Performance Management in Non-Profit

Linking People to Results

Gary Wheeler SPHR, GPHR, CCP, CBP

Objectives

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• Understand performance management concepts• Understand the benefits of a performance

management system• Understand how to link organizational goals to

individual goals

Evaluation Systems

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• Essays & Summaries• Critical Incidents• Behaviorally Anchored Rating Systems (BARS)• Management By Objectives• Key Performance Indicators (KPI’s)• Balanced Score Card

Essays & Summaries

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• An evaluation used to provide compelling evidence supporting your opinion by using logical reasoning to show that your evaluation is correct• Challenges• Requires time • Subjective

Critical Incidents

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• The critical incident evaluation process involves using a set of procedures to evaluate human behavior through a series of observations • A series of observations are used to evaluate

better than expected or less than expected performance• Challenges• Requires time • Subjective

Behaviorally Anchored Rating System (BARS)

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BARS5 – Superior4 – Exceeds Expectations3 – Meets Expectations2 – Needs Improvement1 – Unsatisfactory Performance

Typical BARS

• QUANTITY ................................................................................. 1 2 3 4 5 • Meets productivity standards ...................................................... 1 2 3 4 5 • Completes work in timely manner ................................................ 1 2 3 4 5

• QUALITY …................................................................................. 1 2 3 4 5 • Demonstrates accuracy and thoroughness .................................. 1 2 3 4 5 • Displays commitment to excellence ............................................. 1 2 3 4 5

• JOB KNOWLEDGE ...................................................................... 1 2 3 4 5 • Competent in required job skills and knowledge ......................... 1 2 3 4 5

• Challenge• Subjective 7

Management By Objectives (MBO)

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• MBO is the process of defining objectives/goals within the organization where management and employees agree with the objectives/goals and understand what they need to do in the organization• Challenge• Goals are not aligned to organization

Key Performance Indicators (KPI’s)

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• KPI’s are used to evaluate organizational and/or individual success using key metrics• KPI’s should be relative to organization success• Challenge• Understanding what is important to the

organization and choosing the right KPI’s

Balanced Score Card

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• Balances KPI’s into four organization perspectives• Financial • Customer• Internal Business Processes• Innovation and Learning• Two to Four elements in each area• Challenge• Obtaining buy in of indirect elements from the

team

Best System For Non-Profit & Why?

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• Key Performance Indicators (KPI)• Balanced Score Card (BSC)

What is Performance Management?

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• Performance management includes activities which ensure individual goals are consistently met in an effective and efficient manner and are aligned with the department, division and organizational goals• Individual goals role up to the organization’s

goals and they support the organization’s mission and strategic plan

Benefits of Performance Management

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• Organization • Outcomes are tied to the mission• Outcomes are tied to strategy• Outlines responsibility

• Manager• Identifies expectations• Creates an objective evaluation system

• Staff• Let’s people know where they stand • Greater chance of receiving recognition

Case Management

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First Quarter Rating Second Quarter Rating Third Quarter Rating Fourth Quarter Rating YTD

Element Area of Responsibility Plan Act % Eff

Plan Act % Eff

Plan Act % Eff

Plan Act % Eff

Plan Act % Eff

1% Clients

transitioning to stable housing

100% 100% 100% 100%

First Quarter Rating Second Quarter Rating Third Quarter Rating Fourth Quarter Rating YTD

Element Area of Responsibility Plan Act % Eff

Plan Act % Eff

Plan Act % Eff

Plan Act % Eff

Plan Act % Eff

2% Clients stable housing after 3

months

90% 90% 90% 90%

First Quarter Rating Second Quarter Rating Third Quarter Rating Fourth Quarter Rating YTD

Element Area of Responsibility Plan Act % Eff

Plan Act % Eff

Plan Act % Eff

Plan Act % Eff

Plan Act % Eff

3% Clients stable housing after 6

months

85% 85% 85% 85%

Intake

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First Quarter Rating Second Quarter Rating Third Quarter Rating Fourth Quarter Rating YTD

Element Area of Responsibility Plan Act % Eff Plan Act % Eff Plan Act % Eff Plan Act % Eff Plan Act % Eff

1# Clients moved to

permanent housing

15 clients

16 clients

15 clients

16 clients

First Quarter Rating Second Quarter Rating Third Quarter Rating Fourth Quarter Rating YTD

Element Area of Responsibility Plan Act % Eff Plan Act % Eff Plan Act % Eff Plan Act % Eff Plan Act % Eff

2

% Clients Approved for

fin. assist. who remain stable

3 mo.

90%

85%

80%

80%

First Quarter Rating Second Quarter Rating Third Quarter Rating Fourth Quarter Rating YTD

Element Area of Responsibility Plan Act % Eff Plan Act % Eff Plan Act % Eff Plan Act % Eff Plan Act % Eff

3

% Clients Approved for

fin. assist. who remain stable

6 mo.

85%

80%

75%

75%

Review of Examples

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• Handouts• Executive Director• Finance Director• Case Manager• Intake Worker

Group Activity

• Break into groups (5 to 10 per group)• Articulate the organization mission• Identify six to eight Key Performance Indicators (KPI)’s for your

Executive Director and their team • Ten-minute activity • Scribe • Delegate someone to report back

• Two (2) minutes to report

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Summary & Best Practices

• Establish a clear mission• Create a strategic plan that is linked to the mission• Identify organization goals (KPI’s)• Identify goals (KPI’s) necessary to meet grant criteria• The Executive Director’s Goals (KPI’s) are the organization’s

goal

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Summary & Best Practices cont.

• The Executive Director’s performance incentives should be tied to organization goals (KPI’s)

• Align individual goals (KPI’s) to organization goals• Create a monthly dashboard• Share goals and results with staff • Recognize individuals for achieving their goals

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Q & A

Gary WheelerThe Virtual HR Director, LLC678-997-0017gary@thevirtualhrdirector.comhttp://www.thevirtualhrdirector.com

Thank You