Commercial reality and sector values
March 2008
One of the most well documented findings from studies of individual and organisational behaviour is that that hardly anyone seeks out change; indeed it is vigorously resisted.
Charities are, to a certain extent, protected by their structure from changes imposed upon them. However the dynamics of funding sources, along with the increased amount of regulation are forcing the sector to make some uncomfortable decisions.
In his blog, Adam Sampson, CEO of Shelter, observes: ‘all around are the signs so familiar to those of us who experienced the crises of the 70’s and 80’s: warnings of rises in unemployment and bankruptcies, soaring oil prices and the ritual call and response of Government demands for pay restraint and union demands that their members be protected from pain’. Shelter’s restructuring programme to put it in a better position to win competitive tendering contracts has resulted in a head-on clash with Unite, the trade union representing around 450 workers.
The
Multiple Sclerosis Society states in its strategic plan for 2008 to 2012, ‘Our “bottom line” is not determined by profit but by positive benefits for people affected by MS’. But the document goes on to detail a programme of significant change (which includes ‘efficiency’ savings of 3 per cent each year in infrastructure and support services) to achieve the Society’s aims.
How, then can charities balance their ‘caring’ brand with some of the harsher realities of organisational change? The challenges are not merely those affecting industrial relations, but other core areas such as the charitable purposes and permanent endowments that have little relevance to current needs (
see Stephen Claus's article 'Not what they used to be' in this issue) and, for many charities, the effectiveness of the governing board (
see Pesh Framjee's article 'When less is more') where tradition can sometimes get in the way of relevance.
Part of the solution lies in reading the road ahead. Many larger charities carry out strategic reviews and have become much more like their public and private sector counterparts in anticipating forces of change and preparing well in advance. The other challenge is actually sticking to the plan.
Clarissa Baldwin of Dogs Trust (see her First Person interview in this issue) told me how she and her team go off site each year ‘to focus on the future and make sure that we stick to the path we mean to go on’.
While change is unavoidable for any dynamic and growing organisation, the need to hold onto the passion and dedication underpinning the charity’s existence while managing what can be a highly unpopular process creates a unique set of challenges.
Author: Clarissa Dann
Clarissa Dann was the editor of Caritas as well as an HR and management online service,he People Bulletin until July 2011.
She is now the editor of the specialist trade finance magazine, Trade and Forfaiting Review which can be viewed at www.tfreview.com but does write on charity finance and investment from time to time.
Clarissa has a background in legal and professional publishing, as well as business journalism and holds an MBA from Cass Business School. She has been one of the judges for the non-profit category of the Chartered Institute of Marketing's Excellence in Marketing Awards for the second year running.
She has also acted as clerk to the trustees of a small almshouses charity and as a member nominated trustee to a pension scheme of a multinational publishing company.
Click here for other articles written by Clarissa Dann
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