STRENGTHENING NONPROFITS:

A Capacity Builder’s Resource Library

Unleashing
Teams:
A New
Approach to
Performance
Management
TABLE OF CONTENTS

INTRODUCTION............................................................................................................................... 4

OVERVIEW....................................................................................................................................... 6
Agreement On What Isn’t Working............................................................................................... 6
A Way Forward................................................................................................................................ 6

CHAPTER 1: PERFORMANCE MEASUREMENT TRANSFORMATION..............................................7

Benefits and Challenges of Team-based Performance Management......................................... 8
A Process for All Levels within a Nonprofit................................................................................... 9
Essential Elements of the Process................................................................................................... 9
The Organization of the Team...................................................................................................... 10

CHAPTER 2: PREPARE FOR CHANGE..............................................................................................11

CHAPTER 3: IDENTIFY GOALS....................................................................................................... 14

Defining Goals................................................................................................................................ 15
Goals at Each Organizational Level.............................................................................................. 15
SMART Goals.................................................................................................................................. 16

CHAPTER 4: CLARIFY AND CREATE ACCOUNTABILITY............................................................... 17

Delegate Tasks................................................................................................................................ 17
Building Accountability................................................................................................................. 17

CHAPTER 5: OBTAIN ANALYTICAL SUPPORT...............................................................................18

Considerations for an On-staff Analyst........................................................................................ 19
When and How to Consider a Consultant.................................................................................... 19
Hire a Consultant to Coach the Staff............................................................................................20

CHAPTER 6: IDENTIFY AND COLLECT THE NECESSARY DATA.................................................... 21

Define Outputs, Outcomes, and Measures.................................................................................. 21
Considerations for Setting Outputs, Outcomes, and Measures as a Team................................22
Data Collection Plan......................................................................................................................23
Collecting the Data........................................................................................................................23
Evaluate Data Sources and Methods............................................................................................24
Leverage Existing Data..................................................................................................................24
Ensure Quality Control...................................................................................................................24

CHAPTER 7: ANALYZE AND INTERPRET THE DATA......................................................................26

Analyze the Data...........................................................................................................................26
Interpret the Data..........................................................................................................................27

CHAPTER 8: IMPLEMENT TEAM-BASED REVIEWS.......................................................................28

Select the Means of Delivery.........................................................................................................29
From Collective Meaning Making to Collaborative Decision Making........................................30
Recognize....................................................................................................................................... 31

CHAPTER 9: REFLECT AND REFINE................................................................................................32

Evaluate the Performance Measurement System........................................................................32

CONCLUSION..................................................................................................................................34

APPENDICES...................................................................................................................................35
Appendix A: Assessment Tools and Skills Matrix.........................................................................35
Appendix B: Risk Mitigation Plan..................................................................................................37
Appendix C: Indicators of Change Readiness...............................................................................39
Appendix D: Communication Plans and Template...................................................................... 40
Appendix E: Change Leadership Checklist...................................................................................42
Appendix F: Developing a Logic Model....................................................................................... 44
Appendix G: Creating Performance Measures from a Logic Model...........................................47
Appendix H: Sample Data Collection Worksheet....................................................................... 48
Appendix I: Performance Data Analysis Methods and Tools..................................................... 49
Appendix J: Graphic Data Presentations......................................................................................52
Appendix K: Scorecards and Dashboards.....................................................................................53
Appendix L: Facilitating Collective Meaning-Making and Collaborative Decision-Making..... 54
INTRODUCTION
The Compassion Capital Fund (CCF), administered by the U.S. Department of Health and Human Services,
provided capacity building grants to expand and strengthen the role of nonprofit organizations in their ability
to provide social services to low-income individuals. Between 2002 and 2009, CCF awarded 1,277 grants
and the CCF National Resource Center provided training and technical assistance to all CCF grantees.
Strengthening Nonprofits: A Capacity Builder’s Resource Library is born out of the expansive set of resources
created by the National Resource Center during that time period, to be shared and to continue the legacy of
CCF’s capacity building work.

Strengthening Communities Fund (SCF), a capacity building program that succeeded CCF, was launched
in 2009 to provide capacity building grants with an emphasis on economic recovery. After Strengthening
Nonprofits: A Capacity Builder’s Resource Library was released in 2010, the National Resource Center
created and added additional resources in support of SCF grantees.

Strengthening Nonprofits: A Capacity Builder’s Resource Library contains guidebooks and e-learning resources on
the following topics:

1. Conducting a Community Assessment

2. Delivering Training and Technical Assistance

3. Designing and Managing a Subaward Program

4. Going Virtual

5. Identifying and Promoting Effective Practices

6. Leading a Nonprofit Organization: Tips and Tools for Executive Directors and Team Leaders

7. Managing Crisis: Risk Management and Crisis Response Planning

8. Managing Public Grants

9. Measuring Outcomes

10. Partnerships: Frameworks for Working Together

11. Sustainability

12. Working with Consultants

Who is the audience for Strengthening Nonprofits: A Capacity Builder’s Resource Library?

Anyone who is interested in expanding the capacity of nonprofit services in their community – from front
line service providers to executives in large intermediary organizations – will benefit from the information
contained in this resource library. The National Resource Center originally developed many of these resources
for intermediary organizations, organizations that were granted funds by CCF to build the capacity of the
faith-based and community-based organizations (FBCOs) they served. As such, the majority of the resources
in Strengthening Nonprofits: A Capacity Builder’s Resource Library support intermediary organizations in their
capacity building efforts. However, funders of capacity building programs (Federal program offices and
foundations) and the nonprofit community (including FBCOs) at large will also find these resources helpful.
In addition, individuals working to build capacity within a program or an organization will be able to use
these resources to support their efforts to implement change and make improvements.

4
The Unleashing Teams: A New Approach to Performance Management guidebook will be helpful to any
organization that wants to learn more about implementing or improving its procedures for developing a
team-based approach to performance management.

Who developed the Unleashing Teams: A New Approach to Performance Management guidebook?

The guidebook was developed for the Department of Health and Human Services by the Strengthening
Communities Fund National Resource Center.

5
OVERVIEW
Agreement On What Isn’t Working
Over the past 20 years, the ability of nonprofit social service organizations to collect outcome data has
grown considerably. The Measuring Outcomes guidebook, first published in 2004, reflects a decade of work by
evaluators and United Ways in helping nonprofits measure outcomes rather than efforts. However, the quest
to measure “impact” has largely been driven by funders, and many are now questioning the value of the data
generated because it is not used to influence program operations.

Even advocates of outcome measurement are concerned by the amount of data that is generated with
questionable utility. Mario Morino of Venture Philanthropy Partners, someone who, by his own account, is
“strident in stressing the importance of outcomes and assessment for nonprofits,” wrote in 20101:

I am increasingly worried that the vast majority of funders and nonprofits are achieving, at best,
marginal benefit from their efforts to implement outcomes thinking. Granted, there has been some
truly meaningful progress….Yet, many other efforts may end up misdirecting, even wasting, precious
time and financial resources.

At the same time, many observers have complained that the paradigm of third-party evaluation, evaluation
efforts conducted by an independent person or group outside of the organization, has not served the sector
well. In a 2011 plea to the evaluation and funding community, Priorities for a New Decade: Making (More)
Social Programs Work (Better),2 Public/Private Ventures observed that third party evaluations were producing
large quantities of unhelpful data.

The wealth of new evaluators and research methods has produced volumes of information and
analysis that were scarcely imaginable three decades ago. Yet even amid this flood of data, the
promise of using information gleaned from evaluations to improve programs remains elusive.

This guidebook is designed to help organizations that want to stop simply generating data and start using it.

A Way Forward
Effective performance management requires the engagement of stakeholders—including those being
measured and those doing the measuring—in the process of designing and implementing measurement
systems.3 Rather than dictate measures from the top down, a leader steps forward and guides the team toward
the shared goal of gathering data upon which the organization or team judges its effectiveness. This idea is
applied by governments at all levels in a widely replicated model of organizational learning and program
improvement. The model calls for regularly reviewing and acting on data as an organization. The model,
which started in the New York City Police Department (CompStat), has been widely adopted elsewhere in
government starting in Baltimore (CitiStat and StateStat). The principles of the model are:4
ƒƒ Accurate and timely intelligence: Know what is happening.
ƒƒ Effective tactics: Have a plan.

1 Morino, M. “‘Social Outcomes’: Missing the Forest for the Trees?,” Venture Philanthropy Partners Blog, January 8, 2010,
http://www.vppartners.org/learning/perspectives/corner/0110_social-outcomes.html.
2 Public/Private Ventures. “Priorities for a New Decade: Making (More) Social Programs Work (Better),” 2011.
3 Linnell, D. “Evaluation of Capacity Building: Lessons from the Field.” Alliance for Nonprofit Management, 2003.
4 Godown, J. “The CompStat Process: Four Principles for Managing Crime Reduction.” The Police Chief, vol. LXXVI, no. 8,
August 2009.

6
ƒƒ Rapid deployment: Do it quickly.
ƒƒ Relentless follow-up and assessment: If it works, do more. If not, do something else.

However, what really sets the model apart from other performance management systems is the team-
oriented, face-to-face nature of digestion of data.5 Its success depends on the quality of that interaction, the
engagement of the senior executive, and the follow-up that naturally occurs. The model has been replicated
across the country, showing that public organizations can learn from and use data effectively. With the
passage of the Government Performance and Results Modernization Act in January 2011, even the federal
government is adopting the principles of this model.

Can medium and small nonprofits learn from this success? Some already know the formula. The TCC
Group isolated six behaviors from its organizational assessment battery (more than 200 items) that predicted
a nonprofit’s ability to grow at or greater than the rate of inflation, three of which are reflected in the team-
based approach to performance management6:
1. Evaluating a program to figure out what works, rather than deciding if it works
2. Gathering data directly from program recipients to determine how to improve programs
3. Engaging key leaders and staff in interpreting the client-derived data
4. Determining outcome metrics by listening to, documenting, and sharing actual client success stories and
results
5. Bringing design leaders together to assess and address the resources needed to deliver programs effectively
6. Leveraging R&D insights to inform the management of program implementation

TCC’s findings resonate with what observers have found compelling in the CompStat/CitiStat model. This
guidebook applies the principles of change management to what it would take to implement what we will call
team-based performance management at a small- to medium-sized social services organization. It presents
a new vision, putting nonprofit staff in the driver’s seat of the data discussion.

CHAPTER 1: PERFORMANCE MANAGEMENT TRANSFORMATION

Performance management systems seek continuous improvement through a cycle of goal setting, action and
evaluation. The following performance management practices are common to social sector nonprofits:
ƒƒ Organizations create and assess their strategic plans.
ƒƒ Programs create logic models and have their effectiveness tested by social research evaluators.
ƒƒ Employees and supervisors perform annual reviews.

If these processes are not delivering value commensurate with the effort it takes to create them, it is time to
do something different. The team-based performance management model transforms these processes in an
effort to create greater value throughout the organization. In transitioning to this model, you’ll build on some
existing processes and, hopefully, scale back on others.
There are many resources for nonprofits on strategic planning, setting goals, and measuring results at the
organizational or individual level. If your organization is just beginning to put performance measurement
practices in place, use the Measuring Outcomes guidebook and other cited resources to explain some of the
concepts presented here.
5 Knisely, R. “ The Secret to StateStat’s Success,” Governing Blog, May 12, 2011, http://www.governing.com/blogs/bfc/secret-
statestat-success.html.
6 York, Peter. Success by Design. How R&D Activates Program Innovation and Improvement in the Nonprofit Sector. http://www.
tccgrp.com/pdfs/7-21_TCC_Briefing_Paper_LR.pdf. July 2011.

7
Benefits and Challenges of Team-based Performance Management
When a team of people work together to interpret data on what is going on, they are engaging in collective
meaning making. The benefits of collective meaning making are based on the following key beliefs:

Results do not speak for themselves. Even after raw data has been turned into digestible information,
such as a table, chart, or graph, a decision maker must draw conclusions about the “nuances, value, and
implications” of the data before they turn it into action. 7

Effective meaning making takes place in a social context. A group with diverse experiences may uncover a
wider and more accurate set of possible explanations for trends than an individual analyst or executive.

Interpretation of data that is delivered at the wrong time is useless. Analysis must to be synchronized and
coordinated to inform action planning. Most evaluation reports in the social sector are delivered at the wrong
time to impact decision making, such as after a program cycle has been completed and the next one budgeted
and planned for. A regular team meeting where the presentation of results and action planning occur together
provides an effective connection between analysis and action.

Collective wisdom yields collective investment. Someone who has participated in drawing conclusions
from data is more likely to follow through on an action plan. They will be more engaged and more likely to
remain on the job—an important benefit in the high-turnover world of social service nonprofits.

The process of making meaning from data is strengthened when it is done as a team, versus letting the
HiPPO’s (Highest Paid Person’s Opinion) perspective rule. A team-based approach encourages ideas from
everyone involved, which means that the decision-making process has to be depersonalized. Ideas should
not be based on characteristics about the individuals, but on the collective team-based knowledge and the
internal and external context team members bring to the table.

