Diversity is an asset when…

The principle of diversity has been on my mind recently – of beliefs, views and skills that emerge from different demographics, political allegiances, neurological types and behavioural traits.

As one might expect, the subject of diversity lends itself to various interpretations, often with opposing views like those I encounter online and in discussions. It is notable how hard it is to reach any consensus on why diversity actually matters, as debates tend to break down into polarised positions.

I prefer a more nuanced and contextual approach to thinking about diversity at the levels of countries, organisations, teams, families and relationships. This article proposes the conditions where diversity is an asset to any system, organisation or team, and describes what tends to happen if these conditions are not met.

Getting governance right: Why people and conversations matter most

Organisations need good governance to stay on track and fulfil their purpose. Good governance involves a group of people, such as a board of directors or trustees, providing strategic oversight and ensuring that an organisation makes sensible strategic decisions and operates ethically. Such governance structures function effectively when they consist of the right people having the right conversations. These are the two key ingredients for successful governance.

In this context, the “right people” means capable individuals with a diversity of knowledge, experience, and mental models. The “right conversations” include a willingness to invest time and effort in thoroughly exploring the matter at hand with fellow directors.

Organisations should therefore be mindful and intentional about the types of people they wish to recruit for their boards, the types of conversations they want to encourage, and the type of governance culture that would be a strategic asset.

This article pulls together some ideas that have been floating around my mind for a few decades and also tackles the relationship between thought diversity and demographic diversity.

Fixing problems upstream in an age of austerity

Here are some thoughts about upstream versus downstream problems, especially in the context of the social, economic and environmental challenges that charities and governments face.

Upstream problems are the root causes and conditions that slowly emerge and eventually lead to the more visible, urgent problems that appear downstream. These often form part of a vicious cycle where the deeper causes are obscured by the fallout they produce.

By contrast, downstream problems are more tangible. They are loud, visible and easier to rally around. This makes them politically and practically more attractive to address, even when it’s too late to avoid the damage. The austerity measures in the UK have made this tension between upstream and downstream activities even more apparent.

How funding shortages affected South African charities and what their UK equivalents might learn from this

My clients and colleagues have been complaining about how difficult fundraising has recently become in the UK for charities, social enterprises and community groups. They observe that there seems to be less funding available and much more competition for it. The overall mood of the UK third sector seems subdued.

Unfortunately, this situation is very familiar to me. It’s almost déjà vu. It reminds me of the situation facing the South African non-profit sector since the early 2000s. I know the endgame – how this can turn out since I’ve spent over two decades helping these organisations overcome these challenges.

Here are 10 trends I observed about how the third sector in South Africa adapted to the decline in funding. This may contain insights for UK charities.

Advice for organisations trying to recruit staff in the UK’s third sector

There is some debate about the job market in the third sector in the UK. It concerns whether organisations like charities and social enterprises struggle to find qualified staff because of a shortage of skilled job seekers. My article explores the different perspectives in this debate and offers advice for organisations struggling to recruit staff. This advice is based on my experience of looking for work in the UK.

Community Wealth Building is an increasingly popular approach to local economic development in the United Kingdom

Community wealth building (CWB) is a philosophy and approach to local economic development that is packaged into a coherent and marketable model. CWB is gaining traction in the UK.

CWB aims to promote economic activity and investment in local areas and enable equitable economic growth. It opposes the idea of extractive economics where wealth is taken out of communities by national and multinational corporations. It rather promotes generative economics and embraces concepts like localism and new municipalism. This involves prioritising local matters and increasing the autonomy of local municipalities or councils.

The Scottish Government has embraced this concept and is busy embedding it in policy.

This article introduces CWB and reflects on its value and limitations. It will be interesting to anyone involved in sustaining and growing a local economy. I wrote it to contribute to the discussion about CWB.

The opportunities and dangers associated with a large and lucrative source of income

Our organisations all desire to achieve a big and profitable source of income from a friendly client, funder or investment. It helps to stabilise their financial situation and creates a foundation for growth.

However, these situations all carry a hidden risk – that our organisations become too dependent on this income stream and too distracted or complacent to do anything about it. I can tell many stories of organisations blindsided by the loss of this income for a multitude of reasons. While some organisations recovered, many closed down or became a shadow of their former selves.

Organisations must therefore be mindful of the risks of having a single large contract or income stream. This risk is higher where this income accounts for a significant proportion of overall income, seems reliable, and when you must shift how your organisation operates to accommodate a client or funder.

This article will explore the advantages and disadvantages of a good single source of income. It also provides some ideas for how you might mitigate the risks associated with this favourable situation.

The Scottish Index of Multiple Deprivation is a useful tool for understanding the challenges facing communities in Scotland

The Scottish Index of Multiple Deprivation (SIMD) is an excellent tool for getting a sense of a street or community in Scotland and its levels of deprivation and poverty. Other countries would benefit from creating their own versions of it.

The SIMD is used a lot by charities, foundations and policymakers. It is a combination of several poverty-related indicators drawn from official statistics.

It is also a common language for discussing the levels of deprivation in an area. I regularly use the SIMD in my work in Scotland which involves helping charities, social enterprises and community groups to improve their strategies and understand their beneficiaries.

This article introduces the SIMD, explains how it works and what I think of it.

Good implementation is more important than social innovation

Social innovation aims to find new and powerful ideas and approaches that can change the world. This is a worthy pursuit since we always need better ways of doing things. There are plenty of capable organisations that support social entrepreneurs to develop and refine their innovations. 

However, a social innovation is worth nothing without a capable organisation to implement it, a supportive and enabling environment, the right mix of funding, a large dose of perseverance and a measure of good luck. This is where the hard work comes in.

Framework for writing a strategic plan for a charity or social enterprise

Here is a framework to help charities, nonprofit organisations and social enterprises to write their strategic plans. It focuses on ‘writing’ the plan rather than the strategic planning process which consists of workshops, conversations, strategic exercises and desktop research.

There is no correct format for a strategic plan. This framework sets out my thoughts on strategic plans and my preferred method of writing them. These insights stem from decades of working with such plans.

You must choose a format that works for you and your organisation. Some organisations will pick the bits that enable them to write a concise plan of under 10 pages, whereas larger and more complex organisations might choose to respond to all the prompts, and write a more comprehensive plan of 20 pages.

Treat this article like a menu and use whatever parts of this framework make sense to you. Adapt or discard the remainder. This framework is detailed so that it can offer you an array of choices.

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Musings of a management consultant trying to make a difference to the world

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