Preview Resource Center Introduction and Demo

Information Management
The cornerstone of nonprofit effectiveness

By: Barbara Chang

Source: Techsoup.org

March 29, 2002

Editor's Note:

Information Management sits at the heart of why database technology matters in nonprofit organizations. Barbara Chang from NPower NY makes the strong case that respect for the power of information is not simply an intellectual exercise but is a cornerstone of business. She points out that increased accountability for program outcomes and financial issues is being placed on nonprofits. Database tools, when applied effectively, can be a big part of meeting these requirements.

The Adopting Technology Series is produced by Dot Org Media. Dot Org Media is a co-production of Marc Osten at Summit Collaborative and Michael Stein.

It happens all the time. Your boss wants information on how many clients with incomes below the poverty line recieved drug and alcohol counseling last month. Once you look at all of the paper registrations and count the number, she calls and wants to know how many of them live in Brooklyn. So, you go back and count again, knowing all along that there's a better, faster way of doing this by using technology. Or you're writing a grant proposal to the Orange County Foundation and need to know how many residents from Orange County you served. You don't regularly collect that statistic, although the information can be retrieved from that pile of paper by your desk. You decide to dodge the question, offering the total number of clients you serve as a less compelling substitute. It's just easier.

Information -- Collecting Information, Organizing It, Analyzing It, and Reporting It

For a nonprofit, accurate, timely information has become the cornerstone of the business. As more scrutiny is placed on outcomes and financial accountability, staff that make decisions about programs and generate the reports requested by funders are relying heavily upon data being collected at the front lines. Data is also critical to assessing program needs. Is the care received by your clients coordinated properly? Is it followed up in a timely manner? Are you able to identify trends in program delivery so you can make decisions about staffing, program design, and funding needs?

Just a few short years ago, paper forms were the main vehicle used to collect data at a nonprofit. That has changed with the introduction of database programs and applications. In New York City, we at NPower NY are working with many of our nonprofit partners in doing database development. Some of them are asking for basic database design using a program like Microsoft Access or Filemaker Pro. Their needs are relatively simple and an application can be designed within a few days. Others are requesting more complex databases that merge several disparate databases and spreadsheets currently being used in their organization.

Databases -- What Are They?

Simply put, a database is a repository for your organization's information -- most of which will have to be accessed and re-sorted for various uses, such as a mailing list or management report. Often, staff starts collecting data with the use of a spreadsheet, but a database is much more sophisticated and can manipulate the data (ie sort, aggregate, skip fields, etc) much more skillfully than a spreadsheet.

Databases are quite pervasive. They can be found linked to a Web site that is capturing registered users. A client tracking application for social service organizations is really a sophisticated database. An electronic medical record for a health care facility is also, a database. Many would argue that the database is the single most important application of technology used within a nonprofit today. Think about how data is currently being collected and used in your organization today:

If you are an advocacy group, your mailing list is a wonderful source of rich data on your core constituents.

If you are a social services organization, the information you are collecting about your clients on your intake and registration forms is just the beginning of the data you are collecting on services and referrals that you are coordinating.

If you are an arts organization, the inventory you collect on your collections is data-driven.

If you are a school, the data you collect on enrollment and test scores is critical to assessing overall performance.
Every nonprofit collects data and in many cases, collects data that if organized, can send powerful messages about the impact the sector is making on communities and peoples' lives.

Observations from the Field

At NPower NY we are spending a lot of time working with nonprofits on their database projects. The ability to manipulate data to respond to the ever-changing information needs of staff and funders is usually the driving force behind creating or modifying an organization's database. If properly implemented, databases can not only have an impact on information management, but also on staff morale and client satisfaction. Below are some lessons we have learned about what organizations should be aware of when considering a database project.

Spend Time Thinking About Your Needs

Whether you are designing a database from scratch or purchasing an off-the-shelf database such as a client tracking application, don't rush the decision. Database programming can be expensive, so the more time you spend thinking about and planning for your information and reporting needs, the clearer you will be when purchasing the product or directing the programmer.

Here are some steps to take in the planning phase:

Map out the current data collection process in order to fully visualize what the current practice is within your agency.

You can't modify your practices if you don't know your starting point. Use a giant whiteboard and be as detailed as possible, breaking down the process into bite-sized steps. Once that is done you can more easily add and take steps away.
Create a detailed model of your ideal data collection process, incorporating all of what you consider to be your agency's best practices.

Once you have mapped out your current practice, map out your ideal model of data collection using all of the wisdom your staff has from actual experience. It's so important to look at the realities of the situation in order to map out your best practice situation. Think about the process not only from your staff perspective but also from the perspective of the clients from whom you are collecting the information.
Identify the specific information the database must manage and the outcomes your agency tracks (or wants to track).