6 out of 12 students
DATA improved their grade
in math.

7 total students had a goal to

raise their math grades, and Communication
6 of the 7 did. The after- with teachers may
INFORMATION school program had an MEANING contribute to a
established relationship with student’s ability to
the math teacher of the 6 improve.
that improved.

Comparing the plans and follow-

KNOWLEDGE up of the 6 that improved with
the 1 that didn’t reveals meaning.

7 Siemens, G. “Connectivism: Learning as Network Creation,” 2005.

8
Despite the obvious benefits, the team-based performance management process is not appropriate for every
organization. To consider the feasibility of implementing team-based performance management in your
organization, consider the following challenges:

Potential culture shift. Because the process is implemented throughout the organization, this process works
best in a learning organization in which staff at all levels are encouraged and willing to voice their opinions
and experiences. If you do not have the characteristics of a learning organization, you may have more work to
do before your organization can embrace team-based performance management.

Time commitment. Because everyone in the organization will be involved in the process, it requires a
substantial time commitment. As the guidebook reviews the responsibilities of the project leader and
involvement of individuals within the organization, reflect on the availability and commitment within your
organization for such a process.

A Process for All Levels within a Nonprofit

Executive directors may recognize the process we recommend in this guidebook—it resembles the process
followed by an ideal board of directors. The board chair presides over regularly scheduled meetings at which
the executive director presents information about the operation of the organization. Effective executive
directors and board chairs invest a great deal of energy into making sure board meetings are facilitated
smoothly, that the data is well presented, and that motions are followed up on between meetings. The board
considers the information presented and provides direction to the executive director.
This guidebook discusses how to implement a similar team-based performance management process
throughout the organization. Aside from the board of directors, at least two other teams operate in a
medium-sized nonprofit.

Executive leadership team. This team may include department heads and program managers.

Program/department/project teams. These teams include front-line workers and service delivery staff. They
may also include evaluation consultants and project partners.
To become a truly data-driven nonprofit, this model should be implemented at all levels. Ideally, it would be
replicated in the coalitions and interagency groups in which the nonprofit participates as well.

Essential Elements of the Process

This guidebook provides the basics needed to implement a process of collective assessment with a team to
make data-driven decisions. The essential steps for implementing team-based performance management are:
ƒƒ Prepare for Change. Lay the foundation for successful implementation by looking ahead. Create
a change management plan that includes risk mitigation, communications, and assessment of the
knowledge and skills on the team.
ƒƒ Identify Goals and Strategies. Identify a limited set of initiatives for improved performance. Get input
from key team members and outside resources to refine goals and strategies for each initiative.
ƒƒ Clarify and Create Accountability. Identify the people that will take responsibility for coordinating
activities related to each goal.
ƒƒ Obtain Analytical Support. Your team will benefit from ground-level expertise in data collection,
tabulation, and analysis. You may need help from someone with expertise in extrapolating results from a
smaller sample of results. Find someone who can identify patterns in data and knows how to present data
effectively.

9
ƒƒ Identify and Collect the Necessary Data. Identify data that provides feedback on the accomplishment
of your goals and that can be collected in the relatively short timeframe needed to make course
corrections.
ƒƒ Analyze and Interpret the Data. Before bringing the data to the team, create an appropriate
presentation method. Preliminary analysis and interpretation is needed to create the presentation.
ƒƒ Implement Team-Based Data Reviews. This is the heart of team-based performance management.
At the data review, the person accountable for coordinating activities related to each goal reports the
progress on implementing the agreed-upon strategy. The group considers the data and decides whether to
continue with the current strategy or to change course.
ƒƒ Reflect and Refine. You may find that the data you are considering is not as meaningful as you thought
it would be. Or that you really need to have a larger group at the table. Don’t give up! Expect that you
will need to make adjustments as you move forward.

The Organization of the Team

We have written this guidebook with the executive director in mind. He or she will be critical for adopting a
adopting a team-based performance management model. However, a team process conducted at the executive
level may be replicated at the program or project level, trickling down through the organization. These roles
should be filled by the team conducting a team-based performance management process:

Team Leader

The team leader initiates the implementation of a data-driven, team-based performance management
process. It is the team leader’s role to ensure alignment between strategies and mission, beginning with the
identification and understanding of organizational goals.

On an executive leadership team, the team leader is the executive director. On a project/program team or
department, the project/program manager or department head serves as the team leader.

The team leader is a delegator; they can delegate responsibility to ensure meetings are scheduled, timelines are
in place, action items are identified, and accountability is assigned. However, they are ultimately responsible
for the success of the team and their leadership and participation in the process is critical. In organizations
that have multiple management levels between the chief executive and goal owners, the team-based data
review provides an opportunity for meaningful face time with the executive in a context related to their day-
to-day work.8

Goal/ Initiative Owner

The goal owner is accountable for coordinating activities related to a strategic goal for the team. The goal
owners receive input from the team and direction from the team leader. They inform the team of progress in
implementing previously adopted strategies. They must be able to communicate the factors that may affect
performance to others involved in supporting the goal.

Analyst

The analyst provides expertise in data collection, tabulation, presentation, and analysis. In a data-driven
nonprofit, a single analyst may support multiple teams. The analyst compiles collected data into a brief report
that identifies the major trends and anomalies the team may need to address. The analyst may look at subsets
8 “Performance Reviews that Work: Four case studies of successful performance review systems in the federal government.”
Center for American Progress. February 2011. See http://www.americanprogress.org/issues/2011/02/pdf/rww_case_studies.
pdf

10
of clients served, employee level, or site-specific performance to identify where taking action may have the
greatest impact on performance. The analyst may look at the concurrence of trends in the data with outside
events or even compare performance results with benchmarks in similar organizations. The analyst will work
together with the goal owners to present the most relevant data to the team for consideration.

As the process continues, the remaining team members may need to become more or less involved in order to
complete specific tasks. Team members must be given clear direction and opportunity to prioritize the actions
coordinated by the initiative owner.

Chapter 1 Summary:
ƒƒ Today, nonprofits are under pressure to demonstrate and provide evidence that they can impact and
improve their services to clients.
ƒƒ The ultimate goal of of team-based performance management is to improve services by making meaning
out of the information gathered. This process is strengthened when it is done as a team, versus letting the
HiPPO’s (Highest Paid Person’s Opinion) rule the decisions.

CHAPTER 2: PREPARE FOR CHANGE

Taking steps to become a data-driven nonprofit may represent a significant change in the culture of your
organization. During this transition, there is a need for effective leadership – or change management.
Although you will leverage existing strategies, programs, and data that is already generated within the
organization, implementing a new process requires substantial time. Many employees might think their time
could be better spent focusing on previously assigned activities.

It is no surprise that one of the most difficult aspects of implementing change is that individuals may respond
by feeling threatened. Many organizations succeed at creating a strong strategic and tactical plan for change,
but fall short when it comes to understanding and addressing the human element and resistance to change.
Lay the foundation for a successful team-based approach to performance management by planning for and
managing the change that it will bring. The following five steps are helpful when preparing for change:

1. Identify the anticipated or desired change.

2 Assess organizational willingness and readiness for change.

3. Determine competencies and skills available and identify gaps.

4. Identify potential risk factors and intervention strategies.

5. Develop a communication plan.

1. Identify the anticipated or desired change. Craft a short paragraph or action statement. Although the
general idea to implement a team-based approach to data-driven decision making is the goal, a clearly written
statement specific to your organization ensures key leadership is aligned and shares the same vision.

2. Assess organizational willingness and readiness for change. You need to determine the extent to
which your organization is ready to shift away from its existing operational state and current performance
management practices.9 Some questions to ask yourself include:

ƒƒ Does the process support the organization’s vision of its desired future?

9 Innovation Network provides a tool for assessing the facets of learning culture and organizational commitment needed for the
processes described in the guidebook. See http://www.innonet.org/resources/files/core_tool.pdf.

11
ƒƒ Does the process align itself with the organization’s belief of who it is, what it does, and how it serves?
ƒƒ Does the process support the organization’s approach to achieving its goals and objectives?
ƒƒ Is the process consistent with the organization’s guiding principles?
ƒƒ Does the process align with the organization’s existing beliefs, assumptions, and expectations?
ƒƒ Does the organization’s culture support innovation?10

3. Determine competencies and skills available and identify gaps. See Appendix A: Assessment Tools and
Skills Matrix for resources to assess yourself and your team and to identify gaps in the skills and competencies
needed for team-based performance management.

The first three steps do not have to be time consuming; a leader who is in touch with his or her employees
should have enough information to accomplish these steps alone. However, because the ultimate goal is to
create a culture of team-based decision making, you might consider collaborating with either the board chair
or a senior program manager in working through the steps.

The following two steps can take more time and are described in more detail below.

4. Identify Risk Factors and Intervention Strategies. Change can be intimidating for many, especially
when it involves a higher level of accountability. Employees may feel they are not adequately prepared for the
change and therefore feel a loss of control and predictability about the new process. Employees may fear that
they will lose their job or be unsuccessful with new responsibilities when a new process is implemented that
changes the scope of their individual influence and control. As a leader, you can get ahead of these concerns.
Identify the risk and create intervention strategies to avoid risk. The following definitions further clarify what
is meant by risk and risk management. Reference Appendix B: Risk Mitigation Plan for more information.
Risk is any factor that might hinder
an organization achieving its goals.
Risks can be related to an organization’s Additional Risk Considerations
programs, finances, management,
infrastructure, or susceptibility to Other potential risks and challenges include resource
natural disasters. squeezes, such as staff time, consultant costs, supplies,
equipment, and tools that impact the planning and
Risk management is a process for budget of the new process. Most organizations include
identifying an organization’s risks, the cost of implementing a new process as part of their
assessing their significance, and administrative overhead, but funding to support the
preparing for and treating those deemed work may be available from other sources. Program
significant in a measured, professional funders are often willing to support a portion of the
manner. Risk management enables cost, particularly if you have built these costs into the
organizations to cope with uncertainty funding request at the front end or if the funder has
placed a high priority on performance management as
by taking steps to protect their vital
part of its funding cycle. Some funders specify a fixed
assets and resources.1112 amount or percentage of the grants that must be used
For many, the risk of most concern is the for evaluation. In addition, organizations that wish to
evaluate a program more deeply may seek funding
lack of adoption or outright rejection of
specifically for that purpose.12
a new way of doing things. Therefore,
10 California Telemedicine and eHealth Center. “Assessing Organizational Readiness: Is Your Organization Ready For
Telemedicine?,” 2009.
11 Nonprofit Risk Management Center. “Risk Management Tutorial for Nonprofit Managers,” http://www.nonprofitrisk.org/
tools/basic-risk/basic-risk.shtml. Accessed July 28, 2011.
12 Compassion Capital Fund National Resource Center. Measuring Outcomes, 2010.

12
it is important to get people involved in the team-based decision making process as soon as possible. The
team should be involved in the planning of the process. As responsibility for the implementation of a project
cascades down through the organization, there is more ownership and stake in the success of the performance
management plan. This happens when leadership models expectations by visibly demonstrating the new
approach to team-based decision making. Staff will avoid change when leaders do not demonstrate the same
high level of commitment that they are asking of the staff. Keeping lines of communication open—listening
to concerns, asking questions, providing information well in advance, and offering training wherever
necessary—can help mitigate the risk of changes being rejected.

An organization is ready for change and the risks are minimized when the team members are involved and
possess the right attitude, which includes having a shared vision of where the organization is heading and a
positive outlook for change. They are realistic about the organization’s strengths and weaknesses and they are
willing to deal with the risks as a trade off for the benefits. Ultimately, they are committed to demonstrating
their interest in improvement to stakeholders internal and external. Reference Appendix C: Indicators of
Change Readiness for more ways to assess if you organization is ready for change.

5. Develop a Communication Plan. Communication is the process by which we assign and convey
meaning in an attempt to create shared understanding. There are four different communication plans that
need to be considered when developing a team-based performance management process. Information about
communication plans and a plan template can be found in Appendix D: Communication Plans and Template.

1. Internal communication with all staff prior to implementing the new system, addressed here as a
part of preparing for the new initiative.

2. Team-based communication for the team(s) that will be active in the process.

3. Downstream communication that will occur as the process is happening to ensure awareness and
accountability related to the process.

4. External communication to inform the public about progress with and results of the process.

First, the leader must create a

communication plan that clearly
articulates the vision of where the In the subsequent topics you will see a
organization should go and the benefits risk icon that looks like this. The icon
of doing so. A critical error many
13 is a reminder to think back to your risk
mitigation strategies to ensure you have
leaders make is to believe their employees
covered all the bases.
understand their vision as clearly as
they do. Leaders must reinforce a core You will also see a communication icon that
message that includes the benefits looks like this. The icon is a reminder to
of team-based decision making and think back to your communication plans to
effective performance management. The ensure you have covered all the bases.
audience for internal communication
includes employees and team members
and should address why performance management is important, what it consists of, and leadership’s
commitment to the process. For example, an internal memo or presentation by the executive director might
include the following:
ƒƒ Why: The new team-based performance management process will allow all staff to be involved in
developing and refining performance improvement strategies to meet those goals. The process will
13 Watkins, K. “5 Keys to Successful Change Management,” ALLIANT’s Blog, September 18, 2010, http://alliantmgmt.com/
blog2/2010/09/18/5-keys-to-successful-change-management/.

