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"Flattening of the World" in the Non-Profit Sector

Posted December 26th, 2008 by Gena Rotstein

One of the many good things about the holiday season is that it gives me the opportunity to catch up on reading that I have been putting off.  In my pile of MUST READS are several back issues of The Atlantic, Walrus Magazine, Corporate Knights, Business Edge and Mompreneur.  There are not only magazines in the pile, but several books.  One that I had started a few months ago and put aside due to lack of time.  I have since returned to it - The World is Flat: A Brief History of the Twenty-First Century by Thomas L. Friedman.

This book was published in 2005 and with the ever advancing use of technology, especially Web 2.0, it has been updated since the version that I read. 

Mr. Friedman lays out 10 "flatteners" that have shaped the world we are in today, and for me clearly explains how we got into the economic position we currently are in.  But it also got me thinking about how the Charitable Sector can apply some of these concepts.  Learning from what has transpired in the corporate sector as a result of these flatteners (good and bad), I believe there is an opportunity to improve knowledge sharing/ transfer of information between organizations.

Brandy Agerbeck of Loosetooth.com created the following illustration based on what Friedman is saying in his book:

World is Flat

 

Taking Friedman's 10 flatteners I have come up with a list relevant to the non-profit sector:

 Friedman's Flattener Dexterity Flattener  Application to Charitable Sector 
 Fall of the Berlin Wall Non-Profit and Voluntary Sector official recognized  Governments around North America began recognizing the economic powerhouse behind the charitable sector.  This in turn paved the way for additional resources to be directed at some of the innovations that were being developed within the sector (not including academic institutions)
 Netscape Goes Public    Organizations start integrating technology into their agencies Telling the agency's story became easier and quicker with the integration of technology.  Not only could organizations highlight their services on a local level, but they could find out about others who are offering similar services in other parts of the world and connect with them too.
 Workflow Software Universities offer degrees in Non-Profit Management   Jobs in the charitable sector become careers.  Professional associations are created and the positions within the sector are legitimized.  Salaries slowly start to reflect the education of those running institutions.
 Open Sourcing

Still Under Construction...

  Charities have a history of "turf" issues.  This is most likely due to the way that fundraising has been occurring over the years.  What we are seeing now is a breakdown of those silos.  Innovation can only come from cross-pollination of ideas.  The charitable sector is pushing this, most notably, in the academic medical research labs.
 Out Sourcing  Third-Party Fundraising becomes the norm  The Rotary Club is probably one of the most visible of this type of out sourcing.  From special events in support of organizations like CAWST and Ronald McDonald House to golf tournaments and parties for Seniors.  These third-party events take the burden of special event planning off the shoulders of recipient organizations allowing them to focus on what they do best - service delivery addressing a need.
 Off Shoring  Community Economic Development  It used to be that international development NGO's would go into a country, tell them what was wrong, fix it for those people and leave them in maelstrom.  Ultimately, one would see abandoned equipment and complete lack of know-how by those who were on the receiving end of the aid.  What we are seeing now is a complete reversal of this approach to development.  Communities are putting together what they feel they need to survive.  They are developing the plan and identifying the best ways to implement that plan using indigenous resources.  NGO's are providing some of the technical support, financial investments and resources, but otherwise have empowered those who need the help to figure out how to do it themselves.  What we are seeing as a result are communities growing and learning from within.  As well, products that are produced in those communities are being sold in North American shops like 10,000 Villages thereby generating additional revenue for the community.
 Supply Chaining  The Community Campus Idea

 A friend of mine used to live in Moncton, NB.  When she moved their from Ontario she was so impressed that she had to go to only one building to get her new drivers license, her new provincial health insurance card and various pieces to start her new life in this new location.  She quipped that if she had to do this in Ontario she would be driving all over town and standing in several different lines to accomplish the same thing. 

Clustering is something that is happening within the charitable sector around North America.  I believe this mostly driven by property values and not so much by ease of use for the client, regardless, it is happening.  Organizations that provide services to a similar clientele are starting to share work-space.  As a result, HR and intellectual resources are being shared thereby streamlining the supply chain of the service.  Now a person who is dealing with unemployment issues can also seek assistance for food hampers, emergency shelter, job training and the like.  Each of these services may be provided by different organizations housed under the same roof. 

One of the challenges facing these groups however, is the privacy laws around personal contact information.  Each Cluster has had to create statements around how clients' contact information is being shared within the Cluster.  As this model evolves and strengthens new laws governing privacy may be created.
 In Sourcing  Capacity building organizations like the Centres for Non-Profit Management and Centre for Philanthropy are created  Access to cross-sector information is made available to organizations.  So an organization that deals with women's health that is going through a management transition can learn from an organization that deals with homelessness that recently went through a similar transition.  The information is "stored" within other agencies that specialize in capacity building and non-profit management.
 In Forming  United Way begins facilitating collaborative work between its funded agencies

 Donors and other stakeholders begin "forcing" the organizations in which they are involved to work with each other to benefit the common good.

Imagine Canada and other similar agencies begin fostering relationships between businesses and charities to share knowledge and best practices.
 The Steroids: Digital, Mobile, Personal and Virtual  Web 2.0 and Proof of Impact Philanthropy  Kiva, Donors Choose, ChristmasFuture, Net2 - International charities begin showing proof of impact of donations. 

 

Lucy Bernholz is the president and founder of Blueprint Industry & Design Inc.  She is also the author of the blog: Philanthropy2173 has put together similar ideas around how the philanthropic sector is flattening.

So why is this important?  As we move through the ever growing quagmire of our current economic times, understanding the forces at play is important.  I believe that we can take some of these ideas, learn from them, and then apply them more effectively to the charitable sector.  We need to do this now, especially in light of the shrinking economy.

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