Lipkis & Clark CONSULTING

Organizational Assessment

for the

September 2011

Summary Version Executive Summary

This assessment was motivated by the Minnesota Literacy Council’s goal of becoming a top performing organization, one of three primary goals of the current strategic plan. This report discusses where the organization is disjointed and where it stumbles, and where it is thriving and doing things right. The methodology for this assessment included interviews, observations, and an employee survey, all of which took place in May and June of 2011. In total, twenty-nine interviews were conducted and eight meetings or special events were observed. The response rate to the employee survey was 97%.

The McKinsey 7S assessment model played a central role in our approach to evaluating and presenting our findings; the framework includes Structure, Strategy, Systems, Style, Staff & Skills, and Shared Values. Other important resources included Harry Levinson’s book, Organizational Assessments, the Minnesota Council of Nonprofits’ “Principles and Practice for Excellence in Non-Profits”, the Bridgespan Group, Harvard Business Review, and McKinsey Quarterly.

The key strengths that we identified are:  Dedicated, competent staff with a passion for literacy  Flexibility in hours and work style  The makings of a great collaborative team, including shared values, autonomy, dedication, and a central office that encourages shared working space and informal networking  Leadership open and willing to hear suggestions for change from all levels of the organization  The majority of employees reported being happy with their job  A strong sense of shared purpose and work ethic

The key areas of concern that we identified are:  Staff are unclear about where the organization is going and how  There are a lack of steps to reach and follow through on goals  Impaired communication and collaboration at all levels  Staff value autonomy, but desire strong direction  Staff seek a chance to give input on decisions that affect work  Staff feel overworked, burnt out and like the onus is on individuals to seek support

In summary, our top recommendations include:  Bolder and more proactive communication from leadership about decisions and vision  Thorough implementation of annual work plans, with regular check-ins on progress  Build and sustain an internally collaborative culture  Celebrate successes internally and externally more often and make greater use of staff and learners’ personal passion for the work  Embrace and manage conflict – it’s a sign that people care and can lead to greater heights  Prioritize lines of communication both ways and prevent blockages

MLC is doing many things right. Our recommendations throughout this assessment have largely been about what to continue doing and what might be added, rather than noting practices that must be stopped. What is missing between the status quo and an outstanding MLC is a robust messaging strategy (both internal and external), a dismantling of departmental silos, and a vigorous and open feedback loop.

2 I. INTRODUCTION

This assessment was motivated by the Minnesota Literacy Council’s goal of becoming a top performing organization. We asked questions to get at organizational functioning, looked for patterns, and made note of strengths and weaknesses. As assessors, we make recommendations about ways of doing things as an organization rather than about individuals.

We start with a review of our method and describe our assessment model. We progress to support these themes by addressing specific topics and pulling in information from interviews and an online survey. Following each of these topics is a summary of concerns and recommendations for action.

II. METHOD

Interviews Twenty-nine interviews were conducted between April 18 and June 16, 2011. We began the interview process with 30-minute introductory conversations with the six MLC directors to help build our familiarity with how the organization worked and the individual styles on the leadership team. Sixteen interviews were conducted with representative staff from all departments, functions, and locations. One interview was conducted with a former staff member. Following our review of these initial interviews, we spoke again at greater depth with directors. All but the initial interviews with directors were scheduled for one hour and were conducted in private or offsite.

Observations We had the opportunity to observe a variety of meetings and events between March 3 and June 28 that included: Beyond Books, Journeys Reading and Awards Ceremony, new employee orientation, a staff meeting, a directors meeting, a learning center meeting, a grants meeting, and a board meeting.

Survey We had an outstanding 97% response rate to the online employee survey. There were 43 questions, nine of which were open-ended. The survey opened on May 18 and was closed at midnight on June 1. The MLC donated a prize for a random drawing as an incentive.

Resources & Influence Our assessment framework was designed and implemented with guidance from a number of sources. Harry Levinson’s book, Organizational Assessments. The McKinsey 7S assessment model played a central role in our approach to evaluating and presenting our findings. Other important resources included Harry Levinson’s book, Organizational Assessments, the Minnesota Council of Nonprofits’ “Principles and Practice for Excellence in Non-Profits”, the Bridgespan Group, Harvard Business Review, and McKinsey Quarterly.

III. ASSESSMENT

Below, we will discuss our findings using the 7S framework at the center of our assessment model. The sections include: Structure, Strategy, Systems, Style, Staff & Skills, and Shared Values. Each section is broken down into more specific topics and ends with a summary of recommendations.

3 STRUCTURE Organizational structure, who reports to whom and how decisions are made.

Decentralization: The geographical divide across six sites presents a challenge to maintaining a sense of unity among staff. Strong emotions, including feeling misunderstood and underrepresented, arose about the relationship of the learning centers to the main office.

Collaboration: In an open-ended survey question, 25% of respondents provided answers reflecting that the organization’s greatest weakness was a lack of internal collaboration or cohesion across the program areas. Additionally, staff expressed concern about the siloed nature of the MLC’s programs. The issue of “reinventing the wheel” came up frequently.

