The Not for Profit Growth Octopus

A common issue I see in not for profit organisations seeking growth is what I call the Octopus effect. Like a wily, clever octopus seeking escape, the drive for growth can become increasingly strong and creative in finding loop holes within the purpose and strategy to justify growth.

What often starts as a means to mitigate uncertain and competitive funding, leads to organisations straying further afield over time. As organisations operate more outside their core and areas of competency, they find themselves not performing as well in the new services. This underperformance can be detrimental to their reputation, the perceived excellence of their services, their competencies, leadership focus and, ultimately, their impact.

How might you build sustainable, impactful growth?

• Create clear strategic growth parameters that are agreed at Board and Executive.

• Filter opportunities based on the agreed growth parameters.

• Formally evaluate opportunities based on your desired impact and how they will help. you achieve your client, people, financial and operational objectives.

• Review the parameters regularly as your environment and strategy evolve.

Be disciplined and vigilant about growth, don’t let it confuse your strategy.

Dr Estelle McDonald is the Founder and Principal at Growth Seeds Consulting and specialises in growth, strategy and execution for nonprofit organisations.