Harvard Business School
Case Study Sector
A regional United Way organization, a nonprofit already active in total quality management, implements a Balanced Scorecard to link its strategic planning objectives with day-to-day operations, and is able to translate its vision and strategy into objectives and measures in four perspectives: financial, customer (donor), internal processes, and learning and growth (employees and system). In addition to the Balanced Scorecard's role in setting objectives and priorities for the nonprofit's employees, the case raises the issue of whether and how the nonprofit's board should be involved with developing and using the Balanced Scorecard.
Learning objective: To explore the role of the Balanced Scorecard—a systematic performance measurement system that uses financial and nonfinancial indicators—in a nonprofit organization.
- Northern America