Building a Performance Measurement System: Using Data to Accelerate Social Impact

If your organization is dedicated to social impact, you know how challenging it can be to evaluate progress on achieving your mission. A performance measurement system can provide your organization with the internal knowledge necessary to help you accelerate your organization s social impact, in addition to generating performance data that is increasingly required by funders.
This practical guide provides an easy-to-follow, five-step process for developing a performance measurement system that will serve as an essential tool for any organization seeking to:
*Select what to measure in order to obtain a clear picture of the organization s progress in achieving its mission, goals, and vision
*Develop dashboards for internal reporting and learn how to analyze performance data to gain insights into the organization s strengths and identify opportunities for improvement
*Create a culture of learning and continuous improvement that involves management, board, and staff in making strategic, data-driven decisions and ultimately accelerates the organization s progress toward enduring social impact
*Develop report cards to communicate performance and impact to external stakeholders
*Use data-based evidence to aid in building funder confidence and securing new and returning investments
Building a Performance Measurement System draws on Root Cause s unique performance measurement methodology, which was developed through its work with social innovators throughout the United States, as well as a number of international organizations. It is the second in our series of Root Cause How-to Guides.

Andrew Wolk: Widely recognized as a leading social innovator and a pioneering teacher of social entrepreneurship, Andrew founded Root Cause in 2004 and continues to lead its strategic direction. He consults to organizations across the nonprofit, for-profit, and government sectors that are seeking to advance effective solutions to pressing social problems. In addition, he has authored a number of publications on social innovation. They include a report for the Aspen Institute on policy recommendations for advancing social innovation, a chapter on social entrepreneurship and government in the Small Business Administration s 2007 annual report to the President of the United States, and Root Cause s first How-to Guide, Business Planning for Enduring Social Impact. In 1999, Andrew designed and taught one of the first courses on social entrepreneurship in the country. For the past five years, he has taught social innovation and entrepreneurship at MIT. He is also a Gleitsman Visiting Practitioner in Social Innovation at the Center for Public Leadership at Harvard University s Kennedy School of Government.
Anand Dholakia: Anand is a senior consultant at Root Cause. Since joining Root Cause in 2005, he has led business planning engagements for nonprofits and government agencies in a variety of fields, including aging, civic engagement, microfinance, transportation, and youth development. Anand has also worked extensively in the field of performance measurement and has developed performance measurement systems for numerous organizations in the United States and Bermuda. Before joining Root Cause, he worked as an independent consultant to nonprofits and social enterprises in Greater Boston and in India, completing projects in strategy, business planning for earned income ventures, market research, and financial modeling.
Kelley Kreitz: Kelley developed and launched Root Cause s knowledge sharing initiative in 2006. As Root Cause s chief knowledge officer, she works with Root Cause consultants and clients to develop practical and field-building resources for advancing social innovation. She co-authored Root Cause s first How-to Guide, Business Planning for Enduring Social Impact, and has edited a number of publications on social innovation. Before joining Root Cause, Kelley worked for New Profit Inc. on initiatives aimed at building the field of social entrepreneurship and served as the senior writer for GreenBiz.com, a knowledge center on business and the environment.