Most philanthropic organizations take pains to carefully design and then redesign their mission, strategy, and programs. They, along with their board of directors, often hire strategic consultants and share best practices with like-minded organizations to frame their goals and objectives. Yet many spend little time improving their daily operations to deliver on these plans, even though community impact will happen only by doing so.
Sound planning without excellent execution is unlikely to produce the desired results. Operations—meaning how work gets done—is the key determinant of whether organizations succeed in accomplishing their 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 board.
Not surprisingly, the majority of grantmakers’ resources are spent on operations. Our recent informal study showed only about 10% of employee time is used for mission, strategy, and program design. Yet 90% of employee time is spent on the operations to deliver on that planning. Yet in philanthropic organizations, little energy is spent maximize those operations resources.
Each full-time employee of a philanthropic organization works about 2,000 hours annually. Staff leaders can assign and manage that time in an efficient and effective way. Or they can assign employees to tasks that duplicate efforts and don’t add value. Either way, the money is gone and the community pays for that time through fewer grant dollars being spent.
Operations success requires specific skills. These include focusing on details to produce desired results, practicing strong project and task management, solving problems effectively, and having a deep working knowledge of process management and improvement.
A great first step toward enhancing operations expertise is to identify employees with an operations aptitude, then provide them process management and improvement training. Our operations and process transformation training uses proven process methodologies to maximize what the organization already has to improve outcomes. We show attendees how to maximize work steps, technology, business rules, roles, training, and forms—all of which are components of operations.
As a result of our training and coaching during these deep-dive events, we see organizations achieving a greater understanding of the value of operations work. Their employees are also transforming how work is done, significantly reducing and improving the work steps to decrease turn-around time and improve community impact. Learn more through this case study describing how one team went from overwhelmed and delivering late to making a much greater community impact.
In my recent conversations with foundations, I have noticed a greater commitment to scrutinizing how work is done. This includes identifying staff to focus on monitoring operations outcomes while also managing processes and systems. Increasingly, grantmakers are redesigning roles to build in detailed operations accountabilities. We have seen three approaches to this intensified concentration on operations:
Identify an operations person in each major function: Some organizations are establishing operations accountabilities by naming a person in each area as the operations lead. For example, one philanthropy team includes a senior operations manager who “ensures the productivity and efficiency of the Philanthropic Services team while working across departments to improve cross-team collaboration and communication.”
Another organization employs an operations manager who “guides the development and implementation of efficient processes within the Community Programs team to maximize the team’s efforts toward racial and economic equity.” This same organization employs an operations manager in their finance area to deliver on the chief financial officer’s agenda. This operations manager “owns and drives Finance & Operations team planning, project management and process development. The role also is the primary liaison for Finance and Operations communication across teams and collaborates on cross-foundation operations initiatives.”
Hire a chief operations officer (COO): Some organizations are grouping functions that are highly operational into one leadership role. For example, one job posting noted that the COO “will work in alignment and harmony with the CEO and will be responsible for effectively managing the organization’s infrastructure, processes, human and financial resources.”
Another philanthropic group shared that the COO “leads the Information Technology, Grants Administration, Board governance, Human Resources, Organizational Development, Office Management, and business continuity functions.”
Add the management of operations to a senior leader’s responsibilities: Some organizations add “Operations” to the responsibilities of the chief financial officer (CFO) or another leader. One foundation’s description of its CFO and operations role includes: “Responsible for leading the Foundation’s financial reporting, risk management, budget, technology roadmap, and investment oversight.”
Another organization lists some responsibilities of the vice president of finance and operations as follows:
Making a positive community impact is possible only when effective operational practices are in place. Foundations are now building their operations capabilities and accountabilities, enabling them to focus on both planning and operations successfully. Your organization can too. Contact Lee Kuntz to talk about the operations challenges you see at your organization.
Community action programs (CAP agencies) are the last local line of defense for families in need. They feed and heat our neighbors. They step in to ready young children, who would other wise be left behind, for school success.
Some CAP agencies want to do more. Therefore, they are building their team’s process muscles. Then they are taking a deep dive into their operations processes to better meet community needs. Their outcomes are recapturing and reinvesting work time and better meeting state mandates. Learn the innovation happening at one CAP agency from our presentation at the Minncap Annual Conference.