13
 contribute to continuous improvement abd employee engagementat all levels of the organization. We
will make strategic decisions based on the data produced by the team-based performance management
process.
ƒƒ What: It consists of setting goals appropriate to various levels if the organization. Once a month, teams
within the organization will meet to analyze progress toward those goals and collaboratively determine if
progress is on track or if modifications need to be made in the strategy.
ƒƒ Who: Everyone within the organization will be involved on a team that will monitor its own
performance and progress toward goals; anyone in the organization may be called on to contribute to
special projects coordinated by a “goal owner.” “Goal owners” are responsible for coordinating activity
around the goals assigned to them.
ƒƒ When: The process is ongoing but Tips for effective communication:
we will conduct monthly meetings ƒƒ Use your time wisely; Do not draw out the inevitable.
to monitor progress and be both
proactive and responsive to real-time ƒƒ Establish a clear position that addresses the “Why?”
changes. ƒƒ Be honest.
ƒƒ Where: Goals will be posted on the ƒƒ Be concise.
wall in the hallway. Collected data ƒƒ Look forward to the solution.
will be recorded in an electronic
database. Meetings will be held in ƒƒ Be practical and clear, thinking about the target
the conference room. audience and what they need to know.
ƒƒ Provide inspiration that includes the potential
ƒƒ How: The leadership team will
benefits.
outline a process for implementing
team-based performance
management. From that meeting,
the leadership team will work with program managers to implement the process within program/project
teams. Contact the executive director with questions.

Ultimately, the leader is responsible for ensuring the successful implementation of any initiative, including
team-based performance management. Following through is imperative to ensure that the changes stick, and
staff have bought in sufficiently to the proposed changes to move forward. You can use Appendix E: Change
Leadership Checklist as a guidepost for the entire change leadership process.

Chapter 2 Summary
ƒƒ Taking steps to become a data-driven nonprofit may represent a significant change in the culture of your
organization.
ƒƒ An organization is ready for change and the risks are minimized when the team members are involved
and possess the right attitude, which includes having a shared vision of where the organization is heading
and a positive outlook for change.
ƒƒ The leader must create a communication plan that clearly articulates the vision for creating a learning
culture.

CHAPTER 3: IDENTIFY GOALS

Goals are the most important elements to consider when developing a performance management plan. They
provide an organization’s board, staff, and stakeholders with a universal blueprint to begin action. You cannot
know what you need to do until you establish where you want to go.

14
If your organization has a strategic plan in place, consider that the first place to look in identifying your
goals. If you don’t have a strategic plan in place, the board can start by identifying long-term goals for the
organization which can be further broken up into shorter-term goals. Teams should identify goals that can be
tracked on a weekly, monthly, or quarterly basis. These goals should be appropriate to the level of activity of
the team and the frequency with which the team is able to meet in order to accomplish its work.
Defining Goals
Goals should, first and foremost, be aligned with an organization’s mission and strategy for achieving that
mission. If you are considering a goal that would force your organization to creep from its mission, the goal
should be reconsidered and most likely altered or deleted.

Be intentional about the type and variety of goals you set. Are you seeking to alter your impact? Are you
seeking to improve your organizational processes? The Results-Based Accountability (RBA)TM framework
makes a useful distinction between population level results and indicators (e.g. healthy children), which
can rarely be influenced by any single organization, and performance measures, which relate specifically
to the persons served by the organization.14 In most cases, the only way to achieve population level results
will be to participate in a coordinated strategy with other organizations that reaches a significant proportion
of the population. Stakeholders and funders will value distinguishing between the two types of goals and
coordinating strategies with other organizations so that population level impact can be clearly tied to the
activities of your organization.
Goals at Each Organizational Level
For a board of directors that meets quarterly or semi-annually, goals are appropriately stated at high-level
and long-term. For nonprofits, the strategic plans start by asking the question: “What do we want for the
population we serve?” As the Charting for Impact tool puts it:

Clearly and concisely state your organization’s ultimate goal for intended impact. Identify the groups
or communities you aim to assist, the needs your work is addressing, and your expected outcomes.
Examine how your goals for the next three to five years…fit within your overall plan to contribute to
lasting, meaningful change.15

This process will produce a statement such as, “By 2020, our organization will serve X people and will
influence the direction of a key piece of legislation.”

By contrast, for a project or program team that meets weekly, goals are more appropriately formulated for
shorter terms, such as, “We will increase the attendance rate of students served every month by X points.”
Goals for an executive leadership team that meets monthly will likely be somewhere in between, perhaps with
a quarterly measurement timeframe. “We will increase the number of volunteer hours obtained every year
by X points.” The more the goals at each level of the organization are aligned with one another, the greater
chance of success overall programmatic success.

There are many ways to define goals for an organization and the process of defining short-term goals,
medium-term goals, and long-term goals is fitting for team-based performance management. The long-term
goals exist at the board and executive level, the medium-term goals exist at the leadership team level, and
short-term goals exist at the program or project level. However, as mentioned, if you have an existing strategic
plan or other format in which you have already defined goals that meet the criteria stated here, start with that
rather than recreating the process.
14 Fiscal Policy Studies Institute. “The Results-Based AccountabilityTM Implementation Guide,” http://www.raguide.org/1_1.
shtml. Accessed July 28, 2011.
15 Charting for Impact is a framework and communications tool developed jointly by the Independent Sector, GuideStar USA,
and Better Business Bureau Wise Giving Alliance. For more information, visit www.chartingimpact.org.

15
SMART Goals
As the goals become more finite or short-term, the more crisply defined they must be. They are the link
between the long-term goal and the measurable actions that your team will take to meet that goal. In order
to be effective, they must be aligned with the organization’s mission statement and with the goal that it falls
under. It must also follow the SMART criteria:

Specific: Short-term goals are a method for breaking down a large goal to focus on a particular activity
or measure. Do not combine multiple activities into one short-term goal.

Measurable: While each factor of the SMART criteria is important, this one deserves emphasis. The
short-term goal must be assessable for it to be useful later in the performance management process.

Achievable: Create a measure and a measurement that can be feasibly reached given the organizational
or programmatic activities, timeline, and staffing.

Relevant: The goals and measures should be directly related to the work the team or the organization is
doing. The team should be able to influence the outcomes against which they are measured.

Time-based: The short-term goal should include an end date and/or benchmarks for progress and
completion. And because they are “short-term,” it should be a reasonably short time frame.

Some possible medium-term goals for a leadership team whose board has adopted the long-term goal of “By
2020, our organization will serve X people” include:
ƒƒ Identify seven local neighborhoods that lack our services within three months.
ƒƒ Launch a new program in X community within one year.
ƒƒ Expand referral services to include ten additional agencies within one year.
Developing Strategies
Strategy is how the team expects to achieve the goals identified. Development of strategies to meet these
short-term goals will be a fluid process. As described later in the Team-Based Review Process section, your
team will meet regularly to review data and progress with the goals. If the team determines that the strategy
being used to meet the goal isn’t working, the team may decide to alter the strategy. Depending on the goal,
the strategy may be expressed in a few sentences or it may be helpful to fully consider the assumptions how
the strategy works to produce desired outcomes. For more information on the latter, see appendix F, Creating
a Logic Model.

As discussed earlier, communication is a key to success, especially while the individuals align
with the strategic goals of the organization. The goals must be communicated throughout
the organization, ideally in a setting that allows for open communication with the team that
developed the plan.

Chapter 3 Summary
ƒƒ Goals should, first and foremost, be aligned with an organization’s mission and strategy for achieving
that mission. Be intentional about the type and variety of goals you set. Goals should follow the SMART
criteria: specific, measureable, achievable, relevant, and time-based.
ƒƒ There are many ways to define the goals of an organization and the process of defining short-term goals,
medium-term goals, and long-term goals is fitting for team-based performance management. The long-
term goals exist at the board and executive level, the medium-term goals exist at the leadership team
level, and short-term goals exist at the program or project level.

16
CHAPTER 4: CLARIFY AND CREATE ACCOUNTABILITY
Once goals are identified, assign each goal to an individual on the team who will be responsible for
coordinating the strategies and activities of various individuals in support of the identified goal. This person
will be the goal owner. Accountability and responsibility must be clearly defined for each aspect of the team-
based performance management plan. Additionally, anyone who is given responsibility and accountability
must be given the necessary authority relevant to financial and human resources.16

Dysfunctional and ineffective organizations emerge when people are held accountable without the authority
to take the actions necessary to enhance performance.

Work through assignments as a team. Some of the goals may be very clear, as they align directly with a
program; however, others may cross between programs or cross between departments. Work through the
assignments together and discuss the pros and cons of the individual assigned. Ensure that each team
member feels adequately prepared to take on the goal. Ideally, assign only one individual responsibility and
accountability for each goal. If necessary, identify a second individual who is considered support. If possible,
avoid a situation in which two individuals are assigned to co-lead, as that can create confusion for staff to
whom tasks are delegated tasks and can often cause additional effort and time to accomplish tasks.
Delegate Tasks
Once assignments are documented, the individual goal owners are responsible for creating plans to reach
their goals. This includes spending time with work teams to further refine and identify the specific outputs
and outcomes necessary to fulfill the goal.

Goal Owners will work with their teams to define and clarify roles and identify additional “point people” for
tasks. In this relationship, work team individuals are responsible for their tasks, goal owners for coordination,
and team leaders for direction, guidance, and resources.
Building Accountability
There are many methods at the disposal of the team leader to ensure accountability among goal owners and
team members carrying out specific tasks. Consider the tools your organization or team already uses and how
accountability for the team-based performance management can be integrated into existing systems.
ƒƒ Documents. Strategic plans ensure employees understand how they align with the organization’s
mission. Performance plans, often created by the board of directors as part of the strategic plan, outline
what managers should accomplish. Performance agreements, created in partnership between managers
and individual team members, form the basis of performance reviews—specific individual accountability
for team-based performance management should be documented here. Self-assessments, both formal and
informal, are also useful mechanisms to monitor individual performance.
ƒƒ Displays. Post the strategic plan in a public place to provide a constant reminder to team members about
the organization’s direction. Internal blogs on the company’s intranet, check lists on white boards in
meeting rooms, or otherwise tracking progress in a public forum helps individuals feel connected to the
goals of the team.
ƒƒ Meetings. Accountability meetings, conducted by the team leader, increase and improve future
performance. When working on a joint goal with various tasks assigned, these meetings should occur
as a team. It helps those with tasks that have interdependencies to talk through progress or concerns.
Each individual should conduct their own self-assessment prior to the meeting using the following three
questions:
16 Training Resources and Data Exchange Performance-Based Management Special Interest Group. “Establishing Accountability
for Performance,” 2001.

17
 1. What did I accomplish this week?
2. Do I have any on-going problems?
3. What do I plan on accomplishing next week?

As each team member provides an update to the team, they should take the time to identify the
barriers that need to be removed or plans that need to be put in place to keep things moving if
they have stalled. Ultimately, these meetings should facilitate communication and ensure accurate
and timely documentation of actions.

Chapter 4 Summary
ƒƒ It is important to work through For some strategies, the goal owner may need to
assignments as a team. Some of the collaborate with others on the same team to accomplish
the objectives. For example:
goals may be very clear, as they align
directly with a program; however, ƒƒ A program manager is responsible for starting
others may cross between programs a newly funded program works with executives
or cross between departments. Work responsible for finance, facilities, and human
through the assignments together resources.
and discuss the pros and cons of ƒƒ A case manager implementing a new referral system
the individual assigned. Ensure that works with peers to develop the necessary tools and
each team member feels adequately relationships.
prepared to take on the goal.
In other situations, the goal owner is a team leader at
ƒƒ There are many methods at the another level of the organization and she or he would
disposal of the team leader to ensure work with subordinates on the project/program team
accountability among goal owners to delegate tasks relevant to the goal.
and team members carrying out ƒƒ A program manager is responsible for incorporating
specific tasks. Consider the tools new research into an existing program.
your organization or team already
uses and how accountability for the
team-based performance management can be integrated into existing systems (including, documents,
displays, and meetings).

CHAPTER 5: OBTAIN ANALYTICAL SUPPORT

The role of the analyst in the team-based approach to performance management is unique and important. A
goal owner needs to be able to focus entirely on executing strategies effectively, and may be tempted to cut
corners or gather, analyze, and present data in a favorable light. The analyst is able to focus purely on the
integrity of data collection and analysis. It is essential to include an analyst on the team from the beginning
to ensure they are involved in plans to identify and collect data. They will help to ensure elements of the
collection plan are applied by the responsible people, creating a sense of continuity throughout the cycle. The
analyst’s appreciation for the “big picture” contributes to more accurate and comprehensive data collection.

As you move forward, the role of the analyst will be to conduct a preliminary data review before any data
is analyzed. If the data collected is significantly different from the originally agreed upon measures, it is the
responsibility of the analyst to bring this information to the appropriate team members.

