Strategic Planning for Non Government Organizations in Sri Lanka – An Evaluation using the Balanced Scorecard

Author(s)

Weerasooriya W.M.R.B ,

Download Full PDF Pages: 01-22 | Views: 436 | Downloads: 115 | DOI: 0.5281/zenodo.3460274

Volume 4 - July 2015 (07)

Abstract

The relationship between strategic planning and organizational performance has been examined in the nongovernment sectors. Moreover, most of the existing research has been confined to examining the nongovernment sector in the developing countries and very little has been conducted in developing countries. This study empirically examines the effect of strategic planning on Sri Lankan non government organization’s performance effectiveness. An assessment of performance effectiveness was made using the multiple perspectives of the balanced scorecard (Robert S. Kaplan & David P. Norton, 2001). A fifth dimension was added to the balanced scorecard, developed originally by Niven (2008), which is volunteers’ development. The research design was used to compare the performance of strategic planning non government versus that of non strategic planning non government. Random samples of 303 non government organizations were selected for study and 606 executive manager’s participation in the study. Results have indicated a statistically significant difference between the mean composite scores of strategic planning activities in strategic versus non-strategic planning non governments along four out of five domains of the BSC performance effectiveness scale. These domains were namely; customer processes, internal business processes, employees learning and growth, volunteers’ development except for financial processes. Results however, did not show that most of the Sri Lankan non governments are fully aware of the BSC as a tool for assessing their performance effectiveness. 

Keywords

Balanced Scorecard (BSC); Non Government Organization’s (NGO’s); Strategic Planning (SP), Organizational Performance Effectiveness (OPE)

References

  1. Alexander, L. D. (1991). Successfully implementing strategic decisions, International Review of Strategic Management, 2(1), 73-96.
  2. Andrews, R., Boyne, G. A., and Walker, R. M. (2006). Strategy content and organizational performance: an empirical analysis, Public Administration Review, 66(1), 52-63.
  3. Blackmon, V. Y. (2008). Strategic planning and organizational performance: an investigation using the balanced scorecard in non-profit organizations. Ph.D. dissertation, Capella University, United States. Retrieved August, 2011
  4. Bryson, J. M. (1995). Strategic Planning for Public and Nonprofit Organizations (A Guide to Strengthening and Sustaining Organizational Achievement), San Francisco, Jossey –Bass Publishers, Revised Edition.
  5. Franklin, P. W. (2011). Relationship between Strategic Planning and Nonprofit Organizational Performance. Ph.D. Dissertation, Capella University, United States. Retrieved August, 2011, from ProQuest Dissertations and Theses: Full Text database. (Publication No.3440040).
  6. Ghoneim.N.A. (2012). The Impact of Strategic Planning on Mission Achievement in Egyptian Nonprofit Organizations: An Assessment using the Balanced Scorecard Approach. Dissertation on Master of Public Policy and Administration, The American University in Cairo School of Global Affairs and Public Policy.
  7. Jansen, P., Kilpatrick, A., and Cvsa, V. (2006). Creating a dynamic board. ESR Review, 8(1), 24-32. Kaissi, A., Begun, J., and Nelson, T. (2008). Strategic planning processes and hospital financial performance/practitioner application. Journal of Healthcare Management, 53(3), 197-209.
  8. Kaplan, R., and Norton, D. (2000). Having Trouble with Your Strategy? Then Map It. Harvard Business Review, 78(5), 167-176. Retrieved Saturday, August, 20, 2011 from the Business Source Premier database.
  9. Kaplan, R., and Norton, D. (2001). Transforming the Balanced scorecard from Performance Measurement to Strategic Management: Part II. Accounting Horizons, 15(2), 147-160.Retrieved Saturday, August, 30, 2011 from the Business Source Premier database.
  10. Kriemadis, T., and Theakou, E. (2007). Strategic Planning Models in Public and Non-Profit Sport Organizations. Sports Management International Journal. 3(2), 27-37.
  11. Mohammed Mouadili (2015). Measuring Performance of Nonprofit Organizations by Evaluating Integration of Their Values in the Project Management Process. Universal Journal of Management, 3 , 63 - 72.
  12. Munive-Hernandex, E. J., Dewhurst, F. W., Pritchard, M. C., Barber, K. K. (2004). Modeling strategy management process: an initial BPM approach, Business Process Management Journal, 10(6), 691-711.
  13. Naim Kapucu & Lauren O'Byrne, (2014) :Strategic Planning for Community-Based Small Nonprofit Organizations: Implementation, Benefits, and Challenges. The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 1
  14. Niven, P. R. (2008). Balanced scorecard step-by-step for government and nonprofit agencies (2nd ed.). Hoboken, NJ: John Wiley and Sons.
  15. Pfeiffer, J.W., Goodstein, L.D., & Nolan, T.M. (1986). Applied strategic planning - A how to do it guide. San Diego, CA: Pfeiffer & Company
  16. Rhodes, M. L. and Keogan, J. E. (2005). Strategic choice in the non-profit sector: modeling the dimensions of strategy, Irish Journal of Management, 26(1), 122-135.
  17. Steward, J. (2004). The meaning of strategy in the public sector, Australian Journal of Public Administration 63(4), 16-21
  18. Stone, M. M., and Brush, C. G. (1996). Planning in ambiguous contexts: The dilemma of meeting needs for commitment and demands for legitimacy. Strategic Management Journal, 17(8), 633.
  19. Stone, M. M., Bigelow, B., and Crittenden, W. (1999). Research on strategic management in nonprofit organizations: Synthesis, analysis, and future directions. Administration and Society, 31(3), 378-423.
  20. Verschuere, B., & De Corte, J. (2014). The impact of public resource dependence on the autonomy of NPOs in their strategic decision making. Nonprofit and Voluntary Sector Quarterly, 43, 293-313.

Cite this Article: