The relevance of KPIs in faith-based, non-profit organisations

Abstract

In the last decades, faith-based, not for profit organisations acquired particular relevance for Governments and in the society in their role as service providers. Scholars and professionals recognise the importance and necessity for NFPO to be sustainable and accountable by using instruments that trace their level of effectiveness, such as Key Performance Indicators (KPI). The project takes into account these questions and seeks to understand the relation between faith and management as well as to identify if there is a “universal” key performance indicator. Twelve high-level interviews were conducted with managers holding top-level position in different FBOs. These represent the unit of analysis, which is characterised by its heterogeneity, offering a cross-sectional approach for the exploration of the phenomenon. The project first describes the methodological approach and continues with a rich literature review, which examines the subject of faith, drawing important concepts to understand what distinguishes FBOs from other types of organisation. The subject of KPI is investigated to establish a solid conceptual framework. The core variables of research question one; reveal that faith influences four important organisational realms: attitude, decision-making, managing of relationships and organisational culture. The discussion of the findings discloses the relevance of “good relationships with purpose” as a principal KPI for the organisations under research. A set of recommendations is presented to effectively implement the KPI outlined.