ABSTRACT: The aim of this paper is to contribute to the theory of public management by presenting empirical evidence of using the Balanced Scorecard for third sector organizations. The research was conducted within an interpretive paradigm using an action research strategy. Data was collected through focus group and individual interviews and analyzed using interpretation and content analysis. The main limitation of this study lies in its application to a very singular type of organization that operates as a driver to improve the efficiency and nimbleness of other public organizations, although the methods employed here are very likely to be applicable to other kinds of organizations without adversely affecting the results. The findings corroborate Kaplan and Norton's (2001) suggestion that non-profit organizations should put customers at the top of their strategic maps. They also indicate that sponsors should be considered a strong stakeholder in the strategic plan, and need to be satisfied in order to ensure legitimacy and sustainability. Although some authors have suggested that an overall framework should be devised for an entire organization, the evidence indicates that developing a single Balanced Scorecard for each department promotes cooperation rather than competition and leads to synergy rather than fragmentation.