Capacity & Cost Savings Through Org Design
“We do not have enough capacity!” is a lament we hear frequently from our clients. Whether staff is overwhelmed because of underperforming individuals, unexpected vacancies, or a lack of accountability, these symptoms have less to do with the number of people you have and more to do with the way work is done or culture is managed. During most of our nonprofit organization design projects we have identified capacity issues caused by:
Inefficient workflow and processes
Lack of proper systems to manage the complexity of work, data, and communications
Ineffective management and decision making
Lack of job clarity and accountability
Missing expertise or capabilities
When the focus is shifted to these areas instead of adding staff, the root causes of capacity constraint can be addressed instead of the symptoms. Addressing these obstacles generates capacity through saving time. Time is a valuable resource in nonprofit organizations and the more efficiently and effectively leaders can manage time, the more time they will have to manage.
Here are some specific ways to address these root causes of capacity issues:
Redesign work flows and processes: This can be done by mapping out the current process, identifying areas of inefficiency, and brainstorming ways to improve the flow of work. This may involve automating tasks, eliminating unnecessary steps, or delegating work to others.
Implement proper systems: This includes investing in the right software and technology to help manage the complexity of work, data, and communications. This can help to streamline processes, improve efficiency, and reduce errors.
Improve management and decision making: It is important to create a culture of accountability and transparency, where everyone feels empowered to take action and make decisions. This can be done by providing training to managers on how to effectively manage their teams and make decisions. Follow the RACI (responsible, accountable, consulted, informed) structure to increase ownership, manage risk, and build buy-in during the decision making process.
Create clear job descriptions and lines of accountability: This will ensure everyone knows what is expected of them and who is responsible for what. It will also help to prevent confusion and conflict over who owns which responsibilities, processes, and decisions. When accountability rises, performance and morale follow suit.
Identify and develop missing expertise and capabilities: Start by identifying the skills and expertise you need to operate in the future. Then conduct a skills assessment of the current workforce. Once you can identify the gaps, you can develop a plan to hire new talent or train existing employees.
It is important to remember to address ‘how we work’ before ‘how many of us are working’ in order to tackle capacity issues more effectively. By addressing the root cause of capacity issues, you can free up time and resources that can be used to achieve your nonprofit organization’s strategic goals. This will lead to improved performance, reduced costs, and increased efficiency.