In these conversations, our clients describe a sense of urgency, brought about by a rapidly changing landscape and a desire to improve the way their organisations are responding.
The world is changing fast, fundamental assumptions are being challenged, uncertainty is high and many describe tougher market conditions. Traditional strategic plans and tools are not helping them to address these issues.
Last month, we hosted a breakfast bringing together a dozen senior leaders from organisations working on social progress to discuss these issues.
This article summarises the discussion. It covers how people think about strategy, the practical challenges they face and some of the steps they were taking to make better strategy.
At Firetail, we spend a lot of time thinking about how organisations interested in social progress should think about “strategy”.
When we talk to Chief Executives about strategy, we consistently hear the following questions:
How should we set strategy in a world that seems to be changing quickly?
How could we approach long-range strategy differently?
How can we connect the insights in our strategic plan to our daily decisions?
What’s different about strategy for social progress and purpose-driven organisations?
Over the summer, we want to bring people together through a series of articles and events to consider these questions. We will look to the future, explore specific challenges and seek insights from our clients’ experiences.
This first article is a survey of the latest thinking about strategy. It attempts to address why so many people are frustrated with their current approach to strategic plans, and what to do about it.
In the summer, we decided to rebrand Firetail, in order to refresh the way we talk about our work, showcase some of our incredible clients and introduce our great team.
It also gave us a moment to reflect. The world has changed a great deal since the firm launched over ten years ago.
Everything is connected and nothing makes sense.
Or at least, it seems that way.
Popular sentiment around the world appears to be turning inward and looking backward. Debates are simplistic, reductive and negative. Securing funds for important causes is difficult. The landscape for our clients has never been more competitive and for many, their future has never looked more uncertain. In many places, the space for civil society is closing.
But there are many reasons for optimism. It has never been cheaper to make a difference, or turn an idea into action. If you are interested in social progress, you have new tools and technologies to make change happen. It is possible to engage large numbers of people. There are more opportunities for partnership, with new types of partner. The idea of “purpose” is becoming mainstream, especially in parts of business, higher education and social investment.
People now recognise that the big issues are all interconnected, needing interdisciplinary answers, creative approaches and surprising coalitions. Power is shifting, slowly.
It’s a complicated world, but I have always believed that if you address it in a positive, open, inclusive way you can get the future you want.
Rather than trying to predict the future, organizations need to strengthen their abilities to cope with uncertainty. A new approach to scenario planning can help companies reframe their long-term strategies by developing several plausible scenarios.
This article by Rafael Ramirez and Ale Palermo in the MIT Sloan Management Review explores how to run scenario planning exercises and integrate long-term thinking about the future with organisational strategy.
Fundraisers often think in straight lines—in terms of steady, predictable growth, based on assumptions that results for a given approach will be roughly proportional to the amount of time, money, and effort invested. The typical strategy is to pilot a small number of ideas to get a sense of costs and pay-offs, and then scale them up based on what the organization has learned.
However, in a networked world, the assumptions that payoffs are proportional to efforts or that pilots scale predictably are often inaccurate, and nonprofits may need to modify their approaches accordingly.
Andy Martin, director of Firetail, said that while “the top few hundred ranks [in the URAP] are pretty stable”, there is much more volatility in the mid-ranked positions below the top 500. Within this range he identified Australia, China, Poland and Turkey as key countries that are moving up, while the US, Japan, Canada and the UK are generally losing ground.
“It’ll come as no surprise that Chinese universities are making the most dramatic gains” in the middle of the ranking, he told THE. “Their average position has gained from around 1,300 to nearer 950.”
He said that the most interesting characteristic is that these universities are deliberately planning for global success, adding that they are “globally aware and outward-looking, but take into account their local and social context”.
“For now, they will not replace elite universities or make them less relevant, but they are quickly improving and if traditional players don’t respond they will keep on rising straight to the top,” he added.
Mr Martin said that the main challenge faced by rising universities in strong higher education climates will be “finding a point of difference and a distinct place in the landscape” while those with a less established higher education and research and development environment will rely heavily on government policy and investment.
Philanthropic organisations are increasingly measuring the impact of their programmes, a culture that has been adopted by private-sector entrants in this space. How are Europe’s philanthropists measuring up?
Across Europe, philanthropic measurement begins with a “theory of change”. “You need a theory for why you are doing what you are doing, and how it leads to better outcomes,” says Andy Martin, the founder of Firetail, a UK-based firm that advises clients on ways to promote causes and communities.
“There’s been a boom in running events at all levels over the last decade. Last year in the US alone, there were 28,000 different running events”, said Andy Martin, who is director of UK-based Firetail Limited, a consulting group that specialises in strategy and research for nonprofits, foundations and NGOs. “Most of these will have had some sort of charitable element. Around the world, but in the UK and North America in particular, running events are now a big part of a charity’s fundraising strategy.”