A global overview of performance evaluation Hugues Mouchamps, Ph.D. student – HEC-ULg 4th March 2011

1.Introduction 2.At first sight / Complexity of performance evaluation 3.Impacts on performance 4.Variation in the characteristics of the tool 5.Conclusions Hugues Mouchamps, 4th March / 11

1. Introduction  State-of-the art review  Defining ideal characteristics of a performance evaluation tool Hugues Mouchamps, 4th March / 11

2. At first sight / Complexity  Defining what performance is and what factors impact performance Performance is a social construct  Measuring those factors through indicators Intangible outputs Abstract missions (Sawhill & Williamson, 2001) No direct link between inputs and outcomes (Nicholls, 2009; Taylor, 2004)  Summing up the scores of all indicators Multidimensional indicators Hugues Mouchamps, 4th March / 11

3. Impact on performance  Board effectiveness (Herman & Renz, 2008; Stone & Cutcher-Gershenfeld, 2002)  Correct management practices (Herman & Renz, 2008)  Coherent strategy  Responsiveness (Herman & Renz, 2008)  Organizational culture (Beck & Lengnick-Hall, 2008) Hugues Mouchamps, 4th March / 11

4. Variation in tool characteristics Hugues Mouchamps, 4th March / 11 Ideal characteristics of a performance evaluation tool should vary with :  Financing mix (Herman & Renz, 2008)  Institutional context (Bouchard, 2009)  Purpose of the evaluation  Type of the organization (Bouchard, 2009; Polonsky & Grau, 2008; Sawhill & Williamson, 2001; Beck, 2008; Bozzo, 2000; Herman & Renz, 2008)

4. Variation in tool characteristics Purposes of performance evaluation  Internal purposes To improve performance (Nicholls, 2009; Polonsky & Grau, 2008) To assist management (Sawhill & Williamson, 2001; Mulgan, 2010) To check progress towards mission (Sawhill & Williamson, 2001; Mulgan, 2010)  External purposes To access resources (Nicholls, 2009; Polonsky & Grau, 2008) To report to stakeholders (Bozzo, 2000; Mulgan, 2010) As a marketing tool (Sawhill & Williamson, 2001) To build organizational legitimacy (Nicholls, 2009) Hugues Mouchamps, 4th March / 11

4. Variation in tool characteristics Type of organization Hugues Mouchamps, 4th March / 11  Heterogeneity in missions  Heterogeneity in activities  Heterogeneity in size and structure  Heterogeneity in institutional context  A unique tool for all is not realistic (Herman & Renz, 2008)

7. Conclusions  The complexity of performance evaluation should be reflected in the characteristics of the evaluation tool  Characteristics of the tool should vary Hugues Mouchamps, 4th March / 11

Thank you for your attention Hugues Mouchamps, 4th March / 11

Main References BOUCHARD, M.J., (2009), The worth of the Social Economy P.I.E. Peter Lang, Bruxelles BOZZO, S.L., (2000), Evaluation Resources for Nonprofit Organizations. Usefulness and Applicability. Nonprofit Management & Leadership, Vol. 10(4), pp HERMAN, R. D., RENZ, D. O., (2008), Advancing nonprofit organizational effectiveness research and theory. Nine theses. Nonprofit Management & Leadership, Vol. 18(4), pp KAPLAN, R.S., (2001), Strategic Performance Measurement and Management in Nonprofit Organizations. Nonprofit Management and Leadership, Vol. 11(3), pp LINDGREN, L., (2001), The Non-profit Sector Meets the Performance-management Movement : A Programme-theory Approach. Evaluation, Vol. 7(3), pp MULGAN, G., (2010), Measuring Social Value. Stanford Social Innovation Review, pp NICHOLLS, A., (2009), 'We do good things, don't we?': 'Blended Value Accounting' in social entrepreneurship. Accounting, Organizations and Society, 34, pp POLONSKY, M.J. et GRAU, S.L., (2008), Evaluating the Social Value of Charitable Organizations: A Conceptual Foundation. Journal of Macromarketing, Vol. 28(2), pp SAWHILL, J.C., WILLIAMSON, D., (2001), Mission Impossible ? Measuring Success in Nonprofit Organizations. Nonprofit Management and Leadership, Vol. 11(3), pp SPECKBACHER, G., (2003), The Economics of Performance Management in Nonprofit Organizations. Nonprofit Management & Leadership, Vol. 13(3), pp TAYLOR, S., (2004), Confronting challenges related to performance in nonprofit organizations. University of Georgia WP Hugues Mouchamps, 4th March / 11