Here’s a riddle for the weekend:
If an organization is considering Performance Pay for its CEO, what is “performance?”
The answer in a “nonprofit organization” is usually about fundraising – money.
But is having the means to provide service the only measure of performance? Isn’t real performance about end results? In a Community Benefit Organization, isn’t real performance about Community Benefit?
I wrote the other day that words matter. The choice of seeing our work as “nonprofit” vs. “community benefit” changes so much of how we see things.
The board of a “nonprofit hospital” might logically consider basing performance pay on “profitability.”
But what happens when they are not considered a “nonprofit hospital” – what happens when they are considered a “Community Benefit Hospital?”
What, then, is “performance” – in any Community Benefit organization? And how do we measure and reward for that?