A Case Study on the Performance Evaluation of a Not-for-Profit Organization by the Balanced Scorecard Perspectives

Pai, Hoo-Seok; Shin, Yong-John

Journal of Navigation and Port Research 2011;35(2):179-185.
Published online March 30, 2011.

Focused on the Korea Shipping Association

A Case Study on the Performance Evaluation of a Not-for-Profit Organization by the Balanced Scorecard Perspectives

Abstract

This paper aims to examine the use of the Balanced Scorecard in a not-for-profit organization (the Korea Shipping Association). The KSA has begun using the Balanced Scorecard paradigm in its strategic planning process. In this paper an overview is presented of the basic concepts of the Balanced Scorecard including the financial perspective, customer perspective, internal process perspective, and learning and growth perspective. The accounting system and its pros and cons of the KSA are then surveyed in terms of its performance evaluation. The application of the Balanced Scorecard approach to the KSA is discussed in detail. Implications in using the Balanced Scorecard are discussed. Finally, conclusions regarding the use of the Balanced Scorecard in a not-for-profit organization are presented. Through this paper, the comprehensive understanding of the performance evaluation for not-for-profit organizations as the KSA would be promoted.

Key Words: Not-for-Profit Organization;Performance Evaluation;Balanced Scorecard; the Korea Shipping Association;Budgetary Reporting;Fund Accounting