Ishani Buddika Soysa, Nihal Palitha Jayamaha and Nigel Peter Grigg
The purpose of this paper is to develop a performance measurement (PM) framework for Australasian nonprofit organisations (NPOs) involved in healthcare, and operational…
Abstract
Purpose
The purpose of this paper is to develop a performance measurement (PM) framework for Australasian nonprofit organisations (NPOs) involved in healthcare, and operational descriptions for each PM dimension within this framework.
Design/methodology/approach
Literature relating to the balanced scorecard and other PM frameworks was examined to develop an initial conceptual model, and this model was substantially improved by collecting qualitative data from nine Australian and New Zealand healthcare NPOs using a case study approach.
Findings
The study identifies nine causally related PM dimensions: mission, strategy, organisational capabilities, infrastructure and people development (people and information), financial health, processes, and stakeholder satisfaction (clients, people, and donors). The study also recognised that “Mission” and “Strategy” should be PM dimensions and that healthcare NPOs should focus on satisfying its people, not only donors and clients. Additionally, 41 operational descriptions are developed for each of these dimensions and can enable detailed PM items to be derived by organisations.
Originality/value
The study is the first study that has been undertaken to develop a PM framework for the Australasian NPOs to a level that it can be readily used by the practitioners (following customisation to their own specific context). The developed model also serves as a basis for future quantitative academic research aimed at testing and empirical validation of the conceptual model.
Details
Keywords
Ishani Buddika Soysa, Nihal Palitha Jayamaha and Nigel Peter Grigg
Using the BSC as the starting point, the purpose of this paper is to present a theory on nonprofit performance management and describes how an overall performance index (OPI) was…
Abstract
Purpose
Using the BSC as the starting point, the purpose of this paper is to present a theory on nonprofit performance management and describes how an overall performance index (OPI) was empirically developed to assess the strategic performance of a nonprofit organisation (NPO).
Design/methodology/approach
A conceptual model was developed from the literature. This was refined into a testable theoretical model using case studies. Thereafter, the theoretical model and an accompanying measurement model on OPI were validated using quantitative data (n=223) collected from a sample of healthcare NPOs in Australasia.
Findings
The measurement model was found to be a good fit to data. The model parameters (weights) pertaining to the OPI represent six PM dimensions (Mission; Strategy; Organisational Capabilities, Infrastructure and People Development; Financial Health; Processes; and Stakeholder Satisfaction) and 13 sub-dimensions. These parameters provide a tenable scoring system to assess the strategic performance of a NPO.
Research limitations/implications
The parameters (hence the scoring system) were estimated from data collected from a particular sector (healthcare) and a region (Australasia).
Practical implications
The findings can be used for comparative benchmarking (e.g. by managers and major donors) of NPOs, better governance and to initiate major performance improvement initiatives.
Originality/value
This study is the first empirical study that has been undertaken to develop an OPI for NPOs. The findings can be readily used by the practitioners.