Use of the Balanced Scorecard and Performance Metrics to Achieve Operational and Strategic Alignment in Arts and Culture Not-for-Profits. Weinstein, L. & Bukovinsky, D. International Journal of Arts Management, 11(2):42–55, 2009.
Use of the Balanced Scorecard and Performance Metrics to Achieve Operational and Strategic Alignment in Arts and Culture Not-for-Profits [link]Paper  abstract   bibtex   
ABSTRACT: The balanced scorecard (BSC) process provides an organization with an effective tool for performance measurement, organizational assessment and operational alignment. It serves as a framework for evaluating performance as it relates to the organization's strategies, by emphasizing the linkages between current operations, performance measurement and strategy. Since arts and culture organizations face many of the same challenges as for-profit organizations, they stand to gain similar benefits from the BSC approach. Using measures based on the cultural sector's core values, the BSC can contribute to continuous improvement and increased accountability. The challenge in assessing cultural organizations is to develop performance measures that support the efficient and effective operation of the organization. The authors describe the positive experiences of the Boston Lyric Opera in designing, implementing and using a BSC. ANNOTATION: Weinstein and Bukovinsky present an overview of the Balanced Scorecard method of performance measurement (developed by Norton and Kaplan) which was designed specifically with the intent of aligning evaluation frameworks with the organization’s strategies. A brief literature review follows, providing necessary background information on performance measurement trends and methods in non-profit organizations, citing authors such as Turbide and Gilhespy. The challenges and limitations specific to applying performance measurement strategies in arts organizations are also recounted, while assuring the reader that the BSC method has the potential to be an effective performance measurement method for the sector. The next section of the paper outlines the practical nature of developing a Balanced Scorecard for an arts organization. Beginning with a clearly outlined mission and vision, the authors then recommend determining the necessary critical success factors that must be reached in order to achieve these objectives. The third step consists of breaking down the determined success factors in smaller, more attainable and measurable goals. The fourth and final step is then to determine metrics for these “supporting activities.” Weinstein and Bukovinsky then expand upon each of these steps, providing context and examples for each. Finally, the authors present a case study in which the BSC method proved successful when implemented by the Boston Lyric Opera. After introducing the organization, they then chronicle the process of the development and subsequent implementation of the BSC method to the company’s operations. A visual of the finalized scorecard is provided as a table. Authors cite numerous benefits of the BSC method once it had been applied to the organization, such as the ability to measure intangible metrics, a smooth and straightforward implementation process, and the facilitated focus of several core strategies. The paper then concludes with the reiterated recommendation that arts organizations consider implementing the BSC framework, with the caveat that the process “may require significant effort.” (54) This is one of the few research materials that provides a practical guide for arts organizations seeking to implement an effective and efficient evaluative framework, and although the context of the paper is specifically targeted towards American non-profits, Canadian non-profit organizations may also find inspiration from this source.
@article{weinstein_use_2009,
	title = {Use of the {Balanced} {Scorecard} and {Performance} {Metrics} to {Achieve} {Operational} and {Strategic} {Alignment} in {Arts} and {Culture} {Not}-for-{Profits}},
	volume = {11},
	issn = {1480-8986},
	url = {https://www.jstor.org/stable/41064986},
	abstract = {ABSTRACT: The balanced scorecard (BSC) process provides an organization with an effective tool for performance measurement, organizational assessment and operational alignment. It serves as a framework for evaluating performance as it relates to the organization's strategies, by emphasizing the linkages between current operations, performance measurement and strategy. Since arts and culture organizations face many of the same challenges as for-profit organizations, they stand to gain similar benefits from the BSC approach. Using measures based on the cultural sector's core values, the BSC can contribute to continuous improvement and increased accountability. The challenge in assessing cultural organizations is to develop performance measures that support the efficient and effective operation of the organization. The authors describe the positive experiences of the Boston Lyric Opera in designing, implementing and using a BSC. 

ANNOTATION: Weinstein and Bukovinsky present an overview of the Balanced Scorecard method of performance measurement (developed by Norton and Kaplan) which was designed specifically with the intent of aligning evaluation frameworks with the organization’s strategies. A brief literature review follows, providing necessary background information on performance measurement trends and methods in non-profit organizations, citing authors such as Turbide and Gilhespy. The challenges and limitations specific to applying performance measurement strategies in arts organizations are also recounted, while assuring the reader that the BSC method has the potential to be an effective performance measurement method for the sector. The next section of the paper outlines the practical nature of developing a Balanced Scorecard for an arts organization. Beginning with a clearly outlined mission and vision, the authors then recommend determining the necessary critical success factors that must be  reached in order to achieve these objectives. The third step consists of breaking down the determined success factors in smaller, more attainable and measurable goals. The fourth and final step is then to determine metrics for these “supporting activities.” Weinstein and Bukovinsky then expand upon each of these steps, providing context and examples for each. Finally, the authors present a case study in which the BSC method proved successful when implemented by the Boston Lyric Opera. After introducing the organization, they then chronicle the process of the development and subsequent implementation of the BSC method to the company’s operations. A visual of the finalized scorecard is provided as a table.  Authors cite numerous benefits of the BSC method once it had been applied to the organization, such as the ability to measure intangible metrics, a smooth and straightforward implementation process, and the facilitated focus of several core strategies. The paper then concludes with the reiterated recommendation that arts organizations consider implementing the BSC framework, with the caveat that the process “may require significant effort.” (54) This is one of the few research materials that provides a practical guide for arts organizations seeking to implement an effective and efficient evaluative framework, and although the context of the paper is specifically targeted towards American non-profits, Canadian non-profit organizations may also find inspiration from this source.},
	number = {2},
	urldate = {2021-05-29},
	journal = {International Journal of Arts Management},
	author = {Weinstein, Larry and Bukovinsky, David},
	year = {2009},
	keywords = {USA, accessible (indicator), accountability, business model non-profit (indicator), case study (method), cultural and creative industries, digital, economic (indicator), innovation, literature review (method), management, methods, non-profit, operations, space, strategic planning},
	pages = {42--55},
}
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