Is your foundation installing new grantmaking or CRM software? Many times, staff are excited to have a new system, but they are hesitant to give up what is familiar and proven. Some philanthropic organizations address these emotions by developing a comprehensive software install plan. Such a plan addresses process change management steps as well as the questions, concerns, and reservations of the people who will implement them. Leaders who took these human factors into account say their investment in thorough planning more than paid off.
More than one hundred philanthropic organizations change grantmaking systems each year. This once-in-a-decade or so task is an expensive and risky venture. Given that most foundations install a new system quite infrequently, employees are understandably unfamiliar with the conversion process. And even though some employees may be tired of the old software, are they ready to significantly change their work processes, roles, and controls to maximize the new system?
One foundation spent a couple million dollars on a new grantmaking system and CRM only to have employees bypass the labor-saving features of the new system. They continued their manual work arounds, including old work steps, spreadsheets, and piles of paper. All the expensive, state-of-the-art bells and whistles that the new system offered went unused.
Achieving buy-in from staff members who will use the new system on a daily basis is a huge contributor to software success. Therefore, meeting employees where they are and readying them to implement the changes ahead is an important project step. Recently we surveyed philanthropic leaders, asking what steps they included in their new software plan to prepare employees for the pending conversion. More than half (58%) of survey respondents said they invested in human and process change management training during their new system install.
Their outcomes? Participants said their training addressed human change-management skills, empowering employees to question how work is done, business policies, and roles and responsibilities. Many also said they believed this training helped them achieve improved outcomes during the new software install and ongoing.
Is your philanthropic organization interested in learning how human and process change management training looks? Register for this upcoming free webinar: Not Just Plug and Play – Process, People and New System Install.
Also, contact Lee Kuntz to discuss your journey and challenges. Lee can share how others who have installed new software have achieved success by incorporating both human and process change management training into their installation plan. Many foundations have helped their employees embrace new and better ways to approach their daily tasks using a new software system You can too!
Here in Minneapolis and across our nation, these are challenging times for nonprofit and philanthropic organizations. Local emergencies, impactful opportunities to speak up, and the COVID-19 pandemic are creating serious new needs in communities across the country. Organizations that were already operating at or near capacity find themselves trying to stretch their resources even further while simultaneously managing the disruptions caused by a shift to remote work, declining donations, and a volatile stock market. As a result, many organizations are struggling to meet their goals.
Learn how some organizations are going virtual to improve their nonprofit operations and results to their community through my recently published article in The Sustainable Nonprofit blog from PND by Candid.
Go Virtual to Improve Results During Emergencies
My family learned that being awarded a scholarship is just the first step toward actually receiving funds. Prior to entering college, my son was awarded a scholarship administered by a community foundation. Over the course of his first three years in college, the foundation contacted us no less than a dozen times to get him that scholarship money. If his experience is typical, one can surmise that the task of administering the more than 1.5 million scholarships awarded annually in this country is cumbersome at best.
The Indiana Philanthropy Alliance’s GIFT Program shared with me that many of their members are squeezed by labor-intensive scholarship programs. When community foundations face these economic trials year after year, foundation sustainability can begin to erode.
Last week, eighteen leaders from five Indiana community foundations met online to confront these challenges head-on. Given the current pandemic, they participated from 16 different locations. We led them in plenary sessions and also had them work in breakout rooms at different points during the day.
An important step as we began our coaching was for each foundation to map its scholarship processes, enabling them to see what was really going on. Their eye-opening comments included, “How can it take this many steps and so many hours?” and “I didn’t know you were doing all that work.”
We then coached attendees to identify time traps¬—places where the work slowed and consumed massive capacity. Some key learnings were that existing software was not being fully used, duplicate and unclear roles were creating confusion and sapping work hours, and business policies such as sending students letters versus texted or emails were hurting the community foundation.
We asked these leaders to collaborate with their foundation colleagues and with others who attended this one-day event to identify solutions to their time traps. Through use of our templates, participants outlined a way to modify their current approach and institute a new approach. The four process transformation stages are as follows:
By the end of the day, participants shared how they decreased the work steps they planned to implement in their scholarship operations by 25% to 50%. Some of their changes will result in students receiving help and information via the technology they use every day. Scholarship fund owners will receive improved service and be able to award more scholarships. Community foundations will streamline operations and position themselves to do other important work in their community.
Participants were excited and encouraged about the new path they charted. One attendee said, “With everyone’s help, I now have a mind-blowing solution that will help both us and the students.” Another added, “Thank you, Lee. It was an enjoyable and productive day.”
Thank you to Terri Johnson, Rosemary Dorsa, and the Indiana Philanthropy Alliance’s GIFT Program for sponsoring this exciting event.
Any Indiana foundations interested in more information or being part of the next cohort can contact Terri Johnson for more information (317.630.5200). Contact Lee Kuntz to learn more about how your foundation can recapture capacity through transforming operations. Once their new scholarship process is implemented, these foundations will be more efficient and effective by recapturing hundreds of work hours. You can, too!