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May 12, 2015
Posted Under: President's letter

dennisThe fourth leadership summit is history. Like past summits we had a sell-out crowd, feedback was overwhelmingly positive, everyone stayed to the end, and the conversations begun at the summit continue to echo throughout the state. However, unlike past summits, feedback from this summit requires more analysis to understand the diverse and contradictory responses from participants.

Richard Evans, CEO of EmcArts, which is a partner with Foraker and Rasmuson Foundation in the New Pathways program, received overwhelming positive mention. The speaker who received the most diverse feedback was Margaret Wheatley, the internationally renowned speaker and author who literally wrote the “book” on organizational management in the age of complexity. Over half of respondents loved her presentation while the rest were disturbed by parts of the same message – few were neutral. Other speakers – including Zaid Hassan of Reos, Steve Patty, founder of Dialogs in Action, Tim Delaney, CEO at the National Council of Nonprofits, and Judy Alnes from MAP for Nonprofits – were well received for their subject-matter expertise. And the last speakers, Bentham Ohai and Kate Cherrington, Maori leaders from New Zealand, provided proof that through working together with values as the compass for the right direction, anything was possible.

Typically, when responses are diverse and contradictory it indicates a less than positive reaction to the overall experience. But as the title reflects, the overwhelming response to the conference – from more than 99% of those responding – was that it was beneficial, with well over half responding that it was very beneficial. We learned that participants wanted specific answers for situations. Unfortunately, the theme for this conference provided more theoretical direction – and fewer specific tactics.

Not only were responses diverse and contradictory, the speakers themselves debated some of their conclusions until they got on the plane and headed home. There were some areas of agreement, which included:

  • We need to understand that the solutions of the past don’t work as well today.
  • More feedback is needed from diverse constituents to develop new solutions.
  • There is a movement away from structures based on command and control, policy and procedure, and siloed efforts to structures that are decentralized and based on values and principles.
  • There is also a need for leaders to be well practiced in the art of hosting.

Another way to summarize how the speakers agreed is the awareness that few specific tools exist to respond to the complex challenges we increasingly face. Instead, individuals must become engaged in new ways to work together to find creative responses.

Where they strongly disagreed – defining the first step.

The paradox of this conference is less confusing when one understands a concept that I addressed called the VUCA World (VUCA is an acronym for Volatility-Uncertainty-Complexity-Ambiguity) – also referred to as the Age of Complexity where volatility, uncertainty, complexity and ambiguity are the new norm. I also commented on work by the futurist Bob Johanson who states that in the VUCA World leaders must be skilled in an alternative VUCA, which is stated as Vision (a calm approach reassuring that when we work together we can do anything), Understanding (cultural competence where we can listen to diverse viewpoints without the need to contradict others’ realities), Clarity (where we effectively tell our stories) and Agility (where we build our adaptive muscles and embrace change).

Chief Gary Harrison from the Native Village of Chickaloon opened the summit. Chief Gary was asked to start the conference not only as the leader of a nearby south-central village, but because Chickaloon is by far the most “Forakerized” tribe in Alaska. Many of its senior staff leaders have been through numerous Foraker trainings and have worked with us on many issues. But he was also invited because we expected that his comments would be embraced by some, but challenging to others. He is an articulate spokesperson for Native rights and speaks with passion on issues of justice. We wanted to start this conference focused on someone’s strong convictions that may differ from others in order to experience the need for Understanding (one of the positive leadership skills needed in VUCA World). He did a splendid job on all counts.

Zaid Hassan, a rising star, author and lecturer on building movements, was the first guest speaker. He presented his ongoing work to solve society’s most complex problems. He calls this process a social lab – others may call it collective impact. Alaska nonprofits have been involved in collective impact for a few years – like the work of United Way of Anchorage on 90% by 2020, where they strive to increase the graduation rate in the Anchorage School District to 90% by the year 2020. Therefore, social labs should not seem like a foreign concept. Many of the organizing principles of collective impact were envisioned by Zaid and his associates at Reos. We became aware of their work through the Salmon Initiative of the Gordon and Betty Moore Foundation. Erin Herrington, the leader of the initiative, heard Zaid’s partners speak on social change and has used these concepts as she mobilizes the power of salmon to unite Alaskans on larger issues. Since Zaid was the first plenary speaker and the audience was just beginning its path into the VUCA World, many wanted more concrete answers from his presentation. They challenged him suggesting nothing could be as simple as what he suggested, which was to find the right 36 people, gain clarity on the issue to address, secure other resources as needed, and then implement change. As simple as that sounds, that technique has worked with diverse groups facing complex issues around the world. I am intrigued with Zaid’s approach. He met with the Foraker staff after the summit to strongly urge us to just “do it!” because he thinks that the Alaska nonprofit sector could take on a significant challenge, bring it to scale right away and change our world – we may try.

