Implementing a balanced scorecard framework in a not for profit SME

Abstract

Purpose -The purpose of this paper is to explore the implementation of a performance management system using the balanced scorecard (BSC) within a not for profit small and medium sized enterprise (SME). Design/methodology/approach -This is a casebased methodological approach exploring the perceptions of two management stakeholder groups. This ensured that the issues were appraised in both an operational and a strategic context. Findings -The findings of this research are that balanced scorecards can be implemented within a SME context. However, the motivations for the adoption of the scorecard were both internal and external due to the heavily regulated nature of the organization.Research limitations/implications -The limitations of this research are that only one SME was compared with the body of knowledge relating to larger organizations and this could be viewed as a potential mismatch. Originality/value -Currently there is a lack of published research on BSC implementations within this sector.

A guide for supply chain integration in SMEs

“…The aim of this phase is to design a balanced scorecard for managing the supply chain by identifying and classifying the KPIs that will make it possible to evaluate and control the objectives set for the supply chain and to do so in a structured and effective way (Hudson and Smith 2006). Balanced Scorecards (BSCs) are traditionally structured on the grounds of the four classical perspectives defined by Kaplan and Norton (1996), but some authors such as Andersen et al (2001) and Manville (2007) question the validity of their application for SMEs, pointing out that there is currently a gap in the literature regarding the implementation of BSC solutions in SMEs. Thus, the research conducted by Hudson et al (2001a) and Turner (2005) concluded that SMEs can see the value of a performance measurement system but add that there are significant barriers to its implementation due to resource issues, the fact that it may be too strategically orientated and the difficulty involved in identifying KPIs.…”

Managing and Controlling Public Sector Supply Chains

“…However, the task of determining the measures, targets and collecting the relevant information for non-financial measures is not easy. Balanced scorecard research in the public sector has been conducted within the context of the healthcare industry (Coop 2006, Yang et al 2005, public service organisations (including local government institutions and 'municipalities') (Umashev & Willett 2008;Farneti & Guthrie 2008), and not-for profit SMEs (Manville 2007). Gumbus et al (2003) reported a successful story of BSC application in a hospital.…”

“…Some of the common performance measurements methods include the balanced scorecard, SCOR model and benchmarking (Handfield et al, 2009). The Balanced Scorecard (BSC) approach to performance measurement was developed by Norton (1992-1996) as a way to align organisational performance measures with its strategic plans and goals (Fawcett et al, 2007;2007;Wisner et al, 2008). The SCOR model is used as a SCM diagnostic, benchmarking and process improvement tool by manufacturing and service firms in a variety of industries around the globe (Wisner et al, 2008).…”

Proposal to Implement the Balanced Scorecard in a Non- profit Organization

“…Thus, at the top of the BSC was the financial perspective that contained the most relevant financial metrics to see whether or not the organization was on track to make a profit. Later, the BSC was applied to nonprofit institutions with some success (Manville, 2007;Martello et al, 2008;Gomes & Liddle, 2009;Júnior et al, 2012;Retolaza et al, 2012;Gonheim & Baradei, 2013, Machado et al, 2013, Seth & Oyugi, 2013, Pinto & Angius, 2015. Profiting is not a primary target for nonprofit institutions, and therefore many have modified the original structure of the BSC, placing clients as a top-down perspective (Kaplan & Norton, 2001a).…”

“…Thus, over the last few years, several studies and investigations have been carried out on the application of BSC in nonprofit institutions that prove that this tool can bring benefits in terms of its performance (Kaplan, 2001;Manville, 2007;Martello et al, 2008;Gomes & Liddle, 2009;Júnior et al, 2012;Retolaza et al, 2012;Gonheim & Baradei, 2013;Machado et al, 2013;Seth and Oyugi, 2013;Pinto & Angius, 2015). As such, BSC can be a useful tool for these organizations to build strategy and organize and communicate operational activities (Kaplan, 2001).…”