A New World Order for Non-profit Organisations

Estimated read time: 3 minutes


A New World Order is emerging for all hospital and health, allied health, aged care, disability, mental health and education non-profit organisations. This New World Order is, in essence, a major paradigm shift of such proportions that normally in one’s lifetime one is most unlikely to see such strategic, structural and systems changes to the aforementioned industries/sectors/organisations and the services they deliver.


Additionally, for all Not for Profits there are the impacts and implications of the Productivity Commission Contribution of the Not-for-Profit Sector report.


It is not by coincidence that these seven reports have come together at the same time, creating:


  • new paradigm/s, where, for each industry/sector all “the rules will go back to zero”
  • new environments in which these organisations will need to adapt and survive.


In a nutshell, all seven Productivity Commission and Commonwealth government reports, some 8,000 pages, can be summarised as:


  • a set of national strategies to reinvent hospital and health care, allied health, aged care, education, disability, mental health and not for profits
  • the establishment and use of new structures for each industry/sector, eg: Medicare Locals, Local Health Networks
  • the development and use of new systems for each industry/sector, eg: e-health systems, DoHA Gateway, individualised funding
  • an opportunity for your leadership team (board, chief executive officer and senior managers) to redevelop their organisation’s existing business/service model/s and research and develop new customer focused business/service model/s and services, eg: integrated health and aged care precincts, education and community hubs, in resident/out resident residential aged care services


The four main components of these reforms are encapsulated in the following model


New World Order


In effect, two main themes emerged in all seven industries/sectors reforms:

  • firstly, providing customers/clients with greater service choice, service options and in some industries/sectors possible control of their funding
  • secondly, transition to a market paradigm, a free market where private businesses, public businesses and community businesses (Not for Profits) will compete for customers. This approach is no news to boards and chief executive officers of organisations which deliver child care services, employment services and disability employment services, all of which made the monumental transition some years ago.


For Not for Profit leaders, if there was ever a time to seriously initiate strategic discussion, thinking and decisions about the future of their hospital and health, allied health, aged care, disability, mental health and education organisations, it is today.


Moving into these new paradigms/environments does not just require a traditional strategic planning approach; scenario planning is the name of the game. Therefore it is time to either update your existing strategic plan or develop a new strategic plan, via scenario planning.


Scenario planning differs from strategic planning in that the process of planning is focused on identifying the various scenarios or strategic options/pathways that sit before an organisation and determining via various planning processes and tools the most likely scenario that an organisation will find itself placed in the future.


Whilst all Not for Profit organisations will be impacted by the various Productivity Commission and Commonwealth Government reports. If your board governs a not for profit organisation they could do well to remember…“what was, has changed, whatever is, will change”.


Michael’s Big Picture Toolbox, available through Better Boards Resources, gives you the tools to review and plan for the various Productivity Commission & Commonwealth Government Reports.

Avatar About Michael Goldsworthy

As Chairman of Better Boards and Managing Director of Australian Strategic Services, Michael Goldsworthy’s passion for community businesses (NFPs) cannot be underestimated. For thirty years he has advanced their cause, strengthened their governance and delivered pragmatic solutions; ensuring community businesses remain a vital part of Australian communities and the economy.

If your board is seeking to strengthen its customer framework and obtain governance policies and procedures that are focused on customers contact Michael on 0418 130 581 or [email protected]

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