The following guidelines will be useful when, for example, sharing results
of an evaluation of an organization or specific function with an organization.
Focus on the most important recommendations. You don’t need to address
every issue that you found. Pick the most important or critical 5-7 issues.
Don’t overwhelm your others with too many recommendations to try understand
and approve. If those 5-7 critical issues are successfully addressed early on,
then they’ll likely take care of the other issues, as well.
For each issue, have one overall recommendation and then perhaps associate
any lower-level recommendations. You might even leave the lower-level recommendations
for the discussion later on about how to implement the recommendations.
Be sure that your recommendations will suit the culture and mission of the
organization. For example, don’t recommend that all employees be taught
coaching, based exclusively on questioning, if their culture is totally averse
to questions. Don’t strongly recommend that the organization expand its
markets around the country, if the organization has branded itself as a locally-owned
business.
Be sure the organization has the resources to do the recommendations. They
should already have – or be able to quickly get – sufficient resources
to follow the recommendations, for example, sufficient funding, expertise and
facilities.
Focus recommendations on what the organization should do, not so much
on how to do it. A good way to stick to that difference is to talk
about goals, rather than recommendations. Goals are described as results, not
as methods to achieve those results.
Focus recommendations on both the business and the people side of the organization.
For example, you would not recommend only that “people must get along
better with each other” or that “people must feel more satisfaction
in their jobs.” Instead, you would also recommend more clarity of the
team’s purpose, goals and roles.
Prioritize your recommendations, for example, urgent versus desired or short-term
versus long-term.
Learn More in the Library’s Blogs Related to Organizational Performance
In addition to the articles on this current page, also see the following blogs
that have posts related to organizations. Scan down the blog’s page to see various
posts. Also see the section “Recent Blog Posts” in the sidebar of
the blog or click on “next” near the bottom of a post in the blog.
The blog also links to numerous free related resources.
To round out your knowledge of this Library topic, you may
want to review some related topics, available from the link below.
Each of the related topics includes free, online resources.
Also, scan the Recommended Books listed below. They have been
selected for their relevance and highly practical nature.
This approach aims to increase organizational performance by
radically re-designing the organization’s structures and processes,
including by starting over from the ground up.
Learn More in the Library’s Blogs Related to Business Process Reengineering
In addition to the articles on this current page, see the following blogs which
have posts related to Business Process Reengineering. Scan down the blog’s page
to see various posts. Also see the section “Recent Blog Posts” in the sidebar
of the blog or click on “next” near the bottom of a post in the blog.
To round out your knowledge of this Library topic, you may want to review some related topics, available from the link below. Each of the related topics includes free, online resources.
Also, scan the Recommended Books listed below. They have been selected for their relevance and highly practical nature.
This method (or movement) focuses on enhancing organization systems and people
to increase the organization’s capacity for performance. It includes extensive
use of principles of systems theory. In and of itself, this is not an overall
comprehensive process assured to improve performance. Its effectiveness toward
reaching overall results for the organization depends on how well the enhanced
ability to learn applies to the organization.
Learn More in the Library’s Blogs Related to the Learning Organization
In addition to the articles on this current page, see the following blogs which
have posts related to the Learning Organization. Scan down the blog’s page to
see various posts. Also see the section “Recent Blog Posts” in the
sidebar of the blog or click on “next” near the bottom of a post in
the blog.
To round out your knowledge of this Library topic, you may
want to review some related topics, available from the link below.
Each of the related topics includes free, online resources.
Also, scan the Recommended Books listed below. They have been
selected for their relevance and highly practical nature.
(Be sure to read the description in Organizational Performance Management to understand where organizational evaluation typically fits into the cycle of activities in ensuring strong performance in an organization.)
You always want your organizations to be operating in an optimum level, whether the organization is your family or where you work for a living. But what does an optimum level really look like? How do you know whether your organization is already at that level — or could it be doing even more?
As you read in Organizational Structures, there are numerous types of organizations. All of them are systems and yet they have unique characteristics among them. Also, there are vastly different personalities of the people within them. So how do we ensure our organizations are always high-quality? We can’t even seem to agree on what organizational effectiveness is.
Experts have suggested various best practices and standards of excellence for their respective type of organization, whether they focus on families, teams or overall organizations. However, there is not a strong consensus about whether their suggestions are the right ones for that type and everybody in that type.
Yet, it is not enough to proclaim that there is no standard, and so evaluations are not worth the effort. Perhaps the benefit of evaluations is not the consistent conclusions that they come to, but rather what we learn about the organizations and ourselves along the way.