Committees: Empowering staff-driven committees to work on important initiatives is one of the MLC’s greatest strengths. It is important to ensure that these committees and initiatives have designated leaders, clear goals, and remain tied to leadership at the main office.

Recommendations  Ensure timely communication about roles and responsibilities in the organization  Publicly celebrate collaborative achievements.  Develop a strong and sustainable culture of collaboration; the key to a successful collaboration and teamwork is trust in those with whom you work - - acknowledge that conflict is a natural part of working together.

STRATEGY The organization’s purpose, vision and plan.

Vision: Staff expressed concern about what qualities or skills differentiate the MLC from other organizations serving similar populations. The concerns were less about mission drift and more about a desire to better understand and articulate the MLC’s niche. Across the organization, staff expressed an interest in more detailed steps for achieving the goals set in the strategic plan.

Internal Identity: At the time of interviews, staff were wrestling with a number of questions central to the identity of the MLC. For example, “How and why are volunteers used?” and, “What is the central purpose of the MLC’s learning centers?” Staff gave us the impression that conversations about these topics are happening more deliberately than in the past.

Innovation: We heard many examples of innovation being developed by direct service staff. Some staff expressed that there are mixed messages about whether this is encouraged, or even permitted, and if so, what the appropriate channels are for sharing ideas.

Recommendations  Leadership must outwardly place value on all programs equally and as a whole.  Develop departmental work plans that connect to the major tenets of the strategic plan  Ensure the completion and regular review of individual work plans  Continue to acknowledge staff concerns and create forums for discussion  Lay a clear path for staff to contribute ideas for new initiatives and ensure follow up

4 SYSTEMS The daily activities, procedures and processes that staff engage in to get the job done.

Work Style: The calm, laid-back approach to work embodied and modeled by the Executive Director is present in most of the organization’s systems and procedures. In many cases, this approach is what makes the MLC a great place to work. Staff consistently listed the flexibility in hours and work style as one of the organization’s greatest strengths. The relaxed, outcomes- based workplace is a great model and should not be changed.

Communications Across Functions: Staff explained that they receive information mostly through casual conversations with their colleagues. Formal sources of information like staff meetings are secondary, followed by emails and the MLC Word newsletter. In order to keep staff connected to the organization and the mission, communications to staff must be regular and timely.

Decision Making: Confusion exists throughout the organization about decision making processes and expectations for involvement in the process. Additionally, when staff have participated in a process, it is critical for morale that they be kept in the loop on what decisions have been made, what major factors influenced them, and why. Some staff reported that leadership is open and willing to hear suggestions for change from all levels of the organization.

Grant Requirements: Staff expressed frustration around last-minute communication regarding grant fulfillment and reporting expectations. This should be institutionalized so that both sides understand there is an expectation to check in at regular intervals and that people are not surprised by avoidable last-minute urgent requests and changes.

Substitutes & Work-life balance: Current systems for finding substitute teachers and coordinators are closely linked to direct service staff turnover. The time required for teachers and coordinators to find subs is a strong deterrent to staff interested in using paid time off or taking advantage of professional development opportunities. The recent attempt to shift management of substitutes to a centralized system is a sign of improvement.

Recommendations  Maintain the relaxed, flexible, autonomous and results-based work environment  Deliver news in more bite-sized chunks through email and the intranet  In staff meetings and learning center meetings, give positive updates priority  Clarify who is accountable for making decisions  Continue the effort that development staff have put into communicating directly and regularly with staff executing grants.  Further efforts to cultivate a pool of potential substitutes should be made

STYLE The style and efficacy of leadership, and working styles of employees.

Leadership: When asked to identify the organization’s greatest weakness in a survey question where any answer could have been given, 16% mentioned a lack of rigor and direction from the leadership team. Staff expressed some frustration that they didn’t see more action and follow through from leadership.

5 Supervisory Relationships: The MLC has a relatively loose supervisory style, from the Executive Director down. The majority of staff reported that they do not have regular check-ins with supervisors and feedback is delivered primarily through annual performance reviews. Staff is expected to approach their managers or the leadership team with problems or questions. When polled about supervision, 60% of survey respondents said they got “very little” and 34% said they would like more.

Managing Conflict: According to staff, conflict is often avoided at the MLC. Conflicting ideas about strategies and priorities exist naturally within any group, and when managed well, conflict can fuel new ideas and create bonds. Shifting the culture of conflict requires time and deliberate action. By allowing all parties in conflict an opportunity to be heard, it is often the case that they together can discover origins of conflict previously unknown to one another. Often it is simple miscommunications that eventually lead to a breakdown in rational thinking and trust.

Meetings: Staff expressed concern over the amount of time spent in meetings. For many, the frustration stemmed less from the amount of time and more from how time was used. Well- run meetings with agendas and action items give participants the opportunity to prepare, participate, collaborate, and clarify direction for their work.

