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Forsythe, R., J. A. Bunch and E. J. Burton. 1999. Implementing ABC and the balanced scorecard at a publishing house. Management Accounting Quarterly (Fall): 10-18. Non-profit Organization's Balanced Scorecard Note by James R. Martin |
The purpose of this paper is to describe how United Methodist Publishing House implemented ABC and the balanced scorecard. My purpose is to provide a sketch of their balanced scorecard. I chose this paper for three reasons: 1) UMPH is a non-profit organization, 2) their scorecard is based on a few key measurements and 3) even though they are not a profit seeking company, the financial perspective is important to them.
The scorecard below is based on the discussions by Forsythe, Bunch and Burton, although they did not provide a scorecard illustration in the article.
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United Methodist Publishing House Balanced Scorecard |
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Perspective |
Goals |
Measurements |
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Financial |
Produce revenues sufficient to cover expenses and provide reserves for the future. | Increase in sales growth in relation to target. |
| Achieve corporate earnings percentage in relation to target. | ||
| Achieve ROI by each market business unit (profit center) in relation to target. | ||
|
Customer |
Maintain ability to attract and retain customers. | Customer satisfaction based on survey questionnaire. |
| On time product development and delivery. | Measures not specifically defined. | |
|
Internal Process |
Maintain an effective and efficient distribution system. | Measure of error rates on shipments. |
| Produce high quality, cost effective products. | Measures not specifically defined. | |
| Maintain internal process effectiveness. | Measures not specifically defined. | |
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Organization Innovation |
Maintain infrastructure needed for long-term growth and improvement. | Measures related to success in producing new products, projects and services. |
| Maintain staff competence. | Measures not specifically defined. | |
| Goals related to learning - not specifically stated. | Measures of learning not specifically defined. | |
The authors mentioned the types of measures for all four perspectives, but did not describe specific measurements for most of their goals and objectives. However, the UMPH scorecard provides an example of a non-profit organization that places emphasis on the financial perspective. For more about non-profit scorecards, see the Kaplan & Norton 2001a summary.
| ABC Main Page | Balanced Scorecard Main Page |
