Is the old guard within NGOs impacting innovation?

Australia’s Department of Foreign Affairs and Trade is in the market for innovation. Over the last two years, the department has launched a series of new initiatives to shake up the Australian aid program and find new partners in the private sector, including through the New Aid Paradigm and InnovationXChange. “NGOs are well placed to identify innovative approaches to sustainable economic development and poverty reduction,” DFAT wrote in its recent report, “DFAT and NGOs: Effective Development Partners”. “We will support and encourage NGOs to identify how to create an enabling environment for learning and innovation within the NGO sector.” Yet many Australian NGOs have been reluctant to heed the call to arms so far. Concerns about funding, a tendency to stick with what already works, and confusion over terminology has stalled innovation in the sector. Although the tendencies are global, Australian NGOs face particular challenges in injecting new ideas into their organizations and businesses. There is often an old guard barrier to innovation, Oxfam GB’s Global Innovation Adviser James Whitehead told Devex, based on a recent report he led, Innovation for Impact, produced by the Australian Council for International Development. The report found that, while innovation is happening, it is often haphazard and lacks the institutional support it needs to yield its full potential. Stick to what works The term “innovation” itself seems to be the first barrier for Australian NGOs, the ACFID research found. “There is a sense of caution around the word ‘innovation,’” Whitehead told Devex. During his interviews with Australian NGOs, Whitehead often found a reluctance, particularly among older NGO workers, to change things that appear to be working. Some expressed concerns about the impact of changes to bilateral and multilateral funding arrangements if NGOs shifted tactics. “NGOs can get stuck into focusing on funding and trying to please donors,” Whitehead said. “Some say they are concerned about the financial impact taking a risk on innovation can have, but this is just an excuse for complacency.” Angus Hervey, a political scientist with Future Crunch, told Devex his engagement with the development sector has identified a suspicion of fads which is causing the sector to sit and wait rather than lead the charge. “Generally, the development community is really open to new ways of working,” Hervey said. “But a lot of them have a deep suspicion of anything new. They've seen fads come and go, and so are wary of getting too excited.” Too busy, too nebulous Some NGOs with whom Whitehead spoke also mentioned being “too busy” as an obstacle to innovation. The report notes that few NGOs have institutionalized ways of supporting innovation. Yet that may be part of a broader misunderstanding — or lack of understanding — across the sector about what change means. “Many people’s idea of innovation is at the infancy,” Whitehead told Devex. Whitehead argues NGOs should stop equating innovation purely with technology, apps and things you can touch or look at. Technology can play a role, but it is not the end of the story. Innovation can mean new processes, practices, and partnerships. “Collaboration is critical,” Whitehead said. “Collaboration makes things happen. This can be with business, government, academia and civil societies. New groups we work with can bring new opportunities. Starting this requires bravery to try something new – someone has to take the first step to knock on the door of an organisation and ask for their contribution.” Not just NGOs The research by ACFID highlights not just an issue with innovation for Australia’s development sector but the broader Australian businesses community as a whole. Australia has had 25 years of economic growth without a recession, creating overconfident businesses, according to Roy Green, dean of University of Technology Sydney Business School. There is a culture of resistance to innovation. “People in Australia are risk averse and quite traditional in their thinking about management,” Green said. “Australian businesses are quite hierarchical, despite the fact that we pride ourselves on being and egalitarian society, and there is a fear of making decisions often which flows from a lack of confidence.” Green also sees a disconnect between ideas and implementation. “We’re quite good at producing research and ideas in Australia, but we’re not so good in translating those ideas into commercial outcomes,” he explained to Devex. Despite a recent uptick at DFAT, research and innovation investment across the Australian government is now less than what companies such as Intel, GE, Siemens and IBM spend. He worries other East Asian nations that are investing heavily in innovation could catch up or even pass Australia, ranked 19th this year in the 2016 Global Innovation Index. “We could keep sliding even if we stay still,” Green said. “Other nations are catching up and passing us in the rankings, particularly nations from East Asia. The amount of investment going on in these countries in research and innovation is astounding.” How should NGOs define ‘innovation’? Without changing perceptions towards innovating, Australian NGOs face the risk of becoming irrelevant to the development sector. “My worry is that if we don’t come to terms with these things, a large number of international NGOs will find that impact, influence and income all decline as we are nudged to the side of the river of change,” Whitehead warned. “New organisations and groups will sprout up and take different forms. International NGOs may not be deliverers of change in the future.” An old guard mentality could eventually lead to an exodus of highly trained and specialized staff. “Who would want to work in an organisation that is stuck?” Whitehead asked. “If there glory days are gone and an organization is making no impact, there is no incentive for those who want to do good.” Still, he is optimistic that the sector will evolve. “There is a real desire to do things differently and do more,” Whitehead said. Check out more insights and analysis for global development leaders like you, and sign up as an Executive Member to receive the information you need for your organization to thrive.