Indeed, organizations are unique. That is why the approaches to evaluating them should be highly customized, as well. This topic in the library aims to help you to carefully customize and implement your own plan for evaluating your organization.
The purpose of the information in this topic is to convey the core concepts in evaluating organizations. Your proficiency in the concepts would come from applying them over time, especially under the guidance of a person who is highly experienced in apply them, as well.
What is an Organizational Evaluation and Diagnosis?
An organizational evaluation includes the activities to improve an organization, usually by comparing the quality of its operations to some standard of high performance (this is an organizational assessment) and then recommending what changes should be made in order to bring that quality up to that standard (this expands the assessment into an organizational evaluation).
Leaders and managers are often doing some forms of organizational evaluations. Perhaps they are doing them implicitly and in a manner that unfolds as they go along. In that situation, they might not view their activities as doing an “organizational evaluation” at all.
Or, they might be following a carefully designed evaluation plan that specifies desired results to be achieved by a certain time, a standard of quality in achieving the results, methods of measuring progress toward the results, and guidelines for rewarding the achievement of the results — or helping those who somehow are behind.
The latter approach is very similar to a research project because it includes clarifying a research question to be answered, for example, “How can we improve our organization?” or “What is the real cause of our ongoing problems with cash flow?” Then it includes planning what data to collect and how to analyze it in order to come to careful conclusions and recommendations.
You might decide to hire an organizational consultant to help you. In that case, the consultant would very likely go through the phases described in How to Consult in Organizations, especially the Discovery Phase of Consulting. Some of the information in this topic about organizational evaluation references certain topics in that phase.
The information in this overall topic explains how to do the latter, including how to plan and implement your organizational evaluation, including how to report your findings. An example is included near the end, along with typical findings and recommendations that the example might produce.
Benefits of Organizational Evaluation and Diagnosis
Sometimes people have a negative reaction to the term “evaluation.” That is an unfortunate reaction because there are many benefits from evaluation. Actually, the process of evaluation is similar to the process of how adults learn, so there can be tremendous learning generated during evaluations. It might be useful for you to reference the following benefits when explaining how evaluation is important. Benefits of an evaluation include that it:
Mobilizes employees for organizational change as they feel their opinions are being heard and respected.
Facilitates meaningful communication among participants – perhaps the most important benefit from the evaluation process.
Cultivates realistic expectations for change as participants continually think about the organization’s situation and what can realistically be done about it.
Enhances learning for participants as they continue to collect and reflect on feedback about the organization’s performance and their role in it.
Improves performance as participants continue to make adjustments to what they are doing based on the results of their learning.
Improves the organization’s credibility among its stakeholders at a time when organizations are always competing for a positive image.
Guidelines for Successful Evaluation
Ensure the evaluation design matches the nature and needs of your organization. One of the best ways to ensure a close match is to involve members of the organization as much as possible in the design and implementation of the evaluation plan. That highly collaborative and participatory approach can ensure their strong buy-in and participation in the evaluation. They typically would not be involved in collecting data later on during the evaluation because that could inhibit other members from sharing honest opinions.
Discuss evaluation with members in the early phases of the evaluation. The best forms of evaluation include the commitment and participation of members of the organization. Therefore, it is best if you involve them as soon as possible in the design and implementation of evaluation plans. Also, the sooner that you discuss evaluation, the sooner that you can begin collecting useful information for the evaluation. In the early discussions, mention the benefits of evaluation.
Focus on relevance, utility and practicality as much as on “scientific” priorities. Scientific priorities are in regard to accuracy, validity and reliability. However, far too many highly “scientific” evaluation reports sit collecting dust on shelves because the reports have little utility and practicality and, thus, little relevance to the readers of the reports. Therefore, it is far better to err on the side of less scientific value and more on usefulness of the report by focusing on relevance, utility and practicality.
Integrate organizational evaluation with other ongoing evaluations in the organization. Many organizations conduct various forms of evaluation as part of their ongoing management activities, for example, as part of ongoing employee performance management, program evaluations and strategic planning. Integrating your organizational evaluation with these other activities in the organization helps members to leverage their evaluation activities and, thus, save time and energy.
Include a mix of methods to collect information. For example, review relevant documentation such as strategic plans, policies, procedures and reports. Then administer practical questionnaires to quickly collect information anonymously if appropriate. Follow up your questionnaires with various interviews. Interviews might be closed (by asking specific questions that evoke specific answers) or open-ended (asking general questions that can evoke a wide range of responses) and with individuals or groups.
