1. Models and Components of Great Nonprofit Dashboards
9/25/2012
Models and Components of Great Nonprofit Dashboards
A Tutorial with Hilda Polanco, FMA
Organizations are either services orgs or orgs with a product – no advocacy organizations
Need to make it clear that these are mostly finance related, would tend to apply more to social service organization or arts organization where certain things can be quantified
As you get further out with outcomes, it gets more complicated
We have to say that there is greater complexity in certain kinds of organizations when you’re measuring in long-term impact. That doesn’t mean that you shouldn’t engage in that complexity
This should take people a long way in terms of understanding how to test a leverage point / provides an easy way to test your assumptions. If you have a hypothesis: if we do this, then it allows you to do that. Once you figure it out, you may want to move into other measurements.
Need to trigger this conversation with Hilda.
Government grants – could be seen as being earned income
Ask questions when we get to the dashboard example slides; then ask questions after each dashboard example (keep the questioning period to 5 minutes each at the most)
Wants to take this and adapt it for the magazine; Ruth will adapt it for something for the magazine based on the recording
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2. Operational Excellence
Operational excellence is an organizational culture that values learning, problem solving and a strong commitment to continuous improvement
Key component: Performance Measurement

3. Benefits of Performance Measurement
9/25/2012
Benefits of Performance Measurement
By actively engaging in performance measurement, an organization:
Aligns definitions of success across the organization
Encourages dialogue about progress toward goals
Facilitates timely identification of successes and challenges
Grounds decisions in concrete data and evidence
Illuminates relationships between different activities

4. The Performance Measurement Cycle
9/25/2012
The Performance Measurement Cycle
Define
Implement
Monitor
Evaluate
Refine
Tie what you measure to intended impact
Identify areas for improvement and develop a plan
Be consistent in data entry and interpretation
Establish mechanisms to understand what is working and what isn’t
Track trends in metrics as well as process

5. The goal is to support planning and decision-making
9/25/2012
Effective Dashboards
Dashboards that effectively communicate strategic-level results:
Should be presented in a user-friendly visual format:
Create a “snapshot” of current status as well as trends over time
Clearly show performance against defined targets
Highlight out-of-the-ordinary results
Include a manageable set of Key Performance Indicators (KPIs)
The goal is to support planning and decision-making

6. What Should We Measure? Key Performance Indicators (KPIs)
9/25/2012
What Should We Measure?
Key Performance Indicators (KPIs)
Successful KPIs will:
Represent business model drivers
Reflect progress toward intended outcomes
Guide priorities and decisions (“what gets measured gets done”)
The “Key” in KPIs is important: limit total KPIs to a number that can realistically be monitored
A set of KPIs isn’t forever: metrics should be periodically reassessed

7. Business Model Drives KPIs
Strat egic Goals
Sourc es of Reve nue
Expe nse Struct ure
Progr am Deliv ery Mode l -

8. Sources of Revenue
What type of revenue drives the business model? How reliable/predictable are these revenue streams?
Contributed
Individual donations
Foundation / corporate contributions
Special events
Earned
Fee for service
Program fees
Sales
Government
Reimbursement grants
Performance contracts

9. Other Business Model Drivers to Explore
What are the key cost categories to watch?
What aspects of program delivery are driving results?
Human capital
Enrollment levels
Facilities
Member, subscriber, or customer engagement
Supplies / Inventory
Process efficiencies

10. Dashboard Examples

11. KPIs for the entire organization One or more priority areas
Dashboard Focus
KPIs for the entire organization
One or more priority areas OR

12. In a Board Financial Package…
9/25/2012
In a Board Financial Package…
A dashboard complements financial reports without replacing them
Management Narrative
Balance Sheet
Budget vs. Actuals
Year-end Projections
Cash Flow Projections
Performance Dashboard
Webinar Recording: Understanding What Financial Model Your Board Needs:

13. Dashboard: Early Education Program
This multi-service organization provides a range of youth-based programs for the community it serves, including an early childhood education program. Revenue for this program is a mix of government contracts and tuition/program fees.
Key Driver: Enrollment Levels
Key Performance Indicators
1. Monitor the program’s Operating Surplus (Deficit)
2. Track Program Enrollment and attendance
3. Track revenue from Program Fees

14. Dashboard: Early Childhood Education Program

15. Zooming in: Early Childhood Education Program

16. Dashboard: Community Health Clinic
Designated as an FQHC, this Community Health Clinic offers medical, dental, and behavioral health services to the rural population it serves. Revenue sources are a mix of patient fees, Medicare/Medicaid, and payments from private insurers.
Key Driver: Operational Efficiency
Key Performance Indicators
1. Monitor the Operating Surplus (Deficit) by business line
2. Track Access to Capital, including reserves, cash flow, and debt levels
3. Analyze the efficiency of the Revenue Cycle
4. Track the Cost per Patient Visit

