In my PhD research
on change management in the not-for-profit sector, I have identified a range of
unique challenges faced by this sector. Organisations within this sector face
ongoing sustainability problems which are directly linked to full or partial
government funding which places them at risk of being responsive to ongoing
political bias and the associated challenges of managing the ongoing conflict between
issues of mission, and practicalities of operational and organisational
sustainability, especially within religious based not-for-profits.
The ability
to attract, maintain, and develop human resources, places ongoing strains and
stresses on the constancy of programme and service delivery for
not-for-profits. This issue specifically threatens those not-for-profits
operating in the broader human service sectors of disability, mental health,
and aged care. Additionally, the use and application of hybrid performance
measurement criteria for those not-for-profits operating commercial and quasi
commercial activities, in competition with for-profit organisations, test their
management capabilities at both executive and board levels.
The demanding
business environment that many in this sector have faced over extended periods
of time, has jeopardised ongoing program funding, and placed heavy demands on
service delivery, threatening the continuity of segments of their operations.
This has been further compounded by a unique reliance on a diverse volunteer
pool which challenges many in managerial and leadership functions within this
sector, and places significant strain on their organisation’s abilities to
achieve strategic and operational goals, within given timeframes.
In this
context, the need to understand and deal with large, varied, and dispersed
external and internal stakeholder groups, continues to strain not-for-profit
human, financial, and capital resources, placing even further management
constraints on these organisations, and potentially focusing attention away
from their predominant service, and program delivery objectives. Moreover,
these organisations tend to have complex revenue generation models, which
reflect the varied sources of funds that need to be managed within a complex
and often multi-skilled environment, where their ability to attract the full
gamut of skills is already under sharp focus.
In amongst
these NFP organisational issues is the multi-dimensional focus of
not-for-profit management, which must have more than a unilateral view on
purely bottom-line and associated shareholder value outcomes.
Many of these
challenges are global characteristics of not-for-profit organisations, for
example, regarding issues of revenue generation models in the United States,
performance management difficulties in New Zealand, the United Kingdom &
Europe, leadership and management ideological challenges in Scandinavian
countries, and governance related challenges, especially within not-for-profit
hospitals in the United States.
Associated
with this broad range of challenges are the cultural attributes of those
working within this sector. Those committed to working in this sector may do so
because of a perceived connection with a broader societal good and the lack of
private gain or profit at the organisational levels and their own perceptions
of being human change-agents that become integral in changing the lives of
those that rely on their services. Integral in this view is recognition of the
pivotal role that such human service type organisations are now playing in
society as part of an integrated four-pillar institutional service provision
network encompassing government, not-for-profits, business and family networks.
The above framework sets the cultural context within which the not-for-profit
sector operates and provides insight into the challenges that lay ahead during
processes of transformational change.
With a wealth
of practical and research based experience, OPTIMUM NFP
has developed a range of core capabilities in the servicing of Not-for-Profit
sector organisations. These include:
- Change management where Action Learning is applied as a change method working across the organisation, and where organisational readiness for change is assessed at key points in the change program;
- Strategic Risk Management where bespoke Risk Management Frameworks are developed around unique organisational characteristics
- Governance assessments where the effectiveness and efficiency of NFP boards are independently assessed, recommendations identified, and training developed to strengthen board functioning.
These core
capabilities have been applied to such NFP organisations as The AIDS Council of NSW, Ausdance NSW,
Australian Catholic University, The Australian Centre for Posttraumatic Mental
Health, The Australian Diabetes Educators Association, Catholic Community
Services, Centacare Broken Bay, Cure Cancer Australia Foundation, Eastern
Respite & Recreation, Family Resource & Network Services Inc., Flintwood
Disability Services, Koorana Child & Family Centre Inc., Meat &
Livestock Australia, and Nepean Area Disabilities Organisation Inc.
Contact David Rosenbaum of OPTIMUM NFP to further discuss how OPTIMUM NFP can add value to your
Not-for-Profit organisation.
