The non-profit organization selected for Module 1 is Marie Stopes International (Marie Stopes) that is a leading non-profit organization based in the UK with its operations in developing countries. The organization’s objective is to help women in developing countries who do not have access to family planning. The organization provides guidance, support, and health services to women to live a better life. Its primary focus is on pregnant women or those women who are planning to start their sexual life. Furthermore, the organization undertakes research on issues related to general, sexual, and reproductive health of women. Its mission statement is “is to enable women and girls to have children by choice, not chance” (Financial Statements and Annual Report 2015, 2016, p. 9). The vision of Marie Stopes is “a world in which every birth is wanted” (Financial Statements and Annual Report 2015, 2016, p. 9).
The overall strategy of the organization is based on its ‘Power of 10’ strategic plan. It has been reported in the organization’s annual report that its strategy is focused on increasing the capacity and channels to reach women in different locations. The strategic plan indicates that the organization establishes performance targets every year related to the improvement in its capacity, channels, client profile, clinical quality, and clinical programs. The organization’s activities are governed by a set of policies and principles that ensure that its objectives are achieved in the period. If there is any shortfall in the organization’s performance, then its strategy may be revised for the next year. The organization’s consolidated statement of financial activities for the year ended 31 December 2015 indicated that its income comprises of “donations, charitable activities, investments, and other income” (Financial Statements and Annual Report 2015, 2016, p. 26). On the other hand, the organization incurred “expenditure on raising funds and charitable activities” (Financial Statements and Annual Report 2015, 2016, p. 26).
It has been argued that non-profit or government organizations can also use balanced scorecard as a strategy tool for achieving their objectives through the efficient allocation of their resources. The balanced scorecard of non-profit organizations is similar to for-profit organizations (Savkin, 2016). However, non-profit organizations use different terminologies for their customers including financial donors and recipients, and they make their strategic goals related to each customer group (Niven, 2008). Based on this distinction between the balanced scorecard of for-profit and non-profit organizations, the following objectives are drafted for Marie Stopes that can have a significant impact on its financial position.
Table 1: Financial Perspectives.
It could be indicated that the three objectives identified in the table provided above will assist Marie Stopes to improve its financial position in the next year. These objectives are developed after carefully analyzing the annual report of Marie Stopes for 2015 that clearly indicated that the organization aimed to increase its capacity and improve the quality of its services by investing further in developing programs for women in developing countries (Financial Statements and Annual Report 2015, 2016). These financial targets can support the organization to achieve its overall objectives set out in its ‘Power of 10’ strategic plan. The strategic plan of Marie Stopes indicated its objectives are related to “Choice and Channel, Capacity, and Connections” (Financial Statements and Annual Report 2015, 2016).
The organization can improve its connections by increasing the number of donors. It can achieve income growth and invest in improving the capacity and quality of its programs. The organization can mitigate the liquidity risk by improving its cash reserves. The effective management of excessive cash is crucial for the organization to achieve its strategic objectives (Matz & Neu, 2007). Finally, the organization can work on reducing its expenditure on raising funds and charitable activities. It will increase the reserves of Marie Stopes that can be invested in increasing its capacity and channels to help women in different countries and fulfill its mission and vision.
References
Financial statements and annual report 2015. (2016). Web.
Niven, P. R. (2008). Balanced scorecard: step-by-step for government and nonprofit agencies. Hoboken, NJ: John Wiley & Sons.
Matz, L., & Neu, P. (2007). Liquidity risk measurement and management: A practitioner’s guide to global best practices. Singapore: John Wiley & Sons (Asia) Pte Ltd.
Savkin, A. (2016). Balanced scorecard in nonprofit and government organizations. Web.