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Wednesday, February 2, 2010
Mosaic

 

Achieving Innovation

By Kate Sphar, Senior Consultant, Dewey & Kaye


The positive response we have received to the 2011 Nonprofit Symposium, sponsored in partnership by Dewey & Kaye and the Pittsburgh Foundation, has brought to light the truly innovative spirit present in our nonprofit sector. With uncertainty inherent in our environment, it is even more crucial for nonprofits to think outside the box, find new solutions in old ideas, and solve problems creatively. As innovation guru Scott Anthony says, "the ‘new normal’ of constant change requires mastering perpetual transformation". And as our keynote speakers made clear, success lies primarily in the hands of leaders at the community level.

So why is it that many of us feel that we are executing, but not innovating? The answer to this question is not as simple as "people hate change". In fact, nonprofit organizations often unknowingly create barriers that can stifle innovation. As a result, it becomes easier, even for the creative voices among us, to default to "how we have always done it."

Innovation is in fact a skill; it can be practiced and mastered just like any other. The big question for our sector is: how can we remove barriers to innovation, to solve our communities' most pressing problems?

We have identified leadership, structure, and planning as three factors that we have seen dictate an agency's ability to adapt and innovate. If you are interested in creating organizational conditions that encourage innovation, we recommend that you first examine:

Leadership. It is no accident that we often hear the adage that an organization's culture comes from the top down. If your organization's leadership is only interested in maintaining the status quo, the rest of the organization will be in maintenance mode as well. Some characteristics of stagnant leadership can include:

  • Lack of focus
  • Risk aversion
  • Lack of diversity in thought and experience
  • Overemphasis on "how we do things"
  • Belittlement of new ideas
  • Unwillingness to share information

These characteristics can be present at all levels of leadership — the board, executive staff, or managers and supervisors, and must be addressed before meaningful change can take hold.

An honest examination of organizational leadership is often one of the hardest things an agency can undertake. Because we are dealing with the competencies and feelings of others, it may feel easier to allow innovation blockers to stay, rather than to make hard decisions. However, the organization will no doubt pay a greater long-term price for stifling change and creativity.

Structure. It might seem illogical to connect organizational structure to creativity, but in reality, the right organizational/program structure can make or break an organization's chances at success. For many nonprofit entrepreneurs, the holy grail is to become a 501(c)3, as it seemingly confers legitimacy upon the mission and the founder's dream. However, as many can tell us, the burdens of being an independent charitable entity can be stifling as well — taking on annual audits, increased fundraising requirements, and an entire back office infrastructure is no easy task.

Many smaller organizations are reconsidering their status as a fully independent 501(c)3, instead exploring options that include mergers, back office consolidation, or program transfer to another agency. Although such a change may feel drastic, the rewards can be equally far-reaching. Those who make the choice to restructure are often pleasantly surprised to find that in their new home they are better able to focus their energies on innovation and mission delivery, with less worry about cash flow and administrative issues. In addition, the potential for enhancing service delivery through partnership allows these agencies opportunity for greater impact than they were able to achieve alone.

Planning. Finally, it is equally important to continually plan ahead. Again, this may seem the antithesis of innovation, but in fact it is key for staff and board to have a clear vision and goals for the future. The plan should be aspirational, but also grounded enough in reality that it can be achieved. In addition, it is crucial to achieving buy-in that everyone in your organization be involved in the planning process in some way. By creating a shared vision and focus, it allows each member of your team to be proactive and creative in their approach to solving problems.

 

Kate Sphar's work with Dewey & Kaye focuses on organizational planning, restructuring, and finance. Contact Kate at ksphar@deweykaye.com or 412-434-1335.

 

Dewey & Kaye