Measuring Deficiencies in Nonprofit Management

Abstract

The need to measure the performance of nonprofit boards has been recognised for over 30 years primarily because of the direct relationship between board performance and organisation performance but also because identifying management strengths and weaknesses across a range of performance factors forms the basis for an effective management development programme. The results of past studies are generally inconclusive leading to a lack of consensus as to which is the best approach. The objective for this study was to demonstrate that a heuristic methodology does produce an acceptable, approximate solution to the measurement of individual management performance in a nonprofit board. Testing established that the heuristic model produced a satisfactory solution and was able to provide a detailed assessment of management strengths and weaknesses across a wide range of factors. Analysis of the results obtained from a sample of nonprofit board members provided clear evidence that management skills, management experience, relevant knowledge and commitment are key competencies for nonprofit board members. A direct, positive relationship between age and management performance was also identified.