Key Points

• Six Sigma is a great solution for struggling nonprofits.
• Given the limited resources available, Six Sigma can help maximize the results.
• Nonprofits can benefit from using data-driven decision-making to guide their operations.

Is Six Sigma applicable for nonprofits? Well, given the sort of site we run here, we think Six Sigma is for everyone. That said, there are some prime targets for the methodology to make a splash and quite a difference when it comes to nonprofit organizations.

So, with that in mind, let’s take a closer look at some of the particulars around your common nonprofits and where you can apply the methodology and tools to transform your organization for the better. You might not have the level of resources you’d like, but you can make the most of it with some of these tips and tricks.

Understanding the Limitations Behind Nonprofits

Nonprofits don’t operate like your typical business. They aren’t driven by profits but rather a stated mission goal. As such, they can run afoul of things like a lack of funding, minimal resources, or a shortage of manpower.

As such, it is up to the leadership to make the most of what they have. In the United States, nonprofits play a vital role in providing valuable services to the underprivileged. Nonprofits that focus on things like education, vocational training, and more are a lifeline to disenfranchised communities.

That said, it’s not all sunshine and roses when it comes to running a nonprofit. Inevitably, you’re going to chafe against the restrictions and lack of resources. Whatever your aim may be, it might not be as simple as getting more of something.

Limitations and Funding Issues

Nonprofits are a competitive industry, just like your standard businesses in the private sector. When you’re relying on donations, grants, and government funding to stay afloat, competition is fierce. Further, the prevailing trend over the last decade has seen a shrinking segment of low-dollar donors, making appealing to those mega donors all the more important.

Simply put, it isn’t as easy as setting a budget for your organization and making the most of things. You might have an organization that is struggling to keep the lights on that acts as a beacon of hope to the community around it.

There are several factors working against the efficacy of most nonprofits, like volunteer workforces, a declining economy, and a curtailing of government spending. Making the most of those limited resources could mean the difference between continued operations or closing the doors for good.

Six Sigma for Nonprofits

Enough doom and gloom; we’re here to get you on the right track with your nonprofit. Six Sigma for nonprofits is a viable and effective means of delivering quality services while making the most of whatever resource deficits you’ll be looking at.

It isn’t a cure-all by any means, and it is going to take a fair amount of legwork from the leadership at your organization to make the most of. However, with the right mindset, namely one centered around continuous learning and improvement alike, you’ve got a chance.

Any organization is going to need a deft hand and keen leadership to make the most of its resources. With Six Sigma, even a nonprofit that is struggling gets a fighting chance to continue making a positive impact in their communities.

Boosting Efficiency

When you look around at the average nonprofit, you’ve got the same sorts of processes and procedures that you’d expect in a business looking to make a buck. As such, that’s a prime opportunity to turn things around and start striving for more efficient ways of doing things. Six Sigma for nonprofits is going to excel in pointing out areas where you’ve got waste, bottlenecks, and a general lack of efficiency.

With process improvement cycles, you’ve got exactly what is needed to start getting the ball rolling. Taking a closer look at the inputs, processes, and outputs is going to yield data. You can leverage that data throughout something like a DMAIC cycle to gain insight into where those processes are going wrong.

While you don’t have the typical stakeholders to answer to for most nonprofits, you’ve still got people who depend upon the services you’re delivering. Ironing out the kinks and waste in those processes is going to make delivering upon those expectations a far more tenable task in the long term.

Resource Management

Six Sigma for nonprofits is going to demand that you pay close attention to the resources at hand. Whether it’s materials for distribution, cash reserves, or precious manhours, Six Sigma has the tools necessary to look at where you can start managing those resources and making them stretch much further as a result.

You might have a nonprofit organization that is cash-poor in the strictest sense of the term. However, with a little time and effort, you can make those dollars go much further than they used to. Additionally, this goes right in line with my previous point. Making more efficient processes is going to result in less wasted resources.

Think about it, if you aren’t wasting time fixing work, that’s more time to focus on delivering and rendering services to your clients. Every little bit adds up, after all.

Decision Making

Data is one of the core elements of any Six Sigma endeavor. As such, when starting to look at Six Sigma for nonprofits, you’ve got to be prepared to do some number crunching. This isn’t a call for a seasoned data analyst, but you will want to take the time to look over the numbers regularly to see where things stand.

If certain avenues or services aren’t ultimately tenable, that gives you a clear call to perhaps discontinue offering them. Making a decision isn’t about intuition with Six Sigma, but something done with hard empirical data backing it up.

Operating off a hunch is something you can reserve for what you’re having for dinner or watching on TV after work. You’ve got people relying on you at multiple levels at any nonprofit.

Stakeholder Satisfaction

A nonprofit doesn’t have the same sort of stakeholders that you’d expect for a typical business. However, you do have to show something for your efforts when considering donors, beneficiaries, and the volunteers that help out.

Six Sigma is only going to increase overall stakeholder satisfaction. You’ll be hitting those goals with ease, while managing the resource deficit you might have started with. Further, you’ll be delivering quality services to your beneficiaries, guaranteeing that you’re building a lasting relationship of trust and respect.

Continuous Improvement

One of the most important things you can do when looking at Six Sigma for startups is starting a culture of continuous improvement. You’re striving to be better in your daily operations, learning from mistakes, and applying that knowledge to your next efforts.

Six Sigma isn’t just a set of tools to transform your business. It requires a complete shift in mentality to make the most of what you’re given. When you start embracing that mindset of continuous improvement, you’re putting the wheels in motion to continually deliver success and excellence to your beneficiaries.

Other Useful Tools and Concepts

Looking for some other tips and tricks to go with your morning coffee? You might want to take a closer look at how Hoshin Kanri operates and where it aligns with the strategy in your organization.

Additionally, you might do well to take a look at how Lean Six Sigma can help you build a customer-first organization. Customers are a vital part of the stakeholder hierarchy, and building a business around their expectations can serve you quite well in the long run.

Conclusion

Six Sigma for nonprofits might seem a bit strange to wrap your head around at first glance. However, the principles, mindset, and tools that drive the methodology are a perfect fit for the resource-strapped nonprofit. You’ll probably wonder why you didn’t start looking into leveraging the methodology sooner.

The image featured at the top of this post is ©Ground Picture/Shutterstock.com.