A resolution to get and stay fit

In the past few weeks, many of us have made a resolution to get in shape. But when the cold hard reality of the gym sets in, we may be disappointed that we are not able to achieve our fitness goals as soon as we’d like. Why not? Because we haven’t developed a fitness plan or received the assistance and support of a trainer; we physically can’t do what we’d like to do…yet. 

That’s where following a regular exercise routine and implementing a targeted fitness plan can help. By undergoing a physical assessment and identifying specific areas for development and by taking actions to improve our performance in those areas, slowly but surely we find we can sustain a fitness plan and achieve our fitness goals – whatever they may be.

Nonprofit organizations can improve performance in much the same way. By resolving to undergo an assessment of their overall organizational performance, formulating a plan to improve areas in need of development, and taking regular action to improve in these areas, nonprofits can build the capacity to ensure organizational resiliency and sustainability. 

Identifying targets and how to achieve them

Like the first meeting with your trainer at the gym, the first step in improving operational performance is to get a clear picture of where things stand today. An organizational assessment is a systematic review that will allow you to understand what is happening in the various parts of your organization, and how the various parts of the organization work together. This can help to identify any gaps or weaknesses with it or between the strategic plan and the operational capacity of the organization.

The purpose of the organizational assessment is to provide senior management and the board of directors with an objective review of the organization’s ability to deliver upon its mission effectively and efficiently, as well as provide recommendations on how to fortify the organization, improve performance, align strategies with the infrastructure, and maximize both human and financial resources.

After all, without sufficient access to funds or the means to manage them effectively, the delivery of mission-critical programs can be significantly compromised. 

A comprehensive organizational assessment by a qualified third-party firm is the best way to determine where things stand in the organization today, identify areas that need attention, and formulate a plan for systematic improvement. By establishing and monitoring organization-wide performance metrics, aspects of the organization that affect its resiliency can be identified. And once objectives are measured, they can be constantly monitored and improved upon. 

In selecting a firm to conduct an organizational assessment, it’s important to choose one that is focused on the nonprofit sector and is intimately familiar with its unique challenges, requirements and dynamics, instead of a firm whose assessment model forces the organization to conform to corporate performance metrics.

The scope of the initial organizational assessment should be as broad and deep as possible:  In being broad, it should cover as many aspects of the organization as possible, including (but not limited to):

  • Culture and values
  • Board governance
  • Funding and funding capacity
  • Human resources and performance management
  • Fund development activities
  • Financial management practices including an operating expense review
  • Management capability
  • Capacity to develop, implement and evaluate programs and services
  • Adherence to an effective, relevant mission throughout the organization
  • The use of technology
  • etc.

In conducting the organizational assessment, you should canvass the opinion of as many stakeholder groups as possible, including:

  • board members
  • management
  • frontline and/or program staff
  • clients/patients/customers
  • members of the community the organization serves
  • funding partners and donors
  • other key stakeholders
  • etc.

Next steps

Once the initial assessment has been completed, areas in need of improvement can then be identified. Again, this exercise should be done in consultation with key stakeholders in order to confirm and prioritize the areas in which the organization desires to build capacity. If the various organizational stakeholders are not aligned in their commitment to work toward improvement, very little will be accomplished and morale is apt to suffer as a result.

Further to the above, a series of recommendations to increase the level of organizational fitness and resiliency should be prepared by the firm conducting the organizational assessment and presented to key stakeholders for review. Depending upon the mandate, the recommendations may be implemented by the consultant, or the organization may prefer to do it themselves. Regardless, as mentioned before, to ensure that the overall capacity of the nonprofit organization is enhanced, the firm selected for the assignment should have expertise in designing and conducting organizational assessments geared specifically for the nonprofit sector and should also have experience with implementing organizational change.

From the accepted recommendations, an action plan should be drawn up to clearly illustrate what needs to be done, by whom, and when, in order to ensure that the desired results are achieved. In many instances, the necessary actions will be the responsibility of more than one individual or functional area of the organization.

In addition, communications should be made clearly and often by senior management to make stakeholders aware of the organization’s commitment to continuous improvement, to give stakeholders an overview of this “fitness plan” showing the steps to be taken along the way, and to offer a means to provide feedback, be it positive or negative.

Sustainability

Revisiting a strategic plan presents a good time to conduct an organizational assessment in addition to the environmental scan usually conducted in the strategic planning process.

An organizational assessment is different than an environmental scan in that the assessment will determine the organization’s internal strategic and operational ability to meet its mission, and provide recommendations and solutions on enhancing sustainability and organizational effectiveness. An environmental scan most often only provides an analysis of key external elements or forces that influence the conditions in which an agency functions.

Building an organization from the ground up also presents a perfect opportunity to build in a culture of constant improvement and the mechanisms to build capacity and sustain the organization over time.

The Canadian Urban Libraries Council (CULC) is a nonprofit organization that was formed in 2006 to work collaboratively to build vibrant urban communities by strengthening the capacity of Canada’s urban libraries. The vision of the organization is simply Great Libraries…Great Cities!

CULC members realize that it takes more than a catchy and passionate mission and vision statement to ensure long-term sustainability. During CULC’s formation, there was a strong desire on the part of key stakeholders to ensure that the organization they were creating would be resilient enough to take on periods of change. Not only did the members of CULC seek to strengthen the capacity of Canada’s urban libraries, but the organization also consciously built “organizational resiliency” into its strategic plan as one of CULC’s four key objectives.

In order to realize its goal of organizational resiliency, CULC consciously developed systems and metrics necessary to measure a range of goals and to report on performance objectives to achieve them. Like a realistic fitness plan, CULC realizes that fitness must be regularly tended to, and not left to a resolution at the beginning of each year.

Conclusion

Success may not be measured by reaching the highest peak, but by making the right move on the landscape at the right time to increase adaptation. In an organization, fitness is measured by sustainability over time under adverse conditions. ~ Edwin E. Olson, Glenda H. Eoyang in Facilitating Organization Change

Like those who keep their New Year’s resolution and achieve their personal fitness goals, resilient and sustainable nonprofits understand that it takes a concerted and prolonged effort to reach objectives relating to the overall health of the organization.

Organizational sustainability and resiliency rarely happen by chance. Successful organizations make a choice to be that way. They are not shy to look into the mirror, assess their vital signs and overall health, and to then build a plan to get – and stay fit.

Betty Ferreira is the founder of ReStructure Non-Profit Consulting, which provides a variety of consulting services, including organizational/financial restructuring to the nonprofit sector as well as providing outsourced accounting and other finance-related services. Betty can be reached at betty@restructure.ca or visit www.restructure.ca.