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

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.

Change Management Podcast - David Rosenbaum and the Australian Institute of Management Business School

David Rosenbaum being interviewed by Professor Elizabeth More, National Academic Director, Australian Institute of Management Business School

1st AIM Business School Podcast series

  

Change management is one of those issues that resonates with just about every organisation, irrespective of industry sector, and irrespective of the organisation's positioning. It is one of those challenges that has been in existence for decades and the extent to which organisations continue to be challenged by it, is recognition of its complexity. In truth there is no simple answer, nor is there a prescriptive approach that guides successful organisational change.

In my own PhD research into change management in the Australian nonprofit sector, I have identified a number of factors which are considered ingredients in successful change, and findings from this research has now been published internationally.

In the first of AIM Business School's podcast series, Professor Elizabeth More, National Academic Director of the Australian Institute of Management Business School interviews me to discuss this very broad topic, both in my capacity as a consultant in change, a researcher and author on change, and as National Unit Coordinator for the Australian Institute of Management MBA Program in the Unit entitled Strategic Organisational Change.

You can access this podcast by clicking on the following URL link:

https://soundcloud.com/user-797298966/david-rosenbaum-change-management

Please feel free to contact David Rosenbaum of OPTIMUM NFP on 0411-744-911 or at drosenbaum@optimumnfp.com.au to discuss change management in your organisation or to obtain further information about the Strategic Organisational Change Unit at the Australian Institute of Management Business School.

What are the key leadership challenges for nonprofit organisations? - Read the 'Not-for-Profit Leadership Cahllenges Survey 2014 Report' to find out

What do you believe are the key leadership challenges for the not-for-profit sector? Are these challenges reflected in the effectiveness of your management teams? Are they impacted by the ability or otherwise of your organisation’s adaptability to change? To what extent do your leaders posses a good balance between technical and people skills? Is your board providing true value to your organisation? How effective are the teams within your organisation? Is your CEO the initiator and driver of change and if so how effective is this? Are your employees adequately engaged with the key priorities of your organisation? Does your strategic plan have an effective monitoring process that supports it? Is your internal communication processes effective and efficient? Does the culture of your organisation support the achievement of your mission?

In 2013, these were the questions that I, and a consulting colleague ‘Growing People+Organisations’, put to a wide cross-section of not-for-profit leaders throughout Australia via an online survey, and the results are now available in the recently released paper entitled “Not-for-Profit Leadership Challenges Survey 2014 Report”

Key findings identified in the Report included:

-          More than half the leaders surveyed believe they are challenged by the ineffectiveness of their leadership team

-          Just over half are concerned about their organisation’s change ability

-          More than half see their leadership teams lacking the required leadership skills

-          One quarter of leaders feel they do not have a Board that adds value

-          The majority of leaders see evidence of effective teamwork in their organisation

-          Two thirds feel that the management team rely too heavily on the CEO to initiate change

Comments provided by respondents also highlighted that the amount of change and the challenges in seeing through the complexities and ambiguities was their greatest worry. Additionally, there was a clear indication in the results that NFP organisations are going through significant change and rapid growth at present and need to adapt their approach using strategic and change management skills more. As a result more CEOs are looking to recruit leaders with those skills rather than just the technical skills they looked for in the past.

Finally, leaders saw a need for more leadership development, including building change management skills. With regards the Disability Care sector, whilst the provision of resources and funding for up skilling organisations and leaders had begun, there was clearly a need to ensure all organisations can access these resources.

The Report also identified a detailed suite of solutions available to address these challenges. OPTIMUM NFP in conjunction with the collaborating partner is well versed in dealing with these challenges with a wealth of experience that can be harnessed to meet the needs of your organisation.

Should you wish to receive a copy of the Not-for-Profit Leadership Challenges Survey 2014 Report you can either contact me via email or alternatively visit the OPTIMUM NFP website and request a copy through the ‘Publications’ tab. You can also contact David Rosenbaum of OPTIMUM NFP for a free, no obligation consultation regarding your organisation’s leadership challenges.

The Role of Leadership in Change - An Action Learning Approach

Management and Leadership are two very different concepts requiring very different skill-sets. Management is characterised by such activities and responsibilities as planning & budgeting, organising & staffing, and controlling & problem-solving. In executing these responsibilities, effective managers attempt to produce a degree of predictability and a sense of order.  Leadership on the other hand is characterised by such activities as the establishment of organisational direction, aligning people with vision and strategy, and motivating & inspiring. In many respects it is these bigger picture issues that underscore organisational change. Indeed, much has been written in management and organisational literature connecting leadership styles to stages of organisational change.

One clear certainty is that successful organisations require leaders and managers to display the combined attributes mentioned above, irrespective of the extent of change or indeed the level of continuity being experienced at any time during the life of an organisation.

Underpinning this discussion of leadership, are the wide range of interpersonal skills that enable individuals within an organisation to effectively work with others. These skills include:

-          Self awareness which comes from a clear and realistic understanding of your own strengths, weaknesses, ambitions, and needs;

-          Self regulation which comes from an understanding of how you control your actions and reactions and take charge of your emotions in the process;

-          Motivation which comes from understanding the mechanisms that drive you to achieve and to exude a passion and enthusiasm for your work and for the success of your teams, departments, divisions and organisation as a whole;

-          Empathy which comes from displaying a clear understanding of your fellow staff and being able to weigh the ability to consider and acknowledge others with the more global needs of the organisation’s mission and vision , and

-          Social skill which, whilst associated with empathy, comes from your ability to relate to, and work effectively, with other people.