Richard Evans spoke after lunch. He too has been working to help groups adapt to challenges in the age of complexity. Zaid suggests that change is best when you go to scale immediately, instigate a revolution, and seek impact. Richard’s approach is different. He agrees with Zaid about the need for clarity on the issue to address, but recommends organizations start with what he calls “a small experiment with radical intent.” In his experience, going to scale immediately can derail progress. But starting slow and learning over time builds capacity to embrace and sustain change. Through the New Pathways Initiative, Richard and the team at EmcArts have introduced the first cohort of arts organizations and the staff at Foraker their simple and elegant framework to implement adaptive change. To date we can attest to the power of this approach. In closing about my friend and collaborator Richard, he and his team and EmcArts have become one of our most valued partners. When we first met two years ago, we knew we were aligned. He spoke with a British accent and me with a Southern drawl, but we immediately knew their work was ours, and versa-visa. We are grateful for this relationship.

Tim Delaney from the National Council of Nonprofits is a master at presenting the urgency of why nonprofits must engage in public policy. I’ve heard him speak many times. But in spite of a very bad cold, I had never seen him as effective as he was at our summit. The major takeaways from his speech are themes I have borrowed from him for many years.

  1. Don’t let attorneys or accountants scare you from engaging in public policy. Nonprofits can advocate, we can lobby, and if we don’t develop those skills and use them, it’s at our peril.
  2. While many nonprofit associations work on national legislation, as does Tim’s organization, the National Council of Nonprofits is the only organization that specializes in state legislation. Why? There have been fewer than 300 pieces of legislation in each of the past two years from Congress, but there have been at least 68,000 pieces of legislation in the states each year. State policy is the largest challenge. While the sector in Alaska has had few policy challenges from the state in the recent past, with the current financial situation, we are now at great risk.
  3. One of the most challenging issues with all states, including Alaska, is adequate and timely reimbursement for state contracts. Tim reminded the audience that while nationally nonprofits receive 33% of revenue from state grants, Alaska’s sector receives 42%. In addition, he reminds us that late payments and restriction on overhead costs are hidden taxes imposed on nonprofits, without legislation.
  4. Since Alaska’s recession is just beginning we should understand the trend from around the country, especially those states most impacted by the Great Recession. Tim warned to expect the state to cut services and assume that nonprofits will pick up the slack to meet the most important needs, but they will not increase funding. We will need to be prudent and accept that we will not be able to meet all the needs we see, unless we are adequately resourced.

I proudly serve on the board of the National Council of Nonprofits and as I described at the summit, there are no greater leaders on nonprofit public policy than Tim and his team. If you are a Foraker Partner, you are also a member of the National Council of Nonprofits. On our website is a link to their page. We encourage you to use this great resource.

Judy Alnes addressed herself as my twin from a different mother. We are the same age, we both have passion for building the capacity of nonprofits, and we serve on the board of the Alliance of Nonprofit Management. In addition, she is the CEO at MAP for Nonprofits, the sister organization to Foraker in Minnesota. Her team conducted the only comprehensive research on mergers and new structures. They have de-mystified expectations and clarified outcomes about the impacts when organizations work together. They have the facts on the financial implications of mergers – affirming some beliefs and challenging others. You can see their complete report on their website. She encouraged nonprofits to not rush to merge, even when pressured by funders. But she did advise that merger was a viable option for organizations that find alignment and strive to work together so that more can be accomplished.

Her main point was that nonprofits must re-examine their structure and seek ways to become more effective in this ever-changing environment. She said that the nonprofit sector is structured the same way it was 40 or 50 years ago, and because we have not adapted over time, with current realties nonprofits work harder than they should and may have diminished impact. She suggests the indicators to consider before engaging in a process for a new, more effective structure include:

  • Focus on Mission – advancement institutions are less important than mission.
  • Curious Leaders – we must have adaptive leaders that look for new ways to better meet need, not just protect the status quo.
  • Asset Orientation – focus on strength, don’t obsess about weakness.
  • Experimentation – take small steps and learn.
  • Perseverance and Courage – change takes time and guts.
  • Support for Change – understand that no forward movement means diminished results.

Judy observed that the conversations with nonprofit leaders at the summit convinced her there was something “special in the recipe” up here. She found you, Alaska’s nonprofit leaders, to be better informed, more open, and working at a higher level than even the sector in Minnesota. And since many consider that part of the country the epicenter of the progressive social sector, that is high praise indeed.

