This post will focus on how planned change theory can be applied to the fundraising focus of a small non-profit. This non-profit currently relies on many small annual gifts to fund their budget and future projects. They have been successful in the past but are now facing state budget cuts and problems with their building that are due to delayed maintenance. They will have to cut programs and services if they do not change how they view fundraising and change the focus of their fundraising efforts. The executive director hopes to change the focus of the fundraising efforts of the nonprofit to major giving as opposed to annual giving, as she knows that the potential exists for the organization to receive more money from one major gift than from all of the annual gifts combined.
Planned change occurs in three phases. The following graphic demonstrates the cyclical nature of the theory and how each step leads to the next during the application of planned change.
(Mulder, 2012, n.p.)
The first is unfreezing, which involves motivating employees to change by using disconfirmation to create discomfort with the current situation among employees, inducing a sense of guilt or anxiety among employees, and then highlighting an alternative that will alleviate their anxiety and discomfort (PSU WC, 2019, L. 5, p. 4). In this situation, the executive director could explain the immediacy of the budget shortfall and explain that part of the cause is a failure on the part of all staff members to focus on the appropriate type of fundraising, which in this case is major gifts fundraising. According to Schein (1988), however, the executive director must take care to not create too much discomfort or anxiety as the employees could end up feeling too threatened. (p. 4-5) Schein goes on to suggest that one way to avoid this is by having a consultant present the disconfirmation information so the employees are less likely to resent the executive director at this stage.
A consultant could also play an important role in the next step of the planned change process, which is changing. Change can be accomplished through creating a connection with a respected individual who then teaches the new behavior to employees and also through ensuring the environment at the organization is supportive of the change so employees do not find pockets of resistance when speaking to others about the process (PSU WC, 2019, L. 5, p. 4). In the case of the nonprofit, a consultant provides a ready figure from whom the employees can learn and consultants often engender a sense of respect that employees may not have for their more familiar managers or directors. The consultant must provide training and an action plan for employees to follow as they make the move towards major giving.
The final stage of the planned stage theory is refreezing, which is ensuring the changes are permanent by creating a supportive environment in which to practice the new behavior and ensuring employees have the tools they need to be successful (PSU WC, 2019, L. 5, p. 4). The nonprofit must go beyond providing training to employees in the workplace if the organization is to successfully change focus to major gifts. Frontline fundraisers will need to shadow other major gift professionals so they are comfortable with the process of cultivating donors during meetings and will need extensive practice with roleplaying to practice asking for large gifts. The nonprofit could partner with another nonprofit that already does major gift fundraising so their employees can receive mentoring and the Board of Trustees should be asked to serve as role-playing partners for the employees as the natural distance between staff and Board members will imbue a sense of reality to the role-playing activities. It is important for the consultant to also attend meetings so he or she can provide feedback to employees about how they can change their process to improve their success rates. A last important piece of this final stage is that the executive director and employees should have realistic expectations about the length of the process so they do not feel discouraged when if they do not see significant results immediately.
A few notable issues can arise when management relies on planned change theory in the workplace. One is that the process assumes that all employees of the organization agree to work in the same direction, which is difficult to achieve in most organizations (Bamford & Forrester, 2003, p. 547). Bamford and Forrester (2003) also touch on another problem with planned change within the current fast pace of most business environments: the focus on planning and objectives makes the process cumbersome and prevents nimble movements in reaction to changing conditions. (p. 548). The possibility exists for these issues to arise in the capital campaign because failure to secure any of the lead gifts will force the organization to rely more heavily on the annual giving revenue stream, which counteracts the plan to move toward securing major gifts for the majority of project funding.
Planned change theory can be an effective tool in creating organizational change if properly applied. However, as I discussed in the preceding paragraph, it is important for organizations to reevaluate their goals throughout the process to ensure the planned change is still taking them in the correct direction. A plan that is too rigidly adhered to in the face of a changed environment could do considerable damage to an organization in the end but, if everyone is aware of this pitfall and willing to adjust, planned change can lead to significant performance improvements that are long-lasting.
References:
Bamford, D. R., & Forrester, P. L. (2003). Managing planned and emergent change within an operations management environment. International Journal of Operations & Production Management, 23(5), 546-564. Retrieved from file:///C:/Users/jxk29/Downloads/Managing_planned_and_emergent_.pdf
Mulder, P. (2012) Lewin’s change model. ToolsHero. Retrieved from https://www.toolshero.com/change-management/lewin-change-model/
Pennsylvania State University World Campus (2019). OLEAD 410: Leadership in a global context. Lesson 05: Learning and Change in a Global Setting. Retrieved from https://courses.worldcampus.psu.edu/canvas/sp19/21911–17997/content/05_lesson/printlesson.html
Schein, E. H. (1988). Planning and managing change. Retrieved from https://dspace.mit.edu/bitstream/handle/1721.1/2217/SWP-2069-21344604.pdf?sequence=1
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