Category: rationale

case for support, communications, fundraising, messaging, planning, rationale, theory of change

How to define your organization’s unique value

In my last post, I discussed how a theory of change can help your organization to focus its mission. This is the result of better defining your organization’s unique niche within the system in which it operates.

But how do we identify our organization’s unique value proposition? What parameters can guide us to determining our unique niche within the system? What will tell us how we can be most effective at creating the change we wish to see?

There are three components to a unique value proposition:

  • The benefit you offer to your constituents
  • How you are solving the problem
  • How you are different from others

The first describes the good stuff you do or provide, while the second identifies how that good stuff actually responds to the need and solves the problem you’re tackling. The third point is about how you distinguish yourselves from others working on the same issue, whether it be in approach, methods, or focus (thematically or geographically).

The theory of change is critical for laying the foundation of understanding about the problem, the other actors in your problem space, and the difference approaches to solving the problem and creating your vision.

Then when it comes time to define an organization’s unique value proposition, I ask questions around three areas:

Competencies. What is your organization good at? What skills and technical expertise does your staff bring to the table? What have you accomplished in the past as evidence of this? And conversely, what are you not good at? In what areas are you weak that you are less likely to be successful? Where have you not been successful or where have others been more successful than you in the past?

Need. Sure, you may be good at something, but is it needed? When you look at the system in which you work, do your strengths align with one or more areas that will contribute to transforming the system? How does your work make a significant contribution to solving the problem in the long run? How is what you’re doing today going to make it easier for people tomorrow? And conversely, in what ways does your work not solve the problem? What other approaches are needed that you will not do or that you are not prepared to do?

Position. So you’re good at something, and that something can help solve the problem, but is this something that others are already doing? Is what you’re offering different from what is already being done? If so, can you define and demonstrate those differences? Conversely, are there areas of need where others are not intervening that fit your competencies? Is there something that needs to get done that no one else is doing and you could do successfully? Could you adapt your organization to do what’s needed?

By looking at what an organization can do well, how what it does affects change, and its positioning relative to others, it becomes much easier to understand the unique value proposition. This in turn makes it easier to attract support for your work, because it is important, effective, and unlike anything else out there. And who wouldn’t want to support a worthy cause like that?

Do you know your organization’s UVP? Do you have a clear theory of change that helps you understand your organization’s purpose and positioning? How would understanding your organization’s UVP help you with your messaging and fundraising?

If you’re interested in developing a theory of change that does all of the above, check out The ToC Workshop, a special eight-week program designed to help you get the most out of a theory of change for your organization.

messaging, planning, rationale, strategy, theory of change

How a theory of change should inform your mission

Many of my clients have difficulty articulating their work in a clear, concise, and compelling way. In my initial conversations with these potential clients, it quickly becomes clear that they do not fully understand the rationale behind their work, or how their work has broader, longer-term impacts on the problem they’re trying to solve. This isn’t unusual, but it is a problem for the organization. This lack of understanding leads to a lack of focus, a lack of clarity among staff and Board members, and a resulting lack of collective purpose and drive. And so inevitably I end up working with these clients on developing a theory of change, one that brings greater clarity, greater focus, and greater cohesion to the organization.

Working with one organization, I was approached by a Board member who was brought in to participate in the process. She asked me a keen question: how might developing a theory of change affect the organization’s mission?

To answer this, let me back up a bit. When an organization is created, it is created with a purpose (hopefully a singular one). The organization’s statement of purpose is what we call a mission statement. It defines what an organization does and what problem it aims to solve. The mission may evolve over time, but the essence of the mission generally remains consistent for the organization.

Most founders of nonprofits have a clear purpose in mind – they know what the organization will do and what it hopes to achieve – but they may not understand the bigger picture. They don’t consider much outside the scope of their own organization’s work, or worse yet, they believe they can solve the whole problem by themselves. But the truth is this: every organization works within a larger system of actors who are working on the same issue.

Some of these actors are working on the same issue from a different angle, but some are taking the very same approach, though they may not be aware of each other. In fact, some organizations aren’t even aware of other groups working in the same geographic area on the same issue with the same partners or constituents! And when this happens, and there are redundant and even competing organizations, it becomes difficult to define an organization’s unique value proposition – what does it offer in solving the problem that no one else can or does?

