My Latest Article on Planned Organisational Change Management

My latest article entitled "Planned organisational change management: Forward to the Past? An exploratory literature review" was recently published in the Journal of Organizational Change Management.

The article can be viewed by going to my website at the following URL -https://www.optimumnfp.com.au/publications-intro/publications/127-planned-organisational-change-management.html

Would be interested to hear your views on the material contained in this article.

Revisiting Leadership Development in the Context of McKinseys’ 2014 Expose - and doing so from the Perspective of Nonprofit Organisations

In January 2014, an article appeared in the McKinsey Quarterly entitled “Why leadership-development programs fail.” They identified a number of shortcomings in current programs, including:

• the fact that many of these programs overlook context by working on the invalid assumption that one size fits all;
• the fact that reflection is decoupled from real work, underpinning the absence of real-life application of acquired theoretical knowledge
• the fact that the need to change mind-sets which requires an associated change in behaviours is often overlooked, and finally
• the fact that such programs tend to overlook the Return-on-Investment aspect associated with the cost of such programs.

Alternatives do exist utilising an Action Learning framework. Action Learning as an approach for driving performance was originally proposed by Professor Reg Revans in the 1940s and over the years has led to significant international successes, especially in the NFP sector where the central focus on mission and values enables participants to develop relevant work-based solutions in their own organisations, whilst furthering their own personal and professional development. By doing so, the Action Learning process successfully addresses the shortcomings that McKinsey and Co has identified in existing leadership development programs.

In 2014, OPTIMUM NFP participated in the development of the Not-for-Profit Leadership Survey which identified that 52% of respondent NFP CEO’s believed that whilst their management teams had strong technical capabilities, they lacked the leadership skills needed for the future. The survey suggested that traditionally, managers were promoted or appointed into their roles for their technical or professional skills and they learnt to manage a team through trial and error. As suggested in the report, the high costs of staff turnover and the need to develop staff to achieve organisational goals meant that managers needed to have highly developed leadership skills more so than technical skills.

Emotional Intelligence, or EI as it is usually referred to, is very often seen as a necessity in leadership roles, especially when leaders are focusing on the implementation of change programs, where appropriate engagement with all staff is not only necessary, but also fundamental to the success of the change program. EI has many facets including emotional self-awareness, emotional awareness of others, emotional self-management and control, emotional management of others, emotional reasoning, and expression.

Some authors suggest EI cannot be taught. Managers either have this skill or they don’t. Others suggest that whilst an innate leaning towards effective EI traits is prevalent amongst successful leaders, exposure to appropriate leadership and personnel development can either improve existing EI capabilities or at least expose potential leaders to a wide range of EI related attributes where, in the right environment, and with the right mentoring, can, over time, refine EI type skills.

In a potentially correlated issue, the Survey also found that 52% of respondents believed that their NFP’s inability to adapt to change was a risk to the sustainability of their organisation. A broader issue appeared to be the extent to which these organisations were change ready from a cultural perspective as well as from a technical preparedness level. In this regard the challenge for leaders is to understand what stage their organisation is at with regards its readiness to react to, and absorb change, identify the gaps, and then look to address them with a myriad of suitable approaches before change is implemented. Of course when we talk organisational culture, be it for change readiness purposes or for general performance purposes, a leader’s EI becomes of paramount importance, given the role that the leader plays in both these issues.

Seeing the above issues in context, it becomes clear that leadership development training may become critical in addressing the challenging issues that face this sector into the future. Whilst historical issues and challenges do exist with leadership development programs, approaches that incorporate Action Learning, are providing worthwhile benefits, and evidence does point to these addressing the shortcomings identified in the McKinsey article.

Additionally, Australian non-profits are experiencing a huge amount of change, brought about by a combination of internal organisational issues as well as a disproportionate amount of external environmental challenges. The former resulting directly from employees wanting more from their organisations in a climate of uncertainty around both employment and service delivery, whilst the latter resulting directly from a changing political landscape that is failing to underpin service delivery stability, let alone expansion, and a financial imperative that sees government policy more mindful of perceived budgetary imperatives than community well-being. The political focus on predominant economy-wide cost-reduction, without a corresponding increased focus on economy-wide revenue-generation, will continue to challenge activities within the non-profit sector.

So in this challenging context, what skills and expertise is required by managers of non-profit organisations into the future and to what extent does a skills gap currently exists?

A timeline of management developments over the last 50 years or so reflects a dual focus on organisational strategy as well as organisational leadership. This was evident in the works of Kanter, Porter, Peters & Waterman, Greenleaf, Covey, Hammer, Kaplan & Norton and many more. As the understanding of managing change came more and more to the fore, a focus on the individual in organisations as distinct to the organisational processes themselves became more prevalent. Management research and the associated academic research journals have become increasingly awash with such an emphasis, although the success of change management continues to elude many organisations.

The non-profit sector is not immune to these environmental events. Experiences in the commercial sector tends to mirror, or at least influence, events in the management of non-profit organisations, or at the very least there is a strong association which NFP leaders need to be cognisant of in their own deliberations.