The analyst may use a wide variety of data analysis tools and techniques to characterize the
collected data and find actionable information within the data set. The analyst should seek to
perform data analysis clearly and transparently so that anyone familiar with the analysis can
replicate it and reach comparable conclusions. Since performance management is an ongoing

18
process, analysts in future cycles should be able to avoid reinventing the analysis procedure and avoid any
concerns regarding the accuracy of the results.

Often, smaller organizations feel that they do not have the staff capacity to do the analysis. It is possible
to contract out for help. You can hire an individual experienced in evaluation to design and/or implement
your efforts. Or you may have someone on your board with the expertise you need. You may be able to seek
assistance from a local university or community college or advertise for a volunteer with evaluation skills. You
may not need help for the entire evaluation; perhaps you only require an outside person to assist your staff
with some of the more technical aspects of the data analysis.

However, to turn evaluation and performance measurement into a driver of continuous

improvement and part of an organization’s culture, nonprofits should look within their staff to
identify and potentially build internal competencies around as many aspects of performance
management as possible, including the analysis.
Considerations for an On-staff Analyst
In the first year of conducting a data-driven, team-based approach to performance management, you might
have a staff member that has the aptitude for analysis, but has additional responsibilities as well. This can be
a good starting place for an organization that does not have the resources to dedicate to a full-time analyst.
When considering using an existing staff member, consider whether or not you have sufficient time to
develop the competencies, if you have the necessary resources to support their development, and if the skills
required are easy to learn and do not require years to acquire.17

This individual may be able to gain the skills they require through online resources such as Lynda.com or
from a local university or community college course. While it is important to be able to test for statistical
significance for drawing certain conclusions, the analyst must always be able to objectively consider how to
organize the data and implement data quality controls. Make a list of the required skills and determine a
specific educational path to acquire each skill. Ideally, because funders often require evaluation, you could
consider using grant funds to train an internal analyst.

When and How to Consider a Consultant

When you cannot identify an internal individual that has or can acquire the skills required, you may consider
hiring a consultant. This is especially true if the skills required are of a high degree of difficulty or if you
believe your strategies will change dramatically in the future and thus your needs will change.18

Working with a consultant is very different than an onsite staff member. Typically a consultant is “a person
in a position to have some influence over an individual, a group, or an organization but who has no direct
power to make changes or implement programs.”19 It is a nonprofit’s staff that has the power to make changes
and implement programs. Consultants bring specialized skills, experience, knowledge, or access
to information, but lack the power to make decisions. Universities, businesses, and government
agencies often have a group of consultants they work with and tap for various projects. Ideally, a
consultant will bring an independent perspective to an organization.20

Because of the collaborative nature of analyst/goal owner relationships, develop a close, long-term relationship
with a consultant, and integrate him or her as much as possible into relevant teams. Alternatively, a
17 Camden Consulting Group.” Closing Leadership Gaps,” 2007.
18 Ibid.
19 Block, P. Flawless Consulting: A Guide to Getting Your Expertise Used, 2nd ed. San Francisco, CA: Jossey-Bass/Pfeiffer, 2000.
20 Compassion Capital Fund National Resource Center. Working with Consultants, 2010.

19
consultant can perform smaller, discrete analysis tasks such as developing data collection instruments or
testing for statistical significance of data gathered.

Hire a Consultant to Coach the Staff

An intermediate step between having a full-time staff member dedicated to analysis and hiring a consultant
to do the work is to team with a consultant to coach staff through the first few rounds of performance
management. With this arrangement, you can define the degree to which they are involved depending on the
type of gap identified.

Use the Partnerships: Framework for Working Together guidebook for additional information
about building a positive working partnership. The guidebook addresses many partnership topics
such as the key components of partnership development, creating norms, developing strong
communication, collaborative work plans, using technology and the monitoring of the process.

Chapter 5 Summary
ƒƒ The role of the analyst in a data-driven, team-based approach to performance management is unique and
important. The analyst is able to focus purely on the integrity of data collection and analysis. They will
help to ensure elements of the collection plan are applied by the responsible people, creating a sense of
continuity throughout the cycle.
ƒƒ Small organizations may find it difficult to support a dedicated staff member to analyze performance
data. Nonetheless, organizations that are able to build analysis skills into their staffing plans will find it
worth the effort.
ƒƒ When you do not have an internal team member capable of acquiring the skills required, you may
consider hiring a consultant. This is especially true if the specific skills required are of a high degree
of difficulty and/or limited nature. If a consultant is to fulfill the entire analyst role described in this
guidebook, he/she will need to be able to form stable, long-term relationships within the organization.

Use the following list of question to help you determine the need to use outside support:
ƒƒ Do we need specialized expertise to carry out the performance management tasks?
What specific expertise do we need?
ƒƒ How much control should this individual have as compared to our performance
management team? How flexible is this person going to be?
ƒƒ Who has the expertise and is available to help us—universities or other research
institutions, consultants, students, or other volunteers?
ƒƒ Do we know any other organizations who have obtained outside help? Can they
provide any recommendations?
ƒƒ What exactly do we need help doing? What specific tasks should we contract out?
ƒƒ For more information, see the guidebook, Working with Consultants, on www.
strengtheningnonprofits.org.

20
CHAPTER 6: IDENTIFY AND COLLECT THE NECESSARY DATA
Up to this point, you have been in the preparation of team-based performance management, becoming
strategically aligned and designing the necessary measures to assess meaningful outcomes within specific
subordinate work teams. These steps should lead to consistency across the organization.21 Now, it is time to
translate the plan into action through identification and collection of the data for analysis.
Define Outputs, Outcomes, and Measures
With a goal and strategy in hand, the goal owner should first work with relevant team members to identify
the associated outputs and outcomes. Outputs are the products and services that are created or conducted by
the organization. Outcomes are the effects and changes that are a result of the outputs and should be aligned
with the work done in achieving the goal. Outcomes can be divided into short-term, intermediate, and long-
term outcomes. A logic model is one tool for documenting outputs and outcomes. Guidance for completing
a logic model can be found (in brief) in Appendix F: Developing a Logic Model or (in detail) in the Measuring
Outcomes guidebook. Appendix G: Creating Performance Measures from a Logic Model shows how to create
performance measures related to the outputs and outcomes identified.

The following table shows that there are no “silver bullet” performance measures. Every type of measure has
benefits and drawbacks. Make sure your performance measures yield the kind of information that you need.
Sometimes customer feedback can yield timely, actionable information better than gathering information on
end outcomes of customers.

Type of Performance
Benefits Cautions
Measure
Critical Evaluates factors in direct There may be many critical
characteristics control of producers characteristics – too many measures can
of products and lead to a loss of focus
services (e.g., Can be relatively inexpensive
response time) Does not assess changes in beneficiaries

Output levels / Provides a measure of staff Outputs are less relevant to external
efficiency productivity stakeholders than results and outcomes
as a measure of the return on
Can be relatively inexpensive investment
Participation or Provides concrete evidence of Does not assess changes in beneficiaries
usage levels utility of products and services or other impacts on society in direct
by consumers relationships to program objectives

Can be relatively inexpensive

Customer Evaluator can learn what Does not assess changes in behavior or
satisfaction aspects of products or services the impact on society as it relates to
customers did or did not find the overall goals and objectives of the
useful program

Can be relatively inexpensive

21 Training Resources and Data Exchange Performance-Based Management Special Interest Group. “Collecting Data to Assess
Performance,” 2001.

21
 Type of Performance
Benefits Cautions
Measure
Initial or Measures early efficacy—the May not adequately reflect the ultimate
intermediate influence of products and goal of the funder
outcome measures services on customers or
beneficiaries in social services

Can be a good indicator of

early success if end outcomes
require a long-term investment
End outcome Reflects the fulfillment of the Changes in condition of individuals,
measure mission of the program organizations, and communities are
the result of complex factors; some
Most relevant to external may be outside the program manager’s
stakeholders (funders, public) control and the program activities may
represent only some of the factors

Program managers must understand

the logic model relationships in terms
of contributions, not total control of
cause and effect relationships

Considerations for Setting Outputs, Outcomes, and Measures as a Team

Setting ambitious targets for performance measures can be an effective way to motivate program
staff. If staff and partners not only know the purpose of the program and how it measures
success, but also have a target toward which they can strive, they are more likely to have a sense of
motivation and accomplishment. It is good practice to set targets as a team and to identify targets
that are both realistic and ambitious. There is a fine balance to be struck by the team leader, pushing the team
when their targets are below their ability and controlling the team when their measures are not realistic.

As a team leader, you want to help the team keep the number of measures as small as possible to ensure
everyone stays focused and avoids information overload. Sometimes it is better to let the first few rounds of
data collection prompt questions that can be answered with expanded collection, rather than to try to collect
everything in the first iteration. If the number of measures for a short-term goal exceeds six, consider the
possibility of creating an outcome index. Indexes combine several measures into one value, providing a single
number that encapsulates program performance for that period. Or, consider splitting the goal into two
different goals that can be completed independently, one after the other.

It is critical that all members of a team assess the feasibility of collecting data on each
performance measure. Each team member will have a different perspective about the intricacies
of the client and the feasibility of collecting data. The analyst assigned to the team should have
a working knowledge of the tools available to collect and analyze the data. The team should ask
themselves:
ƒƒ In the next phases of performance measurement, what resources will be required to collect data for each
outcome?
ƒƒ Are there other constraints on data collection, such as the federal Paperwork Reduction Act, or obstacles
to following up with participants?
ƒƒ Do reliable sources of data already exist for this measure?

22
 As this step develops, it is important to remember to document the results and communicate the
agreed upon information in a team-based performance management plan. Documentation should
occur throughout the process, but a final plan should be completed soon after the final decisions
are made. Ask team members to write up measures for assigned tasks or nominate a team note
taker to document decisions. Either way, the final document should ensure consistency in language and
alignment with the final measures. The document should be posted in an easily accessible location.
Data Collection Plan
For each specific metric identified, the team should
The integrity of the develop a data collection worksheet that includes the
performance management following:
process relies on having a
ƒƒ Owner for the metric
solid data collection plan.
Start crafting a data collection plan ƒƒ Short-term goals related to the metric
by considering what data is needed ƒƒ Metric title and description
based on the measures defined. It may
ƒƒ Frequency of collection and data source
be tempting to conduct an audit of
available data before developing a data ƒƒ Period of collection and dates for reporting
collection plan. First, decide what data ƒƒ Instructions for data entry into the collection
you need without being influenced system
by what data you already have. Later,
ƒƒ Associated instructions for updating comparable
you can determine how the data you
target data, when applicable
currently collect fits into the plan. The
data collection plan should include
the type of data to collect, how to collect it, and how to store it. The team must take “the time to define the
purpose of the data collection and reporting effort up-front [to] yield benefits down the road.”22

When the team develops specific, narrow requirements that might impact the day-to-day operations of
the organization, pushback will be less likely because of the clear steps that were taken to prepare for data
collection.

A sample data collection worksheet is provided in Appendix H: Sample Data Collection Plan. There are two
options to fill out the data collection plan template when doing the work as a team:

1. Each individual who is the lead for a particular measure can fill out the data collection worksheet on
their own and then review it as a team.

2. The team can meet to talk through each measure and the data collection worksheet together. This
process can be completed in a single meeting.

Completing the worksheet as a team reduces overlap of the data collected, creates synergies
between data collected for different measures, and encourages thoughtful consideration of the
metrics being defined for each measure. As with any activity within an organization, the need for
leadership support is critical to the success of the data collection activity.23
Collecting the Data
To collect the data, the team must decide on what source and method to use in collecting the data, develop
the tools, identify existing data that can meet the needs of the data collection plan, and ensure quality
control.
22 Training Resources and Data Exchange Performance-Based Management Special Interest Group. “Collecting Data to Assess
Performance,” 2001.
23 Ibid.

23
Evaluate Data Sources and Methods
Data sources are as varied as the methods of data collection and the methods can apply to multiple sources.
Select sources that are credible, reliable, and that have accurate data available on a timely basis. Major sources
include:
ƒƒ Stakeholders
ƒƒ Relevant organizations (schools, courts, community centers, faith-based organizations, etc.)
ƒƒ Beneficiaries
ƒƒ Control groups
ƒƒ Performance reports (e.g., periodic grantee progress reports)
ƒƒ Data records (from reputable, valid, and credible sources)
ƒƒ Third party evaluators

It is often easier to gather data provided by program implementers rather than gathering data
directly from the program recipients. However, this source can be highly biased and may
compromise the validity of program outcomes.24
Leverage Existing Data
Through the data collection plan, you identified what data you need and the potential sources and methods
to collect the data. The next step is to identify existing data you already have. Many nonprofits have program
data they routinely record for administrative purposes that serve as demographic and characteristic data to
provide breakdowns of outcomes. There is also typically a significant amount of information about inputs,
such as dollars spent and employee time.

The teaming aspect of this step involves working with individuals who have been with your
organization for considerable time and know what information is on hand and where it is stored.
These staff members may also be able to tell you how it was collected and any possible issues that
occurred during collection.

Using existing data has both its advantages and disadvantages. Since the data is readily available, it will be
initially considered low-cost; however, agency records are rarely holistic and are often missing elements,
which reduces the quality of the data and requires additional modifications to be made to ensure validity
and reliability. However, if staff members are familiar with the information, the way it was collected and
any nuances about the information, the modifications may be minimal. If the decision is made
to move forward with obtaining missing data or records from other sources, there should be
consideration given to the administration cost of collection and the risk of confidentiality,
reliability and validity. Don’t fall into the trap of using data just because it is available.

As a team leader, consider the additional work required to gather new data. Consider reducing the burden in
other areas of an employee’s work load to compensate accordingly.
Ensure Quality Control
Each team member should understand the necessary requirements for data collection to ensure quality
control. Develop and implement a systematic quality control and assurance plan, to include the means of
confirming data accuracy, validity, and reliability while also exercising control over the use of that data
through well-defined analysis processes and controls over access and distribution.
24 TCC Group. “Research and Development a New Form of Evaluation,” webinar presented March 23, 2011, http://www.tccgrp.
com/pdfs/Research_and_Development_A_New_Form_of_Evaluation.pdf.

24
Validity and reliability are two critical concepts in implementing effective
measurement systems.
ƒƒ Validity is the accuracy of the information generated. The validity of
a data collection instrument is how well it measures what it is supposed
to measure. Putting in the time to create good instruments, carefully
considering what is being measured, and pre-testing the instruments will
help increase their validity. VALID
ƒƒ Reliability refers to consistency, or the extent to which data are
reproducible. Do items or questions on a survey, for example, repeatedly
produce the same response regardless of when the survey is administered
or whether the respondents are men or women? Bias in the data collection
instrument is a primary threat to reliability and can be reduced by
repeatedly testing and revising the instrument.

An instrument is not valid if it is not reliable. However, you can have a reliable
instrument that is not valid. Think of shooting arrows at a target. Reliability RELIABLE
means getting the arrows to land in the same place each time you shoot. You can
do this without hitting the bull’s-eye. Validity means getting the arrow to land
on the bull’s-eye. Lots of arrows landing on the bull’s-eye means you have both
reliability and validity. Pre-testing is critical to ensuring that your data collection
instrument will produce valid and reliable results.

As a team, conduct a preliminary data review before it is analyzed.

Solid planning, communications, training, and pre-testing reduce
errors, waste, and rework in the process. VALID AND RELIABLE

To pre-test, try out the tools with a small group of people who are representative of those you intend to
include in your data collection efforts. Elicit help to check the wording of questions, the content, the
clarity of the instrument, and the layout and format. Note how long the pre-test took and whether testers
had problems completing it. Most importantly, you want to see if you get the responses you expect and the
information you need.

Chapter 6 Summary
ƒƒ With a goal in hand, the goal owner should first work with relevant team members to identify
performance measures related to the goal. The best performance measures are ones that yield actionable
information.
ƒƒ It is good practice to set targets as a team to identify targets that are realistic without being overly
ambitious.
ƒƒ Completing the worksheet as a team reduces overlap of the data collected, creates synergies between data
collected for different measures, and encourages thoughtful consideration of the metrics being defined for
each measure.
ƒƒ A data collection plan must include means of confirming data accuracy, validity, and reliability while
also exercising control over the use of that data through well-defined analysis processes and controls over
access and distribution.

25
CHAPTER 7: ANALYZE AND INTERPRET THE DATA
Analysis is the stepping stone to interpretation. Data is most valuable when it can inform and influence a
particular decision.25 The purpose of analysis is to make informed judgments and improvements that align
with an organization’s strategy. Individuals can perform trending analysis and correlations to indicate
findings, but the value and purpose of this step is to ultimately turn it into performance information and
knowledge. This information and knowledge is ultimately used by the organization to make informed
assumptions and decisions about what has occurred and how they would like to adjust their approach for
corrective action.

The steps in this section are conducted twice to varying degrees: once by the analyst and program manager in
preparing to bring the data to the team and again by the team participating in the team-based performance
management. At each stage of the process, do what makes sense for you and your organization: the analyst
and program manager can analyze and interpret at surface-level or they can do a very thorough job of
analyzing and interpreting prior to the team meeting. Likewise, the team can have more or less analysis and
interpretation responsibilities depending on how much time they can commit to the process.
Analyze the Data
The initial analysis is conducted by the program manager responsible for the goal and the analyst. The
analysis process should be conducted with the same degree of discipline and consistency as the data collection
process. The analyst will most likely have the necessary information about the connectivity of the entire
performance management process, but the program manager brings the strategic value and client knowledge
that will help organize the data into meaningful presentations. Ideally, the program manager will provide the
analyst a series of data views or statements that will guide the analyst to determine the statistical method to
use. For example:
ƒƒ A strong correlation between training participation and performance improvement:
ƒƒ Programs who participated in at least X webinars related to partnership development were X% more
likely to reach their partnership target than programs who attended fewer.
ƒƒ Programs who participated in at least X webinars related to recruitment were X% more likely to reach
their match target than programs who attended fewer.
ƒƒ A strong correlation between academic support and improved grades:

o Students who received daily after-school academic support improved their grades by X%,
compared with a X% improvement in students who did not.
ƒƒ A strong correlation between a mentor relationship and positive youth development.

o Children who received two hours interaction each week with a consistent mentor
experienced X% gain in positive youth development skills and a X% increase in confidence.

A wide variety of data analysis tools and techniques should be used to characterize the collected data and
find actionable information within the data set. Excel can be used to rigorously analyze the data and to draw
tactical meaning from raw data.

Typically, nonprofits want to be able to do two things with the data:

ƒƒ Describe the current situation and reflect the relationships between outputs and outcomes in
quantifiable terms. Descriptive statistics can be used to summarize the data, either numerically or
25 Microsoft. “Insight & Analysis: Drive Business Performance,” http://www.microsoft.com/canada/business/peopleready/
performance/strategic_analysis.mspx. Accessed July 28, 2011.

26
 graphically, to describe the sample. Basic examples of numerical descriptors include the mean and
standard deviation. Graphical summarizations include various kinds of charts and graphs, including
Pareto charts and histograms.
ƒƒ Make inferences about a larger population or future performance. Inferential statistics are used to model
patterns in the data, accounting for randomness and drawing inferences about the larger population.
These inferences may take the form of answers to yes/no questions (hypothesis testing), estimates
of numerical characteristics (estimation), descriptions of association (correlation), or modeling of
relationships (regression).

The scope of these analyses are addressed below; methods and tools are described in more detail in Appendix
I: Performance Data Analysis Methods and Tools.

Data analysis should be performed clearly and transparently so that anyone familiar with the analysis can
replicate it and reach comparable conclusions. Since performance management is an ongoing process, analysts
in future cycles will be able to avoid reinventing the analysis procedure and avoid concerns as to the accuracy
of any results.

For a guide to practical multivariable analysis for the non-scientist, see Analyzing Outcome Information:
Getting the Most from Data (Urban Institute, 2004).
Interpret the Data
Knee-jerk reactions to a single data point are ill advised and can lead to actions that are neither appropriate
nor beneficial. Additionally, data without a source of comparison lacks context and does not provide users
the ability to make meaning from the information. Use reliable and credible sources of comparable data and
ensure it is current as a basis for analysis. Analysis should seek actionable information within the data by
identifying trends and outliers related to beneficiary subgroups, program sites, and/or time periods. Analysts
are likely to uncover actionable information by comparing performance data from different program sites,
time periods, or beneficiary groups. Trends are patterns discerned within the data. The most obvious trends
occur from time period to time period. However, in order for comparisons between time periods to reflect
changes in program implementation, the procedures for collecting data need to remain relatively consistent. It
may take several data collection cycles for the process to become stable enough to begin drawing conclusions.

Potential sources for comparison include:

ƒƒ A “control group” that is demographically comparable the beneficiary group, but is not impacted by the
program activities. For example, two groups of program staff, the key difference between which is that
one group attended training and the other did not.
ƒƒ Population performance. In contrast to a control group, this basis for comparison does not, by design,
limit impacts on the total population, but recognizes that the small group impacted by the program is
part of a much larger group. For example, efforts to improve employment will yield results in the targeted
group that can be compared against the employment level in the total population in which the targeted
group operates.
ƒƒ Historical baseline. In many cases, the objective is to change outcomes of an entire population; however,
it may be premature to establish specific performance standards. In those cases, the initial goals may be
limited to improving performance, so each measure of performance must be compared to the status that
existed prior to program implementation or intervention.

Outliers are pieces of data that are not consistent with a pattern found in the rest of the data. Suppose,
for example, most program sites produce success rates within a certain range, but one of the sites is
considerably less successful. The program may wish to determine if the beneficiaries of this site have different
characteristics than most sites.

27
Performance data can also provide insight into the viability of the relationship between outputs and
outcomes. If the relationships are strong, increases in performance related to outputs, initial outcomes,
and intermediate or end outcomes will occur together. If not, then the team may need to re-examine the
assumptions behind the model and make changes to the design. For example, a program whose primary
activity is training may decide that it also needs to help consumers implement what they have learned so that
the training has the desired impact. A homeless program that is successful in getting people into transitional
housing may decide that it also needs to consider how to support clients in obtaining and maintaining
permanent housing in order to have the long-term impact they seek to have.

The process of analyzing and interpreting data should result in findings and observations that form the basis
of discussion in the next step, implementing team-based data reviews.

Chapter 7 Summary
ƒƒ Analysis is the stepping stone to interpretation. The purpose of analysis is to make informed judgments
and improvements that align with an organization’s strategy.
ƒƒ A wide variety of data analysis tools and techniques should be used to characterize the collected data
and find actionable information within the data set. Data analysis should be performed clearly and
transparently so that anyone familiar with the analysis can replicate it and reach comparable conclusions.
ƒƒ Analysis should seek actionable information within the data by identifying trends and outliers related to
beneficiary subgroups, program sites, and/or time periods.

CHAPTER 8: IMPLEMENT TEAM-BASED REVIEWS

Implementing team-based reviews is at the crux of implementing team-based performance management.
This section lays out a process for implementation: select a means for delivering the information to the team,
make meaning of the data as a team, and then collaboratively make decisions based on that meaning. The
team-based reviews can be done at each level of the organization, as goals at each level are addressed by the
appropriate team.

Analysis must lead to action. Performance data provide an organization with the information they need
to continuously improve policies, processes, procedures, and alignment of resources for more effective and
efficient programs. Based on comparability and trend analysis discussed above, decisions may be targeted to
specific activities or programs. Conversely, changes may be applied universally throughout the organization
if the data shows problems that are more systematic. In either case, the team must work toward transforming
the analysis into productive decision-making opportunities.
The Baltimore Office of CitiStat, a “small, performance-based management group responsible for continually
improving the quality of services provided to the citizens of Baltimore City is a great example of a systematic
approach to performance management as a team.”26 The CitiStat approach is a data-driven approach to
decision making featuring regular meetings of the chief executive and leadership team and one or more
business unit leaders to review data related to key objectives and/or problem areas. In each meeting the team
follows up on the results of previous decisions--using data trends--and establishes future objectives.27

Following the steps laid out in this guidebook will help organizations move beyond traditional performance
management models and embrace data-driven processes focused on strategy and execution. Looking forward,

26 City of Baltimore public website, http://www.baltimorecity.gov/Government/AgenciesDepartments/CitiStat.aspx. Accessed

July 28, 2011.
27 Daughtry-Weiss, D. “A Performance Management Trend Hits ‘Prime Time,’” In The Arena blog post, http://inthearena.
daremightythings.com/Item.aspx?id=78, November 8, 2010.

28
the ability to make strong, data-driven decisions may be the single greatest predictor of organizations’
success.28
Select the Means of Delivery
Typically, a combination of written and oral presentations, along with graphic displays, is the right approach
for most audiences. Regardless of the audience and the means of delivery, every presentation of data and
information should reduce complexity and stick to simplicity to increase comprehension. However, not all
data is simple. Edward Tufte, a professor at Yale University has spent much of his career dedicated
to the presentation of data and visual evidence. He states that “excellence in statistical graphics
consists of complex ideas communicated with clarity, precision, and efficiency.”29

Tufte describes the various elements of creating a successful graphical display:

ƒƒ Show the data
ƒƒ Introduce the views to think about the substance rather than about methodology, graphic design, the
technology of graphic production, or something else
ƒƒ Avoid distorting what the data have to say
ƒƒ Present many numbers in a small space
ƒƒ Make large data sets coherent
ƒƒ Encourage the eye to compare different pieces of data
ƒƒ Reveal the data at several levels of detail from a broad overview to the fine structure
ƒƒ Serve a reasonably clear purpose: description, exploration, tabulation, or decoration
ƒƒ Be closely integrated with the statistical and verbal descriptions of a data set

In general, he focuses on not only the statistics, but also the design. Tufte focuses on “how to communicate
information through the simultaneous presentation of words, numbers, and pictures.”30

For purposes of the team-based review,

the organization should create a
More Information
consistent data template that can be
used by all goal owners to report on A table of methods for displaying information
their goals and performance measures. graphically can be found in Appendix J: Graphic Data
The team-based review begins with the Presentations.
presentation of these reports. At CitiStat,
Scorecards and dashboards are one method for
a single analyst combines these templates
displaying information to your team. Appendix K:
into a single report that becomes the Scorecards and Dashboards has more information
backbone of the meeting’s discussions.31 about scorecards and dashboards, including a visual
During the team-based review, goal display of a successful dashboard that is easy to read
owners are questioned about their and requires little or no additional explanation.
performance by their team members.
They are given suggestions about how to
28 Reich 2008, 1
29 Tufte, E. The Visual Display of Quantitative Information, 2nd ed. Cheshire, CT: Graphics Press, 2001.
30 Ibid
31 City of Baltimore public website, “CitiStat / Process / Learn The Process,” http://www.baltimorecity.gov/Government/
AgenciesDepartments/CitiStat/Process/LearnTheProcess.aspx. Accessed July 28, 2011.

