What do you do if your nonprofit organization needs to make data-driven decisions and foster innovation?

The title of this article is off because this should not be considered an option but instead should be a core part of how any nonprofit leader approaches their work. Establishing data benchmarking internally will be a critical starting point for any future maturity in operations period to assist in what should be a connected strategy, benchmarking should holistically compare marketing, revenue, and impact data together.

As far as assessing the needs of a nonprofit organization, Board Source says, “with the broad availability of different types of data, it is important to ideate first and fully understand what the organization needs and how information will be used rather than starting with the data. Use your strategic goals to identify the type of data needed”.

1. Establish Clear Objectives: Define specific goals aligned with mission 2. Implement Data Collection Systems: Develop mechanisms to gather relevant data 3. Utilize Analytics Tools: Employ advanced analytics tools to analyze data 4. Invest in Training: Provide staff with training on data analysis techniques and tools to enhance their skills. 5. Encourage Collaboration: Foster a collaborative environment where staff can share insights and ideas based on data analysis 6. Promote Experimentation: Encourage experimentation and innovation by providing resources and support for new ideas 7. Evaluate and Iterate: Continuously evaluate the impact of data-driven decisions and innovate based on feedback and outcomes

Assessing needs can be a broad endeavor; it is essential to focus the assessment on specific areas: externally - community needs, participant and client needs, and funder and stakeholder needs; then focus internally - staff, structure, measures, data, program, and resource needs. In all cases, the team assessing needs should continuously revisit the organizational mission to guide and discern what is relevant and priority.

It all starts with understanding where we stand and where we want to go. I gather my team for a brainstorming session where we assess our needs, goals, and challenges. We identify areas where data can drive decision-making and innovation can spark growth. This step sets the stage for an exciting exploration into the world of data-driven strategies and innovative solutions.

Armed with a clear vision, we dive into the world of data collection. Whether it's through surveys, analytics tools, or feedback mechanisms, we cast our nets wide to gather relevant data points. We're not just looking at numbers; we're uncovering stories, trends, and opportunities hidden within the data. Every data point is a piece of the puzzle that will guide us towards informed decisions and groundbreaking innovations.

You don't have to do long surveys, just ask them in a rate from 1 to 5 how useful did they find your service / event. Trust me, if something really needs your attention, your community will easily notice it.

Consider innovative ways of collecting data that go beyond surveys. Many people are exhausted by constant surveys, so something different may yield better results. Consider what existing data you can pull from, what it tells you, who is may be missing, and how to bridge that gap with another tool.

When looking at data collection, it's important to think about organizational capacity. How much room is in the budget to allocate to staff time and tools for data collection? What resources does the organization have on hand already that can be leveraged for data gathering? Existing CRM software? Volunteer or staff expertise?

Data informed nonprofits aren't built in a day, and your data gathering effort should be planned around an iterative approach where you aim to simultaneously practice using data in meetings and work on collecting data that you feel will really inform business decisions. Starting with a big data gathering effort before you've started learning how to ask and get answers or at least inklings from data within business meetings is going to lead to a lot of waste and collecting data in the wrong way to be useful. The collection & organization of data should flow from the business challenges, not the other way around.

Analyzing data should spark new things to think about, as well as clarity and direction from initial queries. As an example, in early learning, the education team analyzes child outcomes data to inform future lesson planning, individualization, and new goal setting for the children. The administration uses similar data to inform the next set of professional development planning, and the agency uses the data over an extended period to focus agency investments in supplemental curriculums. Yet, new ideas may develop on special programs related to curriculum to pilot new learning opportunities and resources for staff and children alike.

The key to making data useful is to make answering questions happen in short enough timeframes & low enough effort to fit into executive decision making windows. Too many teams build dashboards, reports, and other high effort things that executives look at and go "ok, great nothing's obviously broken" but that don't help inform changes in policy, direction, or reallocation of future effort. Analysis of data should be focused less around "novelty" and more on strategy. I see way too many organizations focusing on vanity metrics reports like "downloads" or whatever instead of important things such as "does our newsletter generate the right amount of donors/business leads?"

With a treasure trove of data at our disposal, it's time to roll up our sleeves and dive into analysis. This isn't just about crunching numbers; it's about uncovering actionable insights that will shape our strategies and initiatives. We leverage AI-powered analytics tools and tap into the collective wisdom of the LinkedIn community to extract meaningful patterns, correlations, and trends. Every insight is a spark of inspiration that ignites our path towards innovation and impact.

In my experience this step is crucial because the staff/work culture should be cohesive to ensure the team is willing to do the work to ensure a mutual goal. Input is a must from the current staff and their input should be requested and valued.

Innovation can create excitement because of the hope it seeds in better outcomes, organizational learning, and growth. When the correct data is analyzed in a manner that reveals patterns and tells a story, it can provoke questions and challenges that need new solutions, and the ideation from that problem-solving process is where innovation stems from.

Look within your current team for natural talents and be open to new ideas that might fail. Create a culture that is safe to share and learn in public without fear. Partner with a local organization that can assist in compiling data or compile it yourself. Review data with your team and brainstorm followed by implementation or experimentation.

I find some team members are hesitant to offer their innovative ideas because they're afraid they might fail. Leaders should remember to not only celebrate successes but celebrate the milestones along the way. The appreciation for each step in the innovation process will demonstrate a safe environment for people to share their ideas.

There is a big difference between an organization being change agile and change constant. Just as data collection and measurement are important, choosing what gets said, the frequency and the channel for the messaging is important.

In my experience a common failure in this space is to assume a “fixed approach” to change and innovation. I’ve seen many organizations who follow some of the recommendations in this article once and then measure to the initial standards indefinitely. Although a 10+ year program approach may have been effective once in the ever evolving landscape our organizations are operating in today we must adopt a more iterative change agile model. We need benchmarks AND pillars for operational excellence AND we need a cadence/cycle of reimagining the way we achieve objectives grounded in continuous stakeholder feedback & analysis and an understanding of the new tools available to achieve our objectives.