Not For Profit Company Performance Benchmarks And Integrating Scoreboards In An Organization


1. JoJo Pty Ltd provides a not-for-profit childcare service at a single inner-city location. Whilst JoJo Pty Ltd is not focused on making profit, it aims to provide excellent service at the lowest possible cost and to make a small surplus each year. A detailed review of JoJo Pty Ltd’s cost structure shows the following costs represent over 90 percent of the total expenses.

·    Salaries
·    Property rental and
·    Consumables (paper, paint, glue, pens)

To evaluate its performance, JoJo Pty Ltd has decided to use benchmarking.

Which one of the following approaches would be most effective?

A. Comparison with other business units
B. Comparison with its historical cost structure
C. Comparison with competitors
D. Comparison with best practice outside the industry

2.  Which one of the following statements describes a system of scoreboards that integrates each level of an organization (corporate, divisional, business unit and departmental) and will translate strategy into action?

A. Every level of the organization uses the same measures for each scorecard perspective to ensure consistency across the whole organization

B. The corporate mission, vision and strategy are communicated to each organizational level and each organizational unit designs a scorecard reflecting that mission, vision and strategy.

C. Each organizational unit creates its own scorecard independently and ensures that it contains both leading and lagging indicators for each scorecard perspective.

D. Each organizational unit determines its outcome measures from an upper level scorecard, and includes measures in its own scorecard that contribute towards achieving those outcomes.


These multiple choice questions belong to Corporate Strategy and the 1st question discusses about a not-for-profit organization and measuring its performance and the 2nd question is about the system of scoreboards that integrates each level of an organization.

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