Sustainability: A Non-Profit Path to a Successful Future December 4, 2014
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1 Sustainability: A Non-Profit Path to a Successful Future December 4, 2014 Presented and Facilitated by: Scott Cawood, Ph.D., Ed.D. Employee Engagement & Organization Sustainability Practice Leader The Human Resource Consortium, LLC scawood@thehrc.com ext 714 New Haven, CT 1
2 Our Agenda What We See in the Best of the Best NonProfits What s Driving the Need to Examine Organization Sustainability Today Especially for Non Profits? What Is Organization Sustainability? The 8 Sustainability Imperatives Our Panelists: What Other NonProfits Are Doing Al Barber President, Catholic Charities Mary Barneby CEO, Girl Scouts of Connecticut Spencer Cain Cain Associates, LLC Matt Poland CEO, Hartford Public Library 2
3 NonProfits: The Best of the Best There is room for me to advance at this organization Changes that may affect me are communicated to me prior to implementation There is adequate planning of departmental objectives This organization provided as much initial training as I needed 3
4 NonProfits: The Best of the Best I understand the importance of my role to the success of the organization I like the type of work that I do My supervisor treats me with respect I would recommend working here to a friend 4
5 NonProfits: The Best of the Best Amount of vacation or Paid Time Off Tuition Reimbursement Benefits 5
6 The Organization Sustainability Driver: Complex, Fast Change Decreased Governmental Revenues with Requirements for Higher Performance/Outcomes Declines in Private Funding - Prolonged Economic Downturn Increased Costs Greater Client Demands Volumes and Complexity Increased Regulations Resurgence of Wars for Talent Supervisor/Leader Fatigue and Skills Shortages Desire to Continue to Do Good Against Need to Shift Culture to Focus on Performance and Accountability 6
7 Fast Change Today The challenges facing nonprofit organizations going into 2015 are numerous Government funding sources (particularly at local and state levels): far less certain, challenging many longstanding operating models. Individual donor community is changing: high-end donors seeking increased collaboration and reporting to demonstrate a social return on investment. In the drive to continue serving their mission, too many organizations have equated mission-focus with resistance to change, leading to disastrous results for all involved. 7
8 Fast Change Today cont d Recent years have seen bankruptcy and restructuring of storied nonprofit organizations, including St. Vincent s Hospital (NY), the Philadelphia Symphony, Girl Scouts of the USA, and others. Nonprofit leaders must now be proactive to ensure that their mission not only survives but, thrives in the new market environment. More than ever, the status quo is neither an option nor viable solution. 8
9 NonProfits and Communities in Need: Left Behind in Economic Recovery 6 th straight year of increased demand for services. 80% of respondents reported an increase 56% of NPOs unable to meet demand in The highest reported in survey s history. 86% expected demand to continue to increase in % expected demand to go unmet. Only 11% expected 2014 to be easier than 2013 for the people they serve. Source: 2014 State of the Nonprofit Sector Survey Results, Nonprofit Finance Fund 9
10 Data: Both NPOs and Funders Value Measuring Impact 70% reported that half or more of their funders require impact metrics on grant reports 77% agreed that these metrics are helpful to them in assessing their own impact. Only 1% reported that funders cover the costs associated with impact measurement; 71% claimed these costs were rarely or never covered. NPOs that didn t collect impact data claimed they lack the staff, time, and/or resources to secure training or outside help. Source: 2014 State of the Nonprofit Sector Survey Results, Nonprofit Finance Fund 10
11 Non Profits: Stated Need for Change 5019 nonprofits were surveyed regarding growing demand for their services, and their own growing need for change. Civil Rights, Civil Advocacy, Rights, Social 3% Action & Advocacy, 3% *Other includes Foundation, House of Worship, International/Foreign Affairs, Mutaul/Membership Benefit, Unknown/Unclassified Arts, Culture, and Humanities, 18% Community Development, 11% Other*, 4% Workforce Development, 3% Respondents, 0 by Sector, 0 Public, Societal Benefit, 6% Workforce Dev t, 3% Human Services, 31% Source: 2014 State of the Nonprofit Sector Survey Results, Nonprofit Finance Fund Education, 14% Health, 6% Environment and Animals, 3% 11
12 The Paradox of Capacity-Building Many organizations have capacity issues. There s a general understanding that no more than a fixed amount (around 30%) of donor funds should be spent on fundraising and administration. Why do we think its okay to spend the least on these functions as an overall percentage of their budget? Many nonprofits make short term decisions not in their long term best interests in order to meet the standard. 12
