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Building a Performance Measurement System

 
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Short Description:
This publication discusses now nonprofit organizations can and should measure performance using systems commonly used in the private sector. The authors argue that through the measurement of performance, non-profits can benefit by making calculated steps to maximize their social impact.

Abstract:

Measuring performance can help nonprofits in two primary ways:

  1. Organizations become more effective because they understand how well they are fulfilling their mission.
  2. Consequently, this helps nonprofits build confidence among funders.

Before undertaking a program to measure their performance, however, nonprofit organizations must understand "what the process demands if it is to succeed." The authors advise that organizations should:

  • Commit to critically examine the results and learn from them.
  • Dedicate time to leading the effort and engage staff at different organizational levels to design, develop tools, and put processes in place.
  • Understand the mission before starting, which includes a sense of what success will look like.
The authors also provide a series of templates, including: Performance Measurement Audit Tool; Master Indicator List Template; Management Dashboard Template; and the Program-Level Dashboard Template.

Spot Check Number: 1225
Sponsor: Root Cause
Researcher/Author: Andrew Wolk, Anand Dholakia
Animal Type: Various
Record Type: Organizational Publication or Materials
Research Method: Unknown or Not Applicable
Geographic Region: United States National
Population Descriptors: Nonprofit organizations
Year Conducted: 2009

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