29
improve their efforts through strategies identified and formulated during a meeting, done through collective
meaning making and collaborative decision making.
From Collective Meaning Making to Collaborative Decision Making
The team’s challenge is to collectively make meaning of the data presented to them, leading to a collaborative
decision-making process. The decision-making process will address any concerns with the data, providing
new directives and strategies to meet the outcomes where little progress is being seen. Throughout the
process, all members should feel understood and valued. They should be able to freely express their opinions,
thoughts, and feelings openly and should actively listen to others. This process is not easy, as the
time commitment is longer and requires a high degree of skill by each individual.32

A key to building consensus in meaning making and decision making is that the group must
support the decision 100 percent. Collective decision making that is arrived at through consensus
is one of the most effective and fair processes. This does not mean that the group has to be in full agreement;
rather they must agree that the decision is the best one in the particular circumstances.33

This process, used by CitiStat, provides an example of how to approach team-based data review and decision-
making:
ƒƒ Programs submit customized data templates on a bi-weekly basis that focus on key performance measures
determined by the leadership team. These may include data analysis, field research, interview quotes
from program recipients and staff, etc. A single analyst combines these templates into a single report that
becomes the backbone of the meeting’s discussions.34
ƒƒ During the bi-weekly meetings, the data within the templates and reports is carefully reviewed and
monitored for trends.
ƒƒ Questions are asked by team members and answers are provided to the best of the ability of the
individual presenting the data. Any questions that cannot be answered are documented for follow-up at
the next meeting.
ƒƒ Additional information is also reviewed such as monthly budget updates.
ƒƒ Strategies are discussed as a team to improve performance.
ƒƒ Following the meeting, a comprehensive briefing, usually about one page long is prepared
and delivered to each business unit or program manager lead that highlights open ended
questions, follow-up data requests to address any concerns and discussed recommendations.35
ƒƒ Any follow-up is discussed at the next meeting along with any new data results.

The process may be slightly different for each team, but the overall goal is to identify actionable information
through consistent review of available information. An example of information that should result in action
is concern about a goal being met. If the goal isn’t being met, the collective meaning making will identify
potential causes and the best action to obtain better results in the future.

Each organization has the capability to adjust the approach of the team-based reviews to meet the specific
needs of the organization. As you work through building your own framework in your organization,
32 Foundation Coalition website, “Methods for Decision Making,” http://www.foundationcoalition.org/home/keycomponents/
teams/decision2.html. Accessed July 28, 2011.
33 Kelsey, D. and Plumb, P. Great Meetings! Great Results. Hanson Park Press, Inc., 2004.
34 City of Baltimore public website, “CitiStat / Process / Learn The Process,” http://www.baltimorecity.gov/Government/
AgenciesDepartments/CitiStat/Process/LearnTheProcess.aspx. Accessed July 28, 2011.
35 O’Malley, M. “State Stat: Maryland,” PowerPoint presentation, www.dnr.state.md.us/pdfs/statestat.ppt. Accessed July 29,
2011.

30
remember that the process is not quick and the time it takes to implement can be significant. There are many
variations of consensus decision making such as the consensus oriented decision making model, whose steps
are rather straight forward:

1. Frame the topic

2. Open discussion

3. Identify underlying concerns

4. Collaborative proposal building

5. Choosing a direction

6. Synthesizing a final proposal

7. Closure
For additional resources on facilitating collective meaning making and collaborative decision making
during a team-based review, see Appendix L: Facilitating Collective Meaning Making and Collaborative
Decision Making. Additionally, Robert Kinsely wrote in an online blog on May 12, 2011 about his
experience attending the meeting of the Maryland StateStat team. His impressions provide an outline for
implementation and are included in Appendix M: StateStat Team Meeting.

Recognize
Recognition can be a very powerful tool to motivate and improve the performance of staff members. In the
nonprofit environment, monetary rewards are not always possible; however, there are many other ways to
recognize employees that are just as effective. The goal of recognition may be different for different leaders
and it can impact staff members in a variety of ways. It can increase their productivity, can build feelings of
confidence and satisfaction, or increase an employee’s desire to stay with an organization.

Ideally, the best reward systems are

clearly stated and closely aligned to the
As with any work team, you define expectations
organization’s strategies. For a nonprofit, upfront as part of the process. To assist in
the strategy may be to reduce costs in a encouraging strong behaviors, recognize the early
certain area, thus encouraging ideas for wins to reinforce the expectations. This is especially
minimizing or eliminated overhead. 36 important to the change management process. An
early win helps an individual get on board to support
You can reward your team individually, the new process. It can also help to transition the
or as a whole. While individual rewards employees with skeptical attitudes.
should be an element of the performance
management process, team rewards As you move forward, remember that rewards should
should also be considered given that clearly state the specific reason for the recognition
and also communicate the expectations for the same
this process is focused on a team-based
level of effort going forward. The continued effort
approach. Individual rewards can to set clear expectations while providing timely and
have a dual benefit to the employee and informal feedback help to shape staff behaviors
the organization. These ideas motivate all while building confidence as the process moves
employees to gain new experiences, build ahead.34
their skills, demonstrate their abilities,
show the organization trusts in them
36 Watkins, K. “5 Keys to Successful Change Management,” ALLIANT’s Blog, Septemeber 18, 2010, http://alliantmgmt.com/
blog2/2010/09/18/5-keys-to-successful-change-management/.

31
and add to an employee’s overall variety of work tasks. Individual rewards might include taking on more
enjoyable tasks, opportunities to attend training or professional development activities, assignment to special
projects, an increased role in decision making, and public recognition in front of peers at meetings.

Providing team-based rewards is a great opportunity to foster team bonding. Team rewards can come in a
variety of forms. One of the most common is team events. These types of reward and recognition events help
to foster team unity and provide useful perspective on individual personalities. Other ideas include team-
building events, such as retreats or community service activities, or a peer-to-peer recognition program, which
can motivate team members and promote teamwork. A key to team-based rewards is considering the various
personality types on the team. Vary the events and keep everyone in mind as you plan activities. Promote the
reward through weekly updates during team meetings, newsletters or memos, or even short-term incentives
that help gain momentum toward the long-term reward. If possible, make the reward fun and creative by
posting a prominent visual of the progress or countdown to the reward.

Chapter 8 Summary
ƒƒ Implementing team-based reviews is at the crux of implementing team-based performance management.
The approach implemented by the Baltimore Office of CitiStat is a data-driven approach to decision
making featuring regular meetings of the chief executive and leadership team and one or more business
unit leaders to review data related to key objectives and/or problem areas.
ƒƒ Collective decision making that is arrived at through consensus is one of the most effective and fair
processes. This does not mean that the group has to be in full agreement; rather, they must agree that the
decision is the best one in the particular circumstances.
ƒƒ Recognition can be a very powerful tool to motivate and improve the performance of staff members.

CHAPTER 9: REFLECT AND REFINE

All performance assessment activities must include an evaluation of the effectiveness and efficiency of
the process for future improvements. Programs must continuously improve the team-based performance
assessment process to make it more efficient and valuable to current and future clients. The key is not only
“lessons learned,” but more importantly “lessons to be used.”
Evaluate the Performance Measurement System
At the end of the cycle, everyone involved in the process should be involved in an evaluation of the system.
The evaluation of the process primarily examines the relationship between what happened to what should
or could have happened and how effective and efficient the performance management process has been in
meeting the organization’s goals and objectives.

At the end of the cycle, the leader should collect feedback from everyone involved and assess and reflect on
the individual concerns of the team. For example, the analyst can record their observations regarding the
disconnect between the original data definitions and the data that was actually presented for review. Once
this information is collected, the project leader should lead the team in a discussion to identify areas of waste
and potential improvements in the process. Direct the team to focus on the positive changes rather than the
negative experiences.

Implement actions to make necessary adjustments to the process and the support systems in a timely and
accurate way. The recommendations and rationale should ensure the entire system continues to serve the
interest of all stakeholders and beneficiaries.

Beyond the process, reflect on results and associated improvements. Each execution of steps in the cycle yields

32
“lessons learned” that must be converted to “lessons used” for better performance management in the future.
When metrics cease to be useful, when comparison data is no long applicable, or when alignment is broken
due to changes in policy, adjustments must be made in a timely manner. Monitoring the effectiveness of the
performance management plan is as important as monitoring the effectiveness of the programs it reflects.
Address the need for changes in metrics, criteria, and comparable standards, as well as the collection process
and tools for storage and reporting.

Chapter 9 Summary
ƒƒ Programs must continuously improve the team-based performance assessment process to make it more
efficient and valuable to current and future clients. The key is not only “lessons learned,” but more
importantly “lessons to be used.”
ƒƒ When metrics cease to be useful, when comparison data is no long applicable, or when alignment is
broken due to changes in policy, adjustments must be made in a timely manner.

33
CONCLUSION
A data-driven decision making nonprofit uses its evaluation efforts to guide the organization, with an eye
toward what works and the effective and efficient use of funds. Implementing a team-based performance
management process is one way to create an environment of data-driven decision making within an
organization. Benefits of the approach include an engaged staff and an innovative and responsive
organization.

34
APPENDIX A
Assessment Tools and Skills Matrix
In general, most leadership assessment tools focus on broad leadership qualities, such as decision-
making skills, collaboration, planning, communication, and teamwork. You may want to use a tool
that has both general leadership topics as well as topics focused on project management, such as the
Kirton Adaptive Inventory (http://www.kaicentre.com) or the Ken Blanchard Preferred Leader Assessment
(http://www.kenblanchard.com). See below for additional tools. In a nonprofit environment in which you are
trying to implement a team-based performance management process, it is also important to consider other
key factors, such as facilitation skills, analysis capabilities, and action planning.

If self-assessments do not provide enough information regarding performance management skill sets, you
might conduct a 360 degree feedback survey that asks peers and staff member’s specific questions about
performance management skills and your abilities and the abilities of your team to meet those requirements.
You can also learn more about leadership styles, team management, and performance tools in the Leading a
Nonprofit Organization guidebook.

Once a solid understanding of the necessary competencies and skills are identified and the corresponding
leadership abilities are aligned, the gaps should be clear. Use a matrix to clarify gaps. A matrix assigns a high,
medium, or low to each skill and need. This tool can help you to lay out a clearer picture of the gap as seen in
the below illustration.

Low GAP
Current Skills

Middle

High

Low Middle High

Current Need

Ask these questions to clarify the steps you need to take to close the gaps:
ƒƒ Are there mentoring opportunities through your board members?
ƒƒ Are there other affinity organizations and nonprofits that you can work with to better share limited
talent, core skills, and expertise?
ƒƒ Are there staff members who have the skills that you can leverage and learn from?
A long-term plan should also be a part of identifying the desired competencies and skills of future leaders.
Based on your need and timeframe, you can conduct succession planning to identify the characteristics
of individuals that you would like to see brought into the organization during future hiring. Additionally,
succession planning can identify a strategy if you experience personnel losses to ensure the seamless transition
of certain tasks to new individuals. This topic is typically of importance for nonprofits when it comes to
analysts. In a later section, there are considerations for how to find the right individual for the important and
critical phase of analysis.

Tools for leadership assessments:

ƒƒ The Educational Leadership Toolkit includes a leadership self-assessment and a team climate survey.
http://www.nsba.org/sbot/toolkit/LeadSA.html

Appendix A | 35
ƒƒ Leadership Self-Assessment Tool by R.E. Brown and Associates can be used for an assessment from
your own perspective or from the perspective of others – a 360 degree look at one’s leadership strengths
and potential. http://rebrown.com/assessments_transition.htm

ƒƒ Other tools are available from the Free Management Library website on their webpage entitled Various
Needs Assessments to Help Identify Leadership Development Goals. http://www.mapnp.org/library/
ldr_dev/assess/assess.htm

Appendix A | 36
APPENDIX B
Risk Mitigation Plan
Risk mitigation planning helps organizations provide possible solutions and answers to potential issues before
they occur. The planning is designed to address the all different types of scenarios. The goal is to establish
collective processes and approaches to guide the team’s decision-making and the staff responses.

