Evaluating GPI's Performance: A Balance Scorecard Management Report

This report provides a detailed analysis of GPI's financial and performance management, focusing on the application of a balance scorecard (BSC). The report begins with an overview of the BSC process, followed by a discussion of its advantages and disadvantages. It then identifies critical success factors (CSFs) from client, internal process, financial, and workforce perspectives, crucial for GPI's performance. The report proposes a BSC framework and performance measurement metrics tailored to GPI, including a strategy map to visualize the organization's objectives. The analysis highlights the importance of client satisfaction, internal process improvements, financial stability, and workforce motivation in achieving GPI's long-term goals. The document emphasizes the need for effective resource management, employee training, and continuous evaluation to enhance service standards and overall performance within the non-profit context. The report concludes with a summary of the findings and recommendations for GPI's future performance management strategies.

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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to evaluate its performance criteria and the suitable propositions it can include in future to
resolve its existing shortcomings. It would also help the management to comprehend the
expertise level of its staff and also the potential of its internal methods to meet the rising
demands of the society. Since the brand entirely depends on fund collectors or donators,
therefore, it also needs to ensure that the funds are effectively used on elevating the service
standards that can help the dysfunctional community to enrich their standards of living.
The current project aims to evaluate the performance management process of GPI, based on
which a suitable balance scorecard framework would be proposed to enhance the service
standards and performances of GPI. At the beginning of the study, the researcher lays down the
detailed process flow as to the topic of BSC supported by a brief discussion on the advantages
and disadvantages of BSC. In the subsequent parts of the paper, the researcher identifies the
CSFs based on the given case study and thereby proposes the BSC required for the instant case
scenario. In addition, the paper provides a strategy map for the organization. Finally, the
researcher wraps up the discussion by way of concluding note.
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2.0 Advantages and Disadvantages of Balance Scorecard (BSC)
2.1 Advantages
BSC may be considered to be one of the most widely used frameworks for the managerial
decision making as the model provides in insight into the CSFs of the organization in terms of
relevant measures and initiatives to be undertaken by the organization in order to achieve
operational excellence. First of all, it may be stated that the BSC provides a structure and well-
defined framework for the formulation of business strategy. Moreover, it helps the management
to align the various departments and units of the operations. There have been instances where the
implementation of the model has enabled to management to integrate the business processes and
its elements in coherent manner and thereby enhance the productivity as a whole. To put it
differently, it may be construed that the BSC provides guidelines for the management to align
individual aims with that of the organizational aims (Boateng, Akamavi and Ndoro, 2016). It
may also be noted that the framework helps the management to manage employees in terms of
their satisfaction, productivity and objectives (Cooper, Ezzamel and Qu, 2017).
2.2 Disadvantages
On the contrary, BSC may be alleged to have been suffering from certain inherent limitations.
One of the prominent disadvantages of BSC is that the implementation of BSC may prove to be
costly, especially for the small business houses. Since the model is comparatively complex to
understand and hence requires training, there remains a cost implication, which small-sized firms
may not be able to afford, at times. In addition, it may also be observed that the BSC may not be
replicated from the past examples and experiences. BSC assumes that every aspect of the
business is synced with each other which may not be true at times. Moreover, the primary
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essence of BSC may seem to be rigid to practically implement most of the times (Cooper,
Ezzamel and Qu, 2017)
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3.0 Identification of Critical Success Factors (CSFs)
3.1 Clients’ Perspectives
It has been identified from the provided case study that the client plays the most significant role
in GPI business. Welfare and improving the standard of living of a dysfunction society has been
the foremost objective of the organization, therefore, understanding the accurate requirements of
clients and their perspectives would be highly necessitated for the nonprofit business. In the
opinion of Martello, Watson and Fischer (2016), customer satisfaction has been the core target of
this business. Hence, the organization shall not only focus on the basic service lines but also
render on activities that can help the business to enrich the value proposition index of its clients.
Establishing a new service line to accelerate the brand image shall not be the main consideration
of the organization, rather, helping the community to gain actual satisfaction shall be its key
performance indicator to depict or measure the actual success of this business (Gibbons and
Kaplan, 2015). Moreover, the provision of assessed quality service would be an effective
indicator to gauge the satisfaction level of clients and also his family members’ satisfaction level.
The specific method can be followed by conducting a periodical survey and collecting clients’
feedback against the offered services. This can definitely assist the management with adequate
positive and negative feedbacks. The negative opinions can definitely support GPI to identify
their loopholes and accordingly addressing with suitable solutions for process improvements.
This approach can guarantee the highest service standards where GPI definitely enhance its
clients' satisfaction ate with its offerings.
