Barriers to the Successful Implementation of Balanced Scorecard in Few Selected Non-Profit Organisation in Malaysia

Abstract

Purpose: Balanced Scorecard (BSC) translates a company strategic direction and objectives into actionable initiatives and measurement not only to profit but also the non-profit organisation. BSC is the first to tool which examine a balanced view despite the financial performance. The measure incorporated in the Balance Scorecard also provides a balance between the outcome measure and the performance drivers, as well as a balance between internal and external measure. The main purpose of this study is to increase understanding of the threats which may cause BSC initiatives in the non-profit.Design/methodology/approach: This study will be using exploratory method by deploying an analysis of literature review of the BSC and its perspective and barriers found in previous studies. Later a case research was employed using five selected non-profit as a case organisation. A simple qualitative research method been used.Findings: Despite being worldwide popularity and its recognition as a powerful management tool, the BSC was not been used successfully in the selected case organisation. Selected organisation faces the same obstacles have been highlighted in the literature of previous study especially in the non-profit. The major factor of unsuccessful implementation is lack of training and understanding among the staff on the implementation of BSC.Research implication: The research concludes by proposing recommendation for future BSC initiatives in the selected case organisation in order to overcome the potential barriers to its implementation and to ensure its beneficial use.Originality/value: The research reports on first hand empirical findings in the area which has not been extensively researched. Relevant non-profit literature has so far been dominated by how to do approaches and normative concepts.

Keywords: Performance measurement, Non-profit, Organisation, Balanced Scorecard