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

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