So what are the attributes that are needed of leaders in the non-profit sector into the future? Based on my own Doctoral research and further informed through my consulting work with over 50 nonprofit organisations, I suggest that the sought-after attributes fall into two broad categories which I have labelled as ‘Thinking’ on the one hand and ‘Relationships’ on the other. Seems overly simplistic, but let me explain further.

Thinking involves lateral and medial thinking. The former is closely aligned to strategic thinking and is characterised by how well the leader can see the broader picture and incorporate ideas from a wide range of sources, not just what is in front of them at a particular point in time. In order to be effective at this type of thinking, leaders need very broad experience, not just in their own organisation or their own industry, but be able to incorporate broader experience to add value to the current challenge. 

Medial thinking focuses attention on the detailed issues necessary to bring scope and context to lateral thinking. Effectively it becomes the ‘How to?” of the “What if?” Here the leaders are focused on detail and the ability to actually deliver ideas and concepts to a point where their organisation can in fact function and respond to organisational and environmental challenges.

Related to ‘Thinking’ is the attribute of ‘Relationships’. I stress that this is related and not stand-alone. Without the ability to relate to a wide range of organisational stakeholders, whose complexities are well documented in the non-profit sector, ‘Thinking’ becomes redundant, at both levels. The key characteristics of ‘Relationships’ involve:

• the ability to effectively communicate at all levels of the organisation as well as to all stakeholders, 
• the ability to transcend limiting organisational structures where necessary and build effective in-house teams to resolve problems and challenges
• the ability to harness individual and collective organisational skills to achieve strategic and operational outcomes
• the ability to strengthen organisational capacity and individual capability

Consider your own organisation in the context of the above and where your leaders sit in this paradigm of Thinking and Relationships. What happens within your organisation to ensure these attributes exist and are being reinforced for both current and future leaders? How is learning accommodated for in this environmental context?

In the above context, there is a clear linkage between the attributes of Action Learning and the need to fill nonprofit organisational skills gaps, including the development of current and future leaders. As an experiential process of engagement Action Learning is premised on the following key characteristics:

1. Being evidence based and grounded in a proven theoretical practice based discipline;
2. A way of thinking about how one learns
3. Driven by organisational and business needs
4. Meeting the needs of the individual and the organisation
5. Designed for tackling current problems
6. Being action focused, and
7. Having a learning focus at individual, team and organisational levels.

OPTIMUM NFP runs numerous programs that support organisational learning and skills development across all levels of leadership and management, as well as programs that support organisational change. Further details can be obtained at the OPTIMUM NFP web site at https://www.optimumnfp.com.au/programs.html Alternatively, bespoke programs that respond directly to the unique requirements of your own organisation have also been developed and further information on these can be obtained by contacting David Rosenbaum at drosenbaum@optimumnfp.com.au or by ringing 0411-744-911

Developing leaders, expanding skills and coping with organisational change. These are interrelated activities and all fundamental to your organisation's future sustainability. Act now.

Organisations don't change on their own - People must change before the organisation does

Of all the issues discussed by many in the Australian nonprofit sector, is the common-held view that the external environment within which you operate is an ever-changing landscape. These external pressures are derived from many sources and the work that I do in the strategic planning and strategic thinking space with many such organisations, highlights fundamental issues which must be taken into consideration when seeking to ensure the ongoing sustainability of your nonprofit organisation.

These pressures are originating from numerous sources, and when they hit, as they invariably will, they are not mutually exclusive, but rather are somewhat interrelated, suggesting no single cause and effect relationship. They stem from economic, political, social and technology trends, all of which are continuing to challenge your staff, your boards and therefore your business models. 

Staff knowledge that has remained static over any number of years will be detrimental to your organisation. Boards that are not keeping abreast of market risks and opportunities will be a drag on your organisation. Business models that worked and delivered outcomes 5 years ago, may not be relevant as you move forward for the next five years. This points to 'Change' and those nonprofits that can successfully manage change in a dynamic environment framework, and appreciate that it is not a static but rather a constant process, will best ensure their own sustainability.

My own research through my recently completed PhD was entitled "The enduring challenge of change management - new perspectives from nonprofit healthcare practice" identified a number of processes and initiatives that support successful change management in this sector. The findings from this research have now been embodied in an OPTIMUM NFP service offering entitled the CARC Program(Cultural Assessment for Readiness to Change). The Program addresses not only the extent to which your nonprofit is in fact ready for change, but also identifies the key factors associated with its ability to maintain an environment of constant change.

The CARC Program is a flexible approach to understanding how staff within your nonprofit will react to initial and ongoing change. Its key characteristics are as follows:

• An interview-based analysis that caters to all organisational sizes and settings
• It is not a one-size-fits-all approach but rather it reflects your organisation's unique context, environment, people and requirements
• Investment in the Program is based on the number of staff interviewed, and therefore caters to all organisational sizes

The following represents the 6 key steps in the CARC Program:

1. Reach agreement of expectations and deliverables
2. Undertake a Situational Analysis from within the organisation
3. Create a Change-Success Gap Analysis
4. Identify detailed list of remedial actions
5. Undertake Executive-level discussions 
6. Complete a detailed Change Readiness Report including a Change Action Plan

Contact David Rosenbaum of OPTIMUM NFP at drosenbaum@optimumnfp.com.au or 0411-744-911 to further discuss this new initiative and how your nonprofit may benefit from its implementation

The Enduring Challenge of Change Management - New Perspectives from Nonprofit Healthcare Practice

This is the title of my recently submitted PhD thesis. After 7 interesting and productive years, it has just been submitted to my supervisors for final review at Macquarie University Faculty of Business and Economics. I have been living and breathing this activity throughout this period, not just for the purposes of my thesis but also through its application in my consulting activities. Merging the PhD research activities with my consulting activities has also been challenging, but again, very professionally and personally rewarding.

The thesis includes 4 published articles in peer reviewed journals as well as one article that was only recently submitted for review. Additionally it was the product of 6 international and domestic conferences. Many of the articles appear on my OPTIMUM NFP website. These articles (some of which are not yet publicly available as they are still going through the review and/or publication process) form relevant chapters in m,y submission and the details appear as follows:

• "Planned organisational change management - forward to the past" which has been accepted for publication in July 2017 in the Journal of Organizational Change Management

 

• "Applying grounded theory to investigating change management in the nonprofit sector" which was published in 2016 in Sage Open

 

• "A longitudinal qualitative case study of change in nonprofits: Suggesting a new approach to the management of change" which was published in June 2016 in the Journal of Management & Organisation

 

• "Action Learning intervention as a change management strategy in the Disability Services sector - A case study" which was published in the Action learning Action Research Journal in 2013

 

• "The role of reflection in planned organizational change" which was submitted to the Journal of General Management in July 2017 and is currently being assessed

Given this research has been an integral part of my consulting activities over this period, I would be keen to discuss the findings from this research with those of you who have a need to review and consider how you deal with change in your own organisations.

Contact David Rosenbaum of OPTIMUM NFP at drosenbaum@optimumnfp.com.au of 0411-744-911 for a no-obligation discussion about your nonprofit's circumstances and requirements in this area.

Is Your Organisation Ready to Implement Change

Introducing C.A.R.C.

Your future survival will depend largely on your organisations ability to adapt & change in evolving markets.

OPTIMUM NFP announces the launch of the C.A.R.C.Initiative (Cultural Assessment for Readiness to Change).

This initiative has resulted from PhD research undertaken by David Rosenbaum which represents the latest research undertaken on change management in the Australian Nonprofit sector. David has presented his research and findings at key international conferences in Italy, the United States and the United Kingdom and is scheduled to present further aspects of the findings here in Australia and in the Netherlands in 2017.

What was the research about?

• It recognised the uniqueness of the NFP sector and its people;
• It identified the impact that such uniqueness had on sustainable change management;
• It researched change from the perspective of people experiencing and managing it.

Why is this research important?

• Australian nonprofit organisations are currently facing many challenges that question their very existence, in the provision of disability services, aged care services,employment services, community services, health, education, etc.;
• Organisational survival will be dependent on the ability to change service delivery models, structures, and/or business models. The key to success is to realise that organisations do not change, rather, people within them change. So unless your people are ready for change, in every sense of the process, sustainable change will not be guaranteed, irrespective of the quality of your change plans;
• Change processes can be costly, therefore failure will cost your organisation at a time when you can least afford it.
• The application of the findings of this research will ensure that people within your nonprofit can cope with change, thereby minimising costly failure.

How flexible is the C.A.R.C.?

• As an interview-based analysis it caters for all organisational sizes and settings
• In the absence of a one-size-fits-all approach, which is characteristic of many organisation-culture assessments, the C.A.R.C. is built around your organisation’s unique context, environment, people and requirements.
• Investment is based on number of staff interviewed, and therefore caters to all organizational sizes. 

The following represents the 6 key steps in the C.A.R.C. process:

1. Reach agreement of expectations and deliverables
2. Undertake a situational analysis from within the organisation
3. Create a Change-Success gap analysis
4. Identify detailed list of remedial actions
5. Undertake executive-level discussions
6. Complete a detailed Change Readiness Report including Change Action Plan

Contact David Rosenbaum of OPTIMUM NFP at drosenbaum@optimumnfp.com.au or 0411-744-911 to further discuss this new initiative and how your organisation may benefit from its implementation. 

2016 comes to a close - Summing up the nonprofit sector and what we can look forward to from OPTIMUM NFP in 2017.

For all of you involved in the nonprofit sector, 2016 has been a very challenging year, and every indication is that 2017 will probably be more of the same.

Activity in the political and economic sphere has seen the sector coming to grips with what it all means for their own organisation. 

