A number of our clients have recently been working with us to push into the next frontier of measurement - beyond merely collecting data how do we operationalize outcomes data within the organization to improve decision making?  We've referred to this as "Applied Measurement".  The areas of Applied Measurement include: informing resource allocation, informing program strategy and informing communications. 

In working with clients to collect and analyze performance data, we have found that the real value comes in applying the outcomes data to help with key decisions.  Budgeting, or resource allocation, usually comes up first.  Most funders and nonprofits usually budget by program area, meaning dollars are allocated to individuals who manage programs or areas of work.  Our methodology puts in place a common framework of strategic outcomes across the organization, and then allocates funds by outcome area rather than by program type.  This approach can reveal some amazing insights. 

For example, one client, a school, was only investing $10,000 per year in athletics and after-school activities.  The board believed that this was a sufficient sum of money.  However, when we analyzed the budget by outcomes, we found that one of the most valued outcomes was PYD, or positive youth development.  A key activity or driver of PYD impact is Structured After-School Activities (SASA's), according to research conducted by Richard Lerner of Tufts University.  We asked the school administrator how the Board would respond to budgeting in a different way - i.e. what percentage of the school's $1.5M budget would you allocate to PYD impacts?  The response: the Board would likely allocate at least 10% to fund this important impact.  That represents $150,000 (recall the school was currently only receiving $10,000 for this activity!).

 The power of making decisions by outcomes, rather than activities, can be leveraged in other areas too.  Donors care much more about results than they do activities.  Being able to show donors the impact your organization has had on important outcomes as opposed to the amount of money you've spent or the number of activities (or grants) you've undertaken changes the face of the issue significantly and makes for a much more compelling story. 

Finally, strategic insights are another way to leverage outcomes data.  We've found that organizations are reluctant to change their programmatic design or focus.  But when presented with outcomes data that demonstrates how poorly a particular program strategy is achieving the organization's desired outcomes, the insights are readily apparent.  

For more on this topic, contact us at info@missionmeasurement.com