A global performance index of international humanitarian NGOs. A proposal for a measurement instrument

Purpose: The purpose of this article is to propose a Global Performance Index for humanitarian NGOs that operate on a global basis The proposed index also includes a list of indicators for measuring the performance’s effectiveness in the economic, operational, and social areas. Design/methodology/approach: The analysis of existing theoretical concepts of performance measurement contributed to the development of a model of NGO organizational performance and three key elements emerged: 1. operational effectiveness, 2. economic effectiveness, and 3. social effectiveness. Based on the credit scoring method the list of indicators developed a proposal for a Global Performance Index for humanitarian NGOs operating globally. Conclusions: The Global Performance Index, together with a proposal of indicators, allows the measurement of NGO performance. It also takes into account specific aspects of international humanitarian NGOs in areas such as their non-profit purpose, their field of activity (emergency relief and development), and their necessary effectiveness and efficiency to gain legitimacy from public and private donors. Research limitations/conclusions: The limitations of the concept adopted relate to the choice and weighting of measurement criteria. Even if we take into account the actual historical data of the organization, as well as documents specific to the donors or the organizations themselves, there remains a bias of subjectivity that needs to be reduced by specific applications. This would allow testing both the validity of the selected criteria and their relative importance in measuring performance. Such application would benefit from being complemented by analyses of failure situations and stakeholder consultation. Practical implications: This index of NGO performance indicators may become a tool for potential investors or donors who would like to assess the health of such organizations. Originality/value: The methodological approach adopted in the article for assessing the performance of NGOs, the model developed and the list of indicators is novel and may, in further research, form the basis for creating comprehensive performance measurement indices for NGOs.