In the for-purpose sector, we are driven by values and by the belief that our work contributes to something greater than ourselves. But even the most compelling purpose cannot be achieved without a solid foundation.
As I’ve recently stepped into the role of Operations Manager at Strategic Grants, I’ve come to appreciate more deeply the role that strong operational practices play in enabling impact across the organisations we support.
Operations may not be the most visible part of an organisation’s work, but it is essential. From project delivery and compliance to internal processes and people management, operations underpin everything a for-purpose organisation does.
Operational capacity is critical for for-purpose success
In my experience working with not-for-profits across Australia and New Zealand, operational capacity is often stretched thin, yet it is one of the most critical determinants of organisational success, as noted by The Bridgespan Group in their article on Nonprofit Operating Models.
Unlike many for-profit businesses, for-purpose organisations often face a tension between investing in service delivery and investing in internal infrastructure.
Operations are sometimes seen as “back-office” or administrative, rather than strategic. But effective operations do far more than keep the lights on. They ensure limited resources are used wisely, roles and responsibilities are clear, and that an organisation can remain agile and resilient in the face of change.
The shared challenges
Common challenges in the sector include informal or outdated systems, lack of documented processes, and inconsistent knowledge sharing.
These can lead to inefficiencies, duplication of effort, or even compliance risks. Strong operations, by contrast, improve transparency and accountability, values that are essential in an environment of increasing scrutiny and expectation from funders, regulators, and communities.
The good news is that improving operations does not always require large budgets or complex change. It can start with intentional effort:
- mapping processes
- clarifying ownership
- setting up fit-for-purpose systems, and
- empowering staff through clear communication and training.
Done well, these efforts can enhance team morale, improve decision-making, and allow program teams to focus on what they do best, delivering impact.
CEOs and Boards play a pivotal role
That said, there are moments where strategic investment in operations is not just helpful, it is essential. Boards and CEOs can play a pivotal role by engaging donors and funders in conversations about supporting key operational roles or infrastructure.
This might include funding for a dedicated operations or systems manager, investment in fit-for-purpose software, or support to document and standardise processes.
Philanthropy Australia’s strategic initiative, “A Blueprint to Grow Structured Giving”, emphasises the importance of sustainable funding models that support not only program delivery but also the operational infrastructure essential for long-term impact.
As funders and boards begin to recognise the strategic role of operations, there is an opportunity to shift the narrative. Operational capability is a key enabler of purpose. It is what allows organisations to scale impact, respond to opportunity, and effectively handle disruption.
Your checklist: Assessing operational excellence in your organisation
To assist organisations in reflecting on their operational strengths, please review the following Checklist to help assess key elements of operational excellence.
- Do you have clearly documented processes for key operational activities?
- Are roles and responsibilities within your team defined and communicated?
- Is there a dedicated person/s managing operations, systems, or infrastructure?
- Do you have fit-for-purpose tools and software supporting your work?
- Are staff provided with training and support to confidently use systems and follow processes?
- Does your Board and leadership team actively discuss and prioritise operational capacity?
- Have you engaged funders or donors in conversations about supporting operational infrastructure?
- Do you have mechanisms in place to ensure compliance, transparency, and accountability?
- Is operational data used to inform decision-making and improve program delivery?
Final thoughts
I’m excited to champion operational excellence not only within Strategic Grants, but in the sector more broadly. As we continue to partner with an increased number of for-purpose organisations, it’s clear that those who invest in the strength of their operations are the ones best placed to maximise long-term impact.
Strategic Grants are providers of Grants Expertise Management System (GEMS) – the most trusted & comprehensive grants database in Australia and New Zealand. Find out more here.