Ours to Win: Flipping the Argument for Nonprofit Measurement Effectiveness

Daniel Hayden, Raredhayden@rareconservation.org

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Two Key Points

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Non-profits have a competitive advantage in creating impact measures

You can use process measures to help you get to measuring impact

Founded: 1973

Central office: Arlington, VA, USA

Regional offices: Indonesia, China, Mexico, Micronesia, PhilippinesTotal staff globally: 120

# of countries Rare has worked in: 56

Our specialty: Social marketing to reduce environmental threats.

Method Summary: Rare trains partners to run “Pride campaigns” that change attitudes and behaviors, provide sustainable alternatives, and help communities protect biodiversity at the local level.

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Rare at a Glance

Measure Across the Project

ProgramGoals

CampaignBaseline

CampaignProcess

CampaignNear-term

ProgramImpact

CampaignSustainabilit

y

• Focus groups• Quantitative

Social Survey• Baseline

Biophysical

• Weekly Ops Reports

• Monthly leading indicators

• Quantitative Social Survey

• Follow up Biophysical

• Assess actual vs. goals

• Lessons learned

At about ½ of sites:• Quantitativ

e Social Survey

• Follow up Biophysical

• Social goals• Biophysical

goals

1 year 2 years 3- 5 years

A Pride campaign is a 2 -3 year project lead by local partners that creates opportunities for local communities to adopt new behaviors and reduce threats to biodiversity.

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Two Key Points

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2

Non-profits have a competitive advantage in creating impact measures

You can use process measures to help you get to measuring impact

Flipping the Paradigm: Nonprofits Should Have Better Measurements than For Profits

Situation: For ProfitsConsistent, comparable, meaningless data

Strengths+ Standardized measurement systems

(FASB, Tax laws, SEC, etc.) enable quick set up

+ Wall Street Measures (share price, revenue, costs) provide clear accountability

Challenges∆ Driven by quarterly targets∆ Mission is not compelling or motivating∆ Links between standard measures and

value creation unclear

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Situation: Non-profitsInnovative, challenging, impactful measures

Strengths+ Innovative measurement systems: Not

constrained by FASB, Tax laws, SEC, etc.+ Motivating and compelling mission+ Enduring mission+ Not constrained by short-term goals

Challenges∆ Easy measures don’t matter: e.g.: revenue,

expenses, etc.∆ Measures not comparable∆ Requires more thought

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Mission-centered metrics can inspire change, motivate

staff and engage donors

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Two Key Points

1

2

Non-profits have a competitive advantage in creating impact measures

You can use process measures to help you get to measuring impact

How Rare Came to Measure Impact

1. Mission – Action Oriented2. Commitment to Accountability 3. Belief in Organizational Transparency4. Culture of “Courage to Take Risks”5. Organizational Support6. Long-term Planning and Patience

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1. Mission – Action OrientedStrategy Map Defines the Actions to Achieve Mission

2. Commitment to Accountability Balance Scorecard Cascades & Cross Cuts

Rare MeasuresMost Strategic

Departmental MeasuresStrategy & Ops

Individual Measures Ops Supporting Strategy

Prio

rities

Info

rmati

on

Cross-

cutti

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Mea

sure

s

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3. Belief in Organizational TransparencyOnline, Open Reporting

4. Culture of “Courage to Take Risks”We were not expected to get it right the first time

CEO & COO

Sr. Director Global Programs

Internal Experts

• Sets strategy and priorities• Signs off on goals

• Manage processes• Aligns groups• Quality assurance

• Ensure sound methodology• Align with key process• Ensure quality assurance

Divisional Heads • Align with global goals• Set divisional goals

We moved this responsibility from Finance to Global Programs

Annual update sets new targets, refines measures and allows for some revisions

CEO & COO

Sr. Director Global Programs

Divisional Heads

Program Development Team

Quality Management & Improvement

Global Programs

• Manages the recruitment of partners• Helps select which partners and sites we should work with

• Helps set standards for all Pride campaigns• Monitors campaigns against set goals

• Designs training for programmatic staff• Creates training for our Pride campaign managers (partner staff)

Pride Management Process

Select Theme

Recruit & select

Partners Train & Support PartnersProgram Management

Initial Planning Pride Campaign Execution

Supporting Global Teams1

1 1 2

2

3

3

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4. Organization SupportMeasurement is integral to operations

5. Long-term Planning and Patience

To conserve imperiled species and ecosystems around the world, Rare inspires people to care about and

protect nature.

Our mission is protecting biodiversity, but realizing change isn’t easy …1. Our programs tend to last just 2 to 3

years2. Biodiversity rebounds over many years3. Many factors affect biodiversity

5.1 Our programs last just 2 to 3 yearsEnsure measurement systems are in place• For lots of reasons we chose to time constrain our programs

to a few years• However, during the campaign we can measure the process

Quarterly Measure the Implementation of Monitoring Protocols

5.2 Biodiversity Rebounds Over Many YearsBuild partner commitment for long-term monitoring

• Set goals to measure impact after the program ends• Get partners that are committed to measure

Track Long-term Commitment to Monitoring

5.3 Many Factors Affect BiodiversityCreate an credible culture• Document all

the factors that affect biodiversity

• Focus on contribution to biodiversity improvements, not causation

• Be transparent with funders

Success: Now We Report Biological Impact

Lessons Learned: Tactical

1.Perfection is the enemy of good2.Take a long-term view3.Okay to use process measures as an

interim step towards impact4.Assign clear roles to people5.Link to performance management6.Mistakes are part of learning

Lessons Learned: Strategic

• A mission focus is an asset • There is lots of room to innovate• Organization must be committed to

measuring impact

Questions?