We discovered Steve Patty at a convening of our cohort of state associations in the Northwest. He had been consulted on how we could work effectively to gather and use data to build our own capacity. As we heard him last summer, the Foraker staff smiled across the table because we knew we had found someone very special. He could describe complex theory with simplicity – a gift we value.

Steve did not address the entire audience, but the impact on the participants in his breakout sessions was greater than we anticipated – we knew that he would be good. The summary of his session included four key points:

  1. We should evaluate to prove our assumptions to ourselves so we can improve what we do, rather than evaluate to prove relevance to a funder, that should always be a secondary outcome.
  2. He suggests there are but two valid modes of evaluation — quantitative and qualitative. Antidotes can at times provide useful insight, but are not credible for evaluation purposes. But he challenges us to not over-think either our quantitative or qualitative process and seek evaluation that is both elegant and simple.
  3. He describes a heart triangle as a useful tool for discussing qualitative outcomes. What we know-feel-do that stems from what we believe-love-become. This is similar to the Hedgehog Concept, a theory developed by Jim Collins, author of Good to Great, where we contemplate how to balance what we are most passionate about, best at, and that drives our economic engine. But the heart triangle is more. It provides a simple context to discuss how to develop a meaningful qualitative measure.
  4. And finally, he describes evaluation windows, the process of the Logic Model. “If” this happens, “then” this will be the result. His clear communication on logic model will enthuse the most evaluation-weary executive.

While this may seem counter intuitive, I want to leave you guessing and not answer all questions about his presentation. I hope my too brief summary compels you to buy his books, Getting to What Matters and Moving Icebergs. Steve Patty will be back in Alaska because all who saw him walked away with easy to understand tools that are useful in the VUCA World.

This was the third visit of Margaret Wheatley, Meg, to a Foraker event. While she is not the only visionary to predict a new way to understand how organizations really work, she is one of the most quoted and studied. Both Richard Evans and Zaid Hassan are students, as are we. She promotes tolerance and communication, but is often perceived as too provocative – she can be seen as intolerant. That observation was reflected in the feedback we received on her presentation.

I, too, have had intense reactions to some of Meg’s points. Yet I continue to learn, even as I disagree with some of her assumptions and bold statements. I have used her book Turning to One Another in the class I teach for the Honors College at the University of Alaska Anchorage and have seen a strong negative reaction to some of her conclusions from my mostly millennial students. Still, I have have found that after they read her book, I can engage the class in very powerful conversations. Like asking Chief Gary to provoke thought, I assumed the reaction to Meg would be strong and diverse – it always is. But I will also predict that many of the points in her presentation will have a long-lasting impact on the people who heard them.

Her key point can be summed up by a quote she offered:

“The whole globe is shook up, so what are you going to do when things are falling apart? You’re either going to become more fundamentalist and try to hold things together, or you’re going to forsake the old ambitions and goals and live life as an experiment, making it up as you go along.” Pema Chödrön, Buddhist Teacher

This is the same message delivered by Zaid, Richard, Tim, Judy and Steve. We must rethink old assumptions and work together to find new solutions. The world has retrenched in fear before. The Dark Ages is an example, and you see where that got us. We have no other solution than to put one foot in front of the other, together, and embrace the unknown.

Another trend I mentioned in the opening session is the need for leaders to enhance their skills to serve as hosts in order to increase diverse engagement of many people to address our complex challenges. Meg published an article in Resurgence magazine in 2011 called Leadership in the Age of Complexity – Hero to Host where she makes the case for leaders to cease acting and thinking as if they have all the answers – heroic behavior. Bob Johanson discussed many of the same concepts in his book, Leaders Make the Difference, which also evoked the need for hero leaders to hosts through his re-visioning of the characteristics needed by leaders in the VUCA World.

At the summit, Meg told us there were global dynamics, beyond our control, that impact leadership. The dynamics include:

  • Time compression – we simply do not claim the time to think. We expect that we can do more with less and don’t admit our limitations. She urged that we learn to say no. I describe this mental shift as: we don’t need to do more with less, rather we must do the best we can with what we have.
  • Burgeoning bureaucracy – as the world seems more and more chaotic, the tendency of some is to slow things down, regulate more with policies and procedures and expect increased order and sanity. Unfortunately more policy increases time compression since we need to make sure all actions are in accordance with the rules – that takes time. Government is not the only culprit, any institution that relies on command and control structure is working against the need for the flexibility required to address many of today’s biggest challenges. The most important rules in the VUCA World are the values that unite us.
  • Unending budget cuts – this point was also made by Tim Delaney. While the Lower 48 is emerging from the Great Recession, cutting costs is the only tool that seems to be used by governments to deal with the perceived scarcity. Governments cut everything except the red tape it demands for accountability while decreasing the dollars to deliver services that they ask our sector to provide. All of this behavior is counter-productive since it increases the acceleration of time compression.
  • Distraction – since we have less time, meaningless requirements and fewer, we are becoming more and more susceptible to, some addicted to, distractions to take our minds off of what seem insurmountable problems. One way humans cope is to “tune out.” “Don’t worry-be happy.” One of the main culprits is our ever-increasing attention to “smart” devises that have become the new narcotic of choice to escape.

