For busy nonprofit business leaders and board members, a seemingly endless stream of reports, meetings, emails, phone calls and text messages can create a strain on their time, limiting their ability to focus on critical business information and interactions.
This begs the question: “What can be done to make every interaction between the board and senior management as meaningful as possible?”
One way is to create and employ a “performance dashboard.” Performance dashboards enable your organization to quickly identify and communicate important activities and actions that the board and senior management need to discuss, assess and, if necessary, act upon.
Applying our years of experience advising nonprofit organizations, we’ve developed a 6 step process for developing and implementing a performance dashboard. Those 6 steps are as follows…
- Identify who should be involved
- Identify what’s most important to measure and how best to do it
- Identify the most important measures that can be reported on in the short term and, where practical, benchmark performance, and assess the possibility of expanding and enhancing reporting in the longer term
- Determine how best to present the data
- Obtain full board approval
- Periodically revisit Steps 1-5
For more information on creating, implementing, or improving your performance dashboard, contact Peter Manzetti at firstname.lastname@example.org or 212.842.7534.Ready to learn more about using financial dashboards to engage and inform your board? Join us on April 5th for an in-depth discussion.
The preceding is a guest post by Peter Manzetti, Director of the Governance, Risk and Compliance Services Practice at Friedman LLP.