“Sustainability” has been a buzzword in the social sector for a while now, but what does it really mean? Everyone agrees that sustainability is an important factor in evaluating the resiliency of social sector organizations, but few have agreed on a simple path for nonprofits to reach it.
Over the past few years, we have worked with more than 170 nonprofits across the country to co-create a proven, straightforward way to achieve sustainability that leads to deeper impact and growth. To distill the concept, we developed a simple formula:
Sustainability =
High-impact + High-performance Organizations
The Flywheel Effect: Building Momentum Over Time
When I talk about sustainability, I often mention the “flywheel effect,” which was first articulated in Jim Collins’ book, Good to Great. A flywheel – for those, like me, who are not mechanical – is a massive metal disk on a horizontal axle. Think of it like a bicycle wheel. The task is to get the flywheel to move and complete a full rotation by pushing it. Then, at some point, the “flywheel effect” kicks in – momentum takes over, and you no longer have to push. Its weight is working for you, and you are flying forward – without as much effort.
Starting with Impact, the Heart of Sustainability
First, for a nonprofit organization to achieve this “flywheel effect,” it must start with IMPACT.
IMPACT is the bottom line of the social sector. It defines why social sector organizations exist and how they make a difference in the lives of their stakeholders and the broader community. Impact is a crucial first step for any organization’s long-term sustainability. High-impact organizations encourage staff to consistently challenge their work and find new and better ways to serve their clients and stakeholders.
To increase your organization’s impact, you can start with our lean startup model, which helps you turn a problem into a sustainable solution. Once you have defined the best solution, invest the time to really measure its impact through a well-defined theory of change, logic model and a robust evaluation plan. Evaluation is reinforced when everyone – not just program staff – embraces a culture of measurement for continuous improvement.
Telling Stories That Move People
Second, once your model has impact, how do you tell your story so that your BRAND stands out from the crowd? We encourage organizations to follow time-tested principles of storytelling. Focus on your “why” to draw people into your story before you focus on your “who” and “how.” When you do focus on “who” and “how,” be sure you have a clear unique value proposition so you can differentiate yourself from other nonprofits. Additionally, once you have your elevator pitch, use best practices to help it “stick.” Impact is strengthened by creating a storytelling culture that believes everyone – not just development staff – is an ambassador for the organization’s mission.
Boosting Operations and Revenue for High Performance
For the greatest impact, social sector organizations must be high-performance organizations that prioritize OPERATIONS and REVENUE generation as tools for growth. High-performance organizations consistently invest in learning and continuous improvement. They employ a clear and meaningful strategic planning process, diversify their funding sources and effectively support key functions, such as talent management, IT, marketing and financial management. We call these areas “social lubricant.” The stronger your support functions, the faster and more seamlessly your organization can move forward.
To improve your organization’s performance, start small by tracking it. Use board and staff surveys to evaluate both importance and satisfaction within key areas, and plot the results on a 2×2 matrix. Strive for high satisfaction in the most important support functions, but also track measurable improvement for all support functions over time. This creates a culture of accountability and ensures that everyone knows how they contribute to the mission – whether or not they are on the front line.
Finally, when social sector organizations become high-impact as well as high-performance, they are not only more sustainable – they also create a strong CULTURE that attracts top talent for staff and board positions, earns greater recognition for their work and builds credibility. These organizations are further strengthened by good GOVERNANCE, provided by a strong board and management team that champions accountability, inclusiveness, transparency and responsiveness.
Building Long-Term Strength and Community Impact
Taken together, all these elements create what I and other system architects call a “flywheel” effect, where momentum builds over time and leads to greater impact in the community. With each strategic planning cycle, your organization gets stronger through serious introspection and recalibration – becoming more agile and ready to meet new challenges.
To us, this is what sustainability is all about. We would love to hear how you define sustainability and how you measure it within your organization.
