Articles by Linda Hayes
Linda Hayes is Managing Director – Strategy at Corporate Synergies Australia. With over 20 years’ experience in business development, strategy and marketing, Linda has worked across a vast range of industry sectors to assist organisations to deliver business growth and sustainability through tactical solutions and strategies. Linda has worked with over one hundred not-for-profit organisations throughout Australia, as well as a range of private sector service organisations with significant government funding. Linda has extensive local and state government experience including governance and risk projects for NSW government agencies. CSA is currently a panelled service supplier to the NSW Government – Office of Communities (Aboriginal Affairs) for administration management, a preferred trainer for National Disability Services (Qld), and regular contributor to Better Boards.
The True Cost of Business
We commonly relate cost of doing business with the monetary cost of inputs to deliver an output. However, true or full cost and costing involves detailed identification, categorisation, measurement and valuation of ALL resource inputs required to achieve the objectives of the activity, program and ultimately, the purpose of an organisation. As part of good organisational governance, it is the Board’s role to establish the framework, methodology and approved policies under which service costing (and eventually pricing) is managed.
A Story of a Horse and Cart
Assessing organisational sustainability In general terms, most not-for-profit stakeholders would consider an organisation viable when, given normal service conditions, the organisation produces sufficient inflow of resources to at least balance all costs of operations, strategic outflows and forecasted risks to achieve the required outputs in the short to medium term. Or, as the New South Wales’ Government’s Register of Community Housing states; Financial viability is about being able to generate sufficient income to meet operating payments, debt commitments and, where applicable, to allow growth while maintaining service levels.
Committee vs Board – What is Your Role?
The governance structures of not-for-profit organisations in Australia have never been more under the microscope than at present. At the Commonwealth level, major reform is underway concerning the regulation of the NFP sector, initiated by the Productivity Commission Report 2010. Initially, the newly established national regulator, the Australian Charities and Not-for-profits Commission (ACNC), will concentrate on our Charities, with a remit to remove complex regulations and onerous reporting burdens, to clarify the legal definition of charity and to provide greater transparency for funders and the public.
Organisational identity is more than just your vision, logo, colours and website. It is an amalgamation of all of these, as well as how your stakeholders see you, relate to you, position you and even talk about you – including your staff, clients, suppliers, funders, sponsors and donors. In this way, your identity influences your ability to fulfil the mission of the organisation – and therefore is an essential to your strategic planning.