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!
Have you installed new software that was universally embraced and paid for itself quickly, perhaps even within 24 months?
Attaining widespread employee buy-in at an affordable price is a worthy but difficult goal. Yet as new software competes for funding with other good ideas, achieving this is important. Business process redesign can help philanthropic organizations realize this measure of success.
Philanthropic organizations replace software, including their big grantmaking systems, every five to twenty years. That makes sense, as the philanthropic industry is growing. Contributions to donor-advised funds totaled $37.12 billion in 2018. This represents an 86 percent increase in contributions over the past five years. The related grants increased likewise.
Growth in grantmaking often necessitates employing new tools to stay ahead of the workload. Leaders of philanthropic organizations need to build a strong case to justify investment in costly new software. The best-case scenario is when the new software pays for itself within 12 to 24 months. In order to achieve such a favorable return on investment, employees throughout the organization need to be open to change and willing to explore all that the software has to offer. Business process redesign engages employees in fully learning and embracing new software, inviting them to fully leverage it.
Recently, three experienced technology leaders and I spoke at a Technology Association of Grantmakers webinar about how to leverage business process redesign to promote software acceptance and a quick return on investment. Key points:
Check out this new, free tool that can inform your thinking about software implementation: Business Process Redesign Steps for New Software Success.
Contact me, Lee Kuntz, at firstname.lastname@example.org for a no-cost discussion of your situation and recommended steps to redesign your business processes.
Foundations have realized substantial benefits from their new software investment through leveraging our business process transformation coaching and training. You can too!
Is your Minnesota philanthropic or nonprofit organization experiencing PAIN?
• Board looking for more efficiency and savings?
• Errors or double payments to vendors?
• Burned out employees?
Three Minnesota teams will dramatically improve their organization-wide accounts payable process through a two-day cohort workshop. Their new payment process can save time across their organization, which can be reinvested in your community. Teams that have taken this workshop have recaptured between 300 and 1,000 work hours. They also deliver better and faster outcomes.
The bottom line: Within six months, financial leaders can recapture their investment in time and coaching. One nonprofit leader shared: “It’s a no brainer. Little investment, bit return. Our time is valuable and we now we can do so much more for our community.”
In this workshop, attendees will:
• Transform their accounts payable process using proven coaching and tools
• Learn in a three-organization cohort, hearing best practices from others
• Maximize all they have now, without investing in new hardware
Attendees at this workshop achieve success through Innovation Process Design’s proven three step approach.
Contact Lee Kuntz today to hear more or register your organization for this September in-person or online two-day learning cohort.
Is your office in remote mode? So many teams are now working from home as we collectively battle the COVID-19 pandemic. Remote work can reduce personal and community health risk. Yet it can be unhealthy for your organization. Remote work can be slower and less accurate, impacting your organization and your community. A key question in this transition is: With this big change of unknown duration, how will your team continue to serve your community in a seamless way?
Teams that move to remote work find key risks.
o Paper piles of work are no longer visible, resulting in stalled or forgotten work.
o In-person double checks and communication may not happen, resulting in errors and embarrassment.
o Quickly made process adjustments to fit remote operations create the risk of errors and missed steps.
o Back-and-forth online communications may slow work down, consuming already tight capacity.
Remote work is an opportunity to redesign your processes to regain capacity, maintain quality, keep up speed, and preserve your reputation. Some organizations are using proven process transformation tools to achieve these goals. For example, as a result of our process transformation work, one foundation recaptured time while delivering error-free results for three years. This group became an effective cross-organization team, performing better and accomplishing more in a consistently high-quality manner.
Is this what you are looking for?
If your team is going remote, connect with process improvement coach Lee Kuntz about a live, online checkup for your key processes. We use our proven process transformation coaching, training, and tools to help you mitigate risk and deliver upon your organization’s commitments. Checking up on small processes can be done in a couple hours.
Contact Lee to discuss how your team can create a seamless transition to remote processes while maintaining and growing great results.
Financial leaders from philanthropic and other nonprofit organizations will hear the ideas that are transforming their industry at the NFG North Conference 2020, on October 8, 2020.
Philanthropic and nonprofit organizations work hard for their communities. Yet they have very limited resources. Maximizing those resources is key to their success. Lee Kuntz’s two session at the NFG North Conference 2020 provide ideas and concrete practices in the maximization techniques that are working in the industry.
Conference attendees will learn how to solve these pain points.
• Overwhelming workloads and employees working late
• New program ideas with no funding or capacity to do them
• Taking heat for errors
• Unused technology tools
Organizations will hear how nonprofits, including foundations, have cured this pain and are now heroes of their teams, audit committees, and boards. One nonprofit recaptured over 60% of their working time, now delivering faster and better results to their community, partners, and board.
Consider this: What would your nonprofit do with 1,000 hours of work time back?
NFG North Conference 2020 features two morning sessions given by Lee Kuntz that will equip financial leaders with the ideas that are making a difference.
Accounting and finance departments routinely get tasked with accounts payable responsibilities. And they work hard to get payments out timely and accurately. Yet are these leaders doing all we can to work efficiently and effectively? Or are there delays, duplicate payments, rounds of rework, or late payments?
The first workshop, Transform Accounts Payable, is a deep dive into how to transform the accounts payable process into a sleek, painless operation while recapturing hundreds even thousands of hours of time. Given much of the organization touches bill payment, each organization leader can get time back.
