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Elements of
Organizational Excellence
To attain and
sustain excellent results in any organization is a challenge. To do so in the
nonprofit sector is particularly challenging. Great
leadership is a necessary, but not sufficient, condition for success.
As Warren Bennis says, "Great groups and great leaders create each
other."
When The Social Venture Capital Foundation works with nonprofit groups, we
suggest that they use the following guidelines for organizational excellence
to assess their current performance and guide their future aspirations:
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Compelling Mission: The excellent organization has a clear,
concise and explicit mission statement that defines the overarching purpose(s) of
the organization and the key challenge(s) that the organization is committed
to address.
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Unifying and Inspiring Vision: The excellent organization forges a shared
vision of how the world will change for the better as a result of the
successful execution of the organization's mission.
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Explicit
Objectives and Goals:
The excellent organization identifies qualitative objectives and
quantitative goals that it needs to achieve in order to achieve the
vision. These objectives and goals are the tools by which the
excellent organization defines "success". They, therefore,
must include not only input-related objectives and goals, but also
"outcome" or "impact"-related objectives and goals.
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Passionate
Commitment:
The excellent organization is passionate and committed at all
levels: passionate about carrying out its mission, achieving desired
goals and objectives; delivering at least the value promised and wherever
feasible, more (see Value
Proposition below); and doing so
in ways that are efficient, transparent, equitable, collegial, and honest.
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Focus
and Alignment: The excellent organization strives for
steady focus on the mission, vision, objectives, and goals, and alignment
of the entire organization on all aspects of its operation. This
does not mean that the organization functions only by consensus.
Rather, it means that where there is loss of focus or nonalignment on some
important aspect of the organization's operation, there is an active
search to determine the root causes of this loss of focus or
non-alignment, and there is a determined effort to use this difference of
perspective to find better ways to operate and a stronger basis for
building unity of purpose.
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Measures
of Performance/Self Assessment: The
excellent organization articulates specific metrics that it will
use (and uses them) to evaluate the progress it is making, the adequacies
of the strategies that it is using, and the need for performance
improvements.
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Stakeholder
and Contextual Analysis: The excellent organization
understands the key stakeholders that affect its ability to achieve
desired objectives and goals; the perspectives, interests, and needs of
those key stakeholders; and the opportunities for finding common ground,
building alliances, and defusing or minimizing opposition. The
excellent organization also understands the larger context (and multiple
arenas) in which these stakeholders operate, the most important influences
that may affect them, and how the context (and multiple arenas) may
present opportunities or challenges for the organization in achieving its
objectives and goals.
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Systems
and Process Thinking: The excellent organization uses
systems and process thinking in conducting its analyses and devising (and
revising) its
strategic plans. It considers factors like feedback processes,
unintended consequences, leveraging and synergism, concurrent and parallel
influences, newly emerging trends, step function change, mitigation
processes, forces of entropy and chaos, and potentially countervailing
forces for re-integration and development of new levels of order.
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Strategic
Plan: The excellent organization develops a written plan that
lists the strategies it will use to achieve the desired goals and
objectives and explains how these strategies will work to bring about
these results. The strategic plan identifies and analyzes the
organization's resources, strengths and weaknesses, opportunities, and threats and
incorporates the range of strategies best suited to the organization's
situation, capabilities, and needs, and the larger context in which the
organization is operating. The strategic plan (and planning process)
envisions the best, anticipates the worst, and helps create readiness for
response to all contingencies.
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Action
Plan: The excellent organization prepares an action plan that
sets forth what specific actions will be undertaken by whom and by when in
order to carry out the strategic plan and achieve the desired objectives
and goals. As with the other elements of organizational excellence,
the action plan is not a single event or static product. The action
changes (is updated and upgraded) as it is implemented, as new information
develops, and as it is revisited periodically. See sections on
Adaptability and on Continuous
Improvement below.
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Monitoring,
Information Flows, Feedback Mechanisms, and Evaluation Systems: The
excellent organization establishes systems for monitoring its performance
and its progress toward achievement of desired outcomes. It
regularly conducts monitoring, communicates interim data and results
to all who need to know, and evaluates what it could be doing differently
or better to improve its performance. It learns from its own
experience and the experience of others. It then acts on the new
knowledge it has gained to refine and improve the organization's approach.
