e-Newsletter: Connect to Solutions
Measuring Performance…Positioning Your Agency for Success
By CNE Affiliate, Dianne Oliver
Nonprofit organizations are playing their own game of “Survivor” today. Scarce resources coupled with increasing demands for accountability have created a highly competitive environment in which only the strong can survive. The strongest organizations are those that are taking a closer look at their bottom line. This means not only being fiscally accountable, but also being programmatically accountable
The real bottom line for nonprofits is whether or not program strategies and interventions achieve desired results. Are the programs making a difference in the lives of those served? Are the funds allocated to nonprofit organizations leading to greater success and long term change? It’s the “so what?” question. To many service providers, this question is still puzzling. Most agencies continue to define themselves by their programs, services and numbers served.
If agencies are to successfully compete in today’s environment, they must be able to demonstrate results. This means identifying, measuring and reporting client outcomes or performance measures. Outcome or performance measurement is not just a reporting requirement imposed by funders. It is an agency driven approach to tracking the program’s success in achieving stated results.
• It answers the question of effectiveness - do your strategies/interventions achieve desired results?
• It answers the question of efficiency - what is the cost-benefit ratio for your program?
• It answers the question of relevance - does your program have value in today’s world?
The results obtained through outcome measurement should inform all decisions regarding management and governance by agency leadership.
Surprisingly few nonprofits do this in a systematic way. The most commonly reported barriers to implementing an outcome measurement system are time and expertise. While both are clearly needed, they are not insurmountable. Some rules of thumb for successful implementation include:
1. Get buy-in from all levels of the organization including board leadership. Commitment from the top is essential. Equally important is an understanding of the need for and value of outcome measurement at all levels within the agency.
2. Put together an outcomes implementation team which brings together a range of perspectives from the agency. Don’t assign outcome measurement to just one or two persons and don’t rely exclusively on program staff or development staff.
3. Outcome measurement isn’t rocket science. You don’t need a PhD in research or evaluation to measure outcomes but training for staff is important. There should be a basic understanding of the key concepts and how to apply them.
4. Keep it simple. Focus on those outcomes that really tell your story. Trying to measure too many outcomes will leave you drowning in data.
5. Program outcomes and performance measures should be compatible with the agency mission and vision. Program or client outcomes are the “bottom line” for the agency and should be closely aligned with the agency mission and vision.
6. Use your findings. Don’t leave your outcomes data sitting on a shelf or buried in a report for funders. This is valuable information that you should use on an ongoing basis to demonstrate effectiveness, enhance program quality and communicate program value.
It is time for nonprofit agencies to realize that outcome measurement isn’t something extra that “we’ll get to when we have time”. The organizations that will survive in today’s climate of increased demands for accountability and limited resources are those that are able to demonstrate results. If you’re already measuring outcomes, continue to use what you learn. If you aren’t measuring outcomes, start putting a process in place. It’s the most important thing you can do to position your organization for success.
Dianne Oliver
Dianne Oliver Consulting
330-418-1995
dkaoliver@msn.com
Contact Jeff Vengrow, Director of CNE Solutions at (330) 762-9670 or vengrow@cfnpe.org for more information or to speak with one of our staff.