What will it take for NGOs to both work and compete with the private sector?

In Australia, the Department of Foreign Affairs and Trade is continuing to push ahead with a strategy of greater ties to the private sector to deliver development outcomes. It’s far from alone; around the world NGOs, too, are increasingly seeking to better engage and utilize the private sector in aid and development. Effective training in everything from power dynamics to relationship building is one aspect fundamental in achieving that collaboration, Chris Roche, associate professor and chair in international development at La Trobe University in Melbourne, told Devex. Development happens in a “chaotic and nonlinear, power-riddled way,” Roche said, and timely knowledge of the power and politics behind it are crucial in order to navigate it successfully. This understanding, in fact, is the first step to managing processes and projects, although organizations also need to be able to create a culture comfortable with uncertainty and the rapid changes inherent in the sector. “Part of the problem is that a lot of the business processes the sector have are 20 years out of date for this type of thing,” Roche warned. Many funding and infrastructure models, he said, are based on bilateral funding models when it’s now widely accepted that alliances, collaboration and partnerships between several agencies, government and the private sector is far more effective. From engaging with the development sector and analyzing the gaps in knowledge creating barriers, Roche has developed a new course, beginning in 2016 at La Trobe University, that aims to bring NGOs up to the standard required to do business in this partnership heavy world. Do training needs differ within an NGO? CEOs and senior staff within NGOs are the groups Roche is keen to target with training, as they are more likely to bring about organizational change. But it’s important for training courses to target leaders of the future and encourage greater demand for change. Junior and middle managers “are particularly critical when it comes to the questions of how to work cross-culturally in building alliances, being comfortable with uncertainty and developing reflective practitioners who are thoughtful and ethical about what they do and will stand up to leaders in their own organization more concerned about maintaining the status quo and their own positions,” Roche said. Specific courses are aimed at creating collective thought and consistent leadership within the sector that will create unity, rather than competition, in the future. Roche also undertakes research under a partnership called the Development Leadership Program, he explained, which looks at collective leadership, not just the head man or woman within an organization, to solve big problems within the sector. But standardized, formal training is not the answer for all, and on-the-job learning, coaching, mentoring and training over time are probably more important that one-off training for junior staff, Roche said, adding that he gets worried when people say “junior people need to learn the rules and senior people need to break them.” “Flexibility and expanding scope is important at all levels,” he said. “Senior managers are traditionally thought of as strategists with the rest of the poor sods having to implement them. It seems a bit wrong to me.” Why is training needed? According to Roche, training needs of the sector should be aimed to be a stable and stronger development sector for the future. It will improve on-the-ground response, funding and ability to survive in an uncertain environment. The development sector increasingly feels it’s in competition with the private sector for new funding, but feedback and accountability processes have the potential of leading to the failure of NGOs if there is not dramatic change — and quickly, he said. “One of the weaknesses at the moment for the development sector is that the feedback from the people that this whole enterprise aims to develop and support is not as strong,” Roche explained. “Accountability is skewed towards those who fund the programs, which leads to a loss of information and limited knowledge on success and failure. In comparison, the private sector feedback from failure is pretty evident pretty quickly – you go out of business.” The training Roche is implementing not only aims to build knowledge, but a constituency for change across the sector. And knowledge needs to be shared to create a stronger development sector and workforce. “A lot of the same issues are faced in the international and domestic NGO space,” Roche said. We can share knowledge and learn more from each other.” In the current environment for the developing community, it is recommended that training be flexible. “The learning and development needs of Australian aid and development NGOs are as diverse as the organizations themselves,” Marc Purcell, executive director of the Australian Council for International Development told Devex. “The learning and development responses need to be flexible and innovative to meet these needs.” And Purcell suggests there are a number of areas for the sector to focus on to develop and improve, among them: The changing role of NGOs in light of global disruptive changes; the need for innovation and improvement of practices; the need to be collaborative; the need to understand working in partnerships; the need for organisations to be led by emotionally intelligent and collaborative leaders; and mentoring and coaching support for those making change happen. According to a recent Devex survey, data and evidence-based programming, impact evaluation and multidisciplinary approaches are training demands that will be needed for development professionals in the future. And while the course Roche has designed has received strong, positive feedback from the sector, he said there is strong demand for knowledge and training on fundraising. “The question we are being asked by the sector is what does new and innovative fundraising look like which enables people to work in this way?” Roche said. “This is an area where people are really looking for knowledge. They intuitively understand the importance, but they don’t quite know how to do it or how to raise money to allow them to do it.” But Purcell says there will still be an important role for traditional, structured learning. “Structured learning modules around topics such as compliance will continue to be important,” he said. And any form of knowledge sharing, big or small, will also help to create a stronger development sector for the future. Devex Professional Membership means access to the latest buzz, innovations, and lifestyle tips for development, health, sustainability and humanitarian professionals like you. Our mission is to do more good for more people. If you think the right information can make a difference, we invite you to join us by making a small investment in Professional Membership.