Complete Story
12/07/2016
Successful Association KPIs
Familiarize yourself with this article from industry guru Bob Harris to better understand the importance of KPIs
Many of the ideas that come before the board of directors start with the statement, “I have a good idea.”
From there passion takes over. An idea turns into something that sounds good that might pass without much knowledge based discussion. Or “group think” presides, with people supporting the idea because they thought everyone was in favor.
Key Performance Indicators
Key Performance Indicators (KPIs) to track and measure progress should be agreed on by board and staff. They must be closely tied to the strategic plan’s goals and priorities.
Nearly everything can be measured in an association. (“Why are we talking about it if we cannot measure it?”)
After selecting performance metrics, they may be transformed to dashboards --- a graphic depiction of the data. A dashboard allows the board to monitor trends from quarter to quarter and identify strengths or weaknesses. This reduces the need for longer written and oral reports at board meetings.
Common KPIs
- Membership growth from quarter to quarter in each tier.
- Percentage of membership market share (number of members compared to potential or desired number of members.)
- Membership retention rate.
- Visitors to website and Facebook.
- Ratio of membership dues income to non-dues income.
- Ratio of amount of ALI savings compared to the budget.
- Number of members enrolled or taking advance of key association programs.
- Number of visits or contacts with government to support lobbying.
- Number of mentions in the news media.
- Number of member calls to the office for technical assistance.
Data supports knowledge-based board decisions. Though there is software available to develop dashboards, most organizations rely on Microsoft Excel or the SmartArt feature in Word and PowerPoint programs.
Bob Harris, CAE, provides governance tips and templates at www.nonprofitcenter.com.
