Key takeaways:
- Your KPI results will come in the form of leading and lagging indicators - use both when considering next steps
- The purpose of using data in performance management is to keep things on track
- Communicate with your organization’s stakeholders KPI results, what they mean, and what will be done to address any issues identified by those KPIs
The purpose of creating KPIs and using a performance management framework is to effectively ask how the organization is performing and in what regards. KPIs can be tracked and reported using tools such as dedicated KPI software or Microsoft Excel. Regular meetings to discuss results aid in the monitoring process. . Comparing goals with the results gives management the footing to ask questions, understand what strategies are working, and develop solutions to those that are not. Your organization might have fallen short of a volunteer retention goal. Were enough resources put in keeping them motivated? Perhaps your latest donation drive pulled more donations than expected. What was missed in creating that estimate? Your KPI results will help with future planning. Take a look at your KPIs – these may be a mix of leading and lagging indicators.
- Lagging indicators detail past outcomes and suggest reasons for why they occurred. These are used in highlighting areas of interest, such as unexpectedly low client retention or faster-than-average communication times.
- Leading indicators, on the other hand, are existing data that could suggest changes in performance ahead. For example, increased traffic to the organization's website could mean more clients in the coming periods and low volunteer satisfaction could point to higher turnover if management practices don’t change. Now, with a better understanding of your data, your management team can begin answering these questions and crafting a plan around them. Actions might include restructuring how your NPO functions or even seeking out an external consulting service that can assist in tailoring solutions that fit.
Finally, just like during the creation of the organization’s goals, its members should be aware of its next steps. Whether it be through internal reporting or published publicly in some form, communication is key in making changes that stick. Stakeholders and clients want to be assured that the people they are working with are dedicated to improving their service and will always have their best interests in mind.
Interested in finding out more about how to use KPIs to meet your NPO’s goals? Contact us at npo.consulting@gmail.com.