Introduction
Many non-profit organizations fail to recognize that they need to introduce an innovation program at the same pace as the for-profit sector. It is rarely acknowledged that the non-profit sector could do just as good, and they can build real, successful programs. It must be pointed out that success is not when the solution is applied but when the effects are measured. Real impact comes only over time. We can learn a lot from for-profit organizations; however, their programs must be transformed so it fits the world of not-for-profits. My name is Murray Berghan, and in this article, I will cover the 5 most important things about innovation programs for non-profits and how to start building one.
1. Define success and the desired outcomes
Success means different things to everyone; therefore, it must be defined at the beginning of an innovation project. Next, we must ask what the team considers as a successful innovation. It is simple advice, but indeed not easy. At the beginning of the process, designing tools such as brainstorming and reverse brainstorming can help shine the light on what success means for everybody. After this process, success and the desired outcomes can be determined, and later on, a measuring system can be set up to keep track of our advancement. 1
2. Have a shared vision and communicate it effectively
Non-profit organizations must define a clear vision and communicate it clearly and effectively to the public. This part of the agenda is essential in an innovation program; with a strong vision, it is easier to find people to contribute. People donate because they want to foster social and environmental development; this is called social impact investing. It is commonly understood that this sort of financing involves lower expectations of return, but it can be balanced by the social good that comes from the investment. The actual social impact investors believe in the organization’s vision, and they see and understand the roadmap of the mission. 2
3. Measure your impact and be transparent with it
Measuring the impact is quite significant, and the reasons are two-fold. First of all, it keeps your team on track. By measuring the effect, data can be visualized to show whether there are any adjustments needed or if everything is going according to the plan. Second, donors and funders like to see how significant the change the non-profit organization is creating is. If there are tangible solutions and the solution is quantified, they are more likely to stay on board, and you also have more chance to win over new funders.3 It is also essential for quantifying the true impact of a program.4
4. Choose a viable organizational structure
Many non-profit organizations fail to define their organizational structure, leading to further problems. For example, innovation can be centralized, decentralized, hybrid, or lab-owned. Allocating resources, after all, depends on the sort of structure the non-profit organization chooses.
The highly decentralized model is led by a department, requiring relatively few devoted resources. This model is driven by a program or country offices; they are in charge of the innovation program, they evaluate the ideas, and they are responsible for handling resources. On the other hand, a centralized model needs to have a group of people, a team, assigned entirely to the non-profit organization. A hybrid model is something in between. In this case, an innovation group or innovation lab runs the program but does not own it. An alternative is a hybrid model in which an innovation lab supports and facilitates—but does not own—innovation within the organization. The fourth case is called lab-owned innovation when a highly coordinated staff is responsible for virtually everything. This model is very often applied in the private sector in the form of an R&D lab. The lab becomes the entire organization’s primary source of innovation, and it employs all of the people committed to innovating.5
5. Make a pilot and make sure to follow up
Making a pilot may be one of the most essential rules. Regardless of the innovation model, the public must test the ideas. Social innovation is an iterative, evolving process, and it is necessary to conduct a pilot before scaling up the project. After the pilot, the data must be analyzed and based on the results, it can be iterated. This way, the chosen structure can deliver optimal results. The follow-up process will ensure that money is well-spent, the project serves the intended beneficiaries, and all mistakes and problems are addressed.6
Summary
Social innovation is about designing and implementing new solutions that ultimately can improve the welfare and wellbeing of communities. Starting an innovation program is similar to creating a business plan: one needs a strong vision, develop an idea, and create a pilot. Choosing the structure of the organization can help to create a framework. Moreover, transparency is vital, so funders and donors can track how their money was spent and how it helped to make a social change.
References
1. Forbes “Innovation In The Non-profit Sector: A New Path To Scale And Impact”
[cited 2022 February 15] Available at: https://www.forbes.com/sites/forbesnonprofitcouncil/2020/03/03/innovation-in-the-nonprofit-sector-a-new-path-to-scale-and-impact/?sh=2676344f6897
2. Forbes “Innovation In The Nonprofit Sector: A New Path To Scale And Impact”
[cited 2022 February 15] Available at: https://www.forbes.com/sites/forbesnonprofitcouncil/2020/03/03/innovation-in-the-nonprofit-sector-a-new-path-to-scale-and-impact/?sh=2676344f6897
- BCG “Why Nonprofits Must Innovate” was written in 2016. 07. 07. [cited 2022 February 15] Available at: https://www.bcg.com/publications/2016/innovation-strategy-why-nonprofits-must-innovate-seven-steps-to-get-results
- Lester M. Salamon, Stephanie L. Geller, and Kasey L. Mengel Nonprofits, Innovation, and Performance Measurement: Separating Fact from Fiction, John Hopkins University Communiqué No. 17, 2010
- BCG “Why Nonprofits Must Innovate” written in 2016. 07. 07. [cited 2022 February 15] Available at: https://www.bcg.com/publications/2016/innovation-strategy-why-nonprofits-must-innovate-seven-steps-to-get-results
- Lester M. Salamon, Stephanie L. Geller, and Kasey L. Mengel Nonprofits, Innovation, and Performance Measurement: Separating Fact from Fiction, John Hopkins University Communiqué No. 17, 2010
