ManagingNonprofits.org: Dynamic Management for the Digital Age
Among other things, September 11 was a brutal reminder that the global community has entered an era of rapid, disruptive change. Economic globalization, climate change, the spread of HIV/AIDS and other diseases, the proliferation of weapons of mass destruction, and accelerating technological innovation could conspire in ways yet imagined to make the next few decades some of the most challenging in recent history.
In the not-for-profit world, write Ben Hecht and Rey Ramsey in ManagingNonprofits.org: Dynamic Management for the Digital Age, the rapid adoption of information technologies by nonprofit organizations and their customers, the devolution of government funding to state and local service providers, the explosion of individual and foundation wealth, and the accelerating rate of nonprofit growth are combining to have an equally disruptive effect on the sector. In order to be effective in an era of rapid change, add Hecht and Ramsey, nonprofit leaders will have to develop "a dynamic process of self-reflection and have a willingness to do things differently. They [will have to] reflect constantly upon their individual and organizational efforts and [not be] afraid to reposition themselves in order to embrace change, capture market opportunities, and serve customers...."
The authors, former senior executives at the Enterprise Foundation and co-founders of the One Economy Corporation, a national nonprofit dedicated to using technology to help low-income people get out of poverty, call this process of repositioning Dynamic Management and argue that, in the Digital Age now upon us, it is less about hardware and software and more about mindset. "An organization with a digital culture," they write, "has an ethos of learning, rewards innovation and risk-taking, puts its people first, and looks for ways in which technology can help do things in new and different ways."
After explaining why many nonprofit leaders seem to resist change (they're uncomfortable with business discipline; they feel that helping others is its own reward; they dislike fixing things that aren't broken), the authors identify the aspects of an organization that all nonprofits should examine and reflect on: 1) the organization's current state; 2) its culture, especially its vision, values, and people; 3) its business model; 4) its infrastructure; and 5) the alignment of its people and resources to its priorities and needs.
To help managers structure this process of examination and examination, Hecht and Ramsey provide a tool called the Dynamic Management Map (DMM). Essentially an inverted pyramid, the DMM encourages nonprofit managers to look at the big picture (i.e., organizational health and position within the sector) before moving on to cultural and operational issues (e.g., Who do you serve? What do you do? Are you supporting your business model? Are your resources being properly applied?).
The authors devote more than half the book to a closer examination of each tier of the DMM pyramid (i.e. organizational context, corporate culture, the business model, content, infrastructure, and alignment), suggesting along the way that no area of nonprofit work is changing faster than content. "Nonprofits," they contend, "are expanding their existing customer relationships by adding an online component, letting go of information and Web-enabling their knowledge, making technology a part of their products and services, and collaborating virtually in ways never before possible." Citing the experiences of organizations as diverse as Environmental Defense, Kaboom!, America's Second Harvest, the Bay Area Homeless Alliance, and Share Our Strength, the authors argue that, as Internet culture become ingrained in society, people increasingly will expect nonprofits, like the Web itself, to be more transparent, more responsive, and willing to offer more choices in terms of products and services and methods of delivery.
In order survive and flourish in the Digital Age, write Hecht and Ramsey, nonprofits will have to spend more time communicating with, wooing, and servicing customers; will have to embrace strategic alliances, collaborations, and joint ventures as never before; and will have to have to learn how to use information technologies to make themselves more nimble and efficient. While this may not come as news to the Web-savvy executive or manager in an already Web-enabled organization, it's an important message for others — and one that Hecht and Ramsey deliver with verve and passion. In conclusion, if you're a nonprofit manager and are eager to add a management title to your summer reading list, you'll be well-served by Hecht and Ramsey's manifesto.
