Operational Planning and Evaluation

Nonprofits development, implement and monitor operational plans based on the vision, values, mission and strategic direction created by the board of directors and key staff. Operational plans ensure accountability and provide the foundation for an evaluation of the organization’s activities. Nonprofits understand their essential responsibility to assess the impact of their efforts and act upon the information.

Online Resources

Free Management Library – information on operational planning, updating a strategic plan and outcome-based evaluation
Innonet.org – provides knowledge and expertise to help nonprofits and funders learn from their work to improve results.
Nonprofit Expert – provides additional online resources for evaluation
National Council of Nonprofits – listing of valuable strategic and business planning tools
Alliance for Nonprofit Management – resources on evaluation, benchmarking and operational planning

Dashboards can be a very useful tool for managers. They can provide a quick snapshot of progress towards organizational goals:

Nonprofit Technology Network – a range of resources on using dashboards
BoardSource
Blue Avocado – useful articles on dashboards

BEST PRACTICES

1. Working from the board’s strategic direction and guided by the organization’s vision, values and mission, the staff develops and works from an operational plan that defines how the organization will achieve its goals and objectives within an established timeframe and budget.

2. The operational plan is dynamic. The organization modifies the plan in response to environmental changes and to ongoing evaluation of its successes and failures.

3. The organization develops a budget that reflects the operational plan and ensures acquisition and allocation of adequate resources to accomplish the plan. The annual budget process includes steps to ensure that the budget is consistent with the organization’s vision, values, mission and strategic direction.

4. The nonprofit builds evaluation into its operational plan. It includes clearly measurable outcomes, goals, objectives, timelines and key indicators, and defines specific activities and responsibilities for board, staff and volunteers. The operational plan serves as a management tool for measuring activities, evaluating outcomes, and adjusting plans and strategies.

5. The nonprofit relies on evaluations to identify its strengths and successes as well as its weaknesses and failures. The organization uses evaluation findings continuously to improve program operations and guide the strategic planning process.

6. Organizational stakeholders, including clients, members and constituents, are involved in evaluation activities. Evaluation includes measures of the satisfaction of service participants and constituents, as well as program efficiency, effectiveness and outcomes.

7. The organization has defined procedures in place for evaluating its programs and outcomes in relation to its vision, values and mission. It uses performance measures that are realistic and appropriate to its size and scope and to its constituents. As appropriate, the evaluation makes use of both quantitative and qualitative data.

8. The organization has a complaint policy and process for clients and constituents, which are a critical evaluation tool for determining how customers feel about what they do and how they do it.

9. The organization seeks professional guidance in planning and executing evaluation processes as appropriate.

10. The organization communicates evaluation results to a broad range of groups, including board, staff, constituents, clients, funders and the public.

11. The organization, as a routine part of its work, anticipates and plans for disasters, disruptions and transitions. When unanticipated events occur, the board is fully informed and participates in determining a plan to proceed.