Managing outcomes requires a leap of reason
Rather than take a blind leap of faith based on intuition or anecdotal information, author Mario Morino asks us to take a leap of reason when managing to outcomes. Why? Because our causes deserve it and social markets increasingly will fund only the nonprofits that demonstrate results.
Unfortunately, nonprofits aren’t great at managing to outcomes for a variety of reasons Morino explains in Chapter One of this book (request a free copy below).
Similar to other professions, nonprofit leaders aren’t rewarded for good management and consequently, have an acute shortage. Funders generally don’t provide financial support in order to make the leap to managing outcomes. Admittedly, nonprofits are cautious of managing to outcomes because they fear the information will be used against them rather than constructively for them. Among those who do try managing to outcomes get lost in the how to measure rather than the what and why.
I asked Morino about the benefit of good information in our interview:
CausePlanet: Your book claims the vast majority of nonprofits do not have the benefit of good information and tools to manage desired outcomes. Furthermore, you stress the importance of collecting better data to determine where you’re headed, chart a logical course, redirect when necessary and compete for funding. If some nonprofits are guilty of overmeasuring, why is there a disconnect with outcomes?
Mario Morino: There are some nonprofits that overmeasure, often because they are pushed by their many funders to provide a lot of data that help their funders check compliance boxes but don’t help the nonprofits themselves to navigate, learn and improve. And there are many nonprofits that undermeasure or don’t measure at all, perhaps because their leaders and board members are not asking all the hard questions they should be asking.
But I don’t want to dwell on the measurement part of this story. Measurement is a tool of effective management, not an end in itself. The macro point of Leap of Reason is that as a society, we’re not making nearly enough progress toward solving our big social and environmental challenges, and we desperately need to find better ways of encouraging, supporting, and rewarding high performance in our social and public organizations. In this era of scarcity, investing in high performance is not a luxury. It’s a necessity.
Join us next week for more of Morino’s author interview and our discussion of the prerequisites necessary for managing to outcomes.