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Measuring Up

We can be satisfied with process no longer.
Ron Mattocks | Outcomes, Jun/Jul 2008

As we burst into the 21st century, the public sector has moved into a new era of expectations and accountability, fueled by calls for objective performance metrics and outcomes measurements. Even nonprofit ministries are being challenged to demonstrate quantifiable outcomes, a step beyond performance metrics.

In "Basic Guide to Outcomes-Based Evaluation for Nonprofit Organizations with Very Limited Resources," Carter McNamara defines outcomes measurements as a focus on your clients, a measurement of your impact, transforming clients either short term or long term. In contrast, performance metrics focus on organizational systems, inputs, and outputs. A social services agency offering life skills courses to incarcerated youth might have performance metrics that show numbers of course offerings, numbers of class participants or numbers of cities served, while its outcomes measures would focus on short-term and long-term recidivism rates for clients served.

The nonprofit health-care and education sectors clearly have the most comprehensive performance metrics in place, but they have struggled with the challenge of moving beyond performance to demonstrate outcomes. In 30 years of working in the nonprofit arena, especially in health care and higher education, I have come to realize that the traditional performance metrics, such as hospital bed utilization, procedures completed, courses offered or degrees awarded, fall short of demonstrating outcomes such as postoperative quality of life or lifetime employability of graduates.

If we are serious about increasing organizational effectiveness for ministry organizations, we need to utilize performance metrics that can accurately measure progress, but demonstrate our ministries' ultimate life-changing impact.

The bar of quantifiable results has already been raised. Both government and foundations have deployed performance and/or outcomes-based funding contracts that place nonprofits at risk. These funded organizations must now pay operating expenses up front, with final release of contract funds dependent on measurable achievement of pre-established performance metrics or outcomes. The problem is that the nonprofit sector has historically been behind the curve on performance metrics. Too many nonprofits have not yet established adequate performance metrics to manage and learn from day-to-day operations, leaving them ill-prepared to move into outcomes measures.

We don't have to look far to see how a legendary ministry leader employed performance metrics and outcomes measures to enhance organizational effectiveness. Looking to rebuild Jerusalem, Nehemiah envisioned the outcome—an enduring, viable city. He then strategically engaged the king of Persia to support the mission and protect him from those who would otherwise resist his efforts. As a manager, Nehemiah utilized performance metrics in organizing resources, recruiting volunteers and staff, and delivering a quality product on strict timelines. As a developer of resources, Nehemiah was direct and bold in his requests, securing contributions for all that he needed to rebuild a complete city. As for governance, after the wall was complete, Nehemiah gathered together a mix of civic and religious leaders to govern the city, establishing policies for taxes, security, and city assets. Nehemiah encompassed all that we are about: outcomes, organizational effectiveness, leadership, governance, management, and resource development.