Place high priority on capturing learning during evaluations. Learning involves gaining new knowledge, skills or perspectives – learning is not merely finding new things to do. The best forms of learning from evaluations are those that are focused on solving the problems or achieving the goals that are the primary focus of your organizational evaluation.
Share learning from evaluations as soon as you have them. There is a tendency to put off acting on the results or conclusions from evaluations until the evaluation has been finished. That approach treats the evaluation like a “black box” that should not be tampered with until it is over. That approach also minimizes the tremendous value that evaluations have for making continuous improvement. By promptly sharing results, you can make ongoing adjustments to the evaluation to ensure that is remains high quality. You also help to ensure strong buy in among members.
Preparation
Adjust for Your Personal Biases
All of us have biases or natural ways that we automatically perceive and interpret things in the world, including how we come to conclusions about them. Many times, we are not aware of those biases, despite the significant role they play in what we see and do not see. Biases can significantly affect what you conclude as being important and unimportant in an organizational evaluation. Meanwhile, another person with different biases might have very different conclusions about the same organization. See
Instead form a small Project Team of members to share their expertise, time and attention to planning the evaluation. The best team includes some members of the organization that is being evaluated. They can answer preliminary questions about the organization, especially about its culture. They can review drafts of documents from the evaluation to be sure they are understandable. Perhaps most important, they can help other members of the organization to see the evaluation as coming from one of their own.
Train the team members about the basics of organizational evaluation. Be clear about their roles in the evaluation, especially to work with the evaluator to design the evaluation plan. If the evaluation is to be done by the team members themselves, then discuss how that might adversely affect participation in the data collection.
Critical Role of Diagnostic Models in Evaluations
An evaluation could collect a vast range of information. However, unless there is some framework around which to know what information to collect and how to make judgments about that information, the analysis will likely become a very overwhelming and confusing endeavor. This is where a diagnostic model is very useful. A good diagnostic model will:
Suggest some standard of performance about how a high-quality organization should be operating, including about the quality of its overall intended outcomes, practices within the organization and how those practices are integrated with each other. The standards might be, for example, best practices or standards of excellence.
Suggest what types of information need to be collected in order to compare the current performance of the organization with the suggested standard of performance.
Facilitate the comparison of the current performance of the organization to the preferred standard of performance in order to generate recommendations to improve the performance of the organization.
You can select your diagnostic model early on when designing your evaluation plan in the next topic. There are numerous types to choose from. Guidelines for selecting diagnostic models are included in the next section. Some Types of Organizational Diagnostic Models.
Design Your Organizational Evaluation and Diagnosis Plan
Who are the primary audiences? For example, is the information for Board members, management, employees, investors or customers? Each of these audiences might have very different interests in the evaluation and its results. Also, each might require that the evaluation results be organized and presented in a certain manner to be most useful to them.
What are the primary purposes of the organizational evaluation? For example, the purpose of the evaluation might be to answer certain management questions, such as: How do we find the cause of our recurring cash problems? Or, what strengths and weaknesses do we have to include in the SWOT information during our strategic planning?
What types of information are needed? For example, if you want to find the causes of the cash problems, then you might need to get information especially about organizational sustainability, for example, revenue, expenses, quality of products and services, how well the marketing is being done, and how realistic the vision and goals are for the organization. The information you collect could be suggested by an organizational diagnostic model. See Free Online Organizational Assessment Tools for Businesses and Free Online Assessment Tools for Nonprofits for collecting information. You will need a diagnostic model to analyze the information. See Some Types of Organizational Diagnostic Models.
From what sources should the information be collected?
For example, should it be collected from individual employees, individual customers, groups of customers, groups of employees or also from program documentation? Attempt to get information from people in the focus of your evaluation, but also those who are most affected by that area. See Research Planning and Data Collection.
What are the best methods to collect the information? Can you get the information from reviewing documentation, using questionnaires, conducting interviews? Are there assessment instruments that you can use? Should you use an instrument that has already been developed or should you develop your own? Is it best to use a mix of these methods? See Selecting Which Business Research Methods to Use and How to Select from Among Public Data Collection Tools.
What context-sensitive considerations must be made? Each organization has unique features, such as its culture, nature of leadership, rate of change in its environment, nature of programs and services, and size. How do these features influence how you will gather your information? See What Makes Each Organization Unique?
What is the best timing for getting the information? Do you need to provide a report by a certain date? Are there problems that need to be addressed right away? How often can you get access to the sources of the information that you need? How long will it take to collect information?