This step is critical. You don't necessarily want to capture all of the information you currently collect, or you might want to collect more or different information. What data is needed by management to make sound decisions about program success or planning for the future? What outcome data is your government funder asking for? What data does your board need to see on a regular basis?

Develop the functional requirements of your agency's best practice service delivery model.

Functional requirements are simply the things or functions you want a database or software tool to do. How do you want the data manipulated in order to retrieve the information you need? For example, you may want a database to be able to search to see if a client or consumer has received services from your agency before. Or you may want a database to be able to link individuals with other family members so that your agency can get a count of both individuals served and families served. Both of these are examples of functional requirements.

Once you've completed these steps you will be a lot clearer in directing the search for the right software or in directing the programmer who will design the database.

Realize the Full Implications of the New Database

The process of designing the database was pretty straightforward, although it garnered much debate around data elements and functional requirements. So why is your colleague at reception looking upset and why is there more than the usual banter going on at the water cooler? The reason is that the implications of database implementation can be more widespread than the database design itself. For example, a database implementation can change the way information is collected, possibly automating a paper-based process. This can be an incredibly liberating experience for those who have been buried in paper registrations and forms. A database can truly revolutionize the way an office operates, streamlining intake and creating critical reports with a single keystroke.

But be watchful of potential fallout as a result of automating your data collection process. Perhaps your receptionists are nervous about the stability of their jobs or the lack of training they have on the new technology. Revealing major process flaws can leave your staff -- the original architects of the process -- feeling incompetent or vulnerable. Perhaps you are trying to merge several of the organization's databases into one. Oops: you didn't realize that the organizational culture of not sharing information with each other is the reason why there are separate databases. Resentment and fragile nerves abound.

You'll soon realize that dealing with the technology is the easy part, the hard part is the human factor. Know what you're getting into ahead of time and try to confront these issues head on. Keeping staff engaged in the process as well as being a part of the solution can help in the implementation phase.

Team-based design: We strongly encourage the front-end database planning be done by a team of staff. Make sure your team represents a blend of the visionary and the practical, as well as people who have technical know-how and strong project management skills. What often happens when we make this suggestion is that the program managers or senior management become the team, but we would suggest otherwise. You should select staff from all ranks within the organization, particularly if your database project will impact them directly. We would also suggest that you select unofficial "go-to" staff-- those within the organization that others listen to and respect. Once you convince them that the database is a positive step forward, they are likely to reassure others of the same.
Understand the implications and deal with them early on: Answering the likely questions before they come up will save you and your staff a lot of time in lost productivity. Will this affect my job? Will I be trained properly? Will my concerns matter? Don't treat the database project as a highly technical, impersonal piece of technology. An introduction of new technology will always lead to change and change must be managed properly within the organization.

Estimate Timeframe and Costs Accurately

Something funny happens once a nonprofit decides it needs a database -- all of a sudden they can't live another day without it. The database will revolutionize the way information is collected, streamlining the bureaucracy and redundant collection of information, inserting technology where it never existed, saving money at every turn. However, databases are not the miracle cure -- technology in and of itself rarely is. You just read about the importance of taking the time to plan and deal with wider organizational change. These processes can take weeks, months and in some cases over a year.

But you need to be realistic about the savings -- in time and money -- that will be reaped from your database as well.

First, keep in mind that database implementation may require hardware upgrades. Make sure you understand the implications of your database on minimum workstation requirements, networking capabilities, Internet access, and communication tools like email.

Don't forget to invest heavily in training on the new database. Not only training on the technology itself, but also training on the information that will be collected. The last thing you need is garbage data going into the database ruining any hope for accurate reporting on the other end.

Make sure you allow enough money in the budget for upgrades in hardware and software and customized changes to the database. I have never seen a nonprofit that could fully anticipate all their information needs from the onset. Customized reports, new data fields, and new functional requirements will inevitably crop up and you'll need to make sure you can accommodate these changes in your budget.

In closing, databases can be an amazing addition to your organization's operation and can produce the rich reports you could only hope for in the past. But, as with other new technology, be realistic about what you want to achieve in a given timeframe and budget, and you'll be more likely to achieve success. Good luck!

About the Author

Barbara Chang is the Executive Director of NPower New York. NPower NY's mission is to help non-profits use technology to better serve their communities. They offer technology consulting, training and support services at reduced rates for its members and serves as a technology resource for all area non-profits. Learn more at www.npowerny.org.