Let’s be honest.  Metrics and measurement is not the most scintillating topic, especially for those among us who don’t have a "math brain."  Also, measuring performance can be an incredibly complex undertaking.  The key for success is to allocate quality time in the establishment phase to determine the metrics that are most critical to your organization, at the macro organizational level, and at the micro level, by program and for each staff person. 

As these metrics will become your benchmarks across multiple years, it is important to allow proper consideration in building them with your leadership team and ideally with involvement from an experienced board member.

Using the KIS principle, "Keep it simple" is the best place to start. Pick those metrics and measures that make sense for you and your organization based on where you’re at. Sometimes that may mean doing preparation to get your organization to the point of collecting the right data for measuring performance.

Metrics must perform a decision-making function that allows us, as professionals, to deliver increased levels of funding to organizational priorities.  So, the first step is to determine the decisions you wish to inform and the audience/s who will be using them. 

Some questions to consider include:

• How will these measures be used?
• Who are the users?
• What actions or changes do we want these metrics to drive?
• How will I source and report on these metrics on an ongoing basis?

Each metric adopted needs to be easily trackable, supported by standardized reports, with every team member held responsible for capturing and recording progress (two possible metrics unto themselves).

Metrics and measurement are designed to guide and motivate positive behaviors. Those behaviors, supported by strong leadership and a team commitment to achieving results as a collaborative effort will drive personal excellence and organizational achievement.

Seven principle uses of metrics and performance measurement

1. Investment decisions that grow your capacity to raise more money.
2. Individual performance management and tracking that ensures each member of the team is focused on and achieving personal and organizational goals.
3. Program performance metrics that allow managers to assess, evaluate and improve outcomes as part of a best practice continuous improvement cycle.
4. Data capture for more targeted, high-impact program outcomes.
5. Issues identification and problem-solving whether program or people focused
6. Improving organizational efficiencies; and, most importantly
7. Measuring and reporting on donor impact.

Language and tools are as important as the picture they paint. The principles we apply to negotiating high impact philanthropy should be applied in equal measure to business decision-making: know your audience and use the strategies and tactics that solicit the decision and lead to the actions you seek. 

One last thought about metrics and measurement: keep it simple and remember that your team is made up of people. Use your metrics to inspire and motivate.

This article is excerpted from Karen's chapter on "Measuring Performance" in Excellence in Fundraising, Volume Two, edited by Guy Mallabone.