DIVING INTO DATA: WHY NONPROFIT BOARDS NEED DATA
Talking about data often freaks people out, and fills others with the desire to take a nap. I get it (actually I don't, I love data! I’m a nerd that way), but I understand the inclination to avoid what doesn’t seem relevant when you have so much going on. Unfortunately (or fortunately), outcomes data, performance data, financial data, and fundraising/budgeting data are all SUPER relevant to the role of the board of directors.
I love this article from the Council on Quality and Leadership on why data is so important. They list twelve reasons in fact! I would like to focus on the first two; #1 Data Improves People’s Lives, and #2 (Data Helps Leaders) Make Informed Decisions.
Data improves people’s lives: Organizations that consistently measure the effectiveness of their services by collecting impact data and then make decisions based on the results, improve the quality of people’s lives. Nonprofit organizations should be responsive to community needs and regularly assess participant/client satisfaction with services. This information…. data…. can be used to make improvements to programming and strengthen program outcomes. Understanding the what, why, and how of an organization’s goals, interventions, and outcomes is considered a “Theory of Change.” Theory of Change (TOC) is essentially a comprehensive description and illustration of how and why a desired change is expected to happen in a particular context.
Data informs decisions: Data = Knowledge. Good data provide indisputable evidence, while anecdotal evidence, assumptions, or abstract observation might lead to wasted resources due to taking action based on an incorrect conclusion. Boards make important decisions that impact the organization, its employees, participants, and other stakeholders.
One of the board’s primary duties is determining the strategic direction of the nonprofit organization. In order to fulfill this duty, it is important to have all the information at hand, and understand the impact services have and the extent to which they are achieving the desired outcomes. This cannot be done without data! Just like your doctor can’t make a diagnosis or prescribe a course of treatment without certain tests and the test results, board members can’t (or shouldn't) make decisions about the future of the organization and the community served without data (outcomes, financial, etc.).
Have I convinced you yet? I encourage you to read the whole article cited above, but there’s another opportunity to learn more! If this blog has motivated you to learn a little bit more about the purpose of data and how to use it to be a more informed leader, please join us for the upcoming free and virtual Lunch and Learn on Thursday, June 16th at 12:00 p.m. MST. Information and link to register: https://thenonprofitstrategygroup.com/services (.)
This upcoming webinar will feature our guest speaker, Paul Collier, the Founder and Principal of a local consulting agency, Coeffect. Paul is a data systems and evaluation genius and for years has helped mission-driven organizations make sense of their data. Paul will provide an overview of basic data literacy to improve the confidence and knowledge of nonprofit board member attendees. We hope you and your whole board will join us for this free 55 minute webinar!