Metrics

In the for-profit world, success is measured by profit. It’s a simple calculus: Money-in less money-out. If the number is in the positive, that’s a success. (Obviously, that is a gross simplification.) Everybody in the business sector knows this.

In the non-profit world, success is measured by profit, too. Don’t be deceived. The bills need to be paid. The customers aren’t paying; the donors are. But, on top of the money-in-versus-money-out calculus, success is also measured by “outcomes”. Outcomes are the effect the expenses are having per the stated mission.

Question for non-profit success: How do we know that our programs are making a difference?

Answer: Measure the outcomes of programming.

Outcomes are not, for example, money spent, hours worked, programs facilitated, days available, pounds donated, items gifted, etc. Those are “outputs”. Outcomes are, for example, rise in test scores, less addiction, fewer arrests, increased health, etc. Everyone in the social sector knows the difference (because you don’t stand a chance at accessing grants without measuring outcomes).

Churches, usually non-profit entities, also measure profit. Of course, they have to. However, churches spend most of their time making two mistakes:

1. 1. Confusing outcomes and outputs. (Launching another program is not an outcome.)
   2. Measuring what I call “inputs”, which are really outputs bent in toward the church (e.g. volunteer cleaning, folding bulletins, serving in the children’s department, or attending worship).

Two pointers for new church metrics:

1. 1. If it is a service of any kind it is not an outcome. Ask yourself the hard question: What are the measurable changes we want to see in our people, community, county? The answer to that question is an outcome that ought to be measured for success.
   2. Stop measuring inputs immediately. They are telling you a lie about the success of your faith community. If you have to measure some inputs, fine. Submit them and then throw them away.