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ToolBox over the years of experience has developed a methodology which we follow to bring about change in the NPO. This is a 13 step process:

Development and Alignment of Mission and Vision

Relevance: The mission describes the ideology of the organisation, represents the value people involved are trying to defend and the core purpose of the organisation. A vision statement is a work picture of what the organization wants to become. Having clear mission and vision statements provides direction and guides and inspires everyday behaviour, thus reducing the need for rules and bureaucracy. It is also often useful to challenge the mission statement occasionally, and modify it when needed to accommodate the environmental changes.

Strategy Development

Relevance: The strategy development workshop conducted by ToolBox enables all participants (ToolBox and the NPO) to channel points of discussion and to aim for a shared view on:

–        The internal workings of the NPO

–        Its strengths and weaknesses

–        The main work items to focus on should the non-profit and ToolBox agree on a work programme

Business Plan

Relevance: Abusiness planhelps in the following ways:

–        Organize deadline and plan the required steps

–        Develop the concept of the business projects/program to be launched

–        Set social impact targets

–        Market evaluation and income targets

–        Cost and expenses estimate

–        Required resources

–        Works as a tool to communicate with potential financial supporters

Scorecard

Relevance: Ascorecard evaluates performance through comprehensive set of short and long term measures reflecting financial, operational, customer and organizational learning and growth objectives. A scorecard is useful for internal management purposes and helps to align activities with mission and strategy. Scorecards can address multiple constituencies and customers and can be transformed into a rating system for external evaluation.

HR Management

Relevance: NPOs may not have a dedicated HR manager or job descriptions in place. Given the uncertainties that are often associated with funding, NPOs may not be able to put together hiring plans well in advance. Money may not be the primary motivation for employees working in NPOs. However, having clearly defined roles, accountability for performance and hiring strategies is a key requirement for a NPO to achieve better outcomes and improve efficiency.

Project Management

Relevance: NPOs would typically undertake several projects to fulfil their social objectives. Projects may include things like geographic expansion, implementation of internal processes or reporting systems etc. It is important to understand the critical elements in any project such that timelines do not slip and the objectives are achieved as per set budgets.

Cash flow Management

Relevance: Effective cash flow management is vital to non profits. Funding in the form of endowments and grants is inherently less predictable than operating off of sales revenues, which is typically much easier to predict.It is often the case that the quest to achieve social objectives leads to less attention paid towards cash, leading to timing or quantum mismatches in terms of cash availability and requirements.

Fund flow and Revenue Generation

Relevance: Given limited geographical reach and scale coupled with lack of fundraising experience, NPOs often struggle in identifying the relevant donor category, articulating their objectives and impact, developing fundraising strategies, managing communication, tax issues etc.

Communication

Relevance: Both internal and external communication is key. In order to communicate effectively the NPO has to clearly define their audience. Internal audience may include staff/ employees and the Board, while external audience may include stakeholders, beneficiaries, press, partners, and funders/ sponsors/ foundations.

Governance

Relevance: Governance is the primary internal driving mechanism of an organization. Governance best practice requires Board members that are dedicated to seeking growth opportunities for the organization whilst maintaining appropriate regulation of activities.

Financial and Accounting Systems

Relevance: Having a robust financial and accounting system in place can help NPOs with efficient resource management, realistic goal setting and pre-empting liquidity issues.

IT Systems and Infrastructure

Relevance: Affordable information technology tools and services can enable NPOs to maximize their potential and build capacity. Use of computerized systems can help to standardize data collection, store larger volumes of data and provide tools for data analysis.

Culture

Relevance: Culture represents the collective moral of the organization and thus affects the performance of the organization.