• The ongoing roll-out of the NDIS has seen a  myriad of responses, ranging from thoughts of risk and downside through to opportunity and expansion, whilst responding to the financial sustainability challenges associated with a previous supply-driven model moving to a generational-change demand-driven model;
• The ongoing children abuse Royal Commission has seen many organisations tighten their risk frameworks to ensure such obscene activities are not part of their culture, and for those caught up in the findings, an in-depth look into their own organisational mirrors in order to introduce fundamental change;
• The strengthening of the ACNC has seen a degree of confidence introduced into the sector with regards a range of  compliance issues;
• Changes to Australian Disability Employment frameworks has seen many in this aspect of the sector revise their current business models, in line with similar challenges in the disability services sector;
• Ongoing reforms to residential aged care has seen organisations in this sector review their own business models to address long-term sustainability challenges;
• An industry-wide focus on governance within the sector from wide-ranging sources that have resulted in many organisations in this sector carefully looking at what they currently do as compared to what they perhaps should be doing, especially with regards risk management, financial management, and board structure and development.

OPTIMUM NFP has been heavily involved in many of these nonprofit issues and over the 2016 period has further involved itself with many such organisations undertaking projects such as:

• Transitioning Incorporated Associations to Companies Limited by Guarantee;
• Organisation-wide strategic planning activities using a bottom-up approach to develop and launch strategic plans
• Mentoring executive team members;
• In-house board governance workshops;
• Change management planning;
• Structuring boards with new non-executive directors
• Conducting public Action Learning Question Programs
• Delivering 4 post-graduate units at the Australian Institute of Management MBA course, including 1 in Strategic Organisational Change and 3 in Managing Financial Resources

2017 will continue the challenges for the nonprofit sector, as well as bringing new ones, to which the sector will once again be challenged to consider innovative ways of moving forward. The confused nature of public policy will no doubt add to these challenges, in a very unhelpful fashion.

OPTIMUM NFP is looking to 2017 with a continued sense of anticipation and optimism, whilst also being realistic in recognising that many nonprofit organisations may face substantial risk if they fail to grasp and implement the governance and strategic planning frameworks that they must seriously consider.

During 2017, OPTIMUM NFP will be focused on the following activities:

• David will be completing his PhD studies at Macquarie University. This has been a long but personally rewarding journey (commenced in late 2010). Currently there are three papers that have been published in international peer reviewed journals, whilst a fourth paper is currently under review. My fifth and final paper is currently being prepared for submission. The papers, by title, have included:
• "Action Leanring Intervention as a Change Management Strategy in the Disability Services Sector - A Case Study", published in the Action Learning Action Research Journal
• "A Longitudinal Qualitative Case Study of Change in Nonprofits", published in the Journal of Management & Organization
• "Applying Grounded Theory to Investigating Change Management in the Nonprofit Sector", published in Sage Open
• "Planned Organisational Change Management - Forward to the Past? An explorative literature review", currently being considered for possible publication in the Journal of Organizational Change Management
• Applying the findings in the PhD research, OPTIMUM NFP will be launching a consulting service that seeks to ensure that nonprofit organisations can undertake an organisation specific change readiness analysis which will outline potential challenges within their organisation that can be addressed prior to changes being implemented, thereby increasing the likelihood of successful change outcomes. The service will be launched during the fist quarter of 2017 and is called the 'CARC' program - Culture Assessment for Readiness of Change, and uses the outcomes of the latest nonprofit specific research derived directly from David's PhD. Watch out for the launch announcement.
• During 2017, OPTIMUM NFP in conjunction with Action Learning International, will launch a further public Action Learning Question Program, which has been critically acclaimed and continues to be supported by the Australian Institute of Management Business School. This will be further expanded as purpose-designed in-house programs for larger nonprofit organisations. Keep an eye out for the program dates.
• In mid 2017, OPTIMUM NFP will leverage its success in executive team mentoring through the launch of its "Manager Development Groups" which utilise Action Learning as a key process in leadership development. Look out for the formal announcement of these.

OPTIMUM NFP will of course continue to focus on its strengths in delivering consulting input into Strategic Planning and Governance.

2016 has been a very busy year. 2017 is going to be an exciting year as OPTIMUM NFP continues to build on its skills and expertise in delivering new and innovative services that will continue to add value to nonprofit organisations, ensuring that the focus on organisational sustainability remains a key deliverable in all our consulting assingments.

I would like to thank my clients for allowing me to be part of their solutions during 2016 and I look forward to being able to adding further value to their organisations in 2017.

I wish you all a very Merry Christmas and a Healthy, Prosperous and Safe 2017.

Fundraising as a Strategic Responsibility - David Rosenbaum Presenting at the upcoming Blackbaud 'Outcomes Conference' - 30th November 2016

My strategic planning work with numerous NFP organisations always seeks to include the strategic importance of fundraising as both a board and an organisation-wide activity. Many NFPs tend to have DGR registration (Deductible Gift Recipient) but fail to use this asset as a strategic one, instead having it remain as a relative non-performing asset and merely accepting the odd, small donation either when it comes their way or to assist in the holding of small events that tend not to attract the sort of dollars that necessarily make it worthwhile.

One of the greatest challenges to the NFP sector, as we are being told, and as governments continue to stress, is long-term financial sustainability. From a financial perspective, such financial sustainability requires a strong and consistent efforts of ensuring that the assets that we hold rewording for us, and delivering at a rate that enables us to deliver our services in a wider context than purely on the assumption of ongoing government funding. The DGR registration is one of those assets which, in many NFPs, continues to liger without much focus.

Whilst OPTIMUM NFP is not a fundraising consultancy, my efforts focus in strategic planning for NFPs, ensure s that at the strategic level, NFP boards and their executive teams understand the importance of their DGRE status and how focusing on its use can add value to their financial sustainability plans, thereby delivering increasing value to the organisation over time.

Following my extensive work in this area, I am pleased to announce that I have been asked to be part of a one-day online conference being held on the 30th November and organised by Blackbaud Pacific Pty. Ltd., one of Australia's leading social-good technology companies, where I join a number of other industry experts to discuss the complexities of outcomes measurement to better understand what supporters and grant makers really want to know about your NFP.

 The virtual event features six presentations including:

• Philanthropic Services Manager at Philanthropy Australia - Chris Wootton
• NDS panel expert from OPTIMUM NFP - David Rosenbaum discussing the role that strategic planning plays in donor funding
• Outcomes futurist Jayne Meyer Tucker, and
• CEO of Cystic WA - Nigel Baker presenting his case study on outcomes measurement following a very successful funding round of $5.4 million.

The agenda has been structured as follows:

• 10:00 a.m. - Why outcomes...and why now?
• 11:00 a.m. - Strategic planning for outcomes
• 12:00 p.m. - Intelligent funding - How to evaluate the impact of your giving
• 1:00 p.m. - "This just isn't working" - An outstanding outcomes case study
• 2:00 p.m. - What funders want
• 3:00 p.m. - Demonstrating and communicating your impact
• 4:00 p.m. - Innovations in outcomes measurement

Tickets cost $50 for the entire day and delegates can login for the sessions of interest or join them all. Visit the Blackbaud registration site at  http://fundraising.blackbaud.com.au/events/ to register for the "Outcomes Online Conference".

Contact David Rosenbaum at drosenbaum@optimumnfp.com.au  or on 0411-744-911 to arrange a no-obligations meeting to discuss your NFP strategic planning requirements and how OPTIMUM NFP can assist your organisation in developing a Strategic Plan that can support your future financial sustainability.

I look forward to hearing from you and to your attendance at the Conference

Is a Questioning Culture in Your Organisation? - If not, you may be missing out

A fundamental element of Action Learning is the ability to ask insightful questions. You know the ones I am referring to. Not questions that merely have single dimensions to the answers, and not ones that offer little scope for discussion and analysis. Not ones that merely provide the questioner with the answers they were seeking or expecting. And certainly not the ones that fail to promote learning which can result in real change.

Asking the right questions in the right manner, at the right time, and in the right way, can provide some very substantial organisational benefits, which are both long-lasting and productive. The problem is that in a world where leadership is often mistaken for leaders having the solutions to all organisational challenges, leaders tend not to ask the questions throughout the organisation that will get people to really think and reflect before responding. Usually there is not the time to do so. The pace of change warrants an immediate response - or so people think. In fact, the best response could be the delayed one, especially when seeking solutions to complex challenges that should be the focus of such insightful questions.

Knowing how to ask the right question should be one of the many fundamental tools in a leaders' toolbox. Without these questions, are leaders really getting the right input and feedback that ensures the picture they have of the situation is the correct one, rather than a distorted view based on their own biases?

Sydney Finkelstein noted in his 2004 article entitled "Zombie business: How to learn from their mistakes", coined the term 'zombie companies' which he said such a company was a "...walking corpse that just doesn't know yet that it is dead - because this company has created an insulated culture that systematically excludes any information that could contradict its reigning picture of reality." In this sense, the challenge for leaders is not to avoid questions that result in deep and meaningful answers, but rather to see such questions as learning opportunities, opening an organisational culture that is constantly putting a mirror to itself and responding through informed change.

Ed Oakley and Doug Krug in their 1994 publication entitled "Enlightened Leadership" suggested that "... the better we as leaders become at asking effective questions and listening for those answers to those questions, the more consistently we and the people with whom we work can accomplish mutually satisfying objectives, be empowered, reduce resistance, and create a willingness to pursue innovative change."

So how do we best define and develop a questioning culture in our organisations? Michael Marquardt in his 2014 publication entitled "Leading with Questions - How leaders find the right solutions by knowing what to ask", suggests that a questioning culture is "... a culture in which responsibility is shared. And when responsibility is shared, problems are shared and ownership of results are shared. When an organisation develops a questioning culture, it also creates a culture of we, rather than a culture of you versus me, or management versus employee." 

Marquardt suggets 6 defining characteristics of a questioning organisational culture. These include:

1. People within it are willing to admit that they don't know the answer
2. People within it go beyond allowing questions, they encourage them
3. People throughout the organisation are helped to develop the skills needed to ask questions in a positive, rather than negative way
4. People throughout the organisation focus on questions that empower others, rather than disempowering them
5. People throughout the organisation are expected to focus on asking questions and searching for answers, rather than merely always finding the elusive 'right' answer, and
6. People throughout the organisation are recognised for taking calculated risks in pursuing the organisational goals and objectives.

