Nonprofit Performance: Outcome Measurement Can Be A Good Thing

Does the idea of program evaluation make your stomach churn? If so, you're not alone. Many nonprofit professionals and volunteers view program evaluation with fear. The idea of outcome measurement often takes these fears to new heights.

Program evaluation is about learning and communicating what you've learned. Program evaluation gives you concrete, credible information about what you are doing well and why; it also gives you concrete, credible information about areas where improvements are needed and why.

Outcome measurement is a form of program evaluation that answers the "so what" questions. It helps us understand what has changed in the lives of the people we reach because of our activities. It could be a change in attitude, behavior, knowledge or any number of things depending upon the mission of the organization. It helps us understand the difference we make and it helps us communicate that understanding to our donors, constituents and the community. It helps us communicate value.

I have found that there are three key issues that raise fears about outcome measurement. Let's examine those issues.

1. Outcome measurement takes an enormous amount of agency resources and staff time.

Outcome measurement is a different way of looking at what you do.

However, measuring outcomes often builds on feedback or information you already collect. You may already ask clients to give you feedback on the services you provide. You may already look at what participants know before they enter a program and their level of knowledge when they complete a program. This kind of feedback and information is frequently used in measuring outcomes.

You don't have to start measuring everything at once. You can begin with a pilot program that looks at one program, product or service. Start small and let everyone feel comfortable with the process. Make sure the pilot program is working before expanding to other activities.

2. There is only one "right" way to measure outcomes.

There is no "right" way to measure outcomes. There is no "one size fits all" approach to measuring outcomes.

There are models that can guide you. One of the most common is the model developed by United Way of America. There are other models and approaches that can be used in conjunction with the United Way model or used separately. The models just outline some essential steps you need to take to look at outcomes.

What outcomes you develop, what indicators you use, what information you collect and how you collect the information is up to you.

Nonprofit organizations have different goals for measuring their success. Common goals are to improve the quality of programs and services, learn and understand the results and impact of activities and guide program planning and implementation. In reality, most organizations have multiple goals.

The outcome measurement process should fit your organization and help you meet your goals.

3. Funding sources will have unrealistic expectations about outcomes that will hurt our financial support.

Most funding sources just want to have some basis for deciding whether investing in your organization will help them meet their philanthropic goals. They are interested in how and why you expect to have an impact on your clients/ and or the community. Outcome measurement is one way for you to help funding sources learn what works and the barriers to success.

Overall, the experiences of many nonprofit agencies indicate that outcome measurement can have benefits. Defining your measures of success can help people inside and outside the organization understand what the organization does and why it does it. It can give you concrete, vivid, credible information to help you make more effective decisions and help you see your organization's value with different eyes.

The road to outcome measurement can be bumpy, but the experiences of many nonprofit organizations show that looking at has a positive impact.

Judith Rothbaum's passion is helping nonprofits thrive. She publishes a monthly e-newsletter with practical management, fundraising and communication solutions for bold nonprofits on the move. She presents seminars, workshops and coaching programs nationwide with one key message - - think boldly about who you are and the impact you have in your community. Visit datafordecisionmaking.com to learn more.

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