THE NEW

REALITY

Executive summary JUNE 2015 The New Reality is a research study about how digital technology can deliver the next step-change in social impact

Executive summary

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Having a digital strategy will soon seem as ridiculous as having an electricity strategy” Kay Boycott, CEO, Asthma UK

The digital revolution has already happened, and we are living in the aftermath. The scale of change that has taken place - in how people choose to communicate, watch TV, learn, bank, shop and organise their lives - has been likened to the industrial revolution. And it’s not over yet. The pace of technology-fuelled change is still accelerating.

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How do we turn all this sector talk into sector action?”

For the non-profit sector this process of digital transformation offers both exciting opportunities and significant risks. Those organisations who relish the task will find new ways to both revolutionise their internal operations, and to deliver high impact services to more people who need them. The insights from the New Reality study reveal that there is no magic wand to wave which can create digital transformation overnight. This is a journey with multiple potential paths, and some serious challenges to be faced. Some organisations have already made significant progress. Others are uncertain about where to begin. This study aims to provide some of the answers. The New Reality offers a framework, examples, and specific guidance on how organisations can get further along this digital transformation journey - and reap the benefits along the way.

Emma Thomas, former CEO of Youthnet

A note on audience: This study has looked across and outside the non-profit sector to bring as broad a range of shared insights as possible. However, in order to deliver most value, the report is aimed at established organisations rather than the new or start-up non-profits who tend to be more digital by nature.

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Themes from the research The insights from the New Reality are divided into 6 themes:

LEADERSHIP

CULTURE

INFRASTRUCTURE

Leaders of all types have a role to play in delivering digital transformation, but the sector is crying out for more inspirational change-makers at the top to help guide the sector through the next few years of change.

Don’t be fooled by the word ‘digital’ in ‘digital transformation’ - this is a culture change process at its heart. This theme explores how to achieve the new culture needed to thrive in this new reality.

After years struggling with legacy IT, a new generation of infrastructure tools is emerging. This theme asks: What kind of relationship with technology do we want for our organisations? And what kind of people do we need to deliver that?

INNOVATION

FUNDING

SERVICE DELIVERY

This theme offers three models that non-profits can use to experiment with technology-enabled ideas for the future, and explains why organisations who are not investing in R&D risk major disruption in the next 5 years.

This theme explores what’s holding organisations back from both getting and giving investment to support tech-enabled transformative work, and reviewing the available options put forward by the New Reality’s contributors.

Our vision of digital to date has been heavily focused on digital fundraising and marketing. Whilst valuable, the real prize is in using technology to deliver social impact through digital services - a journey that we’ve only just begun. 3

Key insights #1

Digital services will deliver greater value than anyone can imagine (but first we need to address the culture and infrastructure issues that are standing in the way) The use of technology to deliver social value is still in its infancy, yet examples given reveal an already staggering level of impact: from emergency health information delivered on Whatsapp - to low cost, 3D-printed, prosthetic limbs for landmine victims. To realise the full potential of ideas like these, the change inside organisations will need to be as far reaching as those we see on the outside.

#2

Head of Digital.”

Jonathan Simmons, CXO, Zone

#4

Major skills gaps need plugging

You don’t need a digital strategy When organisations first started to develop digital strategies it was a clear sign of progress. However increasingly this separation from the central mission reinforces a perception that digital is just another department with its own goals, rather than an enabler for all. Instead we need central organisational strategies that weave technology throughout everything - for every department, and for all audience groups.

Until sector leadership stops delegating responsibility for digital we’re not going to get very far Lack of engagement and buy-in from senior leadership was by far the most frequently cited barrier to digital transformation across the study’s interviews. This applies to CEOs who have mistakenly delegated all responsibility for digital to middle management, to trustees who think digital is just for the young, and to other senior executives who have yet to reassess their strategies in light of the potential on offer.

#3

we’re further along this “ Until process - your CEO is your

#5

The age of big, corporate IT is over In the commercial world, painful legacy systems are finally giving way to a new generation of more nimble and flexible tools championed by a new style of IT leadership who say “yes” rather than “no”. Most non-profit sector organisations need now to question whether it might be the style of IT leadership that needs changing, not just the kit they’re running.

The speed of technology change has created a gap between the digital skills that organisations have, and additional ones they need. Key areas identified were: data, digital strategy, lean and iterative process management, and business model innovation. 4

Key insights #6

A tried and tested process for delivering transformation already exists - it’s just not being used Start small: pick one problem and put enough effort into transforming that one area through a lean, iterative approach. Learn from that and move on to the next thing. A huge number of contributors were advocates of this prototypetest-iterate process for transforming operations, but few had managed to get their organisations to adopt it at scale.

