Performance management is the organisational process that informs managers and
board members on progress in achieving agreed objectives and allows them to take
decisions based on the organisation’s accomplishments.
Measuring performance of nonprofit organisations is not easy because outcomes
are difficult to define and quality is often as important as quantity. In addition,
outcomes are often the result of the efforts of a number of organisations.
Nevertheless, measuring outcomes is growing in importance as funders and other
stakeholders want to know what nonprofit organisations have achieved. The effort
that is being put into this area is consequently growing rapidly at present.
Performance management sets out to inform people:
- What, overall, the organisation, division or service has achieved
- Whether agreed developments have been introduced on schedule
- What funders and users think of the services
- Whether they are providing value for money.
This should enable board members, managers, staff and volunteers to focus the
organisation‘s people and funds on the achievement of the agreed objectives.
More on Performance Management
The Balanced Scorecard.
Social Return on Investment.
Assess your organisation’s corporate performance management.
Compass Presentations on Performance Management
Measuring the Performance of Performance Measurement
A Compass Presentation
Books on Performance Management
Practical Monitoring and Evaluation: A guide for voluntary organisations
Jean Ellis, Charities Evaluation Services, 2002
A series of four booklets on monitoring and evaluation for voluntary and community organisations.
Two levels of guidance are offered – a BASIC guide for those new to evaluation and a more in depth ADVANCED guide for those who need more sophisticated material. The guides come with a TOOLKIT of practical working methods.
Your Project and Its Outcomes
Sally Cupitt with Jean Ellis
Charities Evaluation Services
A valuable introduction to outcomes and how to measure them.
Chapters on Performance Management
Managing at the Leading Edge
Mike Hudson, Directory of Social Change, 2003
Chapter 3 Managing Performance
Lessons from leading edge organisations in the US on performance management including:
- grasping the opportunity
- recognising legitimate concerns
- selecting measures to fit the organisation‘s mission
- using results to drive decision making
- embedding performance into organisation culture.
Managing Without Profit
Mike Hudson, Directory of Social Change, 2009
Chapter 9 Managing Strategic Performance
An introduction to performance management concepts including:
- the process of managing performance
- performance indicators
- links with financial management.
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Last updated: August 2014