Performance Measurement Challenges in Nonprofit Human Service Organizations

Abstract

This qualitative study examines the experiences of four nonprofit human service organizations engaging in performance measurement processes to satisfy accountability requirements and increase organizational and program effectiveness. Nonprofits are increasingly required to respond to performance measurement mandates issuing from multiple sources. However, many of the recommended strategies have been developed in the for-profit and public sectors, and are less appropriate or feasible for nonprofit organizations. Three central findings emerged from interviews, focus groups, and review of archival data. First, the complexity of human change processes and the variation among individual clients complicate efforts to define client outcomes. Second, staff skills play a critical role in effective utilization of data systems. Third, organizational strategies to support performance measurement include incorporating user perspectives into system design and providing adequate staff access to data.

Becoming Business-Like

“…The extent and related repercussions of nonprofit organizations (NPOs) becoming more business-like (Carnochan, Samples, Myers, & Austin, 2014;Coule, 2014;Dart, 2004;Maier, Meyer, & Steinbereithner, 2016;Sanders, 2015) and professionalized (Keevers, Treleaven, Sykes, & Darcy, 2012) has given rise to a considerable debate within nonprofit studies (Maier et al, 2016). The introduction of performance management techniques, imported from the public and private sectors (Aiken & Bode, 2009;Carnochan et al, 2014), is widely argued to have led to an increased "focus on outcomes, and the introduction of competitive practices" (Dennis Garland & Darcy, 2009, p. 757), requiring NPOs to "demonstrate cost-effective and professional management" (Tomlinson & Schwabenland, 2010, p. 102).…”

Policy Brief: The Case for Using Robust Measures to Evaluate Nonprofit Organizations

“…Thomson's (2010) research suggests that there are gaps between what nonprofits aim to do and what they can actually accomplish in evaluation, and that we know less about whether nonprofits can use these input in their decision-making. Research also suggests that tools for performance management are often developed in the public or corporate sector and then appropriated for nonprofit use (Carnochan et al 2014;Ospina, Diaz and O'Sullivan, 2002). However, if nonprofit evaluation tools are created explicitly for nonprofits -and they are involved in their development and testing -we have a better chance of developing instruments that are actually useful to the nonprofit.…”

“…However, nonprofit organizations struggle to evaluate their outcomes (Herman and Renz 1997); more recently, researchers have singled out social service organizations for their difficulties in measuring performance (Carnochan, Samples, Myers and Austin 2014).…”

Organizational and Individual Determinants of Evidence Use by Managers in Public Human Service Organizations

“…Through the development and utilization of multidimensional data dashboards, performance measurement systems generally involve the collection, analysis, and reporting of critical information concerning agency and program outputs (Hatry, 2007). Gathering and reporting these data often involves managerial staff throughout the agency, which may increase opportunities for and engagement with agency-based data and other forms of evidence (Carnochan et al, 2013).…”

“…Managers may also invest in performance measurement via the development and systematic use of data dashboards that track important organizational and programmatic indicators (Carnochan, Samples, Myers, & Austin, 2013;Hatry, 2007). At a service program level, administrators may select, implement, and administer evidencebased practices and other manualized evidence-supported treatments (Barth et al, 2012).…”