THE IMPACT OF STRATEGIC PLANNING IMPLEMENTATION ON NON-PROFIT ORGANIZATION’S PERFORMANCE EFFECTIVENESS

Abstract

Strategic planning is important for non-profit organization to make sure they have been achieved their missions and take necessary actions to achieve it. And they could achieve greater benefits if they applying strategic planning which outweigh the cost involved in the implementation process. But the relationship between strategic planning and organizational performance has been rarely examined in the public and non-profit sectors, especially in Indonesia. This study empirically examines the effect of strategic planning on one of Indonesian non-profit organization’s performance effectiveness. The performance effectiveness assess by using the multiple perspective of Balanced Scorecard (BSC). Niven (2008) developed the BSC for non-profit organization which has added the fifth perspective, volunteers’ development. We argue that the strategic planning can help to guide the implementation process to achieve organization’s performance effectiveness. A purposive sample of 30 managers and project leaders was selected for participated in this study to measure the impact of strategic planning on this organization’s performance effectiveness. All data will be analyzed through quantitative method. We believe that the result of this study will contribute to strategic management area of research and practices on how to measure the strategic planning implementation on the organization’s performance effectiveness by using balanced scorecard, especially in non-profit sector in Indonesia.

Keywords: strategic planning, mission achievement, performance effectiveness, non-profit organizations, the balanced scorecard (BSC)