Kaplan and Norton's Balanced Scorecard has principally been applied to for-profit organisations. In such applications, the scorecard's four perspectives (financial, customer, learning and growth, and internal business) are highly appropriate. However, Kaplan and Norton also acknowledge the applicability of the Balanced Scorecard to not-for-profit organisations; they state, though, that the four traditional perspectives may need to be altered in such situations.
Required:
Suppose you were the manager of a not-for-profit shelter for the homeless. Suggest at least three perspectives you would need to consider in developing performance evaluation metrics for your organisation. For each perspective, identify two or three specific performance measures you would include in your organisation's Balanced Scorecard.

Question

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The Answer of Kaplan and Norton's Balanced Scorecard has principally been applied to for-profit organisations. In such applications, the scorecard's four perspectives (financial, customer, learning and growth, and internal business) are highly appropriate. However, Kaplan and Norton also acknowledge the applicability of the Balanced Scorecard to not-for-profit organisations; they state, though, that the four traditional perspectives may need to be altered in such situations.
Required:
Suppose you were the manager of a not-for-profit shelter for the homeless. Suggest at least three perspectives you would need to consider in developing performance evaluation metrics for your organisation. For each perspective, identify two or three specific performance measures you would include in your organisation's Balanced Scorecard.

Kaplan and Norton's Balanced Scorecard Has Principally Been Applied to For-Profit