In other cases, organizations have been doing the same work for years and years with no seeming reduction of the problem. In this situation, they fail to understand the larger system and how their organizations are actually creating impact. How does your organization’s work actually solve the problem in the long-term? Systems are complex, with many different interacting parts. Transformation of the system will require thoughtful planning, clear focus, and working with others who are tackling the same issue. Without knowing the system and its different points of leverage, how can you truly understand what is needed to create lasting change?

This is where a theory of change comes in. A theory of change is not a statement of what will happen when your organization achieves its mission. A theory of change describes what is needed to transform the entire system in which your organization works. It goes beyond the work of your organization because your organization alone cannot solve the problem (despite what you may think). In fact, the vision of the system is your organization’s vision statement, but hopefully it is not unique to your organization and instead is shared by the other actors working in the system. Because you are all working in the same system towards solving the same problem. A theory of change not only provides a view of the system but also where your organization fits within it.

I think of the theory of change as the nonprofit equivalent of a business plan. A business plan is used by for-profit companies to define what the company is about – its product, its customers, and its operations – but it also describes the market it will enter. This way the business owners (and potential investors) will understand how the new business will compete and survive in the long term by providing a unique value to the marketplace. Similarly, a theory of change describes the system an organization is entering and what unique value the organization contributes to the system.

So will a theory of change alter an organization’s mission statement? Actually, yes, it might. Ideally, a theory of change is done as part of the organization’s formation – like with business planning – so its mission statement accurately reflects its unique role in the system. But since most if not all organizations do the theory of change after their mission statement, the theory of change will likely alter the mission somewhat. Not usually in its essence, but in its focus and how it is articulated.

(Side note: It’s backwards to do a mission statement or strategic plan before doing a theory of change – like planning your route to a destination without first looking at a map of the region – but most people don’t know of a theory of change until after they form an organization and a funder asks them what their theory of change is….)

For instance, in understanding the system, your organization may realize that there is a particular need that you alone can fill, and that may become a more important element of your organization’s work. Conversely, there may be areas of your work that overlap with other organizations’ work, and you may cease those programs or at least spend less resources on them, focusing your mission on what is unique to your organization. If parts of your organization’s work tackle different aspects of the system, you may decide to focus on just one, narrowing your mission. Or through the theory of change development process, you simply may gain greater clarity on the true value that your organization can provide, and reframe your work through that lens.

The particular Board member who asked me the question got to experience some shifts to her own organization’s mission. Again, the essence was the same but the focus and purpose was more specific and focused. The organization understood what needed to get done, where it could add the most value, and how it could best solve the problem, and that led to greater articulation of its mission.

I’ve seen organizations shift their missions in light of a new theory of change, but in the end, the organization benefits from a greater comprehension of what needs to get done and how it can best add value to transforming the system into their vision.

Does your theory of change bring greater clarity to your organization’s mission? Does it take a broader view of the system and identify your organization’s unique value within it? Does it help you articulate your organization’s work and purpose?

If you’re interested in developing a theory of change that does all of the above, check out The ToC Workshop, a special eight-week program designed to help you get the most out of a theory of change for your organization.

leadership, logic model, planning, rationale, strategy, theory of change

6 lessons nonprofits can learn from the Avengers

It’s no secret that I’m a fan of superheroes. And why wouldn’t I be? They’re all about people doing extraordinary things to tackle problems for the greater good.

This year saw the second team up of Earth’s Mightiest Heroes in Marvel’s Avengers: Age of Ultron, bringing Iron Man, Captain America, Thor, Black Widow, Hulk, Hawkeye, and others together to take down a global threat. While the movie had its ups and downs, I realized that nonprofits can learn a lot from this group of do-gooders. After all, they too face seemingly insurmountable problems and have to overcome internal and external obstacles to achieve their goals.

