As I am sure you already know, it is important to establish strong partnerships and collaborations within your community to maximize resources and support. Along with those strong bonds in the community, developing a sustainable strategy is essential for your nonprofits to ensure long-term success. This will involve carefully assessing your organization's current status or practices, identifying areas for improvement, and implementing practical solutions, including the adoption of new practices, such as utilizing technology to streamline operations and/or reduce costs... Also, you will need to communicate your plan effectively to your donors and supporters that your organization has a mission and strategy worthy of their support.

There's a lot there, so where to start?
Creating a clear mission and vision, as well as setting achievable goals, is crucial for guiding your organization towards sustainability. By implementing a sustainable strategy, your nonprofit can not only have a positive impact on the community and society, but also enhance its long-term viability and success.

So, how do we do it?

An Introduction To
The Balanced Scorecard

THE BALANCED SCORECARD

The Balanced Scorecard is a strategy tool that can allow you to manage all aspects of your nonprofit, not just pure numbers. It is a way to link all activities in the organization to the overarching strategic objectives.

The editors at the Harvard Business Review have called the Balanced Scorecard one of the most influential business ideas of the past 75 years. It's hard to argue with the conclusion considering the number of companies that employ this strategic framework.

Balanced Scorecards are used extensively in private sector industry, government, and nonprofit organizations worldwide. In fact, a global study by the prestigious consulting firm, Bain & Co., listed the Balanced Scorecard as fifth on its top ten most widely used management tools around the world.

Here are a few key defining points about the Balanced Scorecard

The Balanced Scorecard (BSC) is a strategic management framework used for tracking and managing an organization’s performance relative to its strategic plan. The BSC is used to:

• Communicate what the organization intends to accomplish

• Prioritize projects, products, and services

• Align strategy with team members’ day-to-day work activities

• Measure and monitor progress towards strategic targets
  
  

The BSC system connects the dots between high-level organizational guiding concepts such as:

• Mission (our purpose)

• Vision (what we aspire to)

• Core values (what we believe in)

• Strategic focus areas (themes and goals)
  
  

and the more operational elements such as:

• Objectives (measurable steps to achieve strategy)

• Targets (the desired level of performance; e.g., % or $ Growth)

• Initiatives (projects that help you reach the targets), and

• Metrics (key performance indicators, or KPIs)

Among the companies using the Balanced Scorecard:

Regardless of the size of the organization, the principles involved and the methodology employed in the BSC make it an invaluable tool for planning and managing your nonprofit on its way to the next level.

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