The Philanthropic Conundrum: How to Show Breakthrough Results
/In their efforts to manage strategy, nonprofits struggle with coming up with the best way to measure results, which can make it difficult to demonstrate results to their philanthropic benefactors. This measurement problem is often due to the nature of their work and the environment within which they operate.
The missions of nonprofits tend to be hard to measure. Things like increasing social justice or even improving development in impoverished neighborhoods or countries aren’t easy to quantify at all, never mind at regular, (non-glacial) frequencies. Plus, there are usually multiple actors in any of the spaces in which they operate, so the problem of attribution arises: Whose activities are causing the results?
This makes it difficult—at best—for nonprofits who want to manage their strategies with the Balanced Scorecard or any other strategy management system that uses strategic measures or key performance indicators (KPIs) to measure and demonstrate results.
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