The nonprofit sector is fueled by passionate, creative individuals that work every day to solve problems – often with too few resources. In fact, the measure of an effective organization is often one that can do more with less. Limited resources become a rallying cry for funding, volunteer hours or to otherwise spotlight the magnitude of the challenges the sector must confront day-to-day.
It is against the backdrop of resource constraints that we should consider evaluating project risk. We will consider five risks too common to projects in the nonprofit sector and propose mitigation strategies. Outstanding planning has always been a means to accomplish so much with so little, and is no different when planning for project risk.
1. Too difficult to change
Once you find an effective process to complete a task, you repeat that process. It becomes part of the fabric of the organization – the culture. This strength can also be a weakness if it blocks an organization’s ability to change or embrace new and better ways of doing things. An organization unwilling or unable to change is an organization likely to see a project fail.
To help mitigate or avoid this risk we would recommend your organization create an open and inclusive process for your stakeholders. Providing a seat at the table for those individuals with the greatest ownership over process will help appreciate their knowledge and help them embrace process transformation.
Also, ensure effective governance procedures are in place. When you get stuck, you should have a means to effectively resolve blockages. A governance process provides the vehicle to escalate issues and resolve concerns as they arise. (See: An Effective Governance Model).
2. Too little space on the calendar
Programs run year-round. End-of-year fundraising or event fundraising peaks require all-hands at critical moments. Grant applications are due. The board meets every quarter. The nonprofit calendar is already full. There simply is no room left to run a project. There is an inherent risk to there being no “good time” for the work required.
There is no easy way to mitigate this risk. Accounting for critical schedule conflicts in the timeline and operating under a realistic resourcing model are the best strategies to reduce the impact of simply not having enough days in the year. Be wary of over-reliance on external partners as they can provide substantial new resources, but project change must come from within.
3. Too long in the making
At the moment I have two active projects to replace their central fundraising system. Both have been on their system for more than 18 years – an eternity from a technology standpoint. The legacy tools were customized extravagantly over the past few decades as the organization attempted to bend and bend old tools to meet new needs. This, in turn, warped the data model, layered on circular business processes and created an environment where a shrinking group of people knew what was actually happening under the hood.
The best strategy is to avoid this situation altogether. Building in a retirement plan – or at least regular evaluation points – can help ensure your organization is not paying more or increasing risk exposure later. This can be framed as part of the business case and anticipated return-on-investment, after which the system will be replaced.
For organizations that have inherited a legacy system they should consider building in a retirement plan into the business case for the new project. As you plan for the new implementation, it is important to build-in time and fully appreciate the size of the change in technology, data and process that a legacy system replacement project will require.
4. Too little expertise
Even large nonprofits require many staff members to wear multiple hats. Highly specialized skills are a luxury difficult to accommodate. Project Management is a highly specialized skillset without which, projects inherit risk from day one.
Vetting your partner for project management expertise is one way to help fill this gap. Gaining at least baseline training for the Core Project Team is a second. But, this begins with recognizing that project management is a critical, core competency for project success.
5. And, too few options
A decade of consolidations and mergers of technology providers in the nonprofit sector have narrowed the vendor field. While there are newcomers stepping into the space, the sector is left with a host of solutions that are strong in some areas and light in others. We find ourselves stacking up what works well and balancing it against what does not.
A well-run procurement process is the best mitigation strategy. Make the best decision possible at the outset. Take those gaps from the procurement process and identify early solutions – or acknowledge and accept them for what they are. And, message realistic expectations to stakeholders throughout the entirety of the process.
Summary & Conclusions
Project Management is not for the faint of heart. Project Management in the nonprofit sector amplifies many of the common issues: need for business process transformation; resource and calendar constraints; time between systems change; project management expertise; and limited viable options in the industry. Recognizing and addressing those risks inherent to the sector are our best bet to mitigate or avoid them altogether.