Meg describes western culture as a giant centrifuge, spinning faster and faster making it hard to remain whole, as a community. Humans have a history of managing challenge, when they work together. This is a point recently exhibited by people in the Himalayas after the earthquake. In this remote corner of the world with few resources, people have come together to do the best they can with what they have…which is each other. Meg’s call to action: come together and work with others because all we have ever really had to solve our challenges is each other.

That sentiment led to the final presenters, two amazing leaders from New Zealand, Kate Cherrington and Bentham Ohia.

It seems at every summit, I leave with new best friends. Meg, Judy, Richard and Tim have been great friends for years and that will continue. Zaid and Steve are two very smart, generous souls that I will cultivate as friends because I predict their capacity and influence will continue to grow. We have a lot to learn from them.

But I think my new best friends from this summit are Kate Cherrington and Bentham Ohia. I had never met them, nor read anything they published, I only knew that my friends at First Alaskans Institute had asked them to work with them last year and found them to be tremendous HUMAN assets. Now I know why. We wanted speakers that were pushing ahead, against the resistance of change, in the complex world. We knew that structures must evolve, movements must gain momentum, and that the leadership required for those activities must be forward thinking but rooted in values. As simple as it sounds, clarity of what you are trying to do and the principles or values that will guide the effort are the foundation of the new organizational model.

Kate and Bentham were the walking examples of what we learned the first two days. They had faced enormous odds, complex challenges, and persevered to create a new reality. They were part of a group of over 36 of the right people. They took small steps with radical intent, they addressed public policy, they structured their effort as a network, not a hierarchy, and they planned from the beginning to measure what really mattered and nothing else. And their effort had a tremendous impact on generations of Maori children and youth and eventually had impact on an entire nation that like Alaska had a not-so-enlightened relationship with its indigenous people.

Their compelling questions included;

  • “What counts as knowledge, what knowledge counts, and who decides?”
  • “What counts as success, what success counts, and who decides?”
  • “What counts as culture, what culture counts, and who decides?”

Their issue to address: Whānau (family) transformation through indigenous values and community-centered solutions.

Their values:

  • Kai akitanga-stewardship
  • Āhurutanga-safe environments
  • Koha-contributions of consequence
  • Mauri Ora-well-being

Alaska Native people have been connecting to the Maori people for years, because their success story is so compelling. Through an initiative that Kate and Bentham were a part of creating called the Kōhanga Reo Movement, thousands of volunteers have now impacted the lives of tens of thousands of Maori as well as the non-indigenous peoples of New Zealand through the Maori language and values. They tried a small experiment with radical intent, asking grandmothers to teach the language to pre-school children. They had little money so started with volunteers and used people’s garages and sheds as classrooms. They didn’t ask permission. They didn’t take “no” for an answer. They persevered, regardless of the government’s increasing resistance to the approach. And they even engaged non-Maori to help in their schools. The result is a new generation of empowered people rooted in their culture, but agile to thrive in any culture. Rather than the old model of colonial intervention, asking indigenous people to assimilate to the new imposed norm, they understood their children should be rooted in who they were first, and then they could better face the challenges of life.

Kate and Bentham’s story exemplified the lessons learned from this summit. First get focused on who you are and where you are going. Next make sure you have the right people involved who are passionate about who you are and where you are going. Then make sure you develop the right external partnerships that can strategically take you in the right direction. And finally and least important, secure the right financial resources, unrestricted cash, then you have built a sustainable movement.

Now you may understand the messages of the summit – it’s similar to a book released two years ago at the last summit. Judy Alnes witnessed the power of our statewide sector, which has a common language benefiting from the vision of institutions like the Rasmuson Foundation, Alaska Mental Health Trust Authority, Mat-Su Health Foundation, M.J. Murdock Charitable Trust, BP, ConocoPhillips, Wells Fargo Bank, and so many more that have worked for years to build this capacity.

Many left the summit reassured that they were already on the right track. Others were hopefully inspired to take the first steps into the future. And the very few who left with nothing will probably realize that dream soon enough.