We Like Metrics!

                I work mainly with medium and small non-profits organizations in my consulting work.  Generally, the development department consists of two, or one or zero staff!  This week, an Executive Director let me know that three organizations, run by professional friends are closing down.  Without specific information about what caused each of these individual boards to make the decision, it led us to a talk about the importance of  being relevant to your constituency and being able to measure progress.

               Also last week, I was speaking to a potential new client.  This non-profit organization is in the enviable position of generating significant revenue through fees for their services.  Additionally, they have a couple of significant partners that have funded the growth of the infrastructure.  As savvy non-profit executives, they are now preparing to seek individual and foundation income, as they establish a development office.

               As I described the proposal that I would forward, I mentioned that it would contain an estimate of the expenses to be incurred and the income gained in the first few years of the development function.  The CEO said, “We like metrics”.  

               At the time, I took note of the comment, and today, it speaks volumes to me, in light learning about the organizations that are closing down. My hunch is that those organizations could not report the number of people they were helping, what the cost was for each individual or how their work had grown (or not) over the past five years.  It is also my hunch that any strategic plan that exists is not tied to numbers.

               The consideration of metrics is an essential element to excellent management in all areas of business, whether it is a non-profit or for profit business.  I know that the line, “We like metrics” will influence discussions that I have with non-profit executives and development professionals in the future.