Measuring performance

Relationship level

• One or both parties do not understand what measuring performance is intended to achieve.
• Information required by government does not help the community organisation’s performance.
• Government agencies sometimes ‘trawl’ for information that has no bearing on the project or programme under consideration.
• Not enough time is allowed for developing good systems.
• Good attitudes to performance assessment are not encouraged.

Organisational level

• There is often confusion about how to define key measures.
• There is a tendency to focus on programme output measures rather than outcomes.
• Measurement regimes do not seem to focus on the quality and effectiveness of programme practices.
• Simple information communication technology (ICT) reporting tools are not used often enough.

Not all NGOS have access to ICT and government agencies should design systems and allocate funding with this in mind.

Benefits of a good system

• Good systems provide accurate and up-to-date feedback on what is working well or not so well.
• The funder can better compare what is being paid for with what is delivered.
• Communication is improved, both within the NGO and between funder and NGO.
• A successful performance-measurement system can become the basis of performance-monitoring systems across the organisation.
• The performance-monitoring environment becomes more responsive and adaptable.
• Good monitoring systems can trigger discussions on issues such as values and mission.

The following questions can be used as a checklist to measure the capacity-building needs of NGOs.

• Is the NGO motivated to commit time and resources to performance measurement?
• Are the NGO leaders (including chief executive and board) involved in the conceptual work that underpins a good process?
• Is there an adequate level of trust between the funder and the NGO?
• Is trust being actively built and reinforced?
• Is the performance-measurement process able to contribute to wider capacity building?
• Are roles, responsibilities and expectations clear between all parties?
• Has sufficient time been allocated to work with the NGO to ensure better understanding and appropriate technical assistance?
• Has the NGO involved a wide range of staff in developing and implementing the performance measurement regime?
• Have the NGO's staff got enough time to commit to the process?
• Is there a commitment to deeper cultural change as part of the process of building capacity?

In measuring performance, the Ministry of Social Development follows some key principles.

• All parties must understand the purpose of the performance-measurement regime.
• Information gathered should be useful to all parties and contribute directly to improved performance.
• Set aside enough time and resources to develop an agreed regime.
• Involve key/senior staff from the start.
• Build a culture of inquiry to foster change.

The following sample performance-measurement framework draws on work with not-for-profit organisations in the United States involved in job search assistance and job training.

The framework is used to identify key organisational goals. Some quantitative data is collected for each goal to show what has been achieved. Data is collected over several years to show trends. Putting all the data on one form allows stakeholders to quickly see what progress is being made for each goal.

Community organisations can use this format for their own goals and performance measures.