First, create a set of planning scenarios that represent a broad range of potential situations the organization
could plausibly face during this time of change. Then, take the time to determine a flexible set of ways that
can be combined to deal with unexpected scenarios. For example, do you need different communication
channels to help during this time of transition if people are responding negatively, or do you need town hall
meetings where people can voice their concerns openly? Once these potential responses are matched with
the risk scenarios, have the team determine a designated chain of command that provides a unified team
message. The response plan should always include a communication plan. Clear communication is the key to
addressing issues and reaching a broad group of people.37

You can use the tools below to help analyze risk and document actions to mitigate potential risk. The risk
management plan template can be used to brainstorm risks as a team and discuss their probability, potential
impact, and contributing factors (those events that increase the likelihood and impact of the risk). Finally,
determine actions for mitigating the risk and assign someone responsibility for carrying out those actions.

Use the risk management matrix to plot your risks according to their probability and potential impact. Each
risk will then fall with one of four quadrants:
ƒƒ High Impact, High Probability. These are the priorities when it comes to ensuring completion of risk
mitigation actions.
ƒƒ High Impact, Low Probability. While these risks have a low probability, the potential impact requires
leaders to be prepared to mitigate them.
ƒƒ High Probability, Low Impact. These might be considered low-hanging fruit. The risks will likely occur,
but their impact is low and may be easily mitigated. Do not let these risks fall through the cracks, as
small problems can easily become big problems without proper mitigation.
ƒƒ Low Probability, Low Impact. These scenarios are not likely to occur and would have a low impact.
Leaders should monitor the contributing factors that might increase either impact or probability.

37 Managing Crisis Guidebook

Appendix B | 37
Risk Management Plan Template

Impact
Probability
(Rank on a
Risk (Likelihood Contributing Factors Risk Mitigation Actions
scale of 1-5,
of
with 5 as the
occurrence)
most severe)
Failure to 25% 5 Have had trouble Engage potential critics
get team implementing new in the planning process
buy-in initiatives in the past
to new Frequent, consistent
process Success requires communication
everyone’s emphasizing intentions
participation and goals

Leaders/program Encourage/reward team

managers are contributions
instrumental—
others will follow Hold program
managers accountable
consitentconsistent
communication
emphasizing intentions
and goals

Encourage/reward team
contributions

Hold program managers

accountable

Risk Management Matrix

High

Failure to get team buy in

PROBABILITY

Probability:25%
Impact: 5
Low

Low IMPACT High

Appendix B | 38
APPENDIX C
Indicators of Change Readiness
Indicators of change readiness are traits you can look for in organizational documents or by interviewing
organizational leaders. Not all of the indicators must be present in order for an organization to be ready for
change, but several of them should be.
Indicators
Mission/Vision/Values
ƒƒ The organization has clear values that define the way they interact with the community and within the
organization.
ƒƒ The organization has a vision and mission statement in which employees, board members, and all other
organizational stakeholders are invested.
ƒƒ There is a clear plan for growth, in a strategic plan or other written document.
ƒƒ The executive director, board of directors, and other leadership is committed to and directly involved
with the change.

Organizational Alignment
ƒƒ Leadership and staff recognize the need for change.
ƒƒ Leadership and staff mostly agree about what change is needed.
ƒƒ Leadership and staff are prepared to support the change.
ƒƒ There is cross-functional communication; leadership and direct service staff effectively communicate with
each other.

Culture and Infrastructure of the Organization

ƒƒ The mood of the organization is optimistic and positive.
ƒƒ Conflict is dealt with openly, with a focus on resolution.
ƒƒ Innovation within the organization is rewarded and taking risks is allowed.
ƒƒ Infrastructure is flexibly and easily adapted to possible role changes in the future.
ƒƒ Leadership is aware of trends in the nonprofit sector, particularly new and emerging practices.

Past Experiences
ƒƒ The organization has had positive experiences with change in the past.
ƒƒ The organization is relatively comfortable with transitions.

Appendix C | 39
APPENDIX D
Communication Plans and Template
Team Communication

The communication that occurs within the specific team responsible for performance management should be
related to training, timelines, decision-making processes, and delegation authority, to name a few.

Depending on your leadership style and the style of your team, adjust your communication approach
accordingly. Some people prefer written communication when they are delegated a task, whereas others prefer
a face to face communication.

Whichever approach you take with individuals, establish a centralized location where all decisions, timelines,
and assignments are documented and shared for full disclosure to the team. As important aspect of team-
based decision making is collectively holding each other accountable for the items that have been agreed
upon. Knowledge management systems that facilitate collaborative documents, such as wikis, are a great
place to house these documents.

Downstream Communication

This initial communication is valuable to set the stage, but additional communications need to occur between
levels of the organization throughout the process. These communications include both reminders of the
reasons for implementing team-based performance management and specific task-oriented communication.
Communication should be both informal and formal between levels of the organization. Formal
communication occurs in a set format, including conferences, meetings, written memos, and letters. Formal
communication is usually straightforward and direct, whereas informal communication is not restrained and
usually can occur at any time or place. Informal communication can help those who are less comfortable
speaking in large audiences voice their opinion in a comfortable setting.

It is the responsibility of the individual who is a part of the initial team and accountable for specific tasks to
communicate with those that are downstream of the changes being implemented. For example, the program
leader that might sit on the initial team is responsible for communicating task level information to their staff.
As the communications trickle down through the organization, champions can be identified for leading the
charge to ensure timely and consistent messaging about specific tasks.

External Communication

Some of the other target audiences to consider are program partners and the public, who are most likely
concerned about program results. Keep their interest in mind as you communicate either the goals of
performance management or the outcomes. Program staff and partners may be motivated in trying to reach
a certain performance target. Funders and the public will be assured that the program is accomplishing its
purpose and that management is collecting meaningful information that it can use to improve. Of course,
wider dissemination to the public and other stakeholders may be warranted, but should not take place
without leadership’s involvement, coordination, and approval.

Communication Planning Template

Use a communication plan template that clearly spells out the objective, audience, specific message, who will
deliver the message and the means of the delivery for all communication. This will help to ensure that all
essential elements of information are covered and nothing is forgotten.

Appendix D | 40
Audience analysis will help to determine the best means to deliver the message. A combination of written and
oral presentations, along with graphic displays, will be the right approach for most audiences.

A communication plan may be as simple as this template:

Means,
Objective Target Audience Message Messenger Mechanisms, and
Sources
Increase Community Program outcomes Program Clear text with
fundraising Leaders (External display a positive director associated graphic
potential Stakeholders) trend, leading to with recent displays suitable
through reductions in crime beneficiaries for community
increased and improvements group meetings
community in quality of
awareness community life

Appendix D | 41
APPENDIX E
Change Leadership Checklist

Rating
(Scale of 1-5,
with
Comments or Recommendations for
Action 5 as the most
Improving Change Implementation
positive or
favorable
progress)
Preparing for Change
1. Is there a clearly developed change
strategy based on organizational
culture, objectives to be accomplished,
and lessons learned from the past?
2. 2. Does the strategy gain positive
leverage from current strengths and
recent successes?
3. 3. Have risks been identified – risks
involved in the transition and risks
associated with the new policies,
programs, processes, or procedures?
4. 4. Has a communications plan been
developed to ensure all stakeholders
are enrolled in the change process?
5. 5. Have leadership and management
skills necessary for successful change
been assessed, with near-terms plans
to fill gaps?
Implementing Change
6. Are organizational leaders taking
an active role in providing the
vision, resources, and process for
implementing change, including
coordinating with external
stakeholders?
7. Are leaders at all levels able to
communicate effectively both inside
and outside the organization?
8. Are leaders able to manage risk? Have
risk mitigation actions been put in
place to minimize the adverse impact
of risks?
9. Are the appropriate people receiving
training and is it effective – training
on the change process as well
as training on the new policies,
programs, processes, or procedures?

Appendix E | 42
10. Does the organization recognize
and reward individuals and team
who proactively support the change
objectives and take extra steps to
ensure success?
Institutionalizing Change – Making it Stick
11. Have leaders taken specific steps
to involve everyone in the change
process – to ensure people at all levels
of the program/organization have the
opportunity to contribute to success?
12. Have all elements of the organization
been addressed to ensure alignment
during and after implementation?
Alignment should address people,
processes, technology, customer
service, objectives, and outcomes.
13. Do leaders consolidate victories,
publicize them both internally and
externally, and build on momentum?
14. As change becomes embedded
in the organization, do leaders
promote infrastructure alignment to
ensure new policies and procedures
become a “way of life” until the next
opportunity for improvement?
15. Does the organization capture lessons
learned through after action reviews
and the development of knowledge
assets that are readily available
for others to use in future change
strategies?

Appendix E | 43
APPENDIX F
Developing a Logic Model
Each team assigned to a specific task can work together to create a logic model for each goal they have been
assigned. This will help to flesh out the activities that can be tracked in a performance management plan to
determine if the organization’s performance management model is on track. Depending on the size of the
team and the number of tasks, this process can occur in small sub teams, but should be reviewed as a larger
team to ensure alignment and reduce overlap. A more detailed process flow is described below.

Logic models take a wide variety of forms, but the most commonly used model uses the following terms and
assumptions.

Inputs Activities Outputs Outcomes

Inputs are the IF you have access IF you can IF you have
resources used to to those resources, accomplish these delivered the
implement the THEN you can activities, products and
program. implement program services as planned,
activities. THEN you will THEN there will be
have delivered benefits for the
the products clients, communities,
and services you systems, or
planned. organizations served
by the program.

As solid, goal-based outcomes are identified, it is easier to trace the steps backward to the necessary outputs,
associated activities, and required inputs (resources) for success. Each element of the logic model should
include critical indicators (metrics) that will guide decisions within individual programs. They must be
meaningful, measureable, and credible. The following definitions will help to further define these concepts:

Output. An output is the product or service produced by a process or activity. Examples include the number
of people trained or the number of mentors recruited. Outputs help track the progress toward implementation
of our plan; they also help to further understand outcomes when they vary from what was expected.
Ultimately, they assist in helping the team to adjust and monitor actions.

Outcome. An outcome represents the effects and changes that are a result of the outputs in both the short-
term and longer term. The term “impact’’ is used frequently to describe changes that would not have occurred
in the absence of the program. In most cases, funders and staff are most interested in long-term outcomes.
Long-term outcomes can be influenced by many activities outside of the program; therefore, it may be
difficult to establish a direct cause and effect relationship.

A logic model clarifies the intended results of the program activities and should include, at a minimum,
outputs, as well as initial, intermediate, and end outcomes. Follow this process for creating a logic model.
Begin with the goal that has been set by the strategic plan developed by the leadership team.

Appendix F | 44
1. Confirm the goal statement that has been approved by the board.
Sample statement: To break the cycle of poverty for at-risk youth.
2. Restate the performance goal as an outcome statement (i.e., what kind of change, for whom). This is the
end outcome.
Sample outcome statement: To improve the long-term economic well-being of youth growing up in poor
households.
3. Identify the products and services that are delivered to customers or program beneficiaries. These are the
outputs.
Sample output: Parenting classes to parents of children at-risk for dropping out of school.
4. Identify the critical activities that are necessary for producing these outputs. Include outreach activities
that are the first contact of the program with program customers or beneficiaries.
Sample activities: Recruit parents. Design classes. Provide classes.
5. Create a series of “if…then…” statements, working backward from the end outcome to the direct result,
or initial outcomes that are anticipated after the delivery of products and services. These statements
represent your assumptions, or theory, about how the activity leads to the desired result. Significant end
outcomes often have many dependant outcomes that must occur before the desired outcome. Missing
or tenuous links in the chain will weaken your ability to identify performance measures and diagnose
performance concerns.

Example if…then sequence:

IF parents are convinced of the benefits of changing their behavior,

THEN they will have the motivation to change their behavior.

IF parents learn about and practice new behavior,

THEN they will have the skills required to change their behavior.

IF parents have the skills and motivation to change their behavior,

THEN they will provide appropriate encouragement to their children.

IF parents provide appropriate encouragement to their children,

THEN children will be motivated to participate appropriately in school.

IF children are motivated to participate in school,

THEN fewer children will drop out.

IF fewer children drop out,

THEN long-term economic well-being of at-risk youth will increase.

A complicated series of interacting outcomes may be more easily manipulated in a flow chart diagram with
arrows between each outcome. However, when using arrows, be sure to ask if there is a reasonable “if…then”
relationship between each outcome, to ensure that no intermediate outcomes are left out.

Appendix F | 45
6. Examine the assumptions that underlie each “if…then” statement. Some of them are likely to be
reasonably “safe” assumptions. Others may be supported by research. Still others may involve leaps of
faith by program designers. Make note of these assumptions because you will want to collect adequate
data to assess the validity of these aspects of your program theory.
7. Begin putting the program theory into an easily digestible graphic or table format. For communication, a
table format like the one below that simply lists outcomes as “initial,” “intermediate,” and “end” may be
preferable.

Logic Model Worksheet

Outputs Initial outcomes Intermediate outcomes End outcome

Products and An outcome expected Outcomes expected An outcome that

services delivered. at the time program after products and represents the desired
products and services services have been end result of a
are delivered (during consumed (after program.
program activities). program activities), but
which do not represent
the desired end result
of the program.

