Financial and Performance Management

FINANCIAL AND PERFORMANCE MANAGEMENT

Table of Contents
Table of Contents.............................................................................................................................2
1.0 Summary of the Process............................................................................................................3
2.0 Advantages and Disadvantages of Balance Scorecard (BSC)...................................................6
2.1 Advantages............................................................................................................................6
2.2 Disadvantages........................................................................................................................6
3.0 Identification of Critical Success Factors (CSFs)......................................................................8
3.1 Clients’ Perspectives..............................................................................................................8
3.2 Internal Process Perspectives.................................................................................................8
3.3 Financial Perspectives...........................................................................................................9
3.4 Workforce Perspectives.......................................................................................................10
4.0 Proposed Balance Scorecard and Performance Measurement.................................................11
5.0 Proposed Strategy Map............................................................................................................15
6.0 Conclusion...............................................................................................................................16
References......................................................................................................................................17
Appendices....................................................................................................................................19
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1.0 Summary of the Process
Step 1: Identification of the objective
 Require additional data to evaluate the performance management system in the
nonfinancial organization
 Provision of effective and satisfactory service offerings to the customers, clients and
community irrespective of the cost factor
 A degree of financial support and funding is significant Conduction of suitable performance evaluation process to address internal concerns
Step 2: Receiving entire support from GPI’s senior management and executive director
 Developing the balance scorecard that can help the organization to address its found
determinates. Accountability for the application method
Step 3: Team development and application of balance scorecard
 Explaining the objective of the current project
 Understanding the exact scope or opportunity of this balance scorecard Implementation of accurate performance assessment tools
Step 4: Communication
 Identifying the exact purpose of balance scorecard
 Determining the actual benefits of the balance scorecard
 Comprehending the exact disadvantages of balance scorecard Beneficial sides of balance scorecard development and its implementation
Step 5: Critical success factors
 Gaining insight related to a different perspective of 4 different factors
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 Client and community perspectives Internal process perspectives
 Financial perspectives Workforce perspectives
Step 6: Demining performance measure and target setting Application of effective methods and metrics of measurement
Step 7: Assigning tasks to individuals
 Gathering effective data
 Comparing the derived findings against the targets
 Explanation of variances
Step 8: Developing implementation plans
 Framing of the timeline to present effective balance scorecard
 Discussing suitable initiatives to attain performance objectives or goals
With the passage of time, nonprofit businesses are facing unexpected challenges in terms of
executing their primary mission due to the rise of public security and demand for transparencies
needed by the stakeholders. The above-stated factors are somewhat enforcing nonprofit
organizations to look into their performances criteria in more holistic format. Considering the
case of GPI, a balance scorecard is proposed to frame for measuring the intangible assets like
human capital, strategic capital, structural capital within their management system. In the
opinion of Martello, Watson and Fischer (2016), it can be understood that the primary concern of
every nonprofit organization is to ensure customer or community satisfaction rate. Similar had
been the case of GPI, where the company has been aiming to form an effective balance scorecard
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