Resistance to Change (RC FACTOR) is the number one obstacle to the growth and development of Nonprofits today. There are significant shifts in the Nonprofit Sector that most organizations are not staying abreast of and even if so, have an entrenched resistance to change in culture that’s debilitating.
Ineffective Boards of Directors are the next significant obstacle. It’s becoming more difficult to recruit quality, skilled candidates for two reasons: (1) A lack of understanding with regard to how their roles have changed versus how the role of the CEO/Executive Director has changed, and (2) how the form and function of the Board is changing.
Inadequately equipped CEO’s/Executive Directors is the next significant obstacle. It’s becoming more difficult to recruit candidates that have more than just a passion for the mission. There is a range of skill sets required that mandate the organization be looked at not only as a Nonprofit, but as a business. This is not only a qualified candidate challenge but a cultural one, as well.
The process of planning has shifted from Strategic to Adaptability. The external environment is changing too fast and the need for adapting on the fly to ‘nudges’ that require immediate address are mandating a more narrow and consistent focus to the planning process. With 60%+ of Nonprofits with no plan of any kind in place today, this is a significant obstacle.
Most Nonprofits have never re-evaluated their structure and function, as well as that of the Boards. Organizational Assessment is based upon a clear understanding of the fundamental principle of Organizational Structure, which is that ‘function follows form’. In other words, the way it’s designed and built determines the way it’s going to function and help sustain. Any organization of any kind (including Nonprofits) have a life cycle, which Nonprofits have traditionally never studied.