Balancing the “What” and the “How” in Nonprofit Performance Management

Hopefully, as leaders we are cultivating workplaces where feedback flows regularly throughout the year. But as the calendar year winds down, many nonprofit executive directors and CEOs find themselves in a reflective space—evaluating accomplishments, assessing impact, and envisioning the year ahead. For some, this season also includes employee evaluations or collaborative goal-setting sessions to establish clear benchmarks for the future.

Employee evaluations that focus on clear performance metrics are often recommended—after all, to quote Brené Brown, “clear is kind.” We already understand the importance of program outcomes, and being able to measure employee outcomes is critical too. But here’s the nuance: performance, not just productivity, is what matters most. And too often, we measure only the what—outputs and results—while overlooking the how. Yet the how is just as important, because it ties directly to the culture we want to build, such as collaboration, innovation, and engagement.

Why “What” and “How” BOTH Matter

Do we have any fans of the show Suits? In one episode, Katrina is tasked with laying off Associates due to budget cuts. To make an unbiased decision, she builds a rubric based solely on outputs—billable hours and client deliverables. By this measure, Brian Altman comes up short and is slated for dismissal.

But when challenged by her colleagues, Katrina learns that Brian’s presence is the reason others are excelling. He builds trust, asks about people’s lives, and creates engagement. Her rubric captured the what but ignored the how. The decision would have undermined the very performance the firm valued.

In nonprofits, the same principle applies. As McKinsey notes, organizations that intentionally measure not only what employees achieve but also how they achieve it build stronger cultures and sustain higher performance over time (Performance Management That Puts People First).

Examples of Correlated “What” and “How” Metrics

Here are some examples of what (outcomes) and how (behaviors) performance measures, and how they can work together:

Fundraising Staff

·  What:

• Meet or exceed annual fundraising target of $500,000.
• Secure 15 new donor meetings per quarter.

·  How:

• Follows up with each donor meeting within 48 hours.
• Intentional, quarterly collaboration with program staff ensures that donor communications align with program outcomes/needs.

Program Managers

• What:
  • 80% of program participants achieve stated outcome benchmarks.
  • All grant reports submitted on or before deadline.
• How:
  • Holds monthly team meetings where all staff are invited to share ideas for program improvement.
  • Uses participant feedback surveys at least twice annually to adjust program delivery.

Communications Staff

• What:
  • Increase social media engagement by 15% year over year.
  • Secure 5 positive media placements annually.
• How:
  • Ensures that at least 50% of published stories include direct quotes or perspectives from program participants or community members.
  • Meets with fundraising and program staff monthly to align messaging.
  • Reviews content against an internal checklist to avoid harmful or stereotypical portrayals.

Executive Leaders

• What:
  • Advance 75% of strategic plan goals on schedule.
  • Achieve balanced budget with targeted surplus.
• How:
  • Conducts quarterly one-on-one check-ins with all direct reports.
  • Provides at least two professional development opportunities annually to each leadership team member.
  • Ensures leadership decisions are documented with rationale shared across the organization

By tying what and how together, leaders make clear that results matter—but so does the way we achieve them.

Putting It into Practice

To embed this approach in your organization:

1. Define role-specific metrics: Pair each employee’s “what” outcomes with “how” behaviors that reflect your desired culture.
2. Check in regularly: Move away from once-a-year reviews; use monthly or quarterly coaching sessions to discuss both outcomes and behaviors.
3. Encourage two-way feedback: Invite staff to reflect on their own “what” and “how,” and ask what leaders can do to better support them.
4. Connect to mission: Make the through-line clear: outcomes advance the mission, but behaviors shape the culture that sustains it.

Closing Thought

As Brené Brown reminds us, “clear is kind.” When we clarify both the what and the how of performance, we not only drive accountability but also reinforce the culture we want to see. This dual focus is what sustains impact, builds trust, and makes our missions thrive.