5 Steps to Drive Accountability and Build a Culture of Performance

The environment in which nonprofit organizations operate today has become increasingly challenging. The workforce is changing, technology is evolving rapidly, and there are many macro-disruptors that are impacting the way nonprofits operate. In this context, it is more important than ever to organize operations to enable leadership to build and operate a culture of performance. 

Organizations are overflowing with data, but not all data is created equal. In order to use data to improve performance and mission outcomes, it is important to collect the right data, analyze it effectively, and make data-driven decisions. Our nonprofit consultants recommend the following 5 steps to enable CEOs and COOs to use data effectively to drive the change needed to build a culture of performance:

Step 1: Establish Key Performance Indicators (KPIs) for each job function

One way to use data to drive performance is to establish performance measures for each job function. Begin by meeting with your team and establishing the performance measures for their role. These measures should be within the control of the individual to move the needle on. This will help to ensure that employees are held accountable for their performance and that they are motivated to improve. Metrics must be fair and within the job function to control.

Step 2: Assign ownership of the KPIs

As you assess each position/job function in the organization you may find there are metrics you are measuring or want to measure that are not assigned to anyone, they are just there for the organization to measure. These are KPIs that are ownerless and therefore become impossible to uphold accountability towards. Assign any KPIs that are not designated to a person or function because change is affected by ownership, clarity, and accountability.

Step 3: Use the data to build KPIs

All the data your organization may collect can now be put to use. Once all KPIs are assigned, assess what data will feed those metrics to be able to assemble graphs, trends, and/or charts. For management to monitor the performance of the KPIs they will need a dashboard specific to the performance of a particular function or job. The raw data an organization may have can now be used to feed into the design of the KPIs in graphical ways to allow managers to gauge performance. For any data that is not being used, leadership needs to ask “why” that is needed or being tracked, and if it is important, assign that specific data as a KPI to a function, and if deemed unimportant, to stop tracking.

Step 4: Rebuild performance evaluations

Many performance evaluations focus on soft skills, such as cultural fit, teamwork, and attitude. However, these evaluations are not always effective in measuring an employee's actual performance. To be truly effective, performance evaluations should also include key performance indicators (KPIs). By including KPIs in performance evaluations, leaders can get a more accurate picture of an employee's performance and make more informed decisions about their development and compensation.

Additionally, KPIs can help to manage risk in the case of non-performing employees. When there is clear documentation of an employee's performance, it is easier to make decisions about disciplinary action or termination. Finally, KPIs can help leaders to coach their direct reports to improve their performance. By setting clear goals and tracking progress, leaders can provide employees with the feedback they need to succeed.

Step 5: Monitor and coach to performance

Have you heard the saying, 'What gets measured gets managed'? This is especially true when it comes to KPIs. When organizations have clear KPIs, it helps to raise the level of performance and accountability throughout the culture. This is because KPIs provide a way to measure progress and identify areas where improvement is needed.

KPIs also help leaders have intentional conversations around performance with their direct reports. By tracking KPIs over time, leaders can see trends and identify areas where employees are succeeding or struggling. This information can then be used to provide targeted feedback and coaching.

In addition, KPIs can help organizations to transform from cultures of disciplining to cultures of coaching to performance. When leaders have data to support their decisions, they are more likely to focus on helping employees succeed rather than punishing them for failure.

By using KPIs, organizations can assess what worked versus what did not and provide feedback to support the growth and development of their employees. This can lead to a more engaged and productive workforce

A culture of performance is not just about setting high standards and expectations. It is also about creating an environment where employees feel supported and valued. When employees feel like they are part of something bigger than themselves, they are more likely to give their best effort. In today's competitive labor market, organizations that can create a positive and productive work environment will have a leg up in attracting and retaining top talent.