Metrics is a word that everyone is using. The measurement of performance in the U.S. became important during the industrial revolution. Dupont and GE began using metrics to better their own business. The challenge in using metrics to evaluate performance of a person, department or activity is whether you are choosing the right outputs to measure.
We measure the performance of our major gift officers, our development departments, the dollars raised and the impact of the entire organization. Donors have become known as investors and they are asking for metrics of the organization. They want a good return on their charitable dollars.
However, not everything is measurable. How do you measure a relationship built over three years that turned into a six or seven figure gift? How do you measure the impact of a scholarship given to a student who goes on to become a great surgeon or the difference a home makes for the next generation of a family?
Not everything can be measured in the nonprofit world nor should it be. Sometimes doing the next best thing should be good enough, and sometimes the real impact is made on the life of the donor who finds true joy in giving and passes that down through his family.
Last week in a conversation with a client we discussed the amount of money raised but the metric came up about a development officer’s activity (how many people did they see last month). I wonder if activity is really the best measure?
Measure activity and performance but keep in mind that the most important thing is making a difference in the people’s lives we serve, our donors, the people who work with us and doing good in this crazy world we live in.
Written by Paul D’Alessandro
