Measure Impact in Four Major Categories
In the course of a busy week, it's hard to find time to examine the question, "How are we really doing?" In addition, it is a challenge to identify the best methods for evaluating impact. A framework for choosing methods of evaluation can make the process easier to manage and more strategic.
When deciding what to measure, focus on items that fall within one of these four categories:
Within each these four categories, consider the many variables you could measure. For example, you might measure management by tracking the degree to which your team follows through on promising ideas, or by gauging your success in winning certifications and awards. You might measure community outreach by monitoring response rates to each marketing communication you make. You might measure programmatic impact by tracking the development of skills by the clients you serve, or by measuring the number of people who demonstrate mastery of the subject matter for a course you have developed. You might measure financial sustainability by scoring the diversity of your funding base (sales, donations, and grants) or your ratio of cash to debt.
In designing an impact measurement system, focus on effectiveness rather than busy-ness. Thus instead of measuring items such as "time spent with a client" or "number of clients served," measure "number of clients getting the desired results" or "percentage of clients who use our tools and advance to the next stage in our program."
Within each of the above four categories, identify three to five measures that are most closely aligned to your mission and strategy, and emphasize those measures when gauging your impact. There may be additional variables you can track, so be careful to invest in the ones that matter most.
When deciding what to measure, focus on items that fall within one of these four categories:
- Leadership and management: How well are we leading and managing?
- Community outreach: How effectively do we engage our community?
- Programmatic impact: How well do our programs serve individual customers or constituents?
- Financial sustainability: How financially sustainable are we?
Within each these four categories, consider the many variables you could measure. For example, you might measure management by tracking the degree to which your team follows through on promising ideas, or by gauging your success in winning certifications and awards. You might measure community outreach by monitoring response rates to each marketing communication you make. You might measure programmatic impact by tracking the development of skills by the clients you serve, or by measuring the number of people who demonstrate mastery of the subject matter for a course you have developed. You might measure financial sustainability by scoring the diversity of your funding base (sales, donations, and grants) or your ratio of cash to debt.
In designing an impact measurement system, focus on effectiveness rather than busy-ness. Thus instead of measuring items such as "time spent with a client" or "number of clients served," measure "number of clients getting the desired results" or "percentage of clients who use our tools and advance to the next stage in our program."
Within each of the above four categories, identify three to five measures that are most closely aligned to your mission and strategy, and emphasize those measures when gauging your impact. There may be additional variables you can track, so be careful to invest in the ones that matter most.
Posted by Bryan Richards. Posted In : nonprofit management
Bryan is President of Aspen Impact, a firm that specializes in turning nonprofits into more attractive investments for companies, foundations, and individual donors.
