Key Terms
COURSE
Nonprofit Board Governance MODULE: Chapter 4 - The Board's Role in Performance Assessment
WARNING from the text
Leaving performance assessment to the full board as a whole; or delegating it entirely to the CEO and management team; w
Authors
Robert Kaplan and David Norton (1996)
Structure
Organizes measurements along four organizational perspectives:
Uses
Diagnostic tool and leadership development tool at the individual and group level. Referenced extension: Quinn, Faerman,
Research
Aulgur (2013) study titled "Board Member Self-Perception of Organizational Governance and the Role of the Balanced Score
Limitation noted
BSC does not work as well in some types of nonprofit organizations; specifically social service organizations.
Risk management in nonprofit organizations
Becoming aware of actions or events that have the potential to:
Due diligence
The board's legal obligation to ensure the organization achieves its mission effectively and efficiently.
Trustee accountability
The board's moral and legal obligation to those on whose behalf it governs.
Performance assessment
Systematic evaluation of organizational performance, CEO performance, and board performance using reliable and valid inf
Risk management
Identifying and mitigating actions or events that could harm organizational reputation, financial stability, or legal st
Competing Values Framework (CVF)
Effectiveness assessment framework by Quinn and Rohrbaugh; two dimensions (structure and focus); four schools of thought
Balanced Scorecard (BSC)
Performance measurement framework by Kaplan and Norton; four perspectives: financial, internal operations, client/custom
Social construction of organizational performance
The problem of differing views among board members about what performance metrics matter most; addressed by the BSC per