The Measure of Metrics

The article accurately points out the evolution of effectiveness in philanthropy and the fact that a growing number of foundations and nonprofits are focusing on measurement. However it misses the mark in looking at the necessary tools to successfully link efforts to outcomes. If organizations are not aware of the tools and processes to help them better track their performance -they won't know where to begin. They are doing important work and many don't want to be side tracked with cumbersome reporting processes, which will take time away from their core mission. Organizations need to stay focused on their missions and manage both inputs and outcomes in a scalable way.

The tools and systems currently available are as important to helping non-profits as the desire to better understand their effectiveness. The two go hand-in-hand. After all, what matters the most is not the number of classes taught or students who attended, but the real changes in the lives of those affected. And measurement of those changes can really tell us what works and how. Notable nonprofit organizations which are leading the way in this effort include Roca in Chelsea, MA, and the Latin American Youth Center in Washington, D.C.

These organizations have already shown how such systems can be used to align organizational efforts with intended outcomes -- using disciplined, business-like metrics -- to enhance a nonprofit’s service delivery and effectiveness, promote organizational efficiency, and even quantify the value of contributions for funders. These organizations have set the bar for tracking efforts to outcomes and can serve as role models for all those who seek to be more effective organizations. It is not enough to merely talk about the importance of measurement but to find ways to really make it happen. The future of nonprofit success depends on it.

Steve, thanks for the thoughtful observations. You are right on target in focusing on the need to identify optimal measurement tools--there are any number of nonprofits out there that agree measurement is an important concern but, as you say, need help finding systems that balance measurement with mission. There's a short step from efficient metrics to TPS paralysis, which is just as bad in the long run as ignoring metrics altogether.

Another thing that nonprofits are looking for, I think, is a rationale for metrics that goes beyond ROI and mimicking for-profits. That's one reason for this site, which in its own way is part of a larger project aimed at rethinking nonprofit identity.

For folks who want to know more about the specific programs Steve mentioned, here's a link to Roca's Efforts-to-Outcome system and the Latin American Youth Center's RESULTS initiative.