Project F Report

THE ALCHEMY PROJECT
FEASIBILITY REPORT
A study into leadership development opportunities for boards,
management and staff in the not for profit sector
A project of FAR Social Enterprise

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TABLE OF CONTENTS
Page
ACKNOWLEDGEMENTS
1. EXECUTIVE SUMMARY 4
2. PURPOSE OF FEASIBILITY REPORT 7
3. ALCHEMY PROJECT BACKGROUND AND STRUCTURE 7
4. METHODOLOGY 8
4.1 Consultation Framework and Process 8
4.2 Consultation Participants 10
5. FINDINGS 13
5.1 Leadership Development - Issues and Needs 14
5.1.1 The Not for Profit Sector
5.1.2 A “Good Leader”
5.1.3 Leadership Development – What Boards and
Management Can Do to Support Leadership Development
in Organisations
5.1.4 Leadership Development – What Role Staff Can Play in their
Own Leadership Development
5.1.5 Young People in the Sector and Leadership Development
5.2 Leadership Development - Opportunities 30

5.2.1 Collaboration
5.2.2 Mentoring
5.2.3 Reflection
6. PRIORITY AREAS AND RECOMMENDATIONS 38

6.1 Leadership Role and Capability at Board and
Management Level 39
6.2 Human Resource Development 40
6.3 Self-Awareness 43
6.4 Diverse Experience 48
6.5 Building Relationships 50
6.6 Recommendations: Conclusion 54
APPENDICES
Appendix One - Methodology Logistics and Limitations 55
Appendix Two - Alchemy Project Literature Review 57
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ACKNOWLEDGEMENTS
FAR Social Enterprise acknowledges the funding support for The Alchemy
Project provided by the Westpac Foundation.
We wish to acknowledge especially the contribution made by the many

consultation participants from the not for profit, corporate and government
sectors. For reasons of confidentiality, the individuals and organisations who
participated in the consultation will not be named.
FAR Social Enterprise also thanks:

• The Sydney Mechanics’ School of Arts (SMSA) for their pro-bono support
of this project
• The individuals who submitted case studies
• Jane Kenny of the Sydney Community Foundation, Doug Taylor of United
Way and Roger West of WestWood Spice for their continued guidance
and inspiration as The Alchemy Project Steering Committee and
• National Children’s and Youth Law Centre (NCYLC) and in particular,
James McDougall for auspicing the Alchemy Project
Jo Taylor (Director)
David Hardie (Program Coordinator)
Jenni Iloski (Program Officer)
A note on FAR Social Enterprise:

FAR is a social enterprise founded by Jo Taylor and Jackie Ruddock. Having worked extensive-
ly within the not for profit sector, Jo and Jackie work with a number of specialist consultants to
deliver a range of capacity-building and strategic projects within the not for profit, corporate and
government sectors. They specialise in working with organisations that are at key points or at
crossroads in development, and are looking at a range of sustainability questions and options.
FAR believes in being accountable, transparent, progressive, sustainable and effective. Our
organisations goals are to develop collaborative strength-based interventions focusing on man-
agement practices, adaptive leadership and engaging in innovative philanthropy. By generating
an income through advice and the implementation of management practices and adaptive lead-
ership programs, FAR has been able to also pioneer several pro bono initiatives for the social
change sector.
FAR SOCIAL ENTERPRISE – DECEMBER 2008

Feasibility Report revised December 2008
For further information on the Alchemy Project contact Jenni Iloski
jenni@farsocialenterprise.com
Alchemy is a FAR Social Enterprise Project

This work is licensed under the Creative Commons Attribution-NonCommercial-Share
Alike 2.5 Australia License. The symbols associated with the license are:
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1. EXECUTIVE SUMMARY
The Alchemy Project Feasibility Report documents and analyses the findings of
the cross sector consultations undertaken to explore leadership development
issues, needs, challenges and strengths (including opportunities) within the not
for profit sector.
A total of 42 individuals (from 29 organisations) from the not for profit, corporate
and government sectors took part in the consultations. The findings outlined in
this report are drawn directly from the discussions that took place in the various
consultation forums.
Consultation participants discussed their perspectives of the current state of the

not for profit sector to provide context for their consideration of its leadership
development issues and needs. When asked to identify the main challenges
facing the not for profit sector, including those characteristics that were
hindering its development of leadership capabilities, participants highlighted the
following:
 the sector is held back by the perspective that its role is just about ‘doing
good’
 Limited funds and time are not available or not being allocated to staff
development
 there are many examples of poor human resource practices
 there are limited career paths and opportunities for staff movement and
progression, particularly in smaller organisations
 the sector has little time to focus on learning or reflection.
People were also asked to consider their experience of a ‘good leader’ as a way
of exploring notions of leadership within the sector, as well as the mechanisms in
place to develop leadership capabilities. When the characteristics of effective
or ‘good’ leaders were explored, the following attributes emerged. Effective
leaders:
 are able to bring people with them
 have the ability to listen and hear the perspective of others
 network and form relationships across sectors
 bring a deeper sense of purpose, meaning and value to their work
 understand the value of reflection and create spaces for regular reflection
 are prepared to take some risks and make difficult decisions.
Therefore, what can be done by organisations and individuals to develop these

characteristics? The consultations explored this question and identified the
leadership development needs of the not for profit sector. These needs have
been analysed and are presented through the operating framework for many
organisations in the sector: namely boards, management and staff. The identified
needs highlight many complementary activities that organisations and individuals
can undertake to foster leadership development.

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Not for profit boards and management can support leadership development
within their organisation and the sector by providing:
 strong Board direction and support for leadership development practices
and programs
 an organisational strategic plan that sets an organisational direction and
priorities and a context for staff and leadership development initiatives
 human resource management strategies and structures that promote
reflective practices throughout an organisation
 formal and compulsory performance development processes
 management support and supervision that focuses on ongoing learning,
feedback and reflection
 opportunities for staff to obtain advice and feedback through formal and/or
informal mentoring
 opportunities for staff to gain diverse experience.
The actions of boards and management are critical but will be ineffective without
sector staff also taking personal responsibility for their own development as
leaders.
Not for profit sector staff can develop their leadership skills by:
 gaining diverse experience
 allocating structured time for self-assessment and self-reflection
 developing a sense of purpose in their work
 building networks and connections
 learning by doