectors. You’ll discover that both sectors have a long history of measuring performance using a variety of techniques. We’ll also look at some of the struggles that have been encountered in the pursuit of meaningful performance measurement.

Adapting the “geography” ...