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3.2 Internal Process Perspectives
The internal process perspectives for the balance scorecard need to stem from the business
methods of GPI that can manage to create maximum impact on its community or customer
satisfaction. Factors that usually affect the internal process of GPI include cycle time, employee
skills, quality, clients’ expectation management and productivity. In the consideration of
Gibbons and Kaplan (2015), organizations especially the one operating in the nonprofit zone
shall attempt to recognize and determine it's business’ core competencies and installation of right
technical support to elevate clients’ satisfaction level. It has been assessed from the provided
case that GPI has a number of effective internal processes to elevate the value margin amongst
clients and the community as a whole. The brand is also experiencing a constant alternation in
the process, which required effective and proactive technical servers to trace and record the huge
lists of the client and the services they require or have been offered to them (Muda, Erlina and
Nasution, 2018). This approach can help GPI to maintain a positive and healthy relationship with
clients and community members. A rise in the efficacy level ensures that clients or customers
are getting required attentions through the necessary tools and equipment. On the other hand, the
allocation of budget and its application in the right process has been another critical factor to
guarantee that community has been entirely benefitted from the fund collected for the purpose
rather 5than spending on miscellaneous or variable expenses.
3.3 Financial Perspectives
The financial performance of the organization has been considered to be stable as the appendices
establish the same. However, an insight into the financial facts and figures may reveal that the
organization primarily depends on the state funding for revenue generation. In this context, it
may be stated that the CSFS with respect to the financial perspectives of a non-profit
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organization is critical to assess before implementing a BSC framework therein. Since the
primary goal of the organization is not oriented towards profit seeing, the financial parameters
should be prioritized to accumulate the surplus which, in turn, will be utilized towards the
community and society as a whole (Kalender and Vayvay, 2016).
3.4 Workforce Perspectives
According to Moullin (2017), the above-mentioned factors and activities cannot be conducted if
the resources management in done inefficiently within the workplace. Since GPI is a nonprofit
organization that specifically offers health-related and welfare service to the community,
therefore, the resources need to be well trained to have the correct product knowledge and
understand the actual issues of clients and prescribe the best fit services accordingly. To serve
effectively to the disabled society required adequate training in which the workforce shall use
their expertise to improve the standards of living. Employees also require effective rewards and
support to retain their degree of motivation in the workplace. Hence, the management of GPI
needs to identify its employees' needs and the supports they require further to improve their
service offerings (Hansen and Schaltegger, 2017).
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4.0 Proposed Balance Scorecard and Performance Measurement
Proposed Balance Scorecard (BSC)
The management of the given organization in the case study may need to create a BSC for the
CSFs as discussed previously. The figure herein shows the proposed BSC of GPI.
Financial
(Key Ratios, Revenue, Surplus, Cost Structure,
Optimization, Funding etc.)
Internal Process
(Delivery, Productivity, Success Rate etc.)
ORGANIZATIONAL LONG-TERM AIMS AND OBJECTIVES
Customer
(Satisfaction Index, Follow-up and Monitoring, Value
Proposition etc.)
Workforce
(Motivation, Hygiene, Benefits, Integrity, Aims
Alignment etc.)
Proposed Balance Scorecard (BSC)
(Source: Created by author)
Client
For non-profit business, the management may need to consider the client as the first and
foremost criteria for devising BSC (Veltri and Bronzetti, 2015). In this context, it may be stated
that the said organization, in the given case study scenario has been able to prioritize its clientele
in such a way that the service delivery has been segregated across various parameters. The
figures in appendices below show that the childcare has been increased in the current year as
compared to the previous year. On the other hand, service delivery towards disabled adults has
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been declined substantially. Similarly, the various program undertaken by the organization for
the4 disabled persons have experienced a fluctuation in terms of service delivery and the
management hence, may need to take a note of the same for the purpose of devising BSC in this
regards (Boateng, Akamavi and Ndoro, 2016). The senior management and the persons
responsible for the given programs may be given the charge to look into the matter and adopt the
necessary measures in order to assess the implication for such fluctuation and enhance the client
servicing framework in line with organizational objectives.
Internal process
The internal process of the organization has been strong and efficient with effective internal
control in place. the figures and information as provided in the given case study may show that
the service provided by the firm has been well praised and critically acclaimed by various houses
and have been awarded largely. The service delivery may, therefore, be construed to be synced
with the larger framework of organization objectives of GPI.
Financial
The financial parameters of the firm may exhibit that the adult residential services have been the
major sources of expenditure with the lion's share of 62% of entire revenue earned for the given
financial year. On the contrary, state funding is the primary source of revenue for the firm with
67% proportion of total revenue. Therefore, the key elements in the financial framework are
these two heads where most of the revenues are generated and expended simultaneously. The
managers may need to consider these two aspects of the operations and evaluate the respective
risks of non-attaining the given parameters within the stipulated guidelines of GPI. The
deviations must be accounted for in a timely and efficient manner so that the necessary measures
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