Applying Balanced Scorecard in Non-Government Organizations

Specificity Of Strategic Management In Non-Governmental Organizations

Since the 1990s, the strategic management started to appear in the sector of non-governmental organizations. In Great Britain it was estimated that as much as 84% of charity organizations applied or intended to apply methods of strategic planning (Lynas & Ritchie, 1995, p. 274). Changes which took place since those times, including mainly the limitation of time horizon of plans to three years caused concentration on defining priorities and general action plans (Hudson, 2009). In consequence, solutions in the field of strategic management dedicated to the third sector were shaped. Performance measurement was also associated with the strategy which “emphasizes the customer perspective, measures performance against goals and targets, and incorporates measurement systems in other management processes in meaningful ways” (Poister, 2003, p. 9).

For this reason the identification of the specific nature of non-governmental organizations operation gained specific meaning and it determined generation of the solution in the field of strategic management. The key conditions include the environment in which these organizations operate (especially the internal environment) and performance measurement.