Who should collect the information? Ideally, someone from outside the organization does the information collection, analysis and reporting. That approach helps to ensure that the evaluation is carried out in a highly objective and low-bias manner. However, it is often unrealistic for small- to medium-sized organizations to afford an outside evaluator. Consequently, it is important to select personnel who can conduct the evaluation in a manner as objectively as possible. Equally as important is to ensure that the evaluation is designed to collect the most important information as quickly as possible. See How to Successfully Hire and Work With an Excellent Consultant.
How will you make interpretations and generate recommendations? Your recommendations will likely be about the kinds of activities (suggested by the diagnostic model) that the organization needs to do to achieve the standard (suggested by the diagnostic model). See Traits of Useful Recommendations and Generating Recommendations Based on Results of Discovery used by consultants. You also might recommend which strategies they need to evolve to the next stage of organizational development. See Basic Overview of Life Cycles in Organizations.
How will you report the information? How the evaluation results are reported depends on the nature of the audience and the decisions that must be made about the evaluation. For example, you might provide an extensive written report or a presentation to a group of people. See Contents of a Research Report — An Example and Sharing Findings and Recommendations With Clients and
Should you test the design of the evaluation before you use it with many people? Depending on the complexity of your plans, you might benefit from field-testing them by using data-collection tools with a certain group of people to discern if the tools are understandable to them.
What ethical considerations must be made? For example, do you want to report any information unique to any of the participants? If so, then you should get their expressed and written consent.
It might be useful to review an additional perspective on designing research plans. Planning Your Research
(The manner in which those recommendations are implemented are out of the scope of the activities in an organizational evaluation and are more a matter of the activities in guiding and supporting organizational change. See Guidelines, Methods and Resources for Organizational Change Agents).
Implement Your Organizational Evaluation and Diagnosis Plan
Announce the Evaluation to Members of the Organization
To increase the number of respondents in your data collection, it is critical that it maintains their strong and ongoing buy-in. Probably the most critical point in which to start cultivating that is when first announcing the evaluation to others in the organization. The announcement must be done carefully to help employees quickly understand and appreciate the need for the evaluation – so that they do not react to it as just another fad or “silver bullet” intended to save the day. Here are some suggestions to consider.
1. The Chief Executive Office and a Board member should announce the evaluation to the employees (in the case of a small to medium-sized corporation). They should mention:
Its purpose and benefits
How the employees are expected to participate in it
When they will get the results of it
How they can share their ongoing feedback about how its recommendations will be implemented
The members of the Project Team, especially the members from the organization
A primary contact person, if they have any further questions
Special care should be given to ensure sufficient time for reactions, questions and suggestions.
2. Accompany the announcement with an official memo. The memo should soon follow the announcement and be signed by upper management. It should reiterate the information shared during the announcement.
Prepare Participants Before Data Collection
Carefully prepare those who will be providing responses to the evaluation — you should not start simply by asking them for input. Consider the following guidelines.
1. Management should introduce the evaluator(s) to the organization. One of the most powerful ways to do this introduction is in a group, for example, in an employee meeting. The introduction should include the evaluator’s description of how information will be collected, along with any terms of confidentiality. Include time for their questions and suggestions.
2. Tell participants what is expected of them during the evaluation. Explain how information will be collected, and when and how they can participate. Mention any pre-work that would be useful for them to undertake, and any topics or activities that they should think about before participating in the evaluation.
3. Contact each participant before conducting any interviews. Interviews can be a rather personal way to get useful information. It helps a great deal if the evaluator calls each participant before the actual interview in order to introduce themselves, verify the timing of the upcoming interview and understand if the participant has any questions.
4. Review useful organizational documentation before contacting anyone. The review of documentation is a major form of data collection. The evaluator can learn a great deal about the organization from the documents. That understanding is an advantage because participants soon realize that the evaluator already knows a great deal about the organization. See How to Review Documentation.
If You Encounter Questionable or Illegal Practices
See a video about principles for successful consulting, defining “success”, principles for ethical consulting, managing risks and liabilities, and knowing when to leave. From the Consultants Development Institute.
Occasionally, an evaluation uncovers organizational activities that seem immoral, for example, a violation of your professional standards and those in society, significant lies in the workplace or intentionally withholding very useful information from others. You might even encounter activities that are illegal, such as misappropriation of funds, fraud, theft or violation of employment laws. This video shares guidelines for how to deal with those kinds of situations.