Recommendations  Enforce among supervisors what is laid out in the MLC’s Standard Performance Review document: “Mid-year check-ins, as well as on-going informal discussions.”  Provide training for all supervisors on how to provide constructive feedback and how to coach their staff on making decisions and setting priorities  Provide training for managers on how to balance the strengths and weaknesses of their leadership style (e.g. empathy, problem solving, strategic thinking, prioritizing) to make sure staff receive the kind of support they need  Set an expectation for how meetings are conducted

STAFF AND SKILLS The employees’ roles and their skills, competencies and strengths

Across the board, staff believed that the MLC has some of the top people in the literacy field. However, there was also concern expressed about the high level of turnover from burnout. While the majority of employees reported being happy with their job, there is a sense that the MLC is a place for mid-level career growth but not necessarily somewhere to stay long-term. The online survey showed that 75% of respondents believe their chance for growing into a better job at the MLC is either fair or poor and 48% see themselves working elsewhere five years from now.

Overtime: We noticed a correlation between the way staff conceived of the overtime worked and their hourly allocation. Staff whose hourly allocation was under 40 hours a week were more likely to report working “way more” hours and express negative feelings about having to do so than were people allocated at 40 hours a week working the same number of extra hours, but considered the work part of a full-time job.

6 Skills and Competencies: In our interviews and online survey, Adult Basic Education staff expressed concern about the amount of experience the leadership team has with teaching. The concern was based ultimately in how their decisions impact the learners. It is important for staff to feel as though they have access to and are supported by their leaders.

New Staff: Regarding job training, a number of staff expressed appreciation for the new employee orientations as an introduction to the organization as a whole. However, there is concern about training and support for specific jobs. We sensed that “green books” play a critical role in orienting new staff to their roles, but also heard that in some cases, they were many years out of date.

Diversity: The MLC’s diversity statement is strong and acknowledges the changing communities that the organization serves. Ethnically and culturally, the organization lacks diversity. We understand that at some point—perhaps related to Reading Corps’ spin off—the diversity committee disbanded and efforts to implement diversity training were dissolved.

Recommendations  Look at policies and other systems that support clear expectations about workload  Leaders should continue to prioritize subbing in classrooms and spend more time at learning centers in order to better understand the rewards and challenges there  Though it is already part of the annual performance review process, we recommend additional emphasis on keeping “green books” updated  Staffing and training efforts that help the organization embody its diversity statement to “reflect the diversity of the communities we serve in our staff, volunteers and board.”

SHARED VALUES Core values of the organization as seen in the culture and the general work ethic.

The MLC has a strong sense of shared purpose and work ethic. When staff were asked in interviews who within the organization championed the mission, we heard frequently that “everyone does.” The organization is seen by the vast majority of staff as a good place to work. Ninety-three percent of survey respondents say they would recommend that a friend work for the MLC. In terms of expectations of work style and professionalism, which included hours and dress, 97% believe the expectations should remain the same. Many staff members felt confident in their program’s efficacy. Everyone who commented on it felt that the work they do is meeting a need for learners and doing good in the community, though some wished they could do more.

IV. CONCLUSION

This assessment is based on what we heard from staff during interviews, observations, and in the survey. Our recommendations largely reflect their voice. We are humbled by the trust placed in us by staff that opened up about what works and what is preventing the organization from being as effective as it might be.

7 MLC is doing many things right. Our recommendations throughout this assessment have largely been about what to continue doing and what might be added, rather than noting practices that must be stopped.

What is missing between the status quo and an outstanding MLC is a robust messaging strategy (both internal and external), a dismantling of departmental silos, and a vigorous and open feedback loop. In some cases, the changes to be made are only subtle shifts, but regardless of the scale of change, we feel it is important that leadership act as the driving force.

Talented and dedicated staff are one of the organization’s greatest assets and a testament to its reputation and staffing decisions. One of the prominent themes of this report is that the MLC attracts and hires good staff and then trusts them to do their jobs. This has led to the MLC being held in high esteem by peers in the literacy community. By increasing efforts to effectively lead and manage an organization of passionate individuals, we feel confident that the MLC can model for other literacy organizations how to train, manage, and retain great staff.

The key strengths that we identified are:  Dedicated, competent staff with a passion for literacy  Flexibility in hours and work style  The makings of a great collaborative team, including shared values, autonomy, dedication, and a central office that encourages shared working space and informal networking  Leadership open and willing to hear suggestions for change from all levels of the organization  The majority of employees reported being happy with their job  A strong sense of shared purpose and work ethic

The key areas of concern that we identified are:  Staff are unclear about where the organization is going and how  There are a lack of steps to reach and follow through on goals  Impaired communication and collaboration at all levels  Staff value autonomy, but desire strong direction  Staff seek a chance to give input on decisions that affect work  Staff feel overworked, burnt out and like the onus is on individuals to seek support

In summary, our top recommendations include:  Bolder and more proactive communication from leadership about how decisions are made and how they fit into the vision  Thorough implementation of annual work plans, with regular check-ins on progress  Build and sustain an internally collaborative culture  Celebrate successes internally and externally more often and make greater use of staff and learners’ personal passion for the work  Embrace and manage conflict – it’s a sign that people care and can lead to greater heights  Prioritize lines of communication, both ways, prevent blockages and both involve and keep people in the loop on decisions that affect them