How does your organisation stack up? Do you have a questioning culture? Are you asking the right questions and are your staff well versed in the power of questions?

OPTIMUM NFP in conjunction with Action Learning International launched the Action Learning Question Program in the Australian NFP sector in 2013. The Program runs both as public and in-house sessions and its success has been well documented by those that have participated. It is predicated on resolving organisational challenges and developing staff and leaders by asking the right questions.The Program has been formally accredited by the Australian Institute of Management Business School.

Contact David Rosenbaum at drosenbaum@optimumnfp.com.au or on 0411-744-911 to arrange a no-obligation meeting to discuss the Action Learning Question Program and how it can help your organisation take on the question culture that many recognise is needed in the modern organisation.

Board Practices - How Does Your NFP Stack Up?

Much is being written regarding the state of NFP Board practices across the western economies. It makes for some interesting reading and provides some good comparisons and benchmarks for your own NFP board. The latest "Leading with Intent" survey from the united States, which commenced annual collection in 1994, reflects board responsibilities across 10 leading indicators. Whilst it covers the board, the chair and the CEO, it is the board evaluation which I think provides the greatest challenges if considered in the light of the substantial strategic and operational issues that Australian NFPs face over the next 10 years or so. Despite  a number of social, economic and legal differences between Australia and the United States, there remain many similarities, and so it is worthwhile considering the output in this context.

Overall US NFP boards were generally better at technical tasks, such as financial oversight and compliance but less so at adaptive work related to strategy and community outreach. This measure was undertaken against a backdrop of great similarities between the two countries, namely economic challenges, declining government funding and continued growth in service demand.

As a moving indicator that has been measured over the last 22 years, it provides a good analysis of both improvement and decline over that period, meaning trending becomes important. In the case of financial performance of medium organisations, being those with turnover greater than $1 million but less than $10 million, 53% of those surveyed improved their results, 38% remained the same whilst 9% had in fact deteriorated. Those with operating budgets greater than $10 million reflected a similar profile excepting 36% were about the same whilst 11% reflected deterioration.

In the work that I do with boards reviewing their overall governance, I use a custom designed 100-point on-line survey covering board roles, board processes, board behaviours and board membership. The most challenging aspects of performance that I have tracked since the first use of the tool in 2010 across a number of varying sized NFPs, has been strategic planning capabilities, board accountabilities, board membership issues associated with the appropriateness of relevant skills, effectiveness of relationships with the CEO and mission alignment in terms of the board decision-making processes.

The overlap between US characteristics in this sector and the Australian experience appears to be at the strategy level. In the context of the current and future challenges for Australian NFPs, this is potentially concerning as the market and funding challenges require, in many instances, a rethink of the strategic future direction of many of these organisations. So a key question therefore must be, to what extent are Australian NFP boards ready to address the strategic direction of their organisations?

OPTIMUM NFP has developed a strategic planning process and board governance review mechanism that responds to conditions that many have described as volatile, uncertain, complex, ambiguous and diverse. Conditions that demand your board operating at levels that inform a potentially new strategic direction.

Contact David Rosenbaum at drosenbaum@optimumnfp.com.au or on 0411-744-911 to arrange a no-obligations meeting to discuss how OPTIMUM NFP can add value to your NFP by ensuring your Board has the skills and capabilities to adequately steer your NFP through these challenging market conditions. The experience of OPTIMUM NFP could be exactly what you need at this point in time.

Strategic Planning - How Does Research Inform Our Practice?

Strategic planning is undertaken in many different ways in the various nonprofit organisations that I have interacted with and consulted to over the years. Whilst the various approaches all focus on some level of engagement across the organisation, methods of such engagement, depth of engagement, and timing of this engagement, vary quite widely. The one thing that they have in common is the desired output - being some sort of strategy plan, the format and structure of which, also varies quite widely.

In an attempt to bring this variety into some broader context, I noted with interest, an academic article in the July 2015 British Journal of Management entitled "Off to Plan or Out to Lunch? Relationships between Design Characteristics and Outcomes of Strategy Workshops" by Healey, Hodgkinson, Whittington and Johnson (of Manchester Business School, Warwick Business School, and Lancaster University Management School). Having delivered one of my research papers, entitled "Action Learning Intervention as a Change Management Strategy in the Disability Services Sector - A Case Study" at the 2013 British Academy of Management, to which the British Journal of Management is linked, the article on strategic planning attracted my attention.

A range of very interesting findings were presented in this research, which was based on a detailed questionnaire survey that was distributed to a random sample of 8,000 members of the UK's Chartered Management Institute, from which there were 1,337 respondents, being a response rate of just under 17%. Those that had not participated in a strategic planning workshop in their current organisation were then excluded from the analysis, which left a total of 846 valid responses from which the findings of the research were drawn.

