The balanced scorecard as a performance management tool for third sector organizations: the case of the Arthur Bernardes foundation, Brazil

The aim of this paper is to contribute to the theor y of public management by presenting empirical evidence of using the Balanced Scorecard for third sector organ izations. The research was conducted within an inte rpretive paradigm using an action research strategy. Data wa s collected through focus group and individual inte rviews and analyzed using interpretation and content analy sis. The main limitation of this study lies in its application to a very singular type of organization that operates as a driver to improve the efficiency and nimblenes s of other public organizations, although the methods employed here are very likely to be applicable to other kin ds of organizations without adversely affecting the resul ts. The findings corroborate Kaplan and Norton’s (2 001) suggestion that non-profit organizations should put customers at the top of their strategic maps. They also indicate that sponsors should be considered a stron g stakeholder in the strategic plan, and need to be satisfied in order to ensure legitimacy and sustainability. Alth ough some authors have suggested that an overall fr amework should be devised for an entire organization, the e vidence indicates that developing a single Balanced Scorecard for each department promotes cooperation rather tha n competition and leads to synergy rather than fragmentation.