A Project Portfolio Management model adapted to non-profit organizations

As they strive towards greater professionalism in carrying out their activities, non-profit organizations (NPOs) have begun paying attention to project management. The non-profit sector (NPS) has also begun to adopt strategic planning techniques, thus making the acceptance of project portfolio management (PPM) methodology a natural consequence. This article aims to propose a project portfolio management model adapted to the context of NPOs

The Effectiveness of Juvenile Correctional Facilities: Public versus Private Management

This paper uses data on juvenile offenders released from correctional facilities in Florida to explore the effects of facility management type (private for-profit, private nonprofit, public state-operated, and public county-operated) on recidivism outcomes and costs. The data provide detailed information on individual characteristics, criminal and correctional histories, judge-assigned restrictiveness levels, and home zipcodes—allowing us to control for the non-random assignment of individuals to facilities far better than any previous study. Relative to all other management types, for-profit management leads to a statistically significant increase in recidivism, but, relative to nonprofit and state-operated facilities, for-profit facilities operate at a lower cost to the government per comparable individual released. Costbenefit analysis implies that the short-run savings offered by for-profit over nonprofit management are negated in the long run due to increased recidivism rates, even if one measures the benefits of reducing criminal activity as only the avoided costs of additional confinement.Juvenile Crime; Juvenile Correctional Facilities; Recidivism; Prison Privatization; Provision of Public Goods: Nonprofit, For-profit, Public

Optimal ownership in joint ventures with contributions of asymmetric partners

This paper faces two questions concerning Joint Ventures (JV) agreements. First, we study how the partners contribution affect the creation and the profit sharing of a JV when partners' effort is not observable. Then, we see whether such agreements are easier to enforce when the decision on JV profit sharing among partners is either delegated to the independent JV management (Management Sharing) or jointly taken by partners (Coordinated Sharing). We find that the firm whose effort has a higher impact on the JV's profits should have a larger profit shares. Moreover, a Management sharing ensures, at least in some cases, a wider range of self-enforceable JV agreements.D43, L13, L14, L22

Commercial heads, social hearts? Organizational changes and effects of civil society organizations becoming more business-like: a literature review

A growing body of literature points at the increasing hybridization of civil society organizations (CSOs) by incorporating entrepreneurial practices, values and ideas, but also focuses on the presumed risks of non-profits becoming more ‘business-like’. The central question to this debate is whether non-profit organizations are able to adopt for-profit practices and yet perform their social mission. Touching upon the larger issue of welfare governance, the hybridization of civil society organizations is a rather politicised issue drawing both public and academic criticism ranging from cautious warnings to wholehearted opposition. However, in this – often normative – discussion, the impact of becoming business-like on the organizational level tends to be overlooked. The distinction between non-profit and business-like concepts are only clearly distinguished in terms of goals, i.e. on the level of mission and strategy, in contrast to governance arrangements and management practices. Although much of the non-profit management literature aims to support non-profit managers, research on how ‘becoming business-like’ is practically implemented in the non-profit context as well as the perceived effects is fragmentary of nature and understudied. A more fine-grained analysis is further complicated by a multitude of overlapping yet distinct concepts. Based on a systematic study of the international literature, this paper addresses this lacuna by mapping the internal changes and effects as a result of a more ‘business-like’ manner of organization within non-profits over the last 25 years as well as by providing a clear conceptual outline. The focus is on the (re-)definition of civil society organizations’ missions and strategies, on changing governance arrangements and shifting management practice

Optimal ownership in joint ventures with contributions of asymmetric partners

This paper faces two questions concerning Joint Ventures (JV) agreements. First, we study how the partners contribution affect the creation and the profit sharing of a JV when partners’ effort is not obervable. Then, we see whether such agreements are easier to enforce when the decision on JV profit sharing among partners is either delegated to the independent JV management (Management Sharing) or jointly taken by partners (Coordinated Sharing). We find that the firm whose effort has a higher impact on the JV’s profits should have a larger profit shares. Moreover, a Management sharing ensures, at least in some cases, a wider range of self-enforceable JV agreementsJoint ventures, strategic alliances, ownership structure, asymmetries

Corporate governance and profit manipulation: a French field study

Profit manipulation has been largely studied through Positive Accounting Theory (PAT). However, the weakness of the results obtained would suggest using different theoretical and methodological approaches to examine this subject. In France, management controllers play a central role in profit manipulation. This paper offers a comprehensive analysis of their profit manipulation practices. Using results from 32 interviews in 13 companies, we argue that the spread of Anglo-Saxon corporate governance model has fostered such behaviour. Far from the opportunism hypothesis supported by Positive Accounting Theory, profit manipulation is used as a tool by management controllers to gain broader legitimacy within organisations and/or to adopt what they claim to be ethical behaviour.profit manipulation; management controllers; corporate governance; field study

A logistic regression approach to estimating customer profit loss due to lapses in insurance

This article focuses on business risk management in the insurance industry. A methodology for estimating the profit loss caused by each customer in the portfolio due to policy cancellation is proposed. Using data from a European insurance company, customer behaviour over time is analyzed in order to estimate the probability of policy cancelation and the resulting potential profit loss due to cancellation. Customers may have up to two different lines of business contracts: motor insurance and other diverse insurance (such as, home contents, life or accident insurance). Implications for understanding customer cancellation behaviour as the core of business risk management are outlined.Policy cancellation, customer loyalty, profit loss, customer behavior.

A market-consistent framework for the fair evaluation of insurance contracts under Solvency II

The entry into force of the Solvency II regulatory regime is pushing insurance companies in engaging into market consistence evaluation of their balance sheet, mainly with reference to financial options and guarantees embedded in life with-profit funds. The robustness of these valuations is crucial for insurance companies in order to produce sound estimates and good risk management strategies, in particular, for liability-driven products such as with-profit saving and pension funds. This paper introduces a Monte Carlo simulation approach for evaluation of insurance assets and liabilities, which is more suitable for risk management of liability-driven products than common approaches generally adopted by insurance companies, in particular, with respect to the assessment of valuation risk