The Criteria for Management Excellence (CME) was created to improve organizational performance capabilities and results in the nonprofit sector. Any nonprofit organization can use the CME assessment process to understand and manage performance, and guide planning, improvement, and capacity building efforts.
Use by The Forbes Funds
The Forbes Funds now includes the Criteria for Management Excellence in its regular grantmaking process. Using a standard method for assessing organizations and targeting critical needs for support expands the due diligence of grantmaking. The Forbes Funds will also utilize the data to track capacity building needs across the sector and to inform its grantmaking process and decisions.
Core Values and Concepts
The assessment will help organizations determine how well they are able to:
Say what you do – explain your organization’s mission and relevance
Do what you say – discuss planning, program delivery and resource management strategies and practices that allow you to achieve your mission
Prove it – demonstrate continuous improvement and achievement of your plans through evaluation and documentation
Organizational Assessment
To do a comprehensive organizational assessment it is important to include multiple perspectives. The CME assessment process incorporates the views of the organization’s staff, executive management and board. Each person connected to the organization will be asked to complete a confidential online survey with questions that address the 15 criteria in the Criteria for Management Excellence listed below. To ensure the organization’s assessment reflects a balanced representation, a minimum of 80% participation from each group is needed. The results from this assessment process will be analyzed and summarized into organization-specific reports. This information can help guide resource allocation for the organization’s ongoing improvement.
If you have questions or would like to learn more about the process, you can review the CME Assessment Process Manual located on the FAQ page or go to the Request Information Page to contact The Forbes Funds.
The organization’s mission and values are in writing, board and staff understand how they guide the organization, and they are regularly communicated to relevant audiences.
The organization can describe the impact it hopes to achieve and uses data to drive overall strategies for achieving mission, programs, and services that connect its participants to the expected outcomes and organization’s mission.
Do What You Say: Planning, Program Delivery & Resource Management
The organization regularly solicits information from participants, community leaders, and other stakeholders regarding the appropriateness and quality of the organization’s programs/services to guide priorities; while also gathering information about relevant trends and best practices to guide planning and priorities.
The organization has a written strategic plan developed with and approved by the board that includes:
A description of the organization’s priorities and activities given its mission and the current and future environment.
Measurable program and financial goals tied to a timeline.
Information gathered from the assessment of community trends, best practices, stakeholder input, participant satisfaction, and internal capacity that guides the creation of the plan.
A financial plan which addresses the sustainability of the organization, protects the organization’s assets, and directs the fundraising efforts of both the board and staff.
Throughout the year the plan guides the organization’s decision-making and resource allocation.
Information on program and financial goals is collected routinely and summarized to monitor progress and make mid-course adjustments. The board and appropriate staff receive progress reports on program and financial goals at least quarterly for decision-making.
The organization has written policies or procedures understood by relevant board, staff, and volunteers to manage unplanned events and/or crises. A risk review is conducted annually for organization policies and facilities to ensure that participants, staff, and the organization’s assets are adequately protected. The findings are reported to the board and executive management and action plans are implemented to make necessary corrections, taking a proactive approach to crises prevention.
Instances of non-compliance with organizational goals, policies, and procedures are identified on a timely basis and corrective actions are implemented.
Staff and volunteers understand their responsibilities, reporting structure, and policies regarding leadership transitions which are clearly defined in writing. They are well qualified and trained to perform their roles; understand how their roles relate to the organization’s mission; and staff participate in a structured annual review process that includes identification and review of performance goals and training/development needs.
Communication policies and practices are in place to ensure that internal and external audiences receive necessary and relevant information on a timely basis.
Service/program policies and procedures are in writing; updated regularly in accordance with best practices and appropriate regulations; and are understood and consistently followed by staff and volunteers.
The organization regularly reviews information on program delivery, program effectiveness, financial performance and human resource effectiveness to make improvements so that organizational operations are effective and efficient.
Internal controls for financial transactions are in writing in accordance with legal policies and generally accepted accounting principles; transactions are documented and summarized to share with the board at least quarterly to make any necessary changes to the annual budget plan.
The organization understands the Criteria for Management Excellence and continuously updates its progress even after achieving high levels on one or more criteria.
