“Few things are more important during a change event than communication from leaders who can paint a clear and confidence-inspiring vision of the future” ~ Sarah Clayton
Leading change in social impact organizations is an ongoing need in today’s uncertain and volatile landscape. An organization can quickly become destabilized without a strategy for managing the process, whether positive or negative.
In reality, 70% of change initiatives fail without a change management process (McKinsey). Unsuccessful change efforts can result in diminished morale, wasted resources, and questions from funders regarding your capacity.
Anticipating Change
Social impact organizations experience ongoing change because of various and often simultaneous external factors outside their control. The Board of Directors and the senior leadership team should partner with and support the Executive Director in designing strategies that effectively manage change. Managing change starts with anticipating what events may disrupt the organization’s ability to deliver its mission. Awareness of the different scenarios will help the leadership team create
effective strategies to address a disruption. Let’s explore some common disruptions
that may require social impact organizations to change:
- A planned change in the organization’s leadership;
- An unplanned change in the organization’s leadership;
- A change in the funding environment, including new documentation requirements, new funding priorities, or new audit requirements;
- New or increased competition for funding and clients from other organizations;
- Rapid or sudden growth that doesn’t allow leadership teams to build the needed structures to align the organization’s culture and strategic goals.
- An organizational crisis, including a leadership void, misconduct, crimes, lawsuits, or funding loss;
- A demographic shift that reduces interest in the mission or increases the demand;
- Adoption of new management systems that impact the workflow of employees, overwhelm staff, or are too complex to understand;
- Changes in regulations that govern your organization or programs and require significant adjustments in operational practices or processes;
- A shift in the political climate that’s either friendly or unfriendly towards your mission;
Change Leadership is Strategic Leadership
In social impact organizations, the ability to lead others through change is a critical element of strategic planning and management. When disruption strikes, the senior leadership team should develop and implement a plan to help staff and volunteers understand what they should be doing, what to expect, and how to adjust their workflow. Leadership teams that are proficient in guiding their people through change result in agile, robust, and sustainable organizations.
Leading Change is about People
It’s critical for plans that address change in social impact organizations to be mindful of the human component involved. People display a variety of responses to change. It’s common for staff and volunteers to be resistant to changes and adopt an “If it ain’t broke, don’t fix it” attitude. At the same time, others may become ongoing critics of the changes and resist performing new behaviors. Some may feel disoriented or unsafe when facing uncertainty.
Additionally, some may create negative stories that they share with others to explain changes they don’t understand, which results in creating divisions in the organization. Some team members see this as an opportunity to generate chaos or orchestrate powerplays to advance their agendas. Many staff will likely act like bystanders to see how the process works. These are powerful reasons that all change efforts should be transparent and engage employees from all parts of the organization.
Engaging Staff in the Process
The executive director and the leadership team must engage and communicate with all staff and volunteers in a transparent and ongoing way from the first steps of the change effort. This fundamental strategy will increase the likelihood of a smooth transition since employees are the ones who can identify obstacles and implement solutions.
An excellent guide for developing a change strategy for your social impact organization is Kotter’s Phases of Change. This guidance describes how you can create a climate for successful change by using the following methods:
1) Create a sense of urgency around the issues;
2) Build a coalition of change champions;
3) Develop a strategic vision;
4) Communicate the vision;
5) Identify and remove obstacles;
6) Create short-term wins;
7) Build momentum; and
8) Institute the change and embed it in the culture.
Change leaders should also look for strategic decay in the planning process and change fatigue in the implementation phase.
Address Infrastructure When Leading Change
Successful change strategies are frequently accompanied by infrastructure development plans. These plans clarify the decision-making process and the ways the proposed change may impact the following:
1) Financial systems;
2) Information technology systems;
3) Human Resources practices;
4) Leadership and management roles;
5) Policies and procedures;
6) Talent acquisition and professional development;
7) Administrative and programmatic requirements;
8) Governance and organizational structure;
9) Fundraising methods and targets
Leading change in social impact organizations requires effective communication from leaders who can provide a clear and confidence-inspiring vision of the future. Without a well-defined change management process, organizations can face destabilization, diminished morale, wasted resources, and questions from funders. Anticipating change is crucial, as social impact organizations often experience ongoing disruptions due to external factors. The Board of Directors and senior leadership should partner with the Executive Director to design strategies that effectively manage change.
By following these principles and strategies, social impact organizations can navigate change successfully, becoming agile, robust, and sustainable entities that continue to fulfill their missions. Effective change leadership empowers organizations to adapt to the uncertain and volatile landscape, ultimately making a positive impact in their communities and beyond.
