Fostering Sustainable Business Development

Written by Max | Edited by Rory Hart
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    Professionals Gathered on a Meeting

    Organizational sustainability is often misunderstood to mean primarily financial sustainability. That misconception occurs because, when an organization becomes unsustainable, the symptoms of that problem show up in the finances. However, organizational sustainability — or the surviving or even thriving of an organization — depends on much more than effectively managing the organization’s finances. Just like the sustainability of individuals and families, there are many complex and dynamic dimensions that must be sustainable in organizations, as well. However, in an organization, there are some primary dimensions that, if they are managed well, will ensure the sustainability of the organization.

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    Learn More in the Library’s Blogs Related to Organizational Sustainability

    In addition to the articles on this current page, see the following blogs which have posts related to Organizational Sustainability. Scan down the blog’s page to see various posts. Also, see the section “Recent Blog Posts” in the sidebar of the blog or click on “Next” near the bottom of a post in the blog.

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    Related Library Topics

    Primary Dimensions of Organizational Sustainability

    1. Strategic Sustainability — Ensure Realistic Vision and Goals

    If an organization is trying to do far too much, it will likely not have enough resources, including not enough money to do what it wants to do. One of the most important considerations is to have a realistic vision and goals for the organization. If these are not realistic, then many of the other activities in the organization will not be realistic, as well. The solution is not to keep trying to get more money.

    2. Product and Program Sustainability — Ensure High-Quality Products, Services and Programs

    If your organization does not have high-quality products, services, and programs, then customers’ and clients’ participation will eventually decline as will funding. That’s why it’s so important to do a few things very well, rather than a lot of things not so well. The solution is not to keep trying to get more money to offset deficits. The solution is to pick which products, services, and programs you can do very well, do them — and keep proving your strong results.

    3. Personnel Sustainability — Ensure Personnel Can Effectively and Reliably Perform

    If your personnel do not fully understand their jobs or are not resourced to do their jobs, then your products, services, and programs will not be as effective as they could be. As a result, you’ll make less money than you expected or the money you do make will not generate as much profit. Be sure personnel are fully trained and supervised well. Also be sure that, if a member of the organization cannot do his/her job, that someone else can do that job in a timely fashion.

    4. Financial Sustainability — Conduct Financial Reserve and Contingency Planning

    If the above 3 dimensions are not effectively addressed, then symptoms show up in the finances when there’s not enough money. However, there are two financial practices you should be doing regardless of whether you have enough money or not, and they include:

    1. Achieving a financial reserve — obviously, this is done over time and before a financial crisis occurs.
    2. Doing contingency planning — plan for what will happen if you get 10% less money than planned for the upcoming year and for what will happen if you get 30% less.

    The following sections and links will help you address the above dimensions for your for-profit, nonprofit, or government agency.

    Avoiding Sustainability Issues in For-Profit and Government Organizations

    Strategic

    The following links will help ensure that your strategic planning results in realistic visions and goals.

    Strategic Planning

    In the topic at the above link, be sure to see the following articles:

    Also, consider
    Strategic Planning

    Products, Services, and Programs

    One of the best ways to ensure that these are carefully planned — or reviewed — is to do business planning. (There is often confusion about the difference between strategic planning and business planning. Strategic planning is planning for the entire organization. Business planning is focused on a particular product or service.)

    Also, consider

    Personnel

    Also, consider
    Human Resources
    Staffing

    Financial

    Financial Management (For-Profit)

    Also, consider
    Financial Management (for-profits)
    Financial Management (nonprofits)

    If You Resort to Trying to Get More Funds, Then See

    Fundraising (For-Profit)

    To Develop and Implement Organizational Sustainability Plans

    Avoiding Sustainability Issues in Nonprofit Organizations

    Strategic

    The following links will help ensure that your strategic planning results in realistic visions and goals.

    Strategic Planning

    In the topic at the above link, be sure to see the following articles:

    Products, Services, and Programs

    One of the best ways to ensure that these are carefully planned — or reviewed — is to do business planning. (There is often confusion about the difference between strategic planning and business planning. Strategic planning is planning for the entire organization. Business planning is focused on a particular product or service.)

    Personnel

    Financial

    Financial Management (Nonprofit)

    If You Resort to Trying to Get More Funds, Then See

    Fundraising (Nonprofit)

    To Develop and Implement Nonprofit Organizational Sustainability Plans

    Suggestions to Address Current Sustainability Problems

    If you currently have problems with sustainability, the following links to resources will be helpful. Your most immediate concern now is very likely that of insufficient financial resources. Keep in mind that financial problems are usually a symptom of other causes, which usually can be addressed by following the guidelines in the resources linked from the above sections of this topic. However, for now, it’s very likely most important to address a shortage of financial resources. There are a variety of strategies in the resources from the following links. After addressing the financial issues, you should review the guidelines referenced from the links in the above sections to help your organization avoid financial crises in the future.

    Suggestions for For-Profits

    Suggestions for Nonprofits

    Many of the problems faced by nonprofits are also faced by for-profit. So it’s useful to review some of the resources in the above suggestions for for-profits.

    Additional Library Resources in the Category of Organizational Sustainability and Change


    Max