Measure with Purpose

A steady course toward new possibilities begins with a clear sense of purpose.

Quite the whipsaw! Last month we looked at culture—one of the most ethereal aspects of an organization. This month we examined metrics and key performance indicators—the tangible tools for measuring progress. As different as they are, these organizational elements are linked.

Nonprofit organizations, like all businesses, start with a purpose. The purpose explains why it exists. It is also required by the IRS to obtain and maintain nonprofit status. Ideally, everything done by the organization serves that purpose.

From that purpose flows a set of principles or values that establish the ethical boundaries for how the organization operates. These values should be clearly stated through a set of value statements. If the values are left unstated, they will naturally mirror the values of the most influential individuals within the organization. And, unfortunately, they may not align with the nonprofit’s purpose. It is best for leadership to state and publish those values. When those values are put into practice, they will create the organization’s culture. Values statements also inform policies like codes of conduct, board operations, and employee handbooks.

Values also influence the organization’s mission statement, which establishes what the organization does to fulfill its purpose. With a clear purpose, mission, and values statement in hand, the nonprofit board of directors can set strategic priorities or build a strategic plan to establish goals and objectives. And, of course, to be effective, goals and strategies need to be measured and evaluated using tools like metrics and key performance indicators.

Nonprofit organizations and businesses travel down this path from ideas to action to make the most of their time and resources. As detailed in the examples included in the book Measure What Matters, organizational alignment is powerful and effective. Ensure that your organization fulfills its purpose through strategic direction, clear alignment, and meaningful measurement.