MISSIONS WITHOUT MEASUREMENTS: A NON-PROFIT’S GUIDE TO INEPT PLANNING

It is fair to say that nonprofit organizations, whether big or small, exist to meet a need, whether it be in a neighborhood, a community, a region, a nation, or the world. A nonprofit’s Mission is composed with great care, as it is the stakeholders’ signature statement of the need(s) they intend to satisfy. 

Some nonprofits will then create a Business Plan or a Strategic Plan to set forth how they propose to fulfill their Mission. In many cases, these Plans draw upon data and past experience, and include provisions for determining the likelihood that their Mission will be accomplished in a timely manner. These performance indicators are commonly known as Metrics.

Surprisingly, many business organizations devote little, if any, time or thought to assessing or measuring the progress or performance of employees responsible for executing the company’s Plan. This is especially true in the case of nonprofits which assert that they do not have the resources to measure productivity.

Why are Metrics essential to all nonprofits?

·      They require the formulation of standards & expectations.

·      They enable Management to forecast success or failure and allow time for changes in plans and/or re-deployment of resources, where appropriate.

·      They help forecast the likelihood of achieving their Mission

·      They may be used to assess whether employees, donors, beneficiaries, and other stakeholders continue to support the company’s Mission (and if not, why not).

This is not rocket science. Programs and services require detailed guidelines & standards for monitoring performance throughout their duration. As an example, construction projects require blueprints and adherence to Building Codes. Inspections and permits ensure that construction adheres to the plans.

Nonprofit organizations cannot operate on a wish and a prayer. Donors and investors expect the beneficiaries of their support to be able to demonstrate compliance with plans and efficient use of donated dollars.

 Today’s Managers must create metrics designed to provide meaningful answers, or they must adapt the metrics of another nonprofit with a comparable Mission which have been proven to be strong indicators of performance. Failing to do so could make a nonprofit’s management team accountable for wasting assets, and subject to liability to its supporters.