A Nonprofit Life Stages AssessmentWhere You Are, Where You’re Going, and What to

Expect When You Get There Prepared for

Gordon F. GoodwinDevelopment Solutions Group

Gordygood@gmail.com

Guided by Judith Sharken Simon’s methodology

What We’ll CoverWhat We’ll Cover Why It’s Helpful to Know about

Life Cycles

Background to Understanding Organization Life Cycles

Nonprofit Organization Stages of Life

Life Stages Self-Assessment

Issues and challenges in each life stage

Small group work on Stage 1-5 scenarios

How will I use this in my work?

Why Learn About Organizational Life Cycles?

Why Learn About Organizational Life Cycles?

Validates experiences and dispels disease mentality

Helps staff and board put the transition issues an organization is facing in context

Organizations and leaders that manage transitions well are more successful

Reinvention requires knowledge of organizational assets and capacity building challenges to identify and chart a path to sustainability. Understanding organizational life stage helps illuminate the capacity building path, and choices for pursuing it.

Transition = Reinvention

Premises of Nonprofit Life Stages Model

Premises of Nonprofit Life Stages Model

Organizations are generally forward moving at a predictable pace.

Organizations are multidimensional.

Five factors comprise life cycle: age, size, growth rate of its field, social environment, and its primary leader’s characteristics.

Significant events occur at each stage which are necessary to move forward.

There is not a predictable end-point in organizational life.

There are distinct stages, but boundaries between stages are blurry.

Each stage can be defined by dominant characteristics.

Each stage is uniquely valuable.

Some Organizations Do Not Fit the Model

Some Organizations Do Not Fit the Model

Very large, complex organizations

Very small, grassroots organizations

Organizations with unique circumstances

APHA Life Stage SurveyAPHA Life Stage Survey

25 invited to participate (24 board members / 1 staff)

18 respondents Customized and abbreviated instrument (51

questions vs. 105) Proprietary nature of methodology does not

permit adapting the survey to reflect unique characteristics of APHA organizational identity (e.g. - governance structure)

APHA Life Stage SurveyAPHA Life Stage Survey

Survey scores and reviewer comments are contained in the excel survey report document that delivered with this presentation.

A facilitated discussion of survey results is scheduled to occur in conjunction with the January, 2010 APHA board meeting.

The 5 Life Stages Guide will be provided for you at that meeting.

APHA AssessmentAPHA Assessment

APHA’s organization assessment is informed by: interviews with senior staff, department

managers and select board members review of consultant-requested documentation to

substantiate existence of necessary governance and management protocols / infrastructure

Subjective perceptions of APHA performance from board survey responses

Subjective performance rankings assigned by the consultant reviewer using 47 criteria

How does Life Stage support the Assessment?

How does Life Stage support the Assessment?

Serves as a shared point of context for the reviewer and the organization being reviewed

Highlights where board and staff perceptions support reviewer assessment, and serves to foster constructive dialogue in cases where board and staff perceptions are different from the reviewer’s.

Inclusiveness of your perceptions adds needed ownership and credibility to “outsider-led” process - and increases likelihood of follow-through on recommendations / options to consider.

What is APHA’s life stage?What is APHA’s life stage?

Based on the scoring of survey responses, APHA scores as a Stage 4: Produce and Sustain.

Though most aspects reflect Stage 4, Administrative Systems straddles Stage 4 and Stage 3: Ground and Grow

Financing scored a Stage 5: Review and Renew

The Life Stages ModelThe Life Stages Model

Stage 1Imagine and Inspire

Stage 2Found and Frame

Stage 3Ground and Grow

Stage 4Produce and Sustain

Stage 5Review and Renew

Decline and Dissolve

Life Stage Assessment Arenas of Organization PerformanceLife Stage Assessment Arenas of Organization Performance

Governance Staff Leadership Financing Administrative Systems Staffing Products and services Marketing (not addressed in APHA survey)

1: Imagine and Inspire1: Imagine and Inspire

Stage 1:• No external support• Creativity and energy• Can this dream be realized?

• 0–5 years in duration

Tips for Navigating:*Think into staffing scenarios

*Secure expertise*Articulate the ideas

2: Found and Frame 2: Found and Frame

Stage 2:• Fear of formalizing• Excitement• Charisma• How are we going to pull this off?

• 1–2 years in duration

Tips for Navigating:Expand the board*Expand the funding base*Develop organizational systems and structure

Stage 1:• Can this dream

be realized?• 0–5 years

3: Ground and Grow3: Ground and Grow

Stage 3:• Need accountability• First outsider• Sense of accomplishment• How can we build this to be viable?

• 2–5 years in duration

Tips for Navigating:*Board training and recruitment

*Clarify Exec. Director role*Develop multiyear budget & fundraising plan

*Expand staffing

Stage 2:• How are we going to

pull this off?• 1–2 yearsStage 1:• Can this dream

be realized?• 0–5 years

4: Produce and Sustain4: Produce and Sustain

Stage 4:• Board-staff roles• Old vs. new• Stable resources• How can we sustain the momentum

• 7–30 years duration

Tips for Navigating:

*Undertake self-assessment processes

*Training in understanding & managing diversity

*Strategic/long range planning* Innovation strategies

Stage 3:• How can we build this to be viable?• 2–5 yearsStage 2:• How are we going to pull this off?• 1–2 years

5: Review and Renew5: Review and Renew

Stage 5 characteristics:• Isolation• Turnover• New energy• Linkages• What do we need to redesign?• 2–5 years duration

Tips for Navigating:

*Change management*Succession planning*Rethink staffing structures*Seek collaborative relationships

*Consider Exec. Director coaching

Stage 4:• How can we sustain the

momentum• 7–30 years

Decline and DissolutionDecline and Dissolution

• Ineffective• Infighting• Crisis• Graceful demise• Should we close?• Seek assistance

Advancing Through Stage 4 Advancing Through Stage 4

Obstacles Perception of staff

control (too little or much) can lead to difficult staff:board communication

Stability may lead to complacency and stagnation : less risk-taking, creativity

Board tension: policy or “working” board? (see Q6 - Governance)

Opportunities Organization is widely

known and respected Resources are available

to take risks / innovate New staff and board

bring new energy, ideas and possibilities

Stage 4 Advancement TipsStage 4 Advancement Tips

Governance Formalize ED

performance review Develop or revise

board committee structure

Initiate annual or biennial board self-assessment

Staff Leadership Implement

professional development plan after performance review

Clarify ED primary roles, responsibilities and accountabilities - especially for staff management

Staffing Increase # of

managers Actively address

issues arising from increased staff diversity

Obtain legal counsel if staff dismissal is imminent

Admin Systems* Ensure admin

staffing levels are adequate

Incorporate automated data management systems including financial and client data

Upgrade hardware and software

Stage 4 Advancement TipsStage 4 Advancement Tips

**Includes Stage 3 suggestion

Products & Services Develop long range plans

for products and services Try out new program

approaches / models Develop internal system for

assessing and responding to new opportunities

Stage 4 Advancement TipsStage 4 Advancement Tips

Stage 5 Advancement TipStage 5 Advancement Tip

Financing Expand funding sources Add staff to development

function Analyze current funding

strategies

Next StepNext Step

Review the accompanying Excel worksheets to see a report of results and reviewer comments / questions for future discussion.