Practical experience with the NPO label

Goodwill is only earned by those who act responsibly and trustworthily. This trust must be earned, for example, through the quality of the services provided, through the satisfaction of members, donors, beneficiaries and employees, through the preservation of the given mission, through the careful use of available resources, through ensuring financial balance, and much more. Who says nonprofits have nothing to do with business management? The opposite is true, precisely because the expectations of NPOs are so high, these institutions require sound business management that combines prudence and foresight. Because: NPO management is always work on one's own reputation, a good reputation in turn establishes trust, and only trust makes one fully capable of acting.

Freiburg Management Model as a basis

Experienced NPO managers apply this cycle continuously on the basis of a special business management approach - the NPO Label for Management Excellence - which was created jointly by the Swiss Association for Quality and Management Systems (SQS) in cooperation with the Association Management Institute (VMI) of the University of Fribourg. The NPO label is derived from the "Fribourg Management Model for Non-Profit Organisations" (FMM), the most developed and best documented management system for NPOs. It takes into account their specific management requirements and is based on the principles of management by objectives and management by exception (MbO/MbE). The NPO label illustrates this Freiburg management theory in a practical way.

Three management fields are defined and interlinked:

• System management: leadership, organization, control, innovation.
• Marketing management: marketing planning, services marketing, advocacy, self-marketing and communication.
• Resource management: full-time staff, volunteers, membership and finances.

NPO label supports in the management

Those who manage their social enterprise according to the NPO label prove that they use integrated and comprehensive management tools that can ensure long-term success. The requirements of the NPO label can be adapted to the needs of different organisations. Institutions for people with disabilities, for example, have the opportunity to integrate their specific issues, such as dealing with clients and their relatives, cooperation with the public sector within the framework of service contracts, donations and sponsoring, and the recruitment and care of volunteers. Last but not least, the NPO label also covers criteria relating to the social significance of the institution and its role in society. The NPO label is therefore primarily an instrument for managing the strategies, structure and culture of a non-profit organisation. Prudently implemented, it improves the functioning of the organisation in the service of its stakeholders.

Example 1: MBF Foundation in Fricktal

The MBF Foundation introduced the NPO label in 2009 and has since made numerous visible improvements. Based on the Fribourg Management Model, a set of business regulations was developed. These set out clear structures between the strategic and operational levels, define the tasks, competencies and structures of the operational area and establish a uniform management rhythm. After two years of operation, it can be said that the new management rhythm has freed up resources considerably and that the clearer allocation of tasks and competencies promotes the independence and personal responsibility of managers at all levels. Management is based on the concept of "management by objectives and by exception" (MbO/MbE). This strengthens the employees' ability to act and adapt, as well as their satisfaction, which in turn has a positive impact on the working atmosphere.

The marketing concept defines the interaction and cooperation with all stakeholders. This concerns, among many others, especially the cooperation with the people with disabilities, but also their legal representatives as well as authorities and the public.

A clear positioning was defined with the statement that this must be differentiated for the social and economic markets. In this way, it is now possible to communicate adequately with the respective target groups and to strengthen the trust of both markets in the MBF Foundation. Thanks to a fundraising concept - including the necessary processes - fundraising has been professionalized and the trust of existing, but also potential donors has been strengthened.

In accordance with the requirements of the NPO label, the HR processes were also weighted accordingly. For example, investments were made in training and further education and the additional benefits for employees were presented transparently, which had a positive effect on professionalism and attractiveness as an employer. The MBF Foundation receives the majority of its income from public funds. The introduction of the NPO label and accounting in accordance with Swiss GAAP FER 21 ensures responsible use of financial resources.

The real added value of the label lies in the following aspects:

• To be able to compare oneself with other organisations on the basis of a defined yardstick (benchmarking).
• Maintain some pressure on the continuous improvement process through annual assessments.
• Be compatible and remain compatible with classic standards (e.g. ISO 9001) or specialist labels (e.g. INSOS Q, SODK Ost+).
• Systematic and up-to-date documentation of processes and tools, substantial reduction of search effort and thus realization of cost and time savings.
• Detach knowledge from performance and work processes and the employees responsible for them. Improve and facilitate handovers in the event of staff changes or staff absences.
• Create transparency at all levels within and outside the institution for all stakeholders.
• Building image, trust and acceptance among clients and their relatives, among employees, but also among clients, the public sector, contractors in general and the general public.

Example 2: Pestalozzi Children's Foundation (SKP), Trogen

The NPO label was introduced in 2009 with the aim of implementing an integrated management system that coordinates and fulfils the requirements of all labels and accreditations (ZEWO, NPO Code, SDC, Swiss Solidarity). Internal and external influences prompted the introduction of the label: externally, pressure from donors, awarding foundations, institutions, authorities and also from the law (ICS, EKAS, etc.) was steadily increasing with regard to the professionalism, transparency and safety of an NPO. Competition among aid organisations has also intensified. Due to the complexity and the variety of procedures and communication processes, an inner dissatisfaction arose among the employees here and there. They desired more orientation, effectiveness and efficiency, strict resource management and wanted to be involved in shaping the SCP culture in a solution-oriented way.

First, a common understanding of "quality and processes" had to be developed. This was successful; today it contributes significantly to continuous improvement. Processes and regulations are more clearly defined, and facts take precedence over subjective assessments of procedures. In addition, a glossary of applicable terms has been created in the departments in order to be able to use a common language internally and externally that is correctly understood by the most diverse partners in the Foundation's environment. Uniform and cross-departmental definitions of processes (project management, procurement, impact measurement, etc.), which were previously defined individually, now facilitate cooperation. System control and coordination of all certification requirements are carried out by the person responsible for management systems, who is integrated into the Directorate as a staff unit.

The examination of the requirements of the label during its introduction has led to more ownership by the management, process managers and employees, which has a positive effect on identification as well as on the assumption of responsibility and the appearance as a role model. In addition, the label is also an incentive to improve the system, which is never perceived as complete and finished, as the SKP is a learning organisation with processes that are constantly in motion. Planning and reporting at all levels - strategic and operational - visibly serve transparency. A communication platform promotes the transparency of the foundation's goals and results.

The following five advantages are at the forefront of the internal effect:

• Sensitization of the entire organization to process thinking
• Proactive identification of potential problems
• more efficient processes
• Reduction of risks as well as
• more efficiency due to bundling in the management systems unit

In terms of its external impact, the Foundation benefits from good feedback from donors thanks to its clear communication and professional work.