All financial leaders have done process improvement. Yet it’s advanced process improvement skills that are making the difference for nonprofits. The second workshop, Transformational Process Improvement, shows attendees how process transform skills are making the difference for nonprofits. Then these leaders will be part of making those results happen in a rapid improvement game.
NFG North financial leaders can register for the entire day of learning at: NFG North Members Register Here
Not a NFG member yet and want to attend? Contact Lee Kuntz to request one of her tickets to this event.
Lee Kuntz, process improvement speaker, trainer, coach, and strategist, has helped numerous philanthropic and other nonprofits to successfully create capacity and deliver better and faster results to their community. Lee believes employees are the right people to improve how work is done. When they have skills-and-will in transformational process improvement, they can achieve impressive results.
Clients Lee has trained and coached have recaptured thousands of hours of work time from their back office and have reinvested the time saved into the community. These organizations go beyond balancing to sustaining and thriving. Lee has an MBA from the Carlson School of Management, is a Certified Lean Six Sigma Black Belt, and is a Human Centered Design practitioner.
Every day teams can manage their processes to deliver winning results. By both improving and controlling critical processes, these teams can both make a big impact and get home at night.
Most of us have improved processes. We have tweaked the steps of work, fixed breaks, and automated. The next step—process management—is a powerful approach that can be the difference between failure and success.
Now you can measure your team’s process management muscles through an eight-question survey. This survey helps you see beyond tweaking, to fix pain points and transform outcomes. Through the survey’s results, you can discover your team’s process management strengths and opportunities.
Select the survey answer that best reflects how your team handles your critical processes. Eight-Question Survey Link
Do you want to learn more about how these important concepts can create results for your team? Then complete the survey, add your email address, and submit your answers, thereby emailing yourself your answers.
Our process coach and trainer Lee Kuntz will also receive a copy. Your contact information will not be used for any other purpose. Lee will then connect with you to hear and answer any questions about how each of these key process capabilities can help your team achieve the results you need.
When a foundation or nonprofit updates its software system, the purchase typically requires years of research and a financial investment that can run well into six figures. So, it’s important to make the most of that purchase. The most effective way to do that is to use system upgrades as an opportunity to reexamine internal processes
That kind of self-reflection allows the organization to get the best return on their investment, while following best practices for a software purchase. In fact, in a recent Innovation Process Design survey, 100% of participants said process design is essential when adding new software. By maximizing internal processes, organizations can get employees out of the back office and back to serving their communities.
“It’s important to have a high-level outlook of what outcomes drive the process and not be married to current processes in order to achieve the same result in a more efficient manner,” wrote one respondent.
“I can’t imagine how you can put in new software without reimaging the process,” wrote another.
In all, 24 philanthropic and nonprofit organizations completed the survey. Approximately half of respondents were financial leaders. The other half were grantmakers and technology leaders. Most respondents — 80% — had recent experience implementing sizable new software projects.
Exactly what reimaging should look like depends on the type of project in question. If your software installation is small or low risk, following vendor best practices or holding internal discussions may be enough. Larger or more involved projects may require an outside coach to lead the process or provide redesign training.
Wondering where to start? Here are a few key questions to answer before you complete your next software purchase:
1. How should you redesign? About half of survey respondents said they typically manage process redesign internally. Another 41% said engaging an outside coach is an important part of the process. A coach’s process improvement expertise can be a powerful tool when employees are hesitant to make changes, too busy to fully focus on the task, or inexperienced in process design.
2. When should you redesign? Reimaging before selecting a new software system gives nonprofits a clear picture of how they can work more efficiently and may even help them realize they don’t yet need new software. Redesigning after a system has been selected but before it’s installed, on the other hand, allows foundations to build new processes with the new system’s capabilities in mind. Building processes after the system is in place is another viable option, but respondents said it often feels like “trying to build a plane while it’s in the air.” Half of respondents to the Innovation Process Design survey said the best time to redesign is after selecting the new system and before installation. Meanwhile, another 37% say redesigning before selecting a new system is the way to go, and the final 12% say redesign should be done after the new system is in place.
3. Should you go big? The answer to this question may depend on the size of your software purchase or the needs of your processes, but 60% of survey respondents said they received more benefit from major process redesign than from minimal or no redesign. For some, going big led to better outcomes, faster implementation, and more significant return on a major systems investment, while giving team members the confidence to ask and resolve questions. In addition, 58% of participants combined process improvement training with redesign. These organizations said they received significant value from process training and this approach.
Understanding the goals of work is the first level of process redesign. It creates a framework that organizations can use as they proceed to the second level, which includes process work — identifying the structure of who does what, and when they do it. The third level is process detail — identifying the screens, fields, reports, and steps used to complete the work. However, all organizations should incorporate level three – process detail – when implementing a new software system.
Once an organization has a clear picture of its needs and the scope of the software project at hand, the team can identify the steps needed for reaching its goal — whether that involves a major design or a few simple process tweaks. This thinking is summarized in a matrix you can use to identify the specific process redesign steps to help your team be successful. See the matrix and survey summary report here: Summary of Reimage Processes for New Software Survey
Changing the way things have always been done is intimidating, and there are inherent risks. But applying time-tested resources in a way that best meets your nonprofit’s needs will make it easier to successfully manage the twists and turns of process transformation.
Adding new software is a major investment for philanthropic organizations. While improved tools can help automate business processes and create more efficient workflows, adding a new software solution can take years of research and hundreds of thousands of dollars for implementation and system integration.
It’s a big job, and new software alone is no guarantee that an organization will improve outcomes enough to cover the cost of installation. Read more and take part in a 10 question survey on best practices here.