Measure your performance

You've defined your vision and set your objectives, but how do you know if you are meeting your objectives?

You measure and track your performance.

Commercial businesses measure their performance in terms of revenue and profitability. Social businesses can also do this, but more importantly they need to track their performance against their social objectives.

The social objectives may be the number of homes provided for the homeless, or the number of HIV/AIDs orphans who are being cared for.

Each of your objectives should have a set of tactics that determine how you are going to meet your objectives.

Looking at the example on homes for the homeless, and assuming you are currently an Estate Agency, the tactics could include:

1. Use existing contacts in the construction trade to build or provide the low cost housing
2. Finance the homes through the sale of commercial or residential buildings
3. Engage with organisations that can identify those most in need of homes
4. Etc, etc.

You then need to measure your performance (progress) against these tactics.

This can be done in a variety of ways, but the simplest way is to track your progress is to keep a log (written or electronic) based on set periods (weekly, monthly, annually) with the number of times your are and are not delivering on these tactics, and hence meeting your objectives.

Your tactics should be reviewed regularly, to ensure they are still appropriate.

For example, you may find that your contacts in the construction trade cannot provide the houses you are looking for, and you need to focus on low cost governmental housing, perhaps looking at a Private-Public Partnership.

I've used the example of an Estate Agency here to highlight that you don't have to be a typical non-profit, NGO or charity to be a social business. Although you do need to be careful that your financial objectives do not clash with your social objectives, and may consider having your social business as a separate legal entity.


Mike.