Is your organization looking to make a bigger community impact? Your operations—that is, how work is done—can be a powerful contributor in accomplishing your organization’s mission.
For philanthropic organizations, the nuts and bolts of operations are what enable teams to award and deliver grants quickly, set up and service fund accounts accurately, and work effectively with their boards. Some organizations have discovered that fine-tuning these operations equips them to magnify their community impact.
These organizations function at their best when their processes, systems, and people are maximized. Here are three ways organizations can maximize to operate for impact.
Better service to the community. When an organization’s grantmaking work steps are consistently carried out as designed (including substantial error proofing), grants are issued accurately. Proactive operations staff make these grants in the manner that is best for grantees, whether electronically or with hard-copy checks. Having processes in place to verify email and postal addresses eliminates the need to reissue communications or follow up on missing grant payments. When organizations manage processes for accuracy and a high service level, everyone’s time and energy can be spent wisely.
Quicker turnaround. Most organizations spend hundreds of thousands—even millions—of dollars on technology. From my experience, few of them use more than half their system’s capabilities. Instead they rely on manual processes and system work-arounds, all of which slow the delivery of payments to grantees and receipts to donors. When payments and receipts do not go out on time, grantees and donors typically start calling to find out the status of their payment or donation. Fielding calls and tracking down an explanation takes precious time away from the main purpose of the philanthropic effort.
A grantmaker who makes best use of the available tools, such as leveraging templates in Outlook and creating system reporting rather than relying on manual work-arounds, gets grants and confirmations out the door fast. The donor or grantee’s focus on creating an impact continues without disruption.
Efficiency that creates lower administrative costs, enabling more community investment. Philanthropic work, whether related to program design or operations, is paid for by fund expenses. Therefore, greater internal costs mean higher fund expenses and less money available for making a philanthropic impact. Doing operations work more efficiently can help decrease internal costs. A key component to that efficiency is maximizing staff time.
Yet too often, operations staff are hired and then shown their desk and a pile of work. This may unwittingly imply that their role is less important than the functions carried out by program designers.
Nonprofits that support their staff by defining clear roles, providing purposeful training, and delineating business rules find that their staff gets work done faster and better. And not inconsequentially, their employees are satisfied, productive, and energized.
Grantmakers and operations staff working in finance, technology, human resources, and other areas have an important role to play in enhancing efficiency. By proactively managing and improving processes and making best use of systems, you can increase the philanthropic impact of your organization.
Learn more about how to enhance operation in this recently published article: Invest in your operations teams to drive your mission forward – PhilanTopic | PND | Candid
Lee Kuntz is founder and president of Innovation Process Design, Inc. As a certified process coach, she provides process improvement training and coaching to help teams look at their work with new eyes, transform how work gets done, and create tangible results in operations efficiency and effectiveness.