Thursday, November 8, 2018

Listen to the Rocks


Did you listen to the rocks rolling? That's what it is like when you reorganize a government agency or a large nonprofit. Your employees come in with the tide and go out with tide, often griping and complaining.  Eventually, the rough edges smooth out.
In the public sector, it frequently happens after an election. A new administration wants to show that it is serious about change.  That change is top-down and with it, it brings complaints and griping that you can avoid.

The three most common reasons for a reorganization or even a merger of small nonprofits are.

1) Improve program or policy effectiveness.  We place together programs that have similar purposes.  Effectiveness is in the eye of the beholder unless you have a way to measure change.  That's what occurred after 9/11 when President Bush reorganized agencies into the Department of Homeland Security.  

2) Ideological or tactical ends. We restructure to symbolically convey the importance or loss of importance of a program.  Layoffs or hiring might occur.  Fundraising becomes a competition for nonprofits with similar goals, so we might even merge similar minded nonprofits.  Some might say that this is not reason for reorganizing.  That criticism may occur from within as well as from the public.  It may be time to change the mission if this is important to get a buy-in.

3) Improve efficiency. It’s the most common reason but the most difficult.  Costs occur from the very process of reorganizing.  Cost savings may be one-time savings. Administrative costs are not necessarily achieved by reducing redundancy such as closing offices.  Are the data available to measure performance before and after?  If you are working with publicly funded programs, the purpose of the programs can’t be changed.  


To be successful “listen to the rocks; ” get the input of employees at the front end as the waves of change are grabbing up the rocks.  You’ll grab even more as the waves roll out as the plans evolve with employee input.  Over time the rocks smooth out.