In a world where demands
on the nonprofit sector shift rapidly, it seems counterintuitive that many
organizational structures remain so resistant to change. As Donna Butts,
Executive Director of Generations United, notes, the
distinct goal of nonprofits is to serve a dynamic client population, and
yet many nonprofits lack the mechanisms to adapt to changing needs (Gowdy,
Hildebrand, La Piana, & Mendes Campos, 2009). Why is it, then, that
necessary organizational changes are so difficult to implement? Several major
reasons include:
- Staff burnout. When employees are already overwhelmed with responsibilities, overworked, or frustrated by previous organizational failures, it can be incredibly difficult to introduce new, additional responsibilities needed to implement change.
- Organizational politics. In deciding on the next best step for an organization, egos can collide, leading to a lack of consensus.
- Lack of effective planning. As Gallup Manager Leong Chee Tung reports, “Poorly defined objectives, milestones that seem impossible, and metrics that are unclear or not objective can further complicate a change process.”
- Unnecessary bureaucratic impediments. Effective change cannot be fully realized unless leadership is able to “speed decision cycles, move information through the organization, provide quick and effective feedback, and evaluate and reward managers on qualities such as openness, candor, and self-confidence” (Tichy & Charan, 1989, p. 114).
Despite these obstacles, it is
clear that change is needed. As this ever-transforming
nonprofit landscape continues to evolve, organizations must ensure that
they have mechanisms in place to respond to contextual change and,
subsequently, adapt to meet the challenges of emerging needs and demands. All
of this, of course, begs the question: what exactly can leaders do to
successfully drive organizational change? Fortunately, there are multiple
successful strategies available for implementation, as outlined below:
1. Implement a
strategic planning process. The strategic planning process defines detailed
steps for developing a results-based
accountability system (Bryson, 2010). Through a collaborative process, organizations
are able to: a) define their organizational mission and vision, b) assess the
planning environment, c) define strategic issues, d) complete probability and
impact analyses, and, e) implement, monitor, and evaluate new action steps, agendas,
and policies (2010). This process helps to minimize political differences,
increase staff buy-in, and move beyond prior frustrations.
2. Promote diversity.
Research clearly demonstrates that diverse groups and organizations had
advantages over homogenous ones (Cox, Lobel, & McLeod, 1991; Mandell &
Kohler-Gray, 1990). One particular advantage of a diverse organization is that
diversity promotes creativity, driving dynamic, innovative strategies for new
approaches to implementing change (Cox, 1994). Promoting
diversity within organizations ensures that a variety of perspectives are
brought to the table, thereby decreasing the likelihood that potential
solutions to organizational stagnation will be overlooked.
3. Cultivate
transformational leadership. Using Cameron’s (1991) Model of
Transformational Leadership, individuals within organizations can create a
readiness for change by implementing specific steps, such as comparing
performance with standards, instituting symbolic events, and creating a common
language.
4. Develop approaches
based on strategic intent. Through the utilization of Hamel and Prahalad’s
(1989) Model of Strategic Intent, leaders can establish criterion for: charting
organizational progress, focusing the organization’s attention on succeeding,
motivating employees, encouraging individual/team contributions, sustaining
enthusiasm, and becoming increasingly intentional in resource allocation.
5. Invest in
streamlining communication and feedback mechanisms. All too often,
organizational change is fettered by a lack of efficiency in inter-organizational
communication and feedback. It is crucial that leaders develop and implement communication
and feedback loops to eliminate unnecessary bureaucratic lag (Tichy &
Charan, 1989).
When each of these steps is
implemented with fidelity, leaders will become better equipped to meet the rapidly
changing challenges and demands of the nonprofit sector.
References:
Bryson, J. M. (2010). Strategic Planning and the Strategic
Change Cycle. In D. O. Renz (Ed.), The
Jossey-Bass Handbook of Nonprofit Leadership and Management (230-261). San Francisco, CA: Jossey-Bass.
Cameron, K. (1991). Transformational leadership. In Developing Management Skills. New York: Harper-Collins.
Cox, T. H. (1994). Diversity
in organizations: Theory, research, and practice. San Francisco, CA: Berrett Koehler Publishers.
Cox, T. H., Lobel, S. A., & McLeod, P. L. (1991).
Effects of ethnic group cultural differences on cooperative and competitive
behavior on a group task. The Academy of
Management Journal, 34(4), 827-847.
Gowdy, H., Hildebrand, A., La Piana, D., & Mendes
Campos, M. (2009). Convergence: How five trends will reshape the social
sector. In James Irvine Foundation:
NonprofitNext.
Hamel, G. & Prahalad, C. K. (1989). Strategic intent. Harvard Business Review.
Mandell, B. & Kohler-Gray, S. (1990). Management
development that values diversity. Personnel,
67(3).
Tichy, N. & Charan, R. (1989). Speed, simplicity,
self-confidence. Harvard Business Review.
