Brian’s Bookshelf
Reviews by Brian Fraser
The Five Life Stages of Nonprofit Organizations by Judith Sharekn Simon with J. Terence Donovan (St. Paul, MN: Amherst H. Wilder Foundation, 2001)
Nonprofit Lifecycles: Stage-Based Wisdom for Nonprofit Capacity by Susan Kenny Stevens (Long Lake, MN: Stagewise Enterprises, 2001)
For those facing the trauma of closing their doors today, these two books on not-for-profit life cycles provide some timely wisdom. Both The Five Life Stages of Nonprofit Organizations and Nonprofit Lifecycles: Stage-Based Wisdom for Nonprofit Capacity anticipate that organizations might reach a stage in their evolution when they need to consider the possibility of terminating the operation. Both lay out some helpful suggestions on doing it with care and class.
Simon and Donovan warn that an organization can risk Decline and Dissolution at any of five stages in its evolution. They provide a perceptive checklist for staff and board members who want to assess how extensive toxicity may have spread in seven key arenas of not-for-profit effectiveness - governance, staff leadership, financing, administrative systems, staffing, products and services, and marketing.
- Stage One - Imagine and Inspire – the primary question is, “Can this dream be realized?” – enthusiasm, energy, and creativity fuel activities.
- Stage Two - Found and Frame – the primary question is, “How are we going to pull this off?” – excitement and keen commitment characterize this stage, along with some fears about being able to realize the dream.
- Stage Three – Ground and Grow – the primary question is, “How can we build this to be viable?” – building the business of delivering on the mission and establishing systems of accountability throughout the organization are the key foci for this stage.
- Stage Four – Produce and Sustain – the primary question is, “How can momentum be sustained?” – everything is working effectively and enthusiastically, but such stability can ignore changing environments, needs, and support potential.
- Stage Five – Review and Renew – the primary question is, “What do we need to redesign?” – mature not-for-profits revisit one or more aspects of their organization on a regular basis to adapt in changing circumstances to continue to serve their mission.
- Decline and Dissolution – Simon and Donovan do not consider this eventuality a stage, but rather one route an organization can take.
Kenny posits a continuum of organizational success with capacity as the means, performance the measurement, and effectiveness the ultimate goal. She describes five areas that must be well-aligned to realize the organization’s full potential – programs, management, governance, financial resources, and administrative systems.
Kenny uses Erik Ericson’s stage theory of development as the basis for her thinking of organizational development. She posits seven stages.
- Stage One – Idea – a personal mandate to fill a societal, programmatic, or cultural gap in the community
- Stage Two – Start-Up – unbridled mission, energy, and passion reign supreme
- Stage Three – Growth – service demands exceed current structural and resource capabilities, driving the need to find more to do more
- Stage Four – Maturity – well-established, smooth operations and a good reputation for providing relevant and high-quality services
- Stage Five – Decline – self-indulgent, status-quo decisions dominate – there is insufficient operating income to cover expenses
- Stage Six – Turnaround – a decisive decision is made to reverse prior actions in a self-aware, determined fashion
- Stage Seven – Terminal – the organization has neither the will, purpose, nor energy to continue to exist
Kenny does a superb job of outlining the specific responsibilities that staff and board have in facing the decision to turnaround or terminate. To turn a declining organization around, Kenny says that habits within the organization must change. Board and staff must have:
- Some kind of “wake-up call” to focus the awareness of everyone on the need to change in a positive way
- A strong belief that change is desirable and possible
- A heartfelt commitment to succeeding
- Sufficient dissatisfaction with the current state to drive change
- A clear vision of the outcome desired
- Mechanisms or structures that support regular repetition of new habits
- A willingness to be patient and persistent
Both books provide good case studies of organizations stepping up to the challenges and opportunities presented at each stage.
If faced with the possibility of closing your doors, each book provides a valuable methodology to frame careful thinking about the organization’s history and current condition. Facing the possibility of terminating operations is emotional and fraught with the danger of hasty decision-making. Reviewing the wise advice in one or both of these books will help you consciously consider all your options.
About Brian Fraser
Brian Fraser is the Lead Provocateur of Jazzthink and President and Lead Coach of Starting SMART Coaching. He is also a Board Development Trainer and Leadership Coaching Program Advisor with Volunteer Vancouver. Brian has chaired the McAdam Book Award Jury for the Alliance for Nonprofit Management for the last several years and worked with the not-for-profit sector for his entire career. Discover more about his passions and work at www.jazzthink.com.
About Vantage Point
The mission of Vantage Point is to inspire & build leadership in the voluntary sector. This publication is intended to be a medium of communication and information for the many organizations active in the volunteer and not-for-profit sector. The opinions expressed herein are solely those of the writers and do not necessarily reflect official policy of the Board of Directors of Vantage Point.
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