For information and suggestions on how to communicate the positive impact of making the change and the negative impact of not making the change, see Chapters Five and Seven. Selling the Vision A small theatre company has been left a very generous bequest on the condition that the company use it to build a new theatre. She needs to convince her staff that such an opportunity is too good to miss. She calls them together. I realize that for some of you at least, part of the attraction of being with the company is the fact that we are small.
You can swap in and out of different jobs. We know our regular audience by name. Yes, our audience is loyal—but also mostly older. And so, we have a reputation as an older, safer kind of theatre. Meanwhile, what about the younger people in this town— what have they got? Schools are teaching texts that never come alive for their students because the stories stay on the page. Because with this new theatre we can cater to both— even at the same time sometimes. Summary Every organization has a life cycle of unique amplitude and length. We can measure our growth or performance in lots of ways: money raised, number of people helped, and the like.
Organizations decide to change at various points in their life cycle and for different reasons. Each of these key points has advantages and disadvantages. The challenge with the most common change point—just past the peak—is that it leads to comfort-zone work. We want you to break out of comfort zones, and one way to do that is to think about the idea of a second wave: a new, dramatically improved level of performance.
To drive that change you need to create a vision of the new performance level and to create some positive and negative drivers for it: pleasure and the avoidance of pain. It can help capture a new spirit of organizational culture or a particular type of goal. New Language for New Ideas in Politics There are a number of examples of different or new language being used to introduce or capture the essence of new ideas. Note, as in the examples below, that sometimes the idea works and sometimes not. This phrase was successfully used to sell his second-term election in And Gorbachev, unfortunately, failed to achieve either glasnost or perestroika.
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Every organization has its own internal language. Two Distinct Kinds of Change The words we use carry enormous power. Two words that have proved exceptionally useful for us in setting new kinds of goals are kaizen and horshin. They are exceptional because they describe not only the nature of the goals an organization has to reach but also the change processes that it has to go through. The people spoke a language used by no one else in the world.
They were occupied by a foreign force that had beaten their once invincible army. It seemed they had little potential to become a powerful force in the world. The choice for Japan at that time was whether to sink—and become an economy largely dependent on outside aid—or swim. Despite all the disadvantages under which it labored, Japan set out on the path to becoming an industrial leader. Out of these desperate times came the parallel philosophies of kaizen and horshin. They began as ways of thinking about industrial performance but have come to be much more widely applied.
The individual changes introduced are small, but they add up to major improvements given enough time. The Japanese applied kaizen to a whole range of activities, including their car industry.
2. Managing the Non-Profit Organization: Practices and Principles
They did it by setting a long-term, world-class performance goal and then breaking that goal down into small, achievable chunks. Their method was to study what worked elsewhere and to build on existing best practice. From this process emerged a powerful and effective car industry well able to hold its own in the global market. There are two key aspects to them: 1 workers are made responsible for their own quality checks, and inspectors are removed; 2 workers are also asked to meet in groups every day to discuss what small changes they can make to improve performance or quality.
More important, perhaps, are the daily meetings. This process does take place at some charity telephone helplines. The increase in income from these small changes might be in the region of 0. This process is documented brilliantly by George Smith in his book Asking Properly He shows how tiny changes in direct mail copy, layout, and offer can dramatically improve performance.
How to innovate
At a conference of the U. Council on Foundations we attended in Washington, D. These procedures are carefully documented in their excellent relief and emergency manuals.
Members can use the credit to set up microenterprises or to pay for houses or other necessities. The bank works like a villagebased credit union. At the start the bank was very small, and there was a lot of suspicion and nervousness about it, both from prospective users and from agencies, such as the World Bank, that were asked to provide capital. But gradually it has built itself up, village by village, until it is now the largest bank in Bangladesh—even though it handles only very small amounts of money in each transaction.
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This process of slow, incremental growth in performance has been extended to other areas. For example, the bank has now set up its own mobile telephone network. The idea is that the bank provides one person in each village with a mobile phone. That person allows other villagers to use the phone on an as-needed, call-by-call basis.
It will certainly be too long for homeless people. It may start to be seen as a Sisyphean task that people feel is ultimately hopeless. This may mean that boards, staff, and managers with long service records are needed to provide the organizational perspective. Newer people may perceive no real change and thus become dispirited.
Indeed kaizen can seem to work against transformation. However, far from being comfort-zone work, kaizen processes can be used to make focused, incremental improvements in performance toward a breakthrough goal. Kaizen is a useful tool if we have a longish time frame, a clear goal, and a set of processes to gather and quantify knowledge on what works. When using horshin, the exact new performance level is hard to specify. It can go up and then down again, as Figure 3.
The initial push in horshin is very different from a kaizen initiative. Usually driven from the top, horshin is based on a strategic impulse: a new technology, a vision, an opportunity, a crisis—or even a hunch. This process was used in the late s by Akio Morita, at that time the chairman of Sony. He was in his sixties, and he loved listening to classical music and liked to have it playing as he worked and relaxed at home.
source link His grandson, like many teenagers at the time, was into rock and heavy metal. Morita and his grandson were, apparently, on a collision course. Instead he decided to use one of the battery-powered cassette players Sony manufactured.
He used his belt to strap the cassette player around his waist, plugged in some earphones, and listened to the music he liked without disturbing, or being disturbed by, his grandson. Time Figure 3. Every time he wanted to sit down he had to take it off, or it would dig into his ribs and thigh. It was not all clear sailing, however.
Morita took his vision to the board. Would there be any demand for a small personal cassette player you could listen to as you walked around? They suggested that they get a consultant to run some focus groups to see if people would be interested in such an idea. A month later, the consultant came back and said no. But Morita was the boss, and he had a vision. He told the board to go ahead and get the machine into production anyway. They did not sell. Still they did not sell.
So what had happened? Why, apparently against all the odds, did the Sony Walkman suddenly take off?
There are two reasons. As it turned out they simply were not the target market. Certainly at one time the Walkman seemed to be the most widely used personal electronic device on the planet. With her staff she developed new menus that included a total of twenty-six choices for breakfast and thirty-two for lunch. The food varied from traditional hamburgers and pizzas to international cuisine such as sushi.
By April the MGH dietetics service was serving a total of nearly nine hundred patients and thirteen thousand nonpatients each day. Also in April Helen Doherty was named Restaurateur of the Year by the Massachusetts Restaurant Association, an award more commonly associated with huge commercial successes like Legal Seafood. As chair of Sony, Morita could insist that the company go into production on the Walkman even though all the research said no. But Morita, as the horshin driver, insisted that they keep going until they found the true market. Horshin processes are by their nature unstable and uncertain.
Since the breakthrough invention of the Walkman, Sony has kept its position as market leader by a process of continuous improvement: reducing the size, improving the quality of the sound, customizing for different groups from tots to teens to middle-aged and elderly businesspeople even they, in the end, had to come on board.