#7

Funders need to divert efforts towards supporting core costs to help organisations through this period of change Funders came under fire for choosing product-led investment over corefunding at a time when organisations need to reinvent themselves from the centre outwards. Non-profit organisations themselves must also get smarter about the funding they seek in order to make better use of the rapidly expanding social finance market.

#8

The next stage of digital for non-profits is not fundraising and marketing Efforts and successes in digital to date have largely been focused on digital marketing and fundraising. Whilst these have been - and continue to be valuable, the focus now needs to be on how digital technology can transform organisations around their core mission. This may mean moving digital teams away from these directorates in order to grow digital expertise across the board.

#9

Organisations need to implement and formalise R&D programmes In order to avoid external disruption we need to move faster and challenge ourselves more in these extraordinary times. Some of the biggest successes in digital transformation have come from organisations who have integrated structured research and development activities into what they do. A range of options exist for how to do this - many of which are low cost and low risk - but few non-profits have prioritised innovation.

need to think beyond web to a #10 We broad range of digital technologies to achieve maximum impact The Government Digital Service has already demonstrated the value of reinventing information, advice and transactional services via the web. There is huge potential in web-based services for non-profits too but an even bigger opportunity exists if we can bring together the best of the web’s capabilities with other technology services from sensors and trackers to wearables and AI.

sector is too complacent “ The about the new, more digital entrants”

Karl Wilding, Director of Public Policy, NCVO

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20 WAYS TO ACHIEVE

DIGITAL TRANSFORMATION MINDSET

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START WITH THE CORE MISSION

FULLY COMMIT & ACCEPT THE PAIN This is a change management process that will affect every area of your operation. Accept that some people will have to retrain or leave

SHOW DON’T TELL

Discussing transformation ideas is useful... but getting stuck in, and showing evidence quickly is the best way to find out what works and get buy-in

BE TRANSPARENT

Collective wisdom is essential. Be open about your successes and the failures. Share your code, share your plans, share your data, share everything

THINK BROADER THAN WEB & SOCIAL

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FIND SOMEONE TO GUIDE YOU

SACK THE ‘NO’ PERSON

REPLACE TRUSTEES

BREAK DOWN SILOS

GET SOME GOOD DATA PEOPLE

Don’t start with the technology, think about the social value you’re trying to deliver and then how technology might help you solve key challenges you face

Look inside and outside your organisation for someone who can guide you. Consider appointing a fixed term Director of digital transformation

An enabling technology could be anything from a wearable device to your internal finance system. Make sure you’re considering all forms of digital technology

PEOPLE

A new breed of technologists and architects are showing that it is possible to have IT infrastructure that works. Don’t trust anyone who says it’s too difficult

Make sure there’s someone on your trustee board who really gets this, and educate those who don’t. Seriously consider appointing someone under 30

Share digital knowledge across your organisation by building cross discipline project teams, and seconding digital staff into other teams departments

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KEEP YOUR HORIZONS SHORT

If you’re not trying to disrupt what you do then someone else is. Set up an in-house R&D lab, or find a partner that can help you develop future ideas

CO-DESIGN WITH YOUR AUDIENCE It has never been more crucial to be audience-centric. Involve your beneficiaries and supporters in all new projects as closely as possible

COLLABORATE AND PARTNER

IF IT ISN’T WORKING

Focus on one thing at a time and work in small, iterative steps. Pick a problem and put enough effort into fixing that before moving on

FIND WAYS TO INNOVATE

Don’t recreate systems, products or ideas. Work with the people and companies who are already doing it well

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TOOLS

ASSUME IT ALREADY EXISTS

GO CLOUD-BASED

MODULAR NOT ONE SIZE FITS ALL

TRACK LIVE PERFORMANCE

MAKE SURE IT’S SUSTAINABLE

PROCESS

There is a low-cost tool for almost any need or problem you have. From inventive uses for social media feeds to handy ways to enhance productivity

Improve efficiency, scalability, and collaboration whilst making it possible for your teams to work anywhere, not just the office

Don’t try to find a one-size fits all solution. Take best in class, independent tools that talk to each other and plug them together

Help everyone to understand and monitor impact by putting a live dashboard of current performance up somewhere noticeable in the office

This poster is an excerpt from The New Reality - a study into digital transformation for the non-profit sector To see the full study including the top 50 ways to achieve digital transformation visit: www.thenewreality.info Poster and The New Reality study produced by @JulieDodd

Every organisation can and should do more with the data they have. Bring in or train someone who can help you unleash and use it effectively

STOP DOING IT

Stop doing anything that isn’t core to your mission and isn’t working well. If it is core but isn’t working then make it a priority

Make sure you can afford to support and maintain the kit your use. Not just to implement it in the first place

CREATIVE COMMONS

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THE NEW

REALITY

Full online report available at:

thenewreality.info

Get in touch If you’d like to know more about the New Reality please contact Julie Dodd: [email protected] or 07709 057469

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