Development of a performance management system for non-profit voluntary organizations

Download This Article

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

A performance management system (PMS) is a framework designed to help organizations manage and improve performance. While models such as the balanced scorecard (BSC) are commonly used, their direct application to non-profit voluntary organizations (NPVOs) is often inappropriate due to the unique characteristics of these organizations, including voluntary membership and non-financial objectives. Research on PMS specifically tailored to NPVOs remains limited. This study aimed to develop a PMS model suited to the needs of NPVOs. A qualitative approach was adopted, involving semi-structured interviews with five experts, comprising academics in operations and performance management and practitioners from non-profit organizations (NPOs). The study resulted in a concept map highlighting key PMS components: organizational mapping, process management, and output. One of the significant contributions of this research is the proposal to replace the traditional financial perspective with a stakeholder perspective in PMS design for NPVOs. The findings offered practical guidance for NPVOs in designing a comprehensive and context-appropriate PMS, and also contributed to the academic discourse by addressing a gap in the literature. This study is relevant for researchers and practitioners seeking effective tools for performance management in mission-driven, volunteer-based organizations.

Keywords: Balanced Scorecard, Non-Profit Organizations, Non-Profit Voluntary Organization PMS Components, Performance Management System, PMS

Authors’ individual contribution: Conceptualization — Z.A.F.R.S. and D.K.; Methodology — Z.A.F.R.S. and D.K.; Formal Analysis — Z.A.F.R.S.; Investigation — Z.A.F.R.S.; Data Curation — Z.A.F.R.S.; Writing — Z.A.F.R.S.; Supervision — D.K.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: L29, L31, L39, O3

Received: 30.06.2025
Revised: 27.07.2025; 07.08.2025
Accepted: 12.08.2025
Published online: 15.08.2025

How to cite this paper: Sudiyanto, Z. A. F. R., & Kurniawan, D. (2025). Development of a performance management system for non-profit voluntary organizations. Business Performance Review, 3(1), 92–104. https://doi.org/10.22495/bprv3i1p9