Appendix F | 46
APPENDIX G
Creating Performance Measures from a Logic Model
After creating a logic model, identify performance measures using the outputs and outcomes. Performance
measures are critically important for conveying “what matters” and must be meaningful and relevant to
internal and external stakeholders. The diagram below uses examples to show how outputs and outcomes can
be converted into a set of measures. Note that the measures under the “activities” column are labeled “process
measures” rather than “performance measures.” The process measures are not directly related to the impact
of the organization, whereas the performance measures typically deal directly with the outcomes or results of
activity.

Activities Outputs Initial Outcomes Longer-term Outcomes

ƒƒ Design and ƒƒ Classroom ƒƒ Mentors gain ƒƒ Academic
develop training knowledge and performance
mentor training understanding
ƒƒ E-learning ƒƒ Children have fewer
curriculum of productive
modules behavioral issues
relationships
ƒƒ Recruit mentors
ƒƒ Graduation rates
ƒƒ Dosage and
ƒƒ Plan for learning
duration of ƒƒ Post-school
event
mentoring placement (job,
relationships military, further
training/education)
ƒƒ School attendance
Process Measures Performance Measures
ƒƒ Curriculum ƒƒ # of mentors ƒƒ % of mentors ƒƒ # of children with
produced IAW completing exceeding minimum better grades
ANSI/IACET e-learning required score on (average increase in
Standard post-test grade point average)
ƒƒ # of mentors
ƒƒ # of mentors attending ƒƒ # of matches ƒƒ # of behavior reports
recruited training event meeting or on participating
exceeding children compared
ƒƒ Event is held on ƒƒ # of hours of
standards for to others
schedule and training delivered
monthly dosage
within budget ƒƒ % of youth
and longevity
graduating
ƒƒ % school compared to others
attendance
ƒƒ % of post-secondary
compared to
placements (increase
non-participating
over baseline or
students
compared to non-
participating youth)

Appendix G | 47
APPENDIX H
Sample Data Collection Worksheet
This worksheet will ensure that your data collection plan is complete, and aligns to the goals initially developed.
Performance Measure/ Data Period of Instructions for Person
Goal Dates for Reporting
Metric Source Collection Data Entry Responsible
Appendix H | 48
APPENDIX I
Performance Data Analysis Methods and Tools
Descriptive statistics

Data Description Purpose

The total has limited use,
except to explain the size of the
population being measured or
Self-explanatory; the total is simply
number of observations; however,
Total the sum of all data related to a
it can be sub-divided into
specific element.
categories for additional insight
(see various graphing approaches
below).
The arithmetic mean is the sum of
The arithmetic mean works well
the observations divided by the
for values that fit the normal
number of observations. It is the
Arithmetic Mean distribution. It is sensitive to
most common statistic of central
(“Average”) extreme values, which makes it
tendency and when someone
a poor match for highly skewed
says simply “the mean” or “the
data.
average,” this is what they mean.
The median is useful when
dealing with highly skewed
distributions. For example, if you
When the numbers (Ys) are sorted
were studying acorn dispersal,
from lowest to highest, this is the
you might find that the vast
value of Y that is in the middle. For
majority of acorns fall within 5
an odd number of Ys, the median is
Median meters of the tree, while a small
the single value of Y in the middle
number are carried 500 meters
of the sorted list; for an even
away by birds. The arithmetic
number, it is the arithmetic mean of
mean of the dispersal distances
the two values of Y in the middle.
would be greatly inflated by the
small number of long-distance
acorns.

It is rarely useful to determine the

This is the most common value mode of a set of observations,
in a data set. It requires that a but it is useful to distinguish
continuous variable be grouped between unimodal, bimodal, etc.
Mode into a relatively small number of distributions, where it appears
classes, either by making imprecise that the parametric frequency
measurements or by grouping the distribution underlying a set of
data into classes. observations has one peak, two
peaks, etc.

Appendix I | 49
 Data Description Purpose
The ratio is the relationship
between two pieces of data, usually
expressed as one over (or divided
by) the other. This also provides the
Ratios are helpful in describing
opportunity to present the ratio
the relative size of a portion of
Ratio as a percent. For example, 40 of
the population or one category of
a total of 100 students are boys or
data to another or to the whole.
40/100=40% are boys. It can also be
presented as the number of boys
compared to the number of girls
(e.g., 40:60).
Standard deviation can indicate
the degree of homogeneity of
a population—how similar or
The standard deviation is the most
different all the occurrences are.
common measure of statistical
It may also serve as a measure
dispersion, measuring how widely
Standard Deviation of uncertainty. If measures
spread the values in a data set is
should be close to the same, a
around a central point, usually the
large standard deviation could
mean.
indicate an error in the method
of measurement or inability to
predict results.

Inferential statistics

Technique Description Purpose

Estimation Estimation is the calculated Estimation is helpful in “filling
approximation of a result that in the gaps” where not all data
is usable even if data may be is available due to the cost
incomplete. Estimation can be or inability to collect. Future
useful if based on statistical projections in conjunction with
analysis, such as extrapolation of regression analysis (see below)
a least squares regression line to are one of the common uses of
predict future trends, but estimated estimation.
data should also be highlighted to
preclude any false interpretation.
Correlation In statistical analysis, correlation, Statistical analysis of a data set
(often measured as a correlation may reveal that two variables
coefficient), indicates the strength tend to vary together, as if they
and direction of a relationship are connected. For example, a
between two variables. In general study of annual income and age
statistical usage, correlation, or co- of death among people might
relation, refers to the departure of find that poor people tend to
two variables from independence. have shorter lives than affluent
In other words, one is dependent people. The two variables are
on the other. said to be correlated (which is a
positive in this case).

Appendix I | 50
Regression The first objective of regression Linear regression is widely used in
analysis is to best-fit the data by biological, behavioral and social
adjusting the parameters of the sciences to describe relationships
model. Of the different criteria between variables. It ranks as
that can be used to define what one of the most important tools
constitutes a best fit, the least used in these disciplines. A
squares criterion is a very powerful major product is a trend line. It
one. represents a trend, the long-term
movement in time series data
after other components have
been accounted for. It indicates
whether a particular data set
has increased or decreased over
the period of time. A trend line
could simply be drawn by eye,
through a set of data points, but
more properly their position and
slope is calculated using statistical
techniques like linear regression.

Appendix I | 51
APPENDIX J
Graphic Data Presentations

Graphical Display Description Purpose

Used to display the frequency
of responses or response
categories (called bins).
The horizontal axis provides the
Assessments are often
Bar chart/ histogram responses or response categories.
requested to be subdivided
The vertical axis is the frequency of
by categories (e.g., all girls,
a response (or a range) within the
all urban areas, all former
data set.
prisoners), and a bar chart or
histogram is often the first
display of data by category.
As above, but categories are Used to identify the most
arranged in descending order of frequent responses for follow-
frequency. The underlying concept up/action. This enables the
Pareto chart
is that 20% of the activities or analyst to focus on the “critical
events lead to 80% of the results few” factors that have the
(the Pareto Principle). greatest influence.
On a single axis, this graph shows
where the top quarter and bottom Used to display the range
Box plot quarter of responses lie, the total and dispersion of data on a
range of responses, and the mean, particular variable.
or average.
Used as an input to the
Axis represents two variables
identification of a linear
of analysis (e.g., outcomes and
or curvilinear trend that
Two variable plot beneficiary characteristics) with
represents a correlation of
individual data points represented
two variables (see inferential
as dots.
statistics below).
The horizontal axis represents time Used to monitor the variation in
and the vertical axis represents an the outputs in a process where
Statistical process output variable. Horizontal lines inputs are consistent and some
control chart represent acceptable boundaries of variation in the characteristics
variation, usually calculated using of outputs is expected within
standard deviation. limits.

Appendix J | 52
APPENDIX K
Scorecards and Dashboards
The goal of performance management is not only to report to funders, but also to support the efforts of the
nonprofit. The two audiences, funders and nonprofit staff, may have very different needs and desires when
it comes to the delivery of information. The use of dashboards and scorecards has been of great value over
the last several years as people are inundated with data, but lack the knowledge to know what to do with the
data. As mentioned in the introduction, this guidebook is designed to help organizations that want to stop
simply generating data and start using it.

Tom Gonzalez, the Managing Director of BrightPoint Consulting, Inc., describes the difference between
the two means of delivering data information: “The goal of a scorecard is to keep the business focused on a
common strategic plan by monitoring real world execution and mapping the results of that execution back to
a specific strategy. A dashboard falls one level down in the business decision-making process from a scorecard,
as it is less focused on a strategic objective and more tied to specific operational goals.”38

The distinction between the tactical and strategic information feedback is of primary importance, regardless
of the terminology used. Tactics are going to be of less relevance to outsiders and board members who meet a
few times a year. Tactics are the daily concern of frontline staff.

Ultimately, for the staff at the front line, the questions should not be, “Are we on track with our strategic
plan?” and “Did we meet the quarterly/annual performance target?” but rather, “How can we improve this
week/month?” and “Did what we tried last week/month make a difference?” Front line staff and managers
need different measures and fewer targets that allow them to experiment with the impact of their approach
on immediate results.

38 Becher, J. “Scorecards vs. Dashboards,” Manage by Walking Around blog post, August 15, 2006, http://alignment.wordpress.
com/2006/08/15/scorecards-vs-dashboards/.

Appendix K | 53
APPENDIX L
Facilitating Collective Meaning-Making and Collaborative Decision-Making
Skills Required for Collective Meaning Making

In addition to understanding each team members’ style, there are additional skills that will enhance and
smooth the collective decision-making process. The lead for the team should practice and demonstrate these
skills as well as discuss these with the team at the outset.
ƒƒ Practice active listening – Each individual has something to say.
ƒƒ Manage uncertainty – Many facts may not be known.
ƒƒ Embrace complexity – You have to consider many interrelated factors.
ƒƒ Understand high-risk consequences – Impact of the decision may be significant.
ƒƒ Consider alternatives – Each idea has its own set of uncertainties and consequences.
ƒƒ Release interpersonal issues – It can be difficult to predict how other people will react.39
For some groups, a team charter may help to identify collective rules of engagement that are agreed upon and
enforced by the entire team to create a constructive environment. Since this exercise could actually be the first
time the team uses the collective decision-making process, it should result in a formal written follow-up and
be revised if there is anything that hinders the process or needs to be added. Some good group questions to
discuss include the following:
ƒƒ What level of participation do members expect of each other?
ƒƒ What does “on time” mean?
ƒƒ What level of attendance is expected?
ƒƒ How will absent people be informed?
ƒƒ Who has to be present for decisions to be made?
ƒƒ What disruptive behaviors should be avoided?
ƒƒ How will members respond to one another?
Facilitation
As a facilitator, your goal is to help a team create a solution that works for all members. The decision should
be supported by all team members and meet their criteria and expectations for a positive result. Facilitation is
an art form to many because it requires the proper use of rational and structured methods, which often tend
to become conflicted with emotion.

As a facilitator, you can use a flow or process to reach a decision. In theory, the process is pretty straight
forward: the group identifies a decision goal, generates ideas, clarifies them, evaluates the ideas, narrows
down the various ideas and comes to a decision. Each step should be thought of as a funnel, with the group
narrowing down the list of goals and ideas and coming to agreement on a final solution.

For purposes of data-driven decision making with a team, the most important decision goal is truly around
what is or is not working when it comes to meeting the performance measure.40
39 Mind Tools website. “Decision Making Skills – Start Here!” http://www.mindtools.com/pages/article/newTED_00.htm.
Accessed July 29, 2011.
40 Kelsey, D. and Plumb, P. Great Meetings! Great Results. Hanson Park Press, Inc., 2004.

Appendix L | 54
A few facilitation techniques for brainstorming include:
ƒƒ Get the group to agree on a timeframe for each step in the process.
ƒƒ Write down ideas on a flipchart as people discuss them, so everyone can see them.

o Encourage participants to express whatever comes to mind.

o Don’t monitor, censor, or criticize ideas and do not discuss ideas as they come up.

o Do not remove duplicate ideas until discussion starts.

o Encourage ideas that build from other ideas.

o Ask clear and open-ended questions to clarify ideas and comments.

ƒƒ Encourage others to contribute.

o “What other ideas are there?” “Do others have any ideas to add?”
ƒƒ Invite experts to comment.

o “Karen, you have worked on this topic. What are your ideas?”
ƒƒ Confirm ideas are sound and accurately reflected, once all new ideas have been discussed.
ƒƒ Open the floor for discussion and reflection.
ƒƒ Provide time for small group discussion.

Allow time for individual thought and reflection on information presented.41

Overall, the role of a facilitator is to ensure that the team uses a process and structure to accomplish the best
work possible.

41 Rees, F. The Facilitator Excellence Handbook. Pfieffer, 1998.

Appendix L | 55
This work was created by the Compassion Capital Fund National Resource Center, operated by
Dare Mighty Things, Inc., in the performance of Health and Human Services Contract Number
HHSP23320082912YC.