Key takeaways:
- KPIs should be communicated to people in easy-to-understand forms
- Dashboards and KPI reports are flexible methods of summarizing performance measurements
- Members of your organization should understand that KPIs are used as a tool to grow the organization
The next step in using key performance indicators (KPIs) is to communicate them to the relevant people. Simply having KPIs is not enough to meaningfully help your organization. Poorly communicated performance measures can create muddled expectations as to what your team should be working towards. There are a variety of ways you can present performance, especially through digital means.
KPI reports are a simple and effective method of showing off how your organization has been performing. These reports are analytical and can give information beyond the basic performance data. A report should consider its audience, relevant KPIs, and go through at least one draft to ensure quality and accuracy.
They can be sent through email, presented as a slideshow, or posted online on a website to share with potential donors or stakeholders.
A KPI dashboard is another way to present your KPIs. A dashboard will highlight the day-to-day activities of your organization, such as:
- Number of clients served
- Monthly funding and spending
These can be simpler than reports as they usually only contain key metrics in organized charts and graphs, leaving out details that are usually only needed for analysis. KPI Dashboards can be created through Microsoft Excel or other various free sites online. Note that not all non-profits will find this format useful, such as those that only take on occasional projects throughout the year.
There is no one correct way to create reports and dashboards. Your organization should do whatever will work best considering the nature of your work, how many members are involved, and to whom specific KPIs should be presented to. Internally, members and volunteers should recognize that the purpose of measuring and reporting KPIs is to promote the non-profit’s success. Allowing members of the non-profit to view the KPIs can help them determine the next steps for the organization. Performance measurement frameworks and reporting standards can be used to communicate to all members the importance of this kind of reporting. Improving the communication of performance to employees can result in greater employee engagement, targeted action, and higher growth.
Interested in learning more about how our services can assist your NPO?
Reach out to us at npo.consulting@uwaterloo.ca.