Propelling the Salvation Army Towards Success with the Balances Scorecard

Topics: Strategic planning, Strategic management, Balanced scorecard Pages: 18 (5799 words) Published: August 13, 2008
In light of the massive adverse publicity surrounding non-profit organizations and charities, the key objective of the Salvation Army (“the Army”) in the coming years is to increase public confidence. Increasing public confidence arguably leads to increase in public donations that will allow the Army to extend its reach to more needy people in Singapore. This calls for a major overhaul in the Army’s organisation strategy, as new strategies need to be formulated to rise to the challenges of the turbulent environment. An organizational change is expected of the Army and the communication of change represents the key to a successful implementation of the new corporate strategy. Engaged to engineer the change, our consulting team will orchestrate the process in four stages. Firstly, we scrutinize the external environment in which the Army operates in and identify the key threats and opportunities in the near future. Next, we would perform a critical strategic analysis of the Army’s existing strategic framework and evaluate its strengths and weaknesses against the environmental threats and opportunities. Subsequently, we will propose changes to its strategic framework to better minimize the threats and capitalize on the opportunities. Lastly, we recommend the use of the Balanced Scorecard as a strategy management system to communicate the organizational change and execute its strategies. Designed by Robert S. Kaplan and David P. Norton, the Balanced Scorecard has been used by many profit-maximizing organizations and received spectacular success. As a strategic management tool that aligns employees to organizational goals and objectives, the BSC is equally applicable in the context of a charitable organisation. We espoused that if the pitfalls are cautiously avoided and the difficulties circumvented, the benefits brought about by the BSC will outweigh the cost of implementation. Careful use of the BSC will propel The Salvation Army towards sustainable success.

The Salvation Army is a worldwide non-profit organization that provides social aid to the poor, destitute and hungry with the intention of bringing the message Christian Salvation to the world with no discrimination towards any race or religion. With its operations spanning globally, the Army has employed a highly de-centralized organisation design to better cater to local needs. While the London Headquarter provides guidance, the operations are run predominantly by a selected group of passionate local citizens. In Singapore, the Army provides social aid through its churches (corps) and a wide range of social and community programmes. The range of aid provided includes child care centres, children homes, personal development programmes for secondary school students, youth development centres, tuition centres, corps community services, family support services, elderly care, nursing homes and rehabilitation centres, prison-support ministries and services. 2.2.CURRENT SITUATION & PROBLEM FACED

The accounting scandals of the National Kidney Foundation (NKF) took the Singapore public by storm. There was huge media coverage about the impropriety of usage of funds and the management was unable to account for the money received and spent. In a spate of scandals about charitable organizations hitting Singapore, public confidence towards these charitable organizations took a huge plunge. The need for the Army to improve its image and to adopt a new strategy is imminent in order to deliver its objectives continuously. 2.3.LESSONS DRAWN FROM NKF SAGA

In the light of the aftermath of NKF Saga, many valuable lessons can be drawn. These lessons are critical to the future success of The Army. •Transparency in Operations
Consequent to the decreased public confidence, the public has become more careful in selecting the organizations they donate to. While it is uncertain as to the motivation of philanthropic...
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