13 Sustainability: In the Forefront of Your Mind? While the economy is still recovering, many nonprofits and communities in need are still being left behind. Nonprofits face a dual challenge: Short-term: Address immediate needs, immediately. Long-term: Create new, more efficient and effective systems for their needs and programs for the communities they serve. Source: 2014 State of the Nonprofit Sector Survey Results, Nonprofit Finance Fund 13
14 What Is Sustainability? The ability to add the highest value over the longest time period An orientation not a destination Dynamic Environment = Continual Change Focus: Mission (programmatic sustainability) Money (financial sustainability) Talent (capability and services execution) 14
15 Sustainable NonProfits: Two Examples New York Cares Mission: Mobilize New Yorkers to service in order to meet pressing community needs. Strength: Fundraising. In particular, because it sets measureable goals to track effectiveness with donors, corporate sponsors, and project partners. Source: The Sustainability Formula, The TCC Group 15
16 Sustainable NonProfits: Two Examples cont d New York Cares - Exec. Dir. Gary Bagley: We focus on developing relationship based, general operating support; we start and end programs based on community need, not the vagaries of funding. We have dedicated account teams and plans for all our corporate sponsors. New York Cares quadruples the value of every dollar donated through our volunteer services and the resources we leverage for our project partners. Source: The Sustainability Formula, The TCC Group 16
17 Sustainable NonProfits: Two Examples cont d The Family Center Mission: Create a more secure present and future for children whose parents have a life threatening illnesses. Strength: Program Evaluation. A full time research and evaluation manager not only works to monitor clinical trial programs with the Center s academic partners, but also reviews the Center s comprehensive legal, social services, education, and research work. Source: The Sustainability Formula, The TCC Group 17
18 Sustainable NonProfits: Two Examples cont d The Family Center - Exec. Dir. Ivy Gamble Cobb: We have a strong desire to evaluate all of our programs, constantly analyzing information about our audiences in order to be responsive to their needs. We learn from our data in order to modify programs and services, and we can see our results in the field. Source: The Sustainability Formula, The TCC Group 18
19 How We Define Sustainability: The 8 Sustainability Imperatives Employee Engagement Vision Governance Organization Performance Accountability Work Flow Efficiency and Effectiveness Innovation Execution of Strategy and Goals 19
20 Imperative Vision The HRC s 8 Sustainability Imperatives Governance Employee Engagement Organization Performance Indicators Leaders vision is known and validated by staff throughout the organization The backbone of the working strategy Effective, strategic board/advisory structure Prudent decision-making at all staff levels Ability to recruit & retain Supervisor-employee connection Sense of fairness within and sensibility of People Systems Investment in employee capability and career Availability of resources: funding, needed systems/equipment/supplies, talent Client satisfaction (e.g. HCAPS) Proprietary Concept developed 2014 by Scott Cawood and Regan MacBain Traub The Human Resource Consortium, LLC. All Rights Reserved 20
21 The HRC s 8 Sustainability Imperatives cont d Imperative Accountability Work Flow Efficiency and Effectiveness Innovation Execution of Strategy and Goals Indicators Commitment to, and demonstration of, at all levels Environment of continuous process improvement High levels of customer satisfaction/retention Employees see work flow and communication excellence across departments Prudent risk-taking Investments in innovation Recognition/rewards for innovation Strategy is defined by achievable goals, metrics, and plans Progress toward achieving strategic goals and metrics is assessed and reported to all staff frequently Excellence in goal setting (manager:staff partnership) High performance coaching and management Poor performance is coached up or out Proprietary Concept developed 2014 by Scott Cawood and Regan MacBain Traub The Human Resource Consortium, LLC. All Rights Reserved 21
22 Let s Hear From Our Panel Al Barber Mary Barneby Spencer Cain Matt Poland Catholic CT Girl Scouts Cain Associates Hartford Public Charities Library 22 Scott Cawood, Ph.D., Ed.D., The Human Resource Consortium. Proprietary Material
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