Balanced scorecard implementation in nonprofit organizations and activity-based management

Balanced Scorecard in NPOs & ABM

How will you apply the four perspectives of BSC (Balanced Scored Cards) to measuring the performance of a NPO (Non-Profit Organization), are all the 4 relevant or should emphasis be placed on some?

While all four quadrants are relevant, including customer satisfaction, financial performance, learning, and business growth, they must be prioritized in a different manner for an NPO. Financial performance is not primarily about value maximization and profits: rather it is about financial stability so the NPO can continue to realize its mission. Customer satisfaction may be defined less in terms of 'liking' the product in an immediate fashion, and more in terms of realizing the goals of the organization. For example, a school would not measure its satisfaction based upon mere 'repeat customers' (given that many students might have little choice but to attend the institution). Defining customer satisfaction in terms of 'liking' the product can be problematic, given that students and even parents might not appreciate what was needed to achieve school improvement. Rather, fostering learning and growing to serve the community at NPOs like 'think tanks,' charities and educational institutions are the primary responsibilities of such organizations.

Q2: Has ABM (Activity-Based Management) any place in the operation of NPOs, if yes should it be the case that it must be implemented first before BSC is implemented, or can BSC be implemented without first implementing ABM?