Action Learning recognises the important link between leadership and success in the challenging environments that organisations now face, and will continue to face over the coming years. Management literature identifies a number of roles that leaders must increase their abilities in to underpin this success. These include:

-          the ability to think in systems terms

-          the ability to act as change agent

-          the ability to constantly innovate

-          the ability to act as servant-leader

-          the ability to take on a wide range of concurrent tasks

-          the ability to be both teacher and mentor, and

-          the ability to be visionary and to communicate that vision

In the context of the leadership skills identified earlier and the abilities discussed above, Action Learning has emerged as one of the most effective and powerful tools in developing the necessary competencies and experiences to support the leadership roles of the modern organisation. Through the Action Learning approach of working with real problems, a reflective inquiry process, a commitment to action and the focus on learning within the organisation, Action Learning contributes to the critical leadership skills that are one of the key enablers of organisational change.

OPTIMUM NFP launches its inaugural “Action Learning as a Change Management Strategy in the Not-for-Profit Sector” Workshops on 14^th May 2013. OPTIMUM NFP has been applying Action Learning to organisations in the NFP sector as a means of addressing the various challenges of initiating and working with organisational change. Currently, this sector faces many challenging times and must respond to these in a timely yet effective manner. Change in these organisations is ongoing and will continue to be into the future.

This Workshop is based on research papers submitted to the Academy of Management (America) and the British Academy of Management for their 2013 conferences as case studies in the application of Action Learning in the NSW NFP Sector. The Workshop will provide both the theory of Action Learning as well as its practical application. Participants will be involved in designing and participating in Action Learning programs, the aims of which will be to enable participants to lay the foundations in their own organisations for future Action Learning activities.

Action Learning is an effective approach in directly assisting organisations in this sector to not only deal with change, but to develop capacity and capability, ensuring organisations become more ‘change-ready’. As Principal of OPTIMUM NFP, David Rosenbaum’s consulting work in this field is further supported by his research pursuits in change management where he is currently undertaking PhD research in the management of change in the Not-for-Profit sector via a longitudinal qualitative study at a major Sydney not-for-profit hospital.

For those interested in gaining further insights into Action Learning and how it can be applied in your own organisation, visit the following link to download the Workshop Information as well as the Workshop Registration Form. http://www.optimumnfp.com.au/news-letter/34-the-role-of-leadership-in-organisational-change-an-action-learning-approach.html

Given the practical nature of the workshop, numbers are strictly limited to a maximum of 18 participants.

For any further queries regarding Action Learning, contact David Rosenbaum at OPTIMUM NFP.

Changing Your Organisation – The Australian Charities Not-for-profits Commission

The upcoming ‘launch’ of the CNC will present a substantive challenge to many organizations within this sector. These challenges will directly impact on how such organisations adapt their existing internal and external reporting frameworks, which, in many circumstances, impacts not only the management of these organizations but also their boards.

The reasons publicly given for the major reforms are well known. The economic impact of the sector alone, dictates that change must occur. The relative size of the sector in the context of the Australian economy is, as I have written in the past, somewhat out of kilter with comparative Western economies in the context of the sheer number of NFPs on a per capita basis. The long term sustainability of many within this sector continues to challenge their ability to match values and mission with operational capacity. Not to mention of course the contextual problems associated with ongoing donor fatigue and the well publicized, poor, philanthropic leanings of the Australian population, again, when compared to other wealthy Western economies.

When considered in this light, the changes coming down the pipeline are both potentially complex but needed. The question of whether the CNC in its current proposed form and in the political context of an unpopular minority government facing an election in the near term, and a political environment that appears to deny the application of real social ‘vision’, on a range of fronts, can deliver, is not the issue that requires the attention of those trying to implement a tough course of action that may have far reaching consequences. At the end of the day, this sector needs to address these challenges and start looking at itself with some effective navel gazing and consider how they, individually, can achieve what they need to achieve in order to serve those that they serve in the broader community.

So the questions that each NFP, its executive, its board, needs to consider, is what can we do to ensure that our organisations can adapt to this changing landscape over the course of the next few years.

The impetus for change, in this context is clear. Given that one of the key reasons that change efforts in many organisations, irrespective of whether they are in the NFP or the for-profit sector, fail, is due to the lack of an appropriate cause-and-effect relationship. In essence, there must be a sound reason for wanting to change. As has been well recognized in much of the change literature, the simpler and clearer the basic goal of the change management process is, the more likely it will be to take hold within the organisation, largely related to the ability for change communication to be far more easily applied and understood. This also opens up the ability for a larger representation of involvement from within the organisation, thereby encouraging involvement, participation and potentially acceptance.

As many in the NFP sector attest, the range of changes that may be proposed over the course of the next few years will challenge many organisations. To what extent is your organisation ready to not only adapt to the myriad of changes in a reactive manner, but also to what extent is your organisation ready to embrace change in a proactive manner, seeking to bring change to your organisation with the aim of ensuring your ongoing provision of services to the communities that you seek to currently serve as well as those that you wish to serve in the future?

OPTIMUM NFP works within the field of change management and has been doing so within the NFP sector successfully over a number of years developing change processes and frameworks that enable such organisations to bring their strengths into the management of change.