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This month we conclude a nine month series on Radical IMPACT. Through this series we have looked at eight essential elements required in not-for-profit organizations to achieve Radical IMPACT [click here to read any of the past articles]. Before we launch into this month’s topic, let’s revisit the concept of Radical IMPACT. We define it as:
The powerful effect or impression created by a passionate and empowered grassroots leader or organization on the root causes or fundamental issues among the clients, communities or causes served that markedly departs from the status quo resulting in lasting change.
We conclude this series by looking at a serious challenge for many community leaders -- the issue of performance. Through this article we will explore three areas of performance that not-for-profits should address on a regular basis:
- Organizational performance,
- Staff performance, and
- Leadership performance.
If organizations desire to achieve Radical IMPACT, they must regularly measure performance in each of these three areas.
How do you measure the IMPACT you are making with your clients and communities? Many grassroots organizations have incredible stories (anecdotes) of IMPACT in the lives of individuals they serve. However, they fail to capture this IMPACT in any other manner. Stories are powerful and you should continue collecting those that personalize the data you gather and allow people to connect with the statistics you provide. Yet, as funders increasingly demand documented results, it is critical that you quantify your IMPACT in measurable ways that allow them to grasp the significance of your work.
When many funders give you money, they are not really giving you anything. They are buying services for those who need your services, but are unable to purchase them for themselves. Therefore, many of these funders want to know the return on investment they receive for the philanthropic investment in your organization. In other words, how do you measure the IMPACT you are achieving through their financial investment.
As Jim Collins writes in Good to Great and the Social Sectors, “For a nonprofit, performance must be assessed relative to mission, not financial returns. In nonprofits, the critical question is not ‘How much money do we make per dollar of invested capital?’ but ‘How effectively do we deliver on our mission and make a distinctive impact, relative to our resources?’”
When measuring organizational performance, it is necessary to capture both your outputs and your outcomes.
These outputs may include the number of people taught, housed, fed, sheltered or counseled. These are important numbers to track for your organization as they may help funders understand the efficiency of your program. Yet outputs alone do not reflect the transformation that occurs in the lives of your clients as a result of participating in your services.
Outcomes are commonly classified as either short-term (knowledge and skills), intermediate (behaviors) or long-term (values, conditions and status), and programs usually have a mix of all of these. Outcomes demonstrate the effectiveness of your programs. Are your programs impacting participants in ways that help you deliver on your mission?
Learning to capture and communicate your outputs and outcomes will enhance your ability to access a variety of funding streams, including foundation and government grants.
There are several elements involved in measuring staff performance.
Perhaps the first and most basic element necessary to measure staff performance is clearly articulating expectations for each staff position through job descriptions. It is amazing how few employees in grassroots organizations actually have job descriptions that accurately reflect their roles in the organization.
It is also vital to provide ongoing training and professional development for all staff members. Many grassroots organizations attract staff members that are passionate about the vision and committed to the mission, but lack some of the necessary training to excel in their work. There is nothing wrong with this as long as the organizations provide ample and adequate training opportunities for those employees to acquire the learning and develop their skills.
You may have heard the expression, you must inspect what you expect and this certainly applies to staff performance. Employees deserve periodic job reviews and performance evaluations. At a minimum, all staff members should have an annual performance review where their manager conducts a formal performance appraisal; reviews staff accomplishments and helps identify areas for growth and development. This process should also include developing and monitoring a growth plan for each staff member that identifies areas within the organization where they desire to learn and grow. This process helps employees acquire new skills and expand their service to the organization. Ideally this would be updated on a semi-annual or perhaps even quarterly basis.
Managing staff performance on a continual basis is critical to maximizing their IMPACT. Additional benefits to this process include increased job satisfaction and higher employee retention.
There are two areas where it is imperative to regularly assess leadership performance to achieve Radical IMPACT. However, few grassroots organizations have structures in place to measure either.
It is imperative to assess the performance of the governing Board of Directors on an annual basis to ensure they are fulfilling their legal duties to the organization and providing the leadership necessary for the organization to fulfill its mission. I realize this may be a foreign concept to some of our readers and that for many organizations much work, education and training is required to get their boards to the point where an annual assessment is a viable option. It is more than we can address in this article. However, please realize that it would be helpful to have an annual review process that allows each board member to individually assess their performance and that the board would also collectively assess their effectiveness in leading the organization. This is necessary to maximize their IMPACT as leaders.
The Board has a responsibility to assess the performance of the chief executive (Executive Director or President/CEO) to ensure they are effectively serving the organization and have the tools and resources available to guide the organization on its journey. Additionally, the board is responsible for assisting the ED in their professional growth and development. The Board should adopt a process that is tailored to the needs and culture of the organization. We are not prescribing how this should occur, but encouraging you to adopt a process that best serves your organization.
I realize these may be foreign concepts to some of our readers and that for many organizations much work, education and training is required to get their boards to the point where an annual assessment is a viable option. It is more than we can address in this article. As a matter of fact, we are launching a monthly newsletter in 2008 focused on board development for grassroots organizations. For the purposes of this article, please realize that it would be helpful to have an annual review process that allows each board member to individually assess their performance and that the board would also collectively assess their effectiveness in leading the organization. This is necessary to maximize their IMPACT as leaders.
We trust this series of articles has inspired you to continue your journey to excellence. We are committed to helping you maximize the IMPACT of your organization. Your clients and communities need you to be at your best.
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