Subject: Capturing performance

In my experience, I noticed a direct correlation between the ambiguity of charity mission and its performance. Where, it is not possible to explain what the particular charity does is one sentence, it is more often a problem to measure performance. I would always challenge the charity to explain what they do in one sentence so that a lay person can understand easily, that is a foundation to measure performance effective. The charity culture needed to change, where each stakeholders (staff, trustees, volunteers etc) subconsciouly always ask themselves before taking any action whether these are having a direct impact on its mission.

Golam Morshed

I see ‘performance’ broken into efficiency and impact.

Efficiency is about using resources optimally so they derive the maximise value for the charity, having processes in place that ensure the organisation works well, setting clear expectations for staff, stakeholders and management, etc …

Impact should show a charity is having the desired results and outcome for donors, its beneficiaries and stakeholders.  In an ideal world, ‘impact’ loops back into efficiency to solidify positive behaviours on an operational level.   

In both instances – how one captures performance greatly depends on the organisation and I am a bit fan of mixing qualitative and quantitative approaches – especially when the charity doesn’t have a system already in place.  It’s the nuances and stories of what charities do that makes the sector unique. 

Therefore I try not to count for counting sake. Rather I think there is a progression of developing quantitative benchmarks that truly indicates outcomes and results and often there are a few stages before an organisation gets to indicators that truly depict its achievements.  Plus – such an approach makes measuring performance more sticky across an organisation as good change management elements – e.g. two – way communication - are inbuilt and it creates a more supportive performance environment. (sorry, for the  ‘consultancy speak’).

Granted none of the above works well without a good strategy and I agree with Golam that there is certainly a relationship between strategy and performance that underpins the viability of the two.

Hi,

You both talking about performance measurement being linked to a good enough and clear strategy and plans. How do you ensure that a strategy is good enough and measurable, and that ensuing annual plans are derived from it?

Usually these are two, even three successive organisational processes  where the teams deciding on what needs to be done ( Senior Management) are not the ones implementing ( frontline) the work.... Does anyone have any tips and anything they would recommend?

Thanks,

Dee

A very simple technique I use to make sure that the strategy is measurable, is to ensure a verb is at the start of the sentence.  It makes a real difference when I use the ‘shopping list of measurable objectives’.  There is a basic copy of this tool on my website, this version is for learning objectives but can be adapted to operational objectives.  It is a activities pdf  at http://www.sheilafraser.co.uk/associates  in the ‘Training ideas’ section on the right hand side.

Sheila in Scotland  

Hi Dee

Thanks for your comment and apologies for not responding sooner.  Whether a strategy is ‘good enough’ is really a factor of whether it well-articulates what a charity about, what it wants to achieve and how it plans to do that.    If not, ‘performance measure’ becomes in my experience more of a paper pushing exercise vs. than driving real change and capturing impact.

And while you are certainly right – Senior Management often is responsible for developing strategy – it should not be in a vacuum and select feedback is a must.  But even where this doesn’t happen – management has a responsibility to know how their organisations work and staff to execute.  If there is a disconnect - then certain something else is happening and likely some organisational assessment needs to be undertaken to bring everyone into the fold (so to speak).

One tip you could try is to do an organisational assessment upfront (see VPP’s capacity building workbook for a great approach). For strategy - there are an array of other resources on my website which you are more than welcome to browse.