A Managerial Perspective on the Use of the Balanced Scorecard for Non-Profit Organizations in Educational Field

Gabriel CHELARIU, Roxana DICU, Daniela MARDIROS, Leontina PAVALOAIA


The performance and its monitoring is an objective for both economic entities and non-profit organizations (NPOs) that do not pursue the profit, but the engagement in certain social activities. One of the most known instruments used for this purpose is Kaplan and Norton’s Balanced scorecard (BSC). In this paper we intend to adapt the classical BSC model in non-profit organizations which activate in educational field. The starting point of our research is represented by an analysis of the literature which contains BSC approaches for different types of NPOs. We consider a number of 22 papers and books in which there can be found aspects, different points of view and objectives, regarding BSC structure for NPOs. Forward we started with the BSC classical structure, reorganizing the four axes and proposing specific indicators and metrics for each of them. More than that, we proposed a hierarchy model for the chosen indicators. At its base, a good knowledge of the particularities of the NPOs for which the BSC was created is mandatory. In respect of, 41 indicators were identified for our model, out of which 10 for the customer axis, 6 for internal processes axis, 14 for financial axis and finally, 11 for innovation and growth axis. Certainly, creating a BSC for NPOs is subjected to potential limits related, on one way, to the organization’s capacity/incapacity to obtain non-economic founds and, on the other way, to the ability of the top management to correlate its activity with the operational levels.

How to cite: Chelariu, G., Dicu, R., Mardiros, D., Pavaloaia, L. (2017). A Managerial Perspective on the Use of the Balanced Scorecard for Non-Profit Organizations in Educational Field. Revista Romaneasca pentru Educatie Multidimensionala, 9(1), 77-93. DOI: http://dx.doi.org/10.18662/rrem/2017.0901.06



Non-profit organizations, balanced scorecard, performance metrics, leadership, education

Full Text:

| View PDF


Alfirević, N., Pavičić, J., Adžić, B., Šimurina, J., & Bratić, V. (2005). The balanced scorecard (BSC) approach to performance of a nonprofit in the transition environment: the case of the Commercial Trade Union of Croatia. Enterprise in Transition: International Conference Proceedings.

Aulgur, J. (2012). The Balanced Scorecard and Improvement Performance in Nonprofit Organizations. Administrative Issues Journal, 2(3), article 10, 16-19.

Chen, S. H, Wang, H. H., & Yang, K. J. (2009). Establishment and application of performance measure indicators for universities. The TQM Journal, 21(3), 220 – 235.

Chen, S. H. (2010). The establishment and comparison of the balanced scorecard for profit and non-profit organizations. African Journal of Business Management, 4(14), 3005-3012.

Cokins, G. (2010). The premise and perils of the balanced scorecard. The Journal of Corporate Accounting and Finance, 21(3), 1-28.

Edvinsson, L., & Malone, M. (1997). Intellectual Capital: Realizing Your Company’s True Value by Finding Its Hidden Brainpower. New York: HarperCollins Publishers, Inc.

Gomes, R. G., & Liddle, J. (2009). The Balanced Scorecard as a Performance Management Tool for Third Sector Organizations: the Case of the Arthur Bernardes Foundation. Brazil, Brazilian Administration Review, Curitiba, 6(4), pp. 354-366.

Gervais, M. (2005). Contrôle de gestion. 8e edition. Paris: Economica.

Grigoroudis, E., Orfanoudaki, E., & Zopounidis, C. (2012). Strategic performance measurement in a healthcare organisation: A multiple criteria approach based on balanced scorecard. Omega, 40(1), 104-119.

Gurd, B., & Gao, T. (2007). Lives in the balance: an analysis of the balanced scorecard (BSC) in healthcare organizations. International Journal of Productivity and Performance Management, 57(1), 6 – 21.

Hartnett, B., & Matan, R. (2011). The Balanced Scorecard: A Strategic Tool for the Nonprofit Sector. Online at: http://sobel-cpa.com/sites/default/files/whitepaper.Jan2011%20final.pdf.

Kaplan, R., & Norton, D. (1998). Les tableaux de bord prospectif. Paris: Les éditions d’Organisation.

Kaplan, R. (2001). Strategic Performance Measurement and Management in Nonprofit Organizations. Nonprofit Management & Leadership, 11(3), 353-372.

Kaplan, R., & Norton, D. (2001). The strategy-focused organization. USA: Harvard Business School Press.

Lecy, J., Schmitz, H. P., & Swedlund, H. (2012). Non-Governmental and Not-for-Profit Organizational Effectiveness: A Modern Synthesis. VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations, 23(2), 434–457.

Martello, M., Watson, J., & Fischer, M. (2008). Implementing A Balanced Scorecard In A Not-For-Profit Organization. Cattaraugus County ReHabilitation Center, Journal of Business & Economics Research, 6(9), 67-80.

Moore, M. (2003). The Public Value Scorecard: A Rejoinder and an Alternative to 'Strategic Performance Measurement and Management in Non-Profit Organizations' by Robert Kaplan. Houser center for Nonprofit Organizations, Working Paper No. 18.

Niven, P. (2005). Driving focus and alignment with the Balanced Scorecard. The Journal for Quality and Participation, 32(3), 1-25.

Pandey, I. M. (2005). Balanced Scorecard: Myth and reality. Vikalpa, 30(1), 51-66.

Ronchetti, J. (2006). An Integrated Balanced Scorecard Strategic Planning Model for Nonprofit Organizations. Journal of Practical Consulting, 1(1), 25-35.

Sharma, A. (2009). Implementing Balance Scorecard for Performance Measurement. IUP Journal of Business Strategy, March 2009, 7-16.

Speckbacher, G. (2003). The economics of performance management in nonprofit organizations. Nonprofit Management and Leadearship, 13(3), 267-281.

Syalom. (2015). Design of a Balanced Scorecard on Nonprofit Organizations (Study on Yayasan Pembinaan dan Kesembuhan Batin Malang). Journal of Business and Management, 17(12), ver. II, 7-14.


Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Copyright © RREM | A LUMEN Peer Reviewed Open Access Journal