Assess Lifecycle
Begin by learning where your organization is in its lifecycle (see Nonprofit Lifecycles by Susan Kenny Stevens). Are you at the start-up, growth, maturity, declining, or terminal stage? Lifecycle is not related to how long your organization has been in existence but, rather, its level of functioning and sophistication. Knowing the stage helps you understand what can be “normally” expected and where you are doing well or need to improve.
Diagnose Strengths and Limitations
Once you determine the lifecycle stage of your nonprofit, begin diagnosing strengths and limitations in the key, interrelated, “big picture” components: mission, vision, and goals; governance and leadership; management and operations; programs and services; financial/resource development; and strategic external relationships.
Diagnose Functional Areas
Then ask: How are we doing in each area: communication, evaluation, financial management, fundraising, governance, human resources, information and technology, legal compliance, public policy and advocacy, risk management, strategic alliances, strategic and functional planning, transparency and accountability, and volunteer engagement? One helpful tool in this process is the Principles & Practices Basic Infrastructure Checklist PDF.
You may need an “outsider” to lead you through an honest, thorough study of current functioning and capacity improvement opportunities. ONEplace @ kpl can guide you through diagnostic tools and best practices, and suggest resources, workshops, and people to help you.
Check out our continually expanding Consultants and Trainers Directory of area experts who work with nonprofits. How to Select and Work with Consultants is an excellent reference on working with consultants. Review it before contacting anyone.
What’s Next?
Study your Principles & Practices Basic Infrastructure Checklist PDF. What’s the one thing that, if changed for the better, would make your organization function more efficiently and effectively, and produce positive outcomes in its mission-driven work? Select a couple more areas that work in close relationship to the first. What synergies could emerge from coordinating best practices in these areas?
Be Realistic: Selecting too much to work on at one time can lead to a sense that capacity building is too overwhelming and impossible.
Be Open: Be open to all ideas from all sources. An entirely new paradigm may emerge from the synergies of including diverse views and experiences.
Seek Help: Seek external help as needed to keep ideas and momentum moving and fresh.
Make a Plan and Work It
After reviewing the Principles & Practices Guide for Nonprofit Excellence in Michigan PDF, study recommended practices for the areas you selected.
Make a Plan of Action
Include forces that could help or hinder your ability to raise capacity in the areas selected: governance; internal systems and policies, finances, staff or volunteers, technology, communications, attitudes, etc.
Be Specific
Who will do what, with whom, by when, using what resources, etc.? Build in evaluation methods and practices into the plan to assure outcomes are identified, and you’ll know what “success” looks like. What skills or systems need help from consultants or trainers to complete.
Work the Plan
Refer to it often. Evaluate how this work is affecting outcomes for constituents and the organization’s ability to improve mission-driven work. Study how other capacity areas are affected. Adjust the plan as issues and areas change. Work the plan. Repeat with other areas of the organization. Remember: This is ongoing work.
Beyond the Basics
As you build strength and capacity in component and functional areas, look at the bigger picture.
- Visit or revisit your governance structure and policies. Are they still working for the current lifecycle stage of the organization? Or, is it functioning like “the founder and a few friends” when, in fact, it has employees, programs, and facilities?
- Advocacy and public policy activities.
- Strategic collaborations that may build synergies and increase positive outcomes.
- Strategic planning for long-term sustainability.