Evaluating the Effectiveness of the Balanced Scorecard Within a Nonprofit Organization

Analyzing and evaluating the effectiveness of nonprofit organizations’ services is as critical as the service itself. The purpose of this study was to identify the effectiveness of the balanced scorecard, a performance measurement system, within a drug and alcohol nonprofit organization and to assess its adaptability for use among nonprofit organizations. The theories used in this study included (a) Kaplan and Norton’s Balanced Scorecard (BSC); (b) Patton’s utilization-focused evaluation; (c) Campbell’s experimental society theory; and (d) Lincoln and Guba’s naturalistic inquiry. The research addressed whether the BSC was a useful evaluation instrument in a nonprofit organization and whether the BSC readily adaptable within its original form. The qualitative research design used was a single case study using both an online survey and conducting an interview with the organization. The responses received by the participating organization were entered into a computerized BSC system and analyzed through a combination of prior case studies, data previously collected from multiple sources including interviews, and a cross-sectional study using the computerized BSC to determine the adaptability of the BSC in a nonprofit environment. The key results suggested the BSC could be an effective evaluation tool in a nonprofit organization; however, based on the limited pool used for this study, the determination that it is readily adaptable in its original form was inconclusive. Findings can be used by organizations to support the use of the BCS, leading to positive social change