These findings may be of interest to your organisation, especially as you may be planning your next round of strategic plans and considering the vagaries of workshop alternatives to enhance the process and inform the production of your strategic plan. The findings focused on what was identified as three concepts related to outcomes of strategy workshops, identified as follows:

1. The research identified the organisational outcomes that were linked to the formal workshops. The researchers defined organisational outcomes as the impacts that the workshops would have on the organisation's strategic direction, including its vision, values, business plan and business processes. Here they suggested that the formalities of the event itself provided a rare forum for examining and changing the goals of the organisation as well as defining the communication strategies around this. They supported this by suggesting that a process of open and frank discussion concerning the long-term logic of the business, underpinned any switching of the strategic focus.
2. The research identified the interpersonal outcomes that were linked to the formal workshops. The researchers identified the team-building and organisational development impacts that such formal workshops enabled. The bringing together of individuals to collaborate on the common issues, facilitated these outcomes, reversing the sense of disengagement and the absence of shared feeling that some experience if they have not been involved in such formal workshop events leading to the development of the strategic plan.
3. Finally, the research identified what they referred to as the cognitive outcomes that were linked to the formal workshop processes. Cognitive outcomes were described  as the understanding of the organisation's strategic positioning and direction, the strategic issues that it faced and the wider business environment that informed the full range of strategic outcomes.

What practical guidance can be extracted from this type of research and what, if any, are the implications for your own organisation as you consider the workshop structure, process and aftermath, as you commence your strategic planning activities?

• I think it is reasonable to assume that your workshop design should consider the interplay of all outcomes identified by the research, namely organisational, interpersonal and cognitive;
• I believe that from a structural perspective, the outcomes of the workshop should ensure that opportunities to strengthen the internal organisational communication lines is maximised;
• The strategic inclusion of relevant personnel from across the organisation must be considered in order to maximise the sense of inclusion and to pave the way for well considered strategy content;
• Strengthening key internal relationships should also be identified as an outcome that can deliver benefits in both strategy-inputs as well as strategy-implementation; and
• The success of your strategic planning processes is potentially predicated on the adequacy and depth of your preparations.

OPTIMUM NFP has developed a strategic planning process that has responded to many of the issues identified in this research and has successfully executed the process in many nonprofit organisations. Contact David Rosenbaum at drosenbaum@optimumnfp.com.auor on 0411-744-911 to arrange a no-obligation meeting to discuss your organisation's strategy planning process. Make the most out of the research that, when used well, can be to your organisation's benefit.

Managing Successful Change - How recommendations from my own PhD research can best be integrated into your NFPs change program

Change management is one of those topics that has been at the forefront of organisational discussions for over 70 years, as a topic that has engaged practitioners and academics alike, all attempting to better understand it so that successful organisational change can become the norm, as distinct to the apparent high failure rates that have been evidenced over the decades. Yet throughout this period, little or no research has been undertaken in change management from a purely nonprofit perspective.

Whilst some argue that this may  not be necessary be! cause organisational characteristics are alike across the sectors, others, including myself, argue that change must be considered from those that are involved in it, rather than purely the organisational perspective. The point here of course is that personnel characteristics within the nonprofit sector are quite different, and in some respects unique, hence the need to consider change management research within this sector, being an important addition to the broader research on change.

My research was undertaken at a Sydney-based nonprofit hospital undergoing major change with regards the design and implementation of an electronic patient management system. The full details of this study have now been published in the Journal of Management and Organization and form the central paper of my soon to be completed PhD. Whilst the full paper, entitled "A Longitudinal Qualitative Case Study of Change in Nonprofits - Suggesting a New Approach to the ma! nagement of Change" can be accessed on-line through Cambridge University Press (http://dx.doi.org/10.1017/jmo.2016.6) the key recommendations, as presented in the paper, which may be of interest to those within the sector were as follows:

1. There is a need to formally include reflection time and reflective practices for all change participants in the planning, execution, and concluding stages of change, understanding that those experiencing change react to a wide range of emotions leading up to the change, during the execution phase, as well as in the post-change phase, and throughout this period, need to not only absorb the practicalities of the change and what this may mean for their own positions, but to also be able to verbalise their thoughts and discuss these in an open and supportive environment with colleagues, including internal change agents and management.
2. There is a need for the organisation to openly reflect on both the success and failure of past change experiences as a fundamental component of the planning stages of change, reinforcing trust and confidence in management with regards their ability to plan for, and execute change successfully.
3. There is a need for management to maintain an adequate focus on the individuals experiencing the change rather than an organisational focus as a primary (and often sole) consideration, creating an organisation-wide view as to management's interest in the welfare of change recipients throughout the change process and reinforcing an inclusive approach to the challenge of change within the organisation.
4. Finally there is an expectation that timing considerations are appropriately identified in the change-planning process, with specific reference to communication and change-recipient engagement processes, underpin! ning a strong correlation between the level of change preparation and readiness, with actual change execution.

Change is now pervasive within the nonprofit sector, with much of it being quite transformational with regards the design and implementation of new business models that really do challenge the core of many of these organisations. They also present very real challenges for staff, who are now being expected to absorb more commercial elements in their long-standing dealings with their clients. The culture of many of these organisations is being challenged.