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Strong,
Flexible and Integrated Management, Budget, and Finance Systems: The excellent organization
develops management processes and systems to ensure that the organization
works efficiently, collaboratively, and equitably to carry out the
strategic plan and achieve the organization's desired objectives and
goals. These systems help clarify performance expectations for
individuals and sub-units, responsibilities and accountabilities,
evaluation processes, information flows and feedback systems, resource
allocation and adjustment of priorities, incentives and financial control
mechanisms.
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Collaborative
Problem Solving and Empowered Teams: The excellent
organization uses collaborative approaches to problem solving, thereby
bringing to bear the highest wisdom available. It forms and empowers
teams to deploy complementary skill sets, experience, and expertise to
carry out its strategic plan and action plans; to exploit new
opportunities; and to respond to new challenges or contingencies.
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Drive, Enterprise, Creativity, and Initiative: The
excellent organization creates a culture that recognizes and rewards drive
and passion in pursuit of the organization's objectives and goals and that
encourages individual and team enterprise, creativity, and
initiative. The excellent organization is proactive, as well as
capable of reacting promptly and effectively when and as necessary. It encourages brainstorming,
heretical thinking, new approaches, and the impulse to innovate for more
efficient and effective performance.
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Culture of Adaptability and Resilience: As conditions change,
whether suddenly or gradually, for the better or worse, the excellent
organization is prepared. It can absorb shocks and seize
opportunities. This is so, because it has the culture, will,
processes and resources to recognize the need, and make and implement the
necessary decisions, for change.
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Expedition
and Efficiency:
The excellent organization is timely and efficient. It moves at the speed that the
circumstances demand. It does not dawdle or waste time, particularly
with respect to its most important tasks. It is thus able to seize
opportunities, manage risks, and address concerns and perspectives of key
stakeholders in a timely and cost-effective manner.
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Outstanding
People: The excellent organization attracts, recruits,
retains, nurtures, and provides growth opportunities for, great people
with diverse and complementary skills, experiences, and expertise.
The attraction and retention of a cast of outstanding people are causes of
an organization becoming excellent, and they are among the effects of organizational
excellence.
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Opportunities
for Growth: The excellent organization recruits new
talent, mentors and coaches less experienced members of teams, provides
challenge and feedback at every level of the organization, and develops
career pathways for growth for every employee or member.
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Appropriate
Facilities, Equipment, and Employee Support Systems: The
excellent organization generates sufficient resources (see below) to
provide its employees with appropriate physical
space, equipment, and support systems, including information technology,
research tools, benefits packages, training, mentoring, and performance
evaluations and regular feedback to support excellent performance by
individuals and teams within the organization.
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Work Environment That is Challenging and Humane: The
excellent organization provides a work environment that is professionally
and personally challenging, yet is collegial, humane, and
supportive. It provides challenges and rewards for the mind, heart, the spirit,
morale, and the wallet. The excellent organization can do the
above because it is effective in
generating the necessary resources.
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Value Proposition That Generates Sufficient Resources: The
excellent organization develops sufficient resources to be able to carry
out its mission, achieve its objectives and goals and to provide the kinds
of opportunities and work environment for its employees that is described
above. It is able to do so, because its operations provide great
enough value to others to generate the necessary resources for its
sustenance and growth.
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Effective
Communication, Marketing and Development: The excellent
organization effectively communicates to key audiences the value that it
is creating (the benefits or outcomes that it is generating and importance
of those benefits or outcomes). It also exhibits inexhaustible
curiosity about what the market (not just private sector) wants and needs
that it may be able to supply. It fashions creative new ways to appeal to the
market and to other sources of revenue (e.g., philanthropy, government).
It develops new and broader strategic partnerships. As a result of
all of the above, it creates or conveys greater and greater value and thereby
warrants the devotion of an ever-increasing amount of revenues and resources to its
mission. Its never outgrows its own ability to sustain itself and
grow.
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Continuous
Improvement: The excellent organization is never
satisfied with past performance, but ceaselessly strives to improve all
aspects of its work, internal and external. From each experience or
evaluation, it seeks to extract the most important lessons learned.
It fearlessly and honestly asks itself and others, how are we doing and
how can we do better? It listens to the answers, and it responds
quickly and appropriately.
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An
Effective Instrument of Change: The excellent organization,
for all the foregoing reasons, becomes an effective, sustainable, and
evolving instrument of
change. It thereby eventually succeeds in executing its mission and
bringing about the its desired vision.
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