Governance in a digital world

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This article was authored by NPC’s Director of Development, Tris Lumley for the building boards for a digital age campaign. 

It’s great to see an increasing focus within charity governance on what’s needed from a board in today’s (and tomorrow’s) ever more digital world. Recruiting trustees with real experience of digital in other sectors is a great start, and will certainly help a charity navigate the huge opportunities and challenges that digital presents.

But just getting some digital experience on your board is only the start.

If charities really want to embrace the potential of digital transformation, they have some big questions to grapple with, going to the heart of their governance and their mission.

In Tech for common good, NPC’s first report on digital transformation in the charity sector, we started to lay out the enormity of the challenge (and the opportunity). As we’ve already seen in the private sector, digital technology upends existing business models, disrupts entire industries, and redefines relationships between businesses and their customers, suppliers, and competitors. It’s incredibly exciting to think about the potential for social purpose organisations to radically redefine how they operate with digital technology infused into their strategies, operations, communications and engagement with service users. It’s also more than a little terrifying for most boards to even start to go here.

When Tom Loosemore, ex-Deputy Director of GDS (the Government Digital Service) spoke at NPC’s recent annual conference NPC Ignites, he made it very clear what’s required to succeed in a digital world, and to develop effective digital products and services. Rather than the traditional strategic planning process (write strategy, develop detailed requirements, build something, deploy to users, etc.) good tech development totally upends this process. It starts with really getting to understand users’ requirements, and then quickly prototyping something. Testing it out with users then means much more than asking them whether it works for them —it’s about observing their behaviour in detail. Then learning from that testing, and iterating the solution. This process, often referred to as agile development, is the key to all the successes of GDS. Build, test, learn, iterate.

So what relevance does that have to charities’ governance?
It’s incredibly important to recognise that this approach is almost the antithesis of charities’ traditional governance models, and to their fundraising and operations. Boards like to develop strategies slowly, through strategic planning processes that often take many months, and ultimately result in weighty tomes that feel like they are written in stone. These strategies then filter into fundraising and operations from the top-down, resulting in funding applications and programme designs that are pretty rigid and long-term. Grant-makers are asked to support three year programmes based on a set approach, and promised reporting against fixed milestones. The strategy sets the design principles that everything else is built on.
That’s all overseen by a governance model based on the rhythm of quarterly meetings. Tick, tock, steady as she goes.

What Tom Loosemore really drove home in his speech is that top-down strategy doesn’t cut it.

In his words, strategy is delivery. Understand users, build, test and iterate rapidly.
While many charities are starting to wake up to the huge potential of digital technology, I don’t think many have yet begun to confront just how much they need to change to harness it. Fundraising will have to adapt to putting the user at the centre, and being open about not knowing yet how a charity’s products and services will meet their needs. And governance will have to adapt to providing strategic oversight of an organisation that’s rapidly changing, flexing, and to adapt the startup world’s jargon, even pivoting entirely.

GDS did this by being established outside of the silos and bureaucracy of departmental structures. Whether, and how charities will take on the flexibility they’ll need to succeed in a digital world is far from clear.

Tris leads NPC’s development of new strategies, partnerships and initiatives to help transform the social sector. He also leads NPC’s fundraising activity to support research and thought leadership.

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October 24th, 2016 by