18. Zooming in: Community Health Clinic
9/25/2012
Zooming in: Community Health Clinic

19. Dashboard: Homeownership Nonprofit
This Community Development Organization increases homeownership rates by making low-interest loans, providing credit counseling, educating first-time homebuyers, and rehabbing dilapidated properties. Revenue is a mix of earned income and government contracts.
Key Challenge: Achieving revenue self-sufficiency for each business line
Key Performance Indicators
1. Track Cost per Customer for each business line
2. Track the Profitability (i.e. surplus/deficit) of each business line
3. Monitor Earned Revenue by business line

20. Dashboard: Homeownership Organization

21. Zooming In: Homeownership Organization
Key Strategic Question: What defines success for the lending business line? Is it meeting or exceeding the sustainability goal that has been set?

22. Dashboard: Performing Arts Nonprofit
With a mission of making dance more accessible to the public, this organization has both a dance company and a school. Their goal is to increase revenue so they can afford to hold more free performances for the community.
Key Challenges: Optimizing pricing and maximizing attendance
Key Performance Indicators
1. Analyze Median Revenue per Performance
2. Monitor Enrollment in the summer workshop series
3. Track the Retention Rate at the academy
4. Monitor the Percentage of Performance Weeks where they are able to offer a free public show

23. Dashboard: Performing Arts Organization

24. Dashboard: Fundraising
This community-based organization works in the areas of literacy, youth, and advocacy. It is funded primarily by restricted foundation grants, with some additional income provided by individual donors and board members.
Key Performance Indicators
1. Track restricted funding raised by program and the Gap still to be Raised
2. Track progress toward Individual Donor revenue goals, by category
3. Monitor rate of Board Member Giving

25. Dashboard: Fundraising
9/25/2012
Dashboard: Fundraising

26. Zooming In: Fundraising Dashboard
9/25/2012
Zooming In: Fundraising Dashboard
Make these black

27. Jumpstarting dashboard development

28. Creating & Implementing Dashboards
9/25/2012
Creating & Implementing Dashboards
Start with the Big Picture
Start
Understand the target audience for the dashboard: is it the Board? Leadership? Program managers?
Explore and understand your organization’s business model drivers
Determine KPIs in an inclusive, team-based process
Begin to cultivate a culture of data driven decision-making at your organization

29. Creating & Implementing Dashboards
9/25/2012
Creating & Implementing Dashboards
Put your Dashboard Plan into Action
Start
Create a cross-functional team around data at your organization
Define accountability for each data point being measured
Set parameters about who will maintain and update the dashboard and how often it will be updated
Develop the data analytics skill set of staff
Choose an appropriate platform for dashboard reporting

30. QUESTIONS?

31. Resources

32. 9/25/2012
Resources
Why Financial Dashboards Matter, and Five Pointers to Get You Started, Neela Pal, FMA, Forbes,
How Hands On Atlanta Uses a Dashboard to Track Progress and Reach Its Goals, The Bridgespan Group.
Performance Measurement: Getting Results, Harry P. Hatry, Urban Institute,
A Nonprofit Dashboard and Signal Light for Boards, Jeanne Bell and Jan Masaoka, Blue Avocado. center/Resources-for-Financial-Management/Pages/A-Nonprofit-Dashboard-and-Signal- Light-for-Boards.aspx
Slide looks plain

33. Online Tutorials for StrongNonprofits.org
FMA offers complimentary orientation one-hour webinars that feature an overview of the website and drill down on several of its key resources
Upcoming webinar dates:
February 18 at 2:00pm (EST)
April 20 at 3:00pm (EST)
To register, or see upcoming webinar dates:
For a 15-minute, on-demand webinar tour:

34. Resources and Links For access to NPQ’s other webinars:
To subscribe to NPQ’s quarterly magazine:

35. Fiscal Management Associates, LLC
9/25/2012
Fiscal Management Associates, LLC
Established in 1999 to serve not-for-profit organizations around the country
Provides customized financial management, accounting, software, organizational development, human resources, and other consulting services
Works directly with organizations or through funder-supported management assistance programs
FMA's mission is to empower not-for-profit organizations with the knowledge and skills to successfully serve their constituents and fulfill their missions
@FMA4Nonprofits
Hilda Polanco, CPA, CCSA®, CGMA
New York | Chicago | San Francisco | LA
/FiscalManagementAssociates
linkedin.com/company/fiscal-management-associates-llc