How does performance management impact on non-profit world?

Simply a plan. This is just another way (certainly much more analytical and modern), to put the parts together, analyse and find a solution to improve the results. The considered and mentioned parts are Managers and employees. Knowing the dynamics of the job as well as giving a fundamental contribution to the organization, suddenly in need of developing a common improvement plan. As mentioned in the HR Council for non-profit sector (available here)

When done well, the process helps to align individual behaviour with the organization’s goals

This is not a new goal. Nowadays, economic difficulties are placing their roots in the world of non-profit organizations, and the analysis of the performances it is crucial in order to obtain an improvement plan. This result, must not be underestimated.

After all:

Without understanding outcomes, you can’t get at the issue of what works and what doesn’t”

Mario Morino,

cited on Harvard Business schoolThe New Measures for Improving Nonprofit Performance

What weighs, therefore, on the heads of the non-profit organization management?

  • Stakeholders
  • funders
  • boards
  • clients

Until now, what has characterized the use of performance management measurement, has been the necessity for a for-profit organization to increase its economic potential.

As mentioned from Alnoor Ebrahim on Harvard Business school in “The New Measures for Improving Nonprofit Performance”:

For the past 20 to 40 years there’s been a lot of talk about capacity building in non-profits, but to actually figure out how to build and support organizations is something we’re learning how to do through the for-profit world. It’s absolutely critical to have that in place first—if you don’t, it’s hard to figure out what are the important things to measure. So that’s number one: the integral relationship between capacity building and performance management.

Photo by ål nik on Unsplash

How do we come up with a list of to do’s for performance management purposes?

A complete list of key points on how to perform a great performance management, it is presented on In 6 Steps to Nonprofit Performance Management they list:

  • Define the main goals behind the effort of your performance management.
  • Ask for Stakeholders input for better understanding of performance measurement definition.
  • Make sure you have a good selection of indicators, in order to forecast any possible change.
  • Go through data collection method
  • Determine what changes are needed around the current staff employment
  • Do not overlook details. This is a very complex process, this is the reason why it is advisable to start with a short number of measures.

Non-profit reality has moved faster over the last decade. It is time to adequate the process of implementing new measurement of internal performance, considering the increasing number of needs and decreasing number of available resources. Developing a very nicely done performance management system, will improve the organization performance around management statistics and service delivery.



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