Friday, April 8, 2011

Nonprofits Need to Embrace Innovation

Innovation… it’s a word that generally brings to mind a for-profit corporation such as Apple or FaceBook, not so much a nonprofit organization. But innovation is essential to the success of a nonprofit: creative solutions for challenging problems, timely response to new opportunities and changing community need, creative partnerships, and the urgent need to improve business systems and reduce operating costs. Innovation needs the right Petri dish in which to cultivate; in other words, the right culture and leadership. Elements that create the best climate for innovation include:

  • an openness to change by the board of directors and management team and all the messiness that comes with managing change,

  • a diversity of thought and perspectives,

  • a forum that encourages / invites creative ideas from every corner of the nonprofit (including the front line team, clients and volunteers),

  • a willingness to take a calculated risk and fail at times,

  • a comfort with involving all constituents and actively communicating with them about challenges and changes, and

  • a shift from dependence on strategic planning to strategic thinking. What tools can help you?

  • Build a diverse board and continually bring on new board members.

  • Establish a consent agenda and move past agendas that focus on reporting on past performance and focus on the future.

  • Pursue ongoing professional development for the board and leadership team including team building activities.

  • Establish ground rules at planning sessions and new planning approaches that encourage looking at challenges and opportunities in new ways; and encourage breakthrough thinking.

  • Use business plans to evaluate new opportunities and ventures and mitigate the risk.

  • Understand the complexities of managing change and become very proficient at change management (including the engagement of constituents). You’ll find some great articles, tools and templates for business planning, board/leadership development, strategic thinking and consent agendas in the NorthSky Online Resource Center at http://www.northskynonprofitnetwork.org/resource.php