So here are six lessons nonprofits can learn from the Avengers:

  1. You can’t do it alone. The Avengers are a group of superheroes who do plenty of good on their own. They each have their enemies and problems that they tackle in their own corners of the world (and universe). So what would force these different heroes to come together? A problem that none of them could overcome by themselves. Yes, they had differences to work through (see below) but they knew they needed each other because none of them could do it alone. Nonprofits are often like Iron Man or Thor, thinking they are mighty enough to do it all without help. Others are like Captain America, rallying others to work together, some are like Black Widow or Hawkeye, ready to work with others as needed, and others are like Hulk, afraid of working with others at all. The bottom line is that if nonprofits want to tackle big problems at scale – solving systemic, root causes – they need to come together. This is how the buzzword “collective action” came about: the idea that we need to work together to achieve real, lasting change. Each organization has its own goals and niche but we come together around a common vision and collectively succeed.
  2. Teamwork is most successful when each member gets to apply their unique skill set. Yes, they’re all pretty fit and strong, but the Avengers are a hodgepodge of heroes, each with their own talents. They clash when there is ego and competition – who’s strongest, smartest, fastest? – but they succeed when they each respect one another’s unique talents and divide the work accordingly. The same is true for nonprofits, whether it’s within an organization or different organizations working together. Instead of one person or organization taking charge of all the work, it’s important to recognize the point above – you can’t do it alone – and divide the work such that each member gets to apply a unique set of skills. Be respectful of each other’s contributions and be humble enough to let others have ownership over something.
  3. Disagreements can be healthy discussion for growth. Because they’re big personalities, each with their own experiences and perspectives, the Avengers don’t always see eye to eye. Captain America and Iron Man/Tony Stark notoriously butt heads, eventually leading to a Civil War among heroes (to be featured in a film next year). In the latest Avengers film, Tony ends up disagreeing with not only Captain America, but Thor and Bruce Banner too, as he pursues his own agenda for creating a security system for the planet. But in the end, these disagreements are how Tony learns to set aside his personal goals and be a better teammate. Sometimes in the nonprofit world, we’re so consumed with our perspective that we don’t want to hear others’ opposing viewpoints. But being open to others’ views and ideas can help strengthen our own by showing us our weaknesses or by offering new questions, thoughts, and insights that help us develop and expand our own thinking. Smart organizations seek out new ideas, rather than dismissing them.
  4. The best intentions can have unintended consequences. In his attempt to protect the planet from another alien invasion, Tony works on the Ultron Project: an artificial intelligence system designed to act as a first line of defense. Of course, what he didn’t foresee was that the system would be so intelligent it would consider humans a threat to themselves, and therefore attempt to eliminate humankind. Similarly, nonprofits set out to solve problems but don’t always consider all the possible effects their actions may have. Taking a simplistic or myopic view of your work and its outcomes may leave you unprepared when things change or the unexpected happens. Organizations should invest in scenario planning – considering different possible futures you may encounter – and in risk assessments that lay out mitigation plans. The best way to ensure you are successful is to plan ahead and be prepared to adapt.
  5. Tackling problems means going after root causes. The Avengers track down Ultron with the aim of destroying him before he destroys humanity. As they attempt to stop their enemy, they also make sure to take care of all the people in danger’s way. But while the Avengers save innocent bystanders, they ultimately they go straight after the root of the problem. Nonprofits don’t always do the same, sometimes dealing with the immediate without ever tackling the root cause. While it’s important to handle the effects of the problem until the problem is solved, it’s far more important to go after the source of the problem, staving off any further negative effects. Effective organizations go after root causes to ensure a lasting solution to the problem they’re facing.
  6. Solving problems means following through to the end. Because Ultron was an artificial intelligence, it wasn’t enough to just destroy his physical form. In order to ensure that Ultron was eliminated for good, the Avengers had to destroy every last robot he built and controlled, so that there was no remaining piece of the program that could survive and rebuild itself. Nonprofits should work towards doing the same – going after the problem with the aim of eliminating it. Not reducing it and not just treating the symptoms of it but pursuing the eradication of the source of the problem. It isn’t going to be easy, but hey, neither is anything worth doing. Organizations should be making progress towards reducing the problem, not just keeping it at bay.

So go ahead. Mock me for liking comic books and superheroes. But don’t dismiss these important lessons for anyone aspiring to tackle societal problems and creating lasting change….