Three steps to heal or strengthen systems in nonprofit organizations

Sep 30

We’re continuing our series on practices of thriving nonprofits by exploring Systems – inside and outside organizations.

A system can be defined as, “a set of principles or procedures according to which something is done; an organized framework or method.”

We are surrounded -- and immersed in -- all kinds of systems. And many of us struggle to understand what systems are. We are not accustomed to thinking about all of the systems surrounding us and that we are a part of. So when I talk about systems, I try to be very concrete.

Most of us do not tend to think about systems too much, until they don’t work!

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When systems fail or break down, it hurts

A simple example of a system would be plumbing, such as in your home. Many years ago, I lived in a rental apartment where the bathtub seemed to be clogging. Over some weeks, I noticed that the bathtub was draining very slowly.

One day, I woke up and the bathtub drain had overflowed and backed up onto the bathroom floor and the carpet in the hallway. There was a goopy, smelly, nauseating liquid coating the floor of several rooms of my apartment. This may have been one of the most foul experiences of my life. I still shiver with disgust thinking about it today.

Fixing this took days. It wasn’t just the wave of a magic wand. But it took effort to clean up the mess that was made, unclog the drain, and ensure that it didn’t happen again. That is exactly what happens when systems in our organizations and lives stop working: They can cause dysfunction, pain, or worse - sometimes much worse than just a big mess or stink in your apartment for a few days.

Given the times we are in, it feels important to note that we are seeing attacks on many systems that surround us: the political, immigration, justice, economic, and public health systems are all feeling the heat and not working as well as they need to support a world in which all people can thrive. These attacks on systems cause incredible strain for so many of us. AND the question that we work on with our clients is: What is in my control to strengthen and heal systems – in order to strengthen and heal our communities?

More complexity creates the need for stronger systems

Closer to home, we have some power to strengthen and heal the systems inside of our organizations. More complexity creates the need for stronger systems. As organizations grow and people start to specialize, leaders across departments need to create processes to share information and collaborate.

Some systems inside nonprofit organizations may include: A financial management system, a fundraising system, a volunteer management system, a system for board management, a governance system, a knowledge management system, and a system for assessing program data.

Your first step: Notice systems

You can’t strengthen or improve something until you see what it is and how it is working

So the first step is to notice your systems and reflect on how well they are working. For example:

“We have an excellent program to recruit volunteers. However, there is no system in place to add these people to our prospective donor database.”
“We are a fiscal sponsor of several smaller organizations. We do ‘free’ bookkeeping and accounting for them, and this is not adequately reflected in the workflow and capacity of the leaders who do this work.”

Next question: On the “overflowing bathtub scale,” how well are your systems working? ☺️

Every single client that we work with takes a close look at their systems, or has done so in the recent past:

One Executive Director described how the systems in her organization were working so poorly when she took the position that she and her team decided to “start from scratch” to carefully design processes that would support the organization.
Another organization is revising and upgrading their financial systems in order to more accurately reflect how money is being allocated to different programs.

Last step: Figure out how to strengthen the system

Once you’ve assessed the strengths and weaknesses of the system, you can figure out steps towards a solution:

Some of our clients determine that they need more staff or a different staffing model to work on these new challenges.
Many clients need to add new work processes to ensure that knowledge is being captured and shared.
Some invest in a technological solution, such as a new financial software or fundraising database, to support their growth and complexity.

Systems happen, either through neglect and circumstance or through intention and purpose. We will help you to review the systems in your organization to see what is serving you and your organization best. When those assessments are done, then we are able to work with you to build out the ones that aren’t serving you or your organization. Reach out to us if you need help – or if you’d like to share a horror story about a system that went horribly wrong, we’d be happy to discuss (and/or commiserate!).

Note - this is part 5 of a five-part series on practices for thriving nonprofit organizations: