Posts Tagged ‘adaptive leadership’

Nonprofit decisions: Complexity made clear with matrix mapping

According to a recent Nonprofit Finance Fund’s State of the Sector survey, “Forty-two percent of organizations reported that they do not currently have the right mix of financial resources to thrive over the next three years.”

This level of economic uncertainty requires the kind of adaptive leadership and system-wide reckoning that feels like a daunting task until now. Authors Steve Zimmerman and Jeanne Bell have introduced a proven method for change management called matrix mapping. The matrix map cultivates sound decision-making that embraces the entire organization’s capacity rather than one program or person.

Zimmerman and Bell have accumulated a deep understanding of how the matrix map tool is working for nonprofits thanks to five years in the field with their first book, Nonprofit Sustainability. Today, The Sustainability Mindset builds on the candid self-reflection and bold decision making created by the first title.

Introduction to the matrix map

Simply put, the matrix map allows organizations to view both their impact and profitability at the same time. Often, during a strategic planning meeting, organizations will look at the success of their programs in one conversation and then their budget in another. The map gives them a combined look so they can make better decisions. For example, if one program shows high impact but low income, the organization can turn to other sources of income that can cover the expenses. To see a sample of the map, click here.

Zimmerman’s favorite example of the matrix map in action

We asked Steve Zimmerman to tell us about one of his favorite case stories where the matrix mapping process brought to light the critical observation of impact and profitability simultaneously.

CausePlanet: Would you tell us about your favorite case study that implements the matrix map?

Zimmerman: One of my favorite uses of the matrix map is to help organizations make decisions that have been put off for too long. An example of this comes from a 100-year-old social service agency that had offered mental health counseling for their constituents among several other programs including financial literacy, job training and a day care program.

Over the years, the counseling program had fallen on hard times, but because it was the founding program of the agency, they kept re-tooling it and bringing in new supervisors to improve the program. When the matrix map was completed, it showed counseling, financial literacy and job training operating at financial deficits. However, counseling also was considered a low-impact program.

Deeper analysis showed that while the program was important for the organization’s impact, there was a lot of competition for quality counselors and the organization couldn’t match competitors’ salaries. This led to poor outcomes. What is more, the job training program showed very high impact but was relatively small because the organization didn’t have enough resources to grow the program.

The organization used the matrix map to engage in a robust discussion about the future of counseling and decided to close the program. Because it was still an important component of the organization’s overall impact, it partnered with another agency in the city to deliver those services to constituents. It then invested the money that had been utilized to subsidize counseling to expand the job training program. This included partnering with local corporations for job placement on a fee-for-service basis.

The opportunity cost of decision-making

This example demonstrates using the matrix map to highlight the opportunity cost of decisions. The leadership often thinks in terms of “Should we offer Program A or not?” when the correct question is, “Should we invest in Program A or Program B?” By investing in the high impact program, the organization was able to increase its impact and financial viability. It would not have had the resources or capacity to do so unless it focused its program offerings. By presenting the map in this way, even those leaders who strongly supported the counseling program came around to see the organization and its constituents were better off as a result of this decision.

If you’ve historically looked at your budget and your programs in isolation of one another, Zimmerman and Bell would argue that this kind of decision-making will only lead to poor sustainability for your nonprofit. Get a copy of The Sustainability Mindset and turn complexity into clarity.

See also:

Nonprofit Sustainability: Making Strategic Decisions for Financial Viability

The Nonprofit Leadership Transition and Development Guide

Building Nonprofit Capacity: A Guide to Managing Change Through Organizational Lifecycles

Image credits: julianreese.com, vbpm.org, wallbasehq.com

 

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Fail Better: Learn how to make nonprofit failures maximally useful

Let’s face it: Failure is universal. It is universally associated with avoidance, denial, frustration and shame. Yet smart individuals, teams, and even some organizations have discovered failure, if anticipated, evaluated, and corrected, can be the answer to succeeding sooner.

Fail Better authors Anjali Sastry and Kara Penn personally have experienced and observed these interactions with failing better and have assembled a systematic approach for improving how you fail. If we know failure is inevitable, why not get better at it?

Our latest recommended book is about just that—how to fail better. Sastry and Penn have designed a purposeful way to experiment and innovate that will transform your failures into opportunities to learn, modify and improve.

If you’ve ever asked any of the following questions, then Fail Better is for you:

“How do I deliver on my work—get my ‘real job’ done—and at the same time innovate and improve?”

“How do I improve my own personal practices and habits to enable even better impact?”

“How can I learn from previous experience, within our organization or more broadly?”

Sastry and Penn explain that “smart leaders, entrepreneurs and change agents design their innovation projects with a key idea in mind: ensure that every failure is maximally useful.” In Fail Better, the authors show you how to create the conditions, culture and habits to determine what the most
effective solutions are by:

1) launching every project with the necessary groundwork,

2) building and refining ideas, products and services through iterative action, and

3) identifying the learning moments and embedding the knowledge.

Launch, iterate, embed

In other words, the book discusses how to address failures and make them beneficial before (launch), during (iteration) and after (embedding) the project’s work. You will learn an invaluable skill you may never have developed before: how to distinguish “preventable, wasteful and uninstructive failures” from helpful ones you can incorporate into your process.

Martin Luther King Jr., civil rights and failing better

The Civil Rights Movement is an example of iterating and embedding your learning. Initially, when the movement did not accomplish enough change working through the legal system, it began to look at lessons from India’s independence and worked with the NAACP to share assets and capabilities. The leaders had to consider the time horizon by acknowledging that their movements in the short run could possibly only pay off in the long run.

They practiced civil disobedience in many settings and shared their field-tested advice with other groups. They were constantly telling their stories through speeches. They continuously embedded their learning when they met to discuss and debate perspectives and tactics. The ultimate embedding occurred with the civil rights legislation. They, especially Martin Luther King, Jr., documented (embedded) their thoughts as well.

If nonprofits are willing to accept that failure is inevitable and part of progress, then they can enjoy the benefits turning mistakes into productive experiences. Both large and small organizations can implement the launch-iterate-embed practices Sastry and Penn recommend in the book. Watch for future installments about the Fail Better method and how you can embrace failure for what it can teach you.

See also:

Little Bets: How Breakthrough Ideas Emerge from Small Discoveries

Made to Stick: Why Some Ideas Survive and Others Die

Repeatability: Build Enduring Businesses for a World of Constant Change

Image credits: rrfit-com, thoughthouse.org, morethansound.net, gradstudentway.com

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