Performance Evaluation

Organizational Success Evaluation:

Evaluate the performance evaluation system in place in your organization and recommend improvements based on the principles outlined by Drucker, Brinckerhoff and others.


A formal performance evaluation system is critical within a non-profit organization in that it identifies whether resources are being used to get the best return possible. Resources, financial and human, are limited in any institution but especially limited in the stereotypical non-profit. The system must be capable of identifying where return on investment (ROI) is high or low in different branches or programs. Drucker (1990, p.112) asks, “Is this the best application for our scarce resources?”. That is exactly what the performance evaluation system is meant to do: tell us if we are using our resources to their fullest.
These evaluation systems must be directly derived from the purpose statement that the organization is based on. The purpose statement tells us what we are going to do, the programs describe how, who, when and where we will accomplish the purpose. The evaluation gives us feedback as to how efficiently our programs are accomplishing the purpose. Aside from the purpose, each evaluation will typically be specific to the program. Each program will have different goals based on strategic, long term planning and how it relates to the organizations future.
Before program initiation and throughout it's life, goals should be created that measure direct impact to the community. It is also important to measure how the program is effecting the future state of the organization, because continued service is likely part of the mission. Internal growth can be forgotten which leads to almost certain end to even the most successful non-profits. The goals are important, but mean nothing if they are not measured and tracked. Brinckerhoff (2004, p. 118) reports “a true organization-wide focus on measuring often starts in a strategic planning process”. The strategic planning must be based on long term goals and needs of the community or even the ethical cause.
As with all tools the relevance of the evaluation system must be reviewed regularly. There may be a need to develop new goals that are more relevant, identify new metrics with which to track an emerging trend or even create new markets where similar programs may be effective. Once a program is in place, secondary affects may be influencing other areas of service. This would show that we need a new metric and probably another goal to measure those effects and identify if we need to make modifications. Programs are always changing and need to be evaluated for effectiveness, so we need to create our systems to periodically initiate the process regardless of success or failure.
Salem Heights Church is well on their way to having a formal performance evaluation system developed. The purpose statement is broad, but is clearly embraced by all the programs within the ministry. Each program has a concretely defined target market, weather that is the Childcare, Woman's Ministries or Music Team. The ministries are molded by these two critical drivers and of course the Word of God. These are the areas in which Salem Heights excels.
Strategic planning for the long term seems to be a higher level ministry-wide focus rather than individual program level. I see this as an area for improvement so that especially long term viability of leadership would be continually grown. Many programs are dependent on a specific leader who may be difficult to replace, aside from the perfect moving of God. The next important aspect within the evaluation system that is missing are the Goals. There are very few goals that have active measurement and reporting of the results. Salem Heights does measure attendance and giving as well as special financial requirements, but beyond that, none are reported. These areas are fairly basic and important for successful performance evaluation.
Although there are some shortcomings, Salem Heights has done a good job of placing their resources to good use. However, with a system for evaluation in place, there may be some vast improvements seen in resource allocation. The programs are evaluated on an informal basis depending on the need of the moment. When there are problems the leadership team will prayerfully consider what can be done to improve. This method seems to be working quite well because of strong leadership, however creating systems is far better than having to depend on fallible men. (Unfortunately, there are undoubtedly more aspects to the evaluation process that I did not cover. I was unable to conduct interviews with certain key people to clarify some of these systems. See Appendix A for interview questions.)














Resources:
Brinckerhoff, P. (2004). Nonprofit Stewardship: A better way to lead your mission-based organization. Fieldstone Alliance, Saint Paul, Minnesota.

Drucker, P. (1990). Managing the non-profit organization: Practices and principles. Harper Collins Publishers, New York.

NASB (1995). New American Standard Bible, Updated edition. La Habra, Ca: The Lockman Foundation, 1995.

salemheightschurch.com (2009). Salem Heights Church, Website homepage. Retrieved July 24, 2009 from: http://www.salemheightschurch.org/ .