Sharing Findings and Recommendations from the Evaluation
There is a variety of common mistakes made when sharing results of research, including of organizational evaluations. As mentioned above, the nature of activities in an organizational evaluation is very similar to that done in the Discovery Phase of consulting. Thus, the following guidelines for sharing results in that phase also apply here. Sharing Findings and Recommendations With Clients
Example Application of a Diagnostic Model for a Systems Analysis
Assessment Tool and Associated Diagnostic Model
Later on below are two sets of a sample assessment and an associated diagnostic model – one set for for-profits and another for nonprofits. The assessment tool can be used to assess the quality of activities in each of the major functions in an organization, such as strategic planning, human resources and financial management. Its results can suggest which functions need to be improved. This diagnostic tool can suggest in which order to improve them. First, read the following section to learn how to use both tools.
How to Use the Tools for Systems Analysis
In a topic in Understanding Organizations, you learned that an organization is a system that is comprised of other systems — of other subsystems. They all are highly integrated with each other. The outputs of some are the inputs to others. This graphic displays that type of integrated and systematic relationship. So, if management reports a problem with a particular function, for example, with a certain program, then a good systems analysis would look at the inputs to that program (for example, strategic planning) and the outputs from the program (for example, its affect on finances) and ensure that each of the three has high-quality activities as indicated by the results of the assessment tool.
If there is a problem with the quality of the strategic planning activities (for example, they have very unrealistic expectations of programs), then that could be a major cause of the recurring problems with the programs. If there are recurring problems with finances, then the problems with the programs could be what is causing the problems with the finances. Thus, this systems approach can also suggest in which order to improve the various functions in an organization.
A key benefit of the following assessments and diagnostic models is that they reference various terms that are usually quite familiar to leaders in the organization and, thus, can be very helpful when orienting them to the tool and getting their buy-in to the diagnostic process.
Sample Assessment and Diagnostic Model for For-Profit Organizations
The list of issues in each of the following documents focuses especially on functions within each organization. They are the types of issues that might be analyzed with the above-mentioned assessments and diagnostic tools.
Common Types of Recommendations to Improve Organizations
The list of recommendations in each of the following documents focuses especially on the functions within each organization. They are the types of recommendations that might be included in an assessment report about the results of using the above-mentioned diagnostic tools.
Learn More in the Library’s Blogs Related to Organizational Performance
In addition to the articles on this current page, also see the following blogs that have posts related to organizations. Scan down the blog’s page to see various posts. Also see the section “Recent Blog Posts” in the sidebar of the blog or click on “next” near the bottom of a post in the blog. The blog also links to numerous free related resources.
To round out your knowledge of this Library topic, you may want to review some related topics, available from the link below. Each of the related topics includes free, online resources.
Also, scan the Recommended Books listed below. They have been selected for their relevance and highly practical nature.
This method aims to identify and closely align organizational goals and subordinate
objectives throughout the organization. Ideally, employees get strong input
to identify their own goals and objectives. It includes extensive, ongoing tracking
and feedback in the processes to reach objectives. Similar to continuous improvement,
many organizations already implement some version of MBO, but probably not to
the extent that experts in MBO would recognize as MBO in the organizations.
Learn More in the Library’s Blogs Related to this Topic
In addition to the articles on this current page, see the following blogs which have posts related to this topic. Scan down the blog’s page to see various posts. Also see the section “Recent Blog Posts” in the sidebar of the blog or click on “next” near the bottom of a post in the blog.
To round out your knowledge of this Library topic, you may want to review some related topics, available from the link below. Each of the related topics includes free, online resources.
Also, scan the Recommended Books listed below. They have been selected for their relevance and highly practical nature.
This method (or movement) focuses on collection and management of critical
knowledge in an organization to increase its capacity for achieving results.
Knowledge management often includes extensive use of computer technology. In
and of itself, this is not an overall comprehensive process assured to improve
performance. Its effectiveness toward reaching overall results for the organization
depends on how well the enhanced, critical knowledge is applied in the organization.
At this time, knowledge management is receiving spotted attention among smaller
organizations.
Learn More in the Library’s Blogs Related to Knowledge Management
In addition to the articles on this current page, also see the following blogs
that have posts related to Knowledge Management. Scan down the blog’s page to
see various posts. Also see the section “Recent Blog Posts” in the
sidebar of the blog or click on “next” near the bottom of a post in
the blog. The blog also links to numerous free related resources.
To round out your knowledge of this Library topic, you may want to review some related topics, available from the link below. Each of the related topics includes free, online resources.
Also, scan the Recommended Books listed below. They have been selected for their relevance and highly practical nature.
(Although the term “performance” is conventionally used in literature about management, some people might have an averse reaction to that term. For them, they might use the term “effectiveness” instead.)
