IMPLEMENTATION OF THE BALANCED SCORECARD MODEL IN A NON-PROFIT ORGANISATION – A VIRTUAL SECONDARY SCHOOL MODEL
IMPLEMENTATION OF THE BALANCED SCORECARD MODEL IN A NON-PROFIT ORGANISATION – A VIRTUAL SECONDARY SCHOOL MODEL

Summary/Abstract: As a result of globalisation and the frequent reforms that have affected Croatia and both its profit and non-profit organisations, the latter type of organisations are being faced with increasing demands to meet the community’s general interests and common needs. The programmes of non-profit organisations are expected to meet to the greatest extent possible the needs of individuals. In order to successfully manage nonprofit organisations and to make the best possible business decisions, it is necessary to have accurate and valid information. Based on the received information, it is possible to monitor the achievement of the differently set objectives and tasks of nonprofit organisations. This is made possible through the use of a modern cost management method – the Balanced Scorecard (BSC). Today, investing in education is considered crucial for a country’s survival and economic development. In recent years in Croatia, there has been a constant growth in private higher and secondary education providers, which has inevitably led to a battle for survival on the market. In addition to secondary education, these schools provide an increasing number of varied services in order to meet individual needs, and thus remain competitive on the market. This paper will provide the scientific grounds for understanding the application of the BSC model in non-profit organisations. The authors will prove the set hypothesis that the implementation and use of the Balanced Scorecard model in everyday work leads to the more successful management of a secondary education provider. Finally, a comparison is given between the BSC model based on input data obtained through the activity-based costing (ABC) method and the standard method, and a conclusion is drawn about which method to use in order to provide the most useful cost-related information to form financial indicators as a basis for decision-making.

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