OPTIMUM NFP has been actively engaged in assisting organisations design and implement change strategies, using processes that add substantial value to the change outcomes.

Contact David Rosenbaum of OPTIMUM NFP at drosenbaum@optimumnfp.com.au or 0411-744-911 for a no-obligation discussion on how these findings can be best integrated to changes planned for your own organisation.
 

Developing Your Leaders and Up-Skilling Your Staff

OPTIMUM NFP announces the launch of its 3rd highly acclaimed and accredited "Action Learning Question Cross-Organisational Cohort" program commencing in early July 2016.

Nonprofit organisations juggle many competing priorities, especially in the current market, with each having an impact on their future. One of these stands out for those organisations who see themselves having a long-term vision, and that being the effort and budget needed to develop leadership and generally up-skilling their staff.

In a leading article in the January 2014 edition of McKinsey Quarterly entitled "Why leadership-development programs fail", 4 reasons as to why such programs rarely achieve what they set out to achieve were identified. These were:

1. These programs overlooked organisational context. As was highlighted in the article, "Too many training initiatives we come across rest on the assumption that one size fits all and that the same group of skills or style of leadership is appropriate regardless of strategy, organisational culture, or CEO mandate." The article went further by suggesting that "Focusing on context means equipping leaders with a small number of competencies (two or three) that will make a significant difference to performance ... We have found that when a company cuts through the noise to identify a small number of leadership capabilities essential for success in its business - such as high quality decision making or stronger coaching skills - it achieves far better outcomes."
2. These programs failed to incorporate reflection as part of the real workplace. As was highlighted in the article, "The answer sounds straight forward: tie leadership development to real on-the-job projects that have a business impact and improve learning." The article went further by suggesting that "The ability to push training participants to reflect, while also giving them real work experiences to apply new approaches and hone their skills, is a valuable combination ..." 
3. These programs underestimated the need to change existing mind-sets. The article suggested that "Becoming a more effective leader often requires changing behaviour. But although most companies recognise that this also means adjusting underlying mindsets, too often these organisations are reluctant to address the root causes of why leaders act the way they do." It further suggested that"Identifying some of the deepest, below the surface thoughts, feelings, assumptions, and beliefs is usually a precondition of behavioural change - one too often shirked in development programs."
4. These programs often failed to measure real results. The article suggested that "We frequently find that companies pay lip service to the importance of developing leadership skills but have no evidence to quantify the value of their investment." The article suggests that evaluation should be focused at both the individual level as well as at the organisational outcomes, indicating that "...monitor the business impact, especially when training is tied to breakthrough projects." 

OPTIMUM NFP and Action Learning International's Action Learning Question Program ("ALQ") has been developed to specifically address the issue of cost-effective leadership and staff development for nonprofit organisations. Context has been identified through the use of organisation specific challenges which need to be addressed and resolved during the course of the program, supported by the introduction of skill and leadership attributes necessary for such resolution. Reflection has been included as a distinct and iterative activity through both formal and informal processes, supporting skills and leadership development. Mind-Sets are challenged through the co-consulting processes of the ALQ, and Results are identified and evaluated though the final reporting processes derived from the ALQ.

OPTIMUM NFP in conjunction with Action Learning International launched the Action Learning Question program ("ALQ") in the nonprofit sector in mid 2014. The ALQ program has been running successfully in the UK for over 15 years, across nonprofit, commercial and public sector organisations. In the latter alone, over 200 participants have successfully completed the program over the last 3+ years. In Australia, the ALQ is being delivered as both an in-house program as well as a public program. The latter are known as Cross-Oragnisational Cohorts ("COCH"). The ALQ program, in both formats, responds directly to the challenges and opportunities discussed above and fully supports a more evaluative framework for assessing the effectiveness of organisational learning and development.

The first COCH completed in November 2015, whilst the second program is currently underway and is due for completion in early June 2016. The program has been recognised by the Australian Institute of Management Business School who, after rigorous review of content, structure and delivery methods, has accredited the program as 1 Unit (elective) towards its highly acclaimed 12-Unit Master of Business Administration (MBA) Degree.
The feedback from the first COCH was excellent and exceeded the expectations of those that attended. The second program is heading in the same direction with participants currently very enthusiastic about the process. A third program will be launched shortly for commencement in July 2016. Places for these programs are limited to ensure the best outcome for attendees.

Whilst registration forms will be available shortly on the OPTIMUM NFP website, you can register your preliminary interest by contacting David Rosenbaum at drosenbaum@optimumnfp.com.au or you can contact David Rosenbaum on 0411-744-911 to discuss the program in more detail to determine its applicability to you and your organisation. The flexible design and format of the program enables interstate participants to involve themselves in Sydney-based cohorts.

Visit the OPTIMUM NFP website at www.optimumnfp.com.au and click on the "ALQ Workshops" tab to read the testimonials from the first program and to obtain information as to the structure and process of the COCH generally.