The COVID-19 pandemic has consumed our time and energy for half a year. Many organizations say it’s time to refocus, to both take care of now and build for the future. These philanthropic organizations are moving from being reactive to transformative to ensure they achieve their mission. How will organizations that are already working at capacity effectively take on their future? One tool to build that capacity is process transformation.
The Challenge: Creating the Capacity for Today and Tomorrow
Due to the pandemic, grantmaking organizations have been in reactive mode, setting up safe, remote work environments in order to continue daily operations. This has required all hands-on deck, with employees being heroes by working creatively and for long hours. Recently one foundation shared that at times employees work while sitting in their cars in front of each others’ houses, ready to hand off grant checks or paperwork to the next person for the next step.
Yet even with this all-consuming workload, philanthropic leaders are focusing on increasing their organizations’ community impact. These leaders tell me they are now attempting to step back to assess where they are in their mission while maintaining safe operations.
This is a challenging next step, as capacity is already tight. The typical work of assessing existing programs and making adjustments places a huge strain on resources in today’s already at-capacity environment.
Capacity, or the hours available to do work, is a tricky asset to manage. In my process training, I talk through this capacity constraint.
Each employee has about 2,000 hours of work capacity in a year. The tasks they perform use up that capacity. This work can add value to the community, such as issuing grants to qualified organizations. Or it can be squandered through wasted steps that add no value to the community, including rework or duplication. Each organization’s yearly capacity is based on the number of full-time people times about 2,000 hours. It is up to the organization to decide how that capacity is spent or invested.
When I coach teams, we measure their value-added and wasted steps. I find wasted steps account for between 40% and 70% of work. For example, creating grants takes many tasks for thousands of work hours to deliver the grant check to the qualified organization. Yet this process can contain rework and duplication, resulting in a waste of work hours that could be better used to serve the organization’s central mission.
Process improvement is a generic term that hints at the opportunity to improve efficiency. But process transformation—a higher level of process improvement training—builds employees’ ability to see the wasted steps and eliminate them. After receiving my team’s process transformation training, one leader said: “I just need to find these wasted steps, then solve them to get back capacity for the rest of my career.” And she did. She and her operations team took their intake for home ownership coaching processes from an average of 90 days to between 9 and 20 days. They found the capacity to deliver more, better, and faster services to their community.
Next Step: Get information on Increasing Capacity through Process Transformation
Even as grantmaking organizations struggle to get work done from their remote desks, untapped capacity is just waiting to be found. As organizations are completing this year’s work and planning for next year, including process transformation training and coaching in plans is a first step to recapturing lost or wasted capacity. With an investment in our process transformation training and coaching, organizations can recapture and reinvest $30,000 to $75,000 of labor annually. Learn more about what organizations are budgeting for in this companion blog post: This Year, Plan to Succeed!
Contact Lee Kuntz to share what you see at your organization and to learn more about how your organization can thrive during these challenging times. Other organizations are moving forward during these difficult times, your organization can too.