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AMERICAN JOURNAL OF EVALUATION, 21(1), 2000
outcomes (U.S. Government Accounting Office, 1996). State and local governments have
followed suit, building performance measurement into their contracts with nonprofit agen-
cies. Managed care companies require nonprofits to measure outcomes as part of their
certification process for payment. National nonprofit organizations such as Big Brothers Big
Sisters, Boys and Girls Club, and the Child Welfare League want local affiliates to prove that
their programs make a difference in the lives of people (Hatry, 1997; Plantz, Greenway, &
Hendricks, 1997).
But developing performance measurement systems is easier said than done. In the
United States there are some 83,000 nonprofit agencies with annual incomes above $25,000
(Hodgkinson & Weitzman, 1996). Over the past twenty-five years, these agencies have been
largely held accountable for outputs (i.e., number of units of service and number of people
served) rather than outcomes (i.e., changes in participant knowledge, attitudes, values, skills,
behavior, condition, or status). As a result, many of these agencies are having trouble today
making the transition to “performance measurement,” which includes outputs and outcomes
(Newcomer, 1997).
In response, the United Way of America and other organizations are sponsoring efforts
to build capacity in this area. Three important lessons have been learned thus far. First, it
takes time to develop a sound performance measurement system. Eight steps have been
identified, spanning three stages, including preparation, a trial run, and implementation
(Hatry, van Houten, Plantz, & Greenway, 1996). Second, capacity building requires a
substantial investment of resources. Extensive hands-on training and ongoing technical
assistance are needed throughout the process (Plantz et al., 1997). And third, capacity
building demands patience. Facilitation of organizational learning has been identified as the
primary role of funders and evaluators during the developmental stages (Segal, 1997).
Despite progress, capacity-building efforts have been hindered by the lack of instru-
ments to judge the quality of a performance measurement system (Lambur, 1993; Weiss,
1997). Without such tools, it is difficult to assess whether a proposed system will generate
useful data on program outcomes. A good tool will identify the parts that are flawed and
pinpoint where additional technical assistance is needed to improve the capacity of the
system. In the field of program evaluation, these challenges fall under the domain of
evaluability assessment (Rutman, 1980; Schmidt, Scanlon, & Bell, 1979; Wholey, 1979).
This preevaluation step identifies problems that may hinder program performance, or may
interfere with the generation of useful data. Evaluability assessment increases the likelihood
that a proposed measurement system will deliver what it promises. And, if the design of the
system is found to be unsound or seriously flawed, improvements can be made, avoiding the
waste of staff time and agency resources.
We attempt to fill the gap in evaluability assessment for performance measurement
systems and to stimulate further research in this area by designing, testing, and refining one
instrument—the Program Accountability Quality Scale (PAQS). Findings to date indicate
that PAQS provides a useful structure for obtaining expert opinions based on a theory-driven
model about the quality of a proposed measurement system in a not-for-profit agency. PAQS
also is useful in assessing agency needs for technical assistance and measuring progress in
the development of a sound performance measurement system. In this article we provide
background information on the development of PAQS at Heart of Florida United Way in
Orlando, Florida. We also present preliminary findings on the reliability, structure, and utility
of the instrument, and we suggest directions for future research.