Question

Should public sector or not-for-profit organisations develop a Balanced Scorecard?

Answer 1

The concept of Balanced scorecard is very good for profit making business organisation as this helps such Organisation in achieving their goals and formulating new strategies. The balanced scorecard is a tool for measuring the strategy performance.

It is a report which is Semi-standard and can be used by managers and executive for tracking the progress of these staff. A balanced scorecard provides and overall view of all the strategic objectives, measures and targets of the organisation. A balanced scorecard helps in making a strategy map and helps in establishing a cause and effect scenario.

Now the question arises should public sector or not for profit organisation develop a balanced scorecard?
Yes such organisations should also developed a balanced scorecard as after developing a balanced scorecard the public sector companies/organisations would work towards their goals and provide better facilities and fast services. The balanced scorecard would help them to evaluate their performance and provide them different scenario for achieving their goals.
Not for profit organisations can also use balance score card as well to evaluate their performance in four dimensions which are financial, customer, Innovation and internal process. Even the not for profit organisation works not for the purpose of doing business but still it can use the balanced scorecard.