Balanced Scorecard in Npos & Essay

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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?

ABM is quite relevant to NPOs -- even if NPOs are not specifically created to generate a profit, they must still budget their activities to save revenue and to act in a fiscally responsible manner. Prioritizing human and financial resources is also essential, to realize the goal of the organization.

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Adding value to the product through efficiency and accuracy is an important goal for NPOs such as the Red Cross, as the organization's scarce resources and efforts must be well-suited to the specific, pressing needs of a natural disaster or health crisis. ABM should be implemented first, before a BSC is created as definitions of what constitutes organizational value within NPOs may be less obvious than in fiscally-driven….....

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