Why is one group of leaders able to come together and build something that is respectful and caring and generative for themselves and their community – even synergistic?

Whereas another group of leaders starts out with a similar vision but does not have the building blocks to build toward success?

How organizations work – or do not work – is an ongoing puzzle.

Most of us can’t yoga our way out of a terrible organization

Our last three posts have been about individual practices for healthy leadership. And yes a key first step is to put your oxygen mask on first and cultivate practices that support your health. We believe in the power of individual leadership behaviors that help us thrive.

But having worked in unhealthy work environments, no matter how much exercise, boundary setting, and supportive practices we add to our days, most of us can’t get away from the challenges of working in a toxic work environment.

Long ago, I tried to compartmentalize toxic work experiences. And I got sick.

The more my brain said that the toxic work environment stuff “did not matter that much,” the more my body rebelled by getting a flu – and then another one.

Many readers, colleagues, and community members have shared similar experiences.

Healthy organizations do better in every way. Full stop.

Research supports what we are sharing here.

According to recent research released by McKinsey last month, organizational health “remains the best predictor of value creation and competitive advantage.” There is a business case for taking steps to build a healthy organization. Not only is it better for the finances of the organization, but team members prove to be more resilient, handle managing risk better, and experience fewer safety incidents.

Too many nonprofits are not healthy right now.

As we have shared previously, almost every client we encounter is struggling with staff retention and turnover.

Some of this is related to living in an area with an expensive cost-of-living in a very expensive housing market. I am thinking about the Executive Director who shared that she and her family were considering leaving the area due to the expensive housing market.

At the same time, we are each responsible for building organizations that create a climate of healthy leadership so that all people can thrive. But what does that involve?

Although we know that the nonprofit sector (and corporate sector) is filled with challenges and dysfunction, we prefer to focus on the bright spots – and challenge those of you reading this to as well. Here are three steps that are working for our clients:

Step 1 – Set goals from organizational values

We’ve written before about the importance of building organizational values and revisiting them often.

Conversations about organizational values matter because they give staff and board members the opportunity to talk about some of the questions that are most critical to the organization’s work.

For recent client interACT, a core value is “striving for collective well-being”:

“Internally, we commit to co-creating a workplace where we feel entrusted and supported, everyone’s offerings are valued, we have room to learn, and we feel that we are treated equitably and contributing to the growth of a healthy, sustainable organization. Externally, we commit to acting with compassion, integrity, and accountability in our relationships, and with particular care for the health, safety, and well-being of intersex people, especially the youth we work with.”

There is a direct line from this value to strategies that put it into action: Their three- to five-year goals include a comprehensive pay and benefits equity plan as well as an ongoing needs-based compensation assessment program.

Step 2 – Build it into the strategic plan

The staff and board at recent client Bike East Bay also felt the importance of building a healthy organizational culture.

This led to a strategic pillar of “become a first-in-class nonprofit that is recognized for its thriving team.”

The exciting thing about this is that organizations then come together to focus on that value. Buy-in from all levels increase substantially, especially when they see that leadership is acting on their values. Each of these strategic plans creates the roadmap for all staff members to come together to build a healthy organizational culture.

Step 3 – Create an implementation plan that ensures that healthy organizational leadership will be a part of monthly, weekly, and daily work.

Values are terrific and so is strategy.

But at the end of the day, what are you going to do differently – each day?

Towards the end of the strategic planning process, we work with our clients to develop an action plan that will inform daily work.

We start with the question: One year from now, what would success look like? And then go backwards from there to create short-term goals. This way of reverse engineering puts our clients in a mindset of making the path easier and much more likely to occur.

Summary - you can do this! Move towards healthy leadership, one step at a time.

Would you like to create a strategic plan that supports a healthy organizational culture? Reach out! We do have a few spots open to start planning in Q2 of 2024.

Next time we’ll hear from Corey Newhouse on how her consulting firm has increased transparency and equity in their work.