The generic performance management cycle is the cycle of activities that recur in any social system that is serious about improving itself and how it works with its external environment, whether the system is an employee, team,
recurring process in the organization or the organization itself. The cycle clarifies the purpose of the system, its goals in working toward the purpose and how those goals will be achieved. As it works to achieve them, it continually evaluates it progress and makes any necessary changes to improve its progress.
In an overall organization, the organizational performance management cycle includes three highly integrated phases including:
Performance planning
Performance appraisal
Performance improvement
Significant organizational activities occur within each of the three phases, including:
Strategic planning to clarify the purpose, goals and strategies to achieve the goals (performance planning).
Adopting the necessary organizational structures as a strategy to achieve the goals (performance planning).
Guiding the necessary organizational behaviors, including the necessary nature of its leadership and management, as a strategy to achieve the goals (performance planning).
Each of these significant activities is also a cycle of highly integrated activities. The way that a social system does an organizational cycle depends on its culture, its current life cycle and the expertise of the leaders and managers in the system. The same is true for an individual, depending on his or her personality, maturity and expertise in leading and managing oneself.
However, the nature of the generic performance management cycle is changing as the world around us is changing. This affects performance management in organizations, teams and employees. See Performance Management: Traditional and Progressive Approaches.
The purpose of the information in this topic is to convey the core concepts in organizational performance management. Your proficiency – skills and abilities – in the concepts would come from applying them over time, especially under the guidance of a person who is highly experienced in apply them, as well.
What is Organizational Performance Management (OPM)?
We are used to thinking of ongoing performance management for employees, for example, setting goals, monitoring an employee’s achievement of those goals, sharing feedback with the employee, evaluating the employee’s performance and then rewarding the employee’s performance. For those who did not effectively achieve their goals, the supervisor would work with the employee to increase performance or ultimately to fire the employee. That foundational performance management sequence applies to teams, internal recurring activities and organizations, as well.
So OPM involves the recurring activities to establish organizational goals, monitor progress toward the goals and make adjustments to achieve those goals more effectively and efficiently. From a systems perspective, the overall goal of performance management is to ensure that the organization and all of its subsystems (recurring processes, teams, departments and employees) are all integrated and aligned together in an optimum fashion to achieve the overall results desired by the organization. Here are two more definitions:
“The term ‘Performance Management and Measurement’ refers to any integrated, systematic approach to improving organizational performance to achieve strategic aims and promote an organization’s mission and values.” Hanine Salem
“Organizational performance management is the process of making sure that your company resources are being properly used in pursuit of company goals.” George N. Root III
Those recurring activities are much of what leaders and managers inherently do in their organizations — some of them do it far better than others. The process is closely aligned with strategic management — the process of effectively implementing as well-designed strategic plan.
General Guidelines for Implementing and Evaluating the Process
There are certain guidelines that can ensure the success of any generic performance management process. Be sure to read and follow these guidelines closely, especially if this is your first implementation of a comprehensive performance management process. The guidelines also can be useful if you are trying to improve a process that you have already implemented. Performance Management for any Application: Guidelines for Implementation and Evaluation
Organizational Performance Planning Phase
NOTE: Because of the predominance of the traditional approach to performance management, the following activities are organized according to that approach. However, early in the implementation, you should decide whether you will be using the traditional approach or the progressive approach or a combination of both.
1. Review the organization’s preferred goals for the next year and, for each goal, specify preferred organizational results in terms of units of performance, that is, quantity, quality, cost or timeliness. These units provide ongoing measurements for the OPM to monitor as indications of the organization’s performance. For ideas about measurements, see Guidelines for Selecting Measurements and One Sample Framework for Selecting Measurements.
Organizational goals are usually determined during the Strategic Planning process.
The units of performance for the organization might be specified in Action Plans associated with each strategic goal. Action plans specify who is going to do what and by when.
5. For each key performance indicator, identify standards for evaluating how well the desired results were achieved, for example, “behind schedule”, “on schedule” or “ahead of schedule”.
8. Document a Performance Plan — including the desired results, key performance indicators and standards. Some organizations might refer to this as a short-term (1-year) strategic plan or a capacity building plan. See Sample Capacity Building Plan.)
11. Conduct a performance appraisal (sometimes called performance review). See Performance Appraisal.
12. If performance meets the desired performance standard, then reward for performance, for example, letter of recognition, increased compensation and/or a promotion. See How to Reward Employee Performance.
Organizational Development (Improvement) Planning Phase
13. If performance does not meet the desired performance standards, then develop or update a Performance Development Plan to address the performance gap (see note 1 below.) See Development Planning.
If leaders decide that the organization needs to undergo a significant change in order to improve performance, then this is where Organizational Change is so useful.
14. Repeat phases 9 to 13 until performance is acceptable or the standards are changed.
Note 1: Inadequate performance does not always indicate a problem on the part of the organization. Performance standards may be unrealistic or the organization may have insufficient resources. Similarly, the overall strategies or the organization, or its means to achieving its top-level goals, may be unrealistic or without sufficient resources.
Learn More in the Library’s Blogs Related to Organizational Performance
In addition to the articles on this current page, also see the following blogs that have posts related to organizations. Scan down the blog’s page to see various posts. Also see the section “Recent Blog Posts” in the sidebar of the blog or click on “next” near the bottom of a post in the blog. The blog also links to numerous free related resources.
To round out your knowledge of this Library topic, you may want to review some related topics, available from the link below. Each of the related topics includes free, online resources.
Also, scan the Recommended Books listed below. They have been selected for their relevance and highly practical nature.
The Balanced Scorecard is a performance management approach that focuses on various overall performance indicators, often including customer perspective, internal-business processes, learning and growth and financials, to monitor progress toward organization’s strategic goals. Each major unit throughout the organization often establishes its own scorecard which, in turn, is integrated with the scorecards of other units to achieve the scorecard of the overall organization.
Learn More in the Library’s Blogs Related to Balanced Scorecard
In addition to the articles on this current page, see the following blogs which have posts related to Balanced Scorecard. Scan down the blog’s page to see various posts. Also see the section “Recent Blog Posts” in the sidebar of the blog or click on “next” near the bottom of a post in the blog.
To round out your knowledge of this Library topic, you may want to review some related topics, available from the link below. Each of the related topics includes free, online resources.
Also, scan the Recommended Books listed below. They have been selected for their relevance and highly practical nature.
This sample Agreement for Services, or Contract, is for a project that began with a Request for Proposal where the Great Scott Arts Association, a new organization in Mosquito Falls, MN, was seeking a consultant or consultants to assist in its initial set-up and in the analysis of possible administrative and performing space.
1. Terrific Consulting (hereafter called Contractor) agrees to provide the following products and services to the Iceberg County Art Center (hereafter called Client):
A. Information gathering: Contractor will review the following information compiled by Client:
1). information on attendance at past events
2). samples of past promotional pieces and any recent press coverage
3). samples of past membership flyers
4). financial information from the past three or four years
Contractor will also inquire into the availability of any recent market studies on the Iceberg area done by the city government or other groups working on the Iceberg’s economic development.
Contractor will also confer by phone with the part-time coordinator and two or three Client board members to get their view of the issues facing Client.
B. Member survey: Contractor will design a one-page membership survey. Client will be responsible for duplicating the survey, sending it out to the membership and tallying the responses.
C. Contractor will design a “community leader interview” format. Client’s board members will call on community leaders and conduct interviews. Contractor will summarize the finding and merge them with the survey responses, giving Client a written report on how it is perceived by members and community, and what people think it should be doing.
D. Contractor will travel to Iceberg for a one-day stay to meet for half a day with Client’s board to discuss:
1). the survey findings, Client’s audiences or “publics”, Client’s “position” in the community, the “messages” that Client wants to communicate to people, past promotional efforts and possible changes to make in the future.
2). the management training needs of Client’s staff, board and committee chairs. Contractor will present a format to use in writing job descriptions and teach Client how to use it. The group will also develop an organizational chart for Client, identifying the various committees, board officers, committee chairs and others with particular management responsibilities.
3). Client’s fundraising needs and opportunities. Contractor will explore how much Client wants to raise, and what Client is willing to do to raise it, including Client’s membership program, grant opportunities and the possibility of more individual fundraising.
E. Before leaving, Contractor will give some “homework” assignments to Client. They would likely include preparation of some job descriptions and a clear annual fundraising goal.
F. Contractor will write:
1) a regular promotional schedule based on the goals identified at the meeting above
2) a review of Client’s job descriptions with suggested revisions
3) recommended management training opportunities
4) if feasible, an annual calendar of management tasks
5) recommendations for raising more contributions
This work will be completed no later than December 31, 1999, and will be conducted by Contractors’ agent, Edmund E. Expert.
It is understood that circumstances arising during the consulting project may require the activities described above to be replaced with other activities of an equivalent value. Such changes will be based on mutual agreement of both parties, which may be recorded as an addendum to this agreement, or as a letter from one party to the other.
2. Client agrees to:
A. participate as requested in consulting activities. This includes calling meetings, providing meeting sites and amenities, and providing information requested by Contractor. Client’s entire board will be involved in this process, not just the coordinator. Client will also be asked to duplicate, distribute and tally the results of a membership survey, to conduct communicate leader interviews and to complete the homework assignments.
B. pay Contractor a fee not to exceed $1,405,000 plus expenses. Expenses to be billed include travel ($.25 per mile for auto travel), lodging and meals while in Iceberg, long-distance phone calls, and any copying and mailing services, outside of normal communication with Client. Lodging and meal expenses will be documented with receipts.
The payments will be made in three installments: $400,000 at the signing of this contract; $400,000 upon completion of the Iceberg meeting described above; and $605,000 upon completion of this project. The project will be considered complete when the written report described above is submitted.
C. authorize Amy Administrator to approve Contractor’s work and any expenses Contractor wishes to incur on behalf of Client.
3. Either Party may terminate this agreement with thirty days’ written notice. If the agreement is terminated, Contractor will present Client with a statement of account showing all fees paid to that time, and itemizing work performed. If work performed exceeds fees paid to date, Client will pay Contractor for such work at the rate of $40,000 an hour. If fees paid exceed work performed to date, Contractor will return unearned fees to Client.
Signed:
for Iceberg County Art Center:
_______________________________________ Date _________________
for Terrific Consulting:
_______________________________________ Date _________________
This information may be copied;
please include credit to the author.
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Also, scan the Recommended Books listed below. They have been selected for their relevance and highly practical nature.
The Great Scott Arts Association,
a new organization in Mosquito Falls, MN, is seeking a consultant or consultants
to assist in its initial set-up and in the analysis of possible administrative
and performing space. See the associated “Agreement for Services”
which would typically follow this proposal, assuming the client finds a
consultant that he or she likes and enters into an agreement with them.
Situation
The GSAA was established in 1991 to assist several existing cultural groups
in Mosquito Falls and to promote and coordinate arts activities in the area.
Mosquito Falls is a town of 7500 people about 30 miles north of Saint Marvin,
on Highway 10. Cultural organizations in Mosquito Falls include a community
theater, community orchestra, the county historical society and a separate
history museum, a small concert series, a community art school and a Comprehensive
Arts Planning Program (CAPP) group, among others. To date, GSAA has nonprofit
and tax-exempt status and a board of directors, but no staff or office space.
No maximum budget for the consultancy has been established at this time.
Tasks to be accomplished
Continue development of the Association and plan for its future
· work with a task force of member organizations to determine what
joint needs the GSAA should address and how and to write GSAA by-laws
· implement a general membership structure and campaign
· design a GSAA newsletter and publish the first issues
· develop annual GSAA budget projections for three years
Develop a building use plan (in concert with member organizations):
· determine organizations’ individual space needs
· determine how space should best be used
· develop sample schedules of events to be held in the space
· develop recommendations on GSAA’s role in operating the space,
if any
· develop a list of policy issues that should be dealt with before
any building is acquired (i.e., should tenant organizations pay rent? how
should space be allocated?)
· meet with representatives of other institutions interested in the
space to determine the feasibility of shared use
Research possible funding sources for building remodeling and GSAA operations
· conduct the necessary library research to identify possible Minnesota
and national funding sources, both private and public
· gather guidelines from possible funders
· communicate with most likely funders to gauge their interest
· develop initial plans for seeking organizational and individual
funds from the Mosquito Falls community
This consultancy should begin in January 1999 and be completed no later
than June 1999.
How to submit a proposal
Interested people should submit the following, no later than October 9,
to Jason Johnson, Mosquito Falls Music Center, 116 8th Street, Mosquito
Falls, MN 56000. If there are questions, call Jason at 612-999-999.
1. A proposal describing your qualifications (or the qualifications of the
team of consultants) and how the tasks described above would be carried
out
2. A firm estimate of fees to be charged, and an estimate of expenses that
would be incurred
3. Resumes of all consultant who would be involved in the project
4. Names, phone numbers and contact people at three nonprofit organizations
who have been your clients during the last 18 months, whom we can all on
as references.
5. Interviews with finalists will be held during the week of October 12.
This information may be copied;
cite the owner on all copies.
To round out your knowledge of this Library topic, you may want to review some related topics, available from the link below. Each of the related topics includes free, online resources.
Also, scan the Recommended Books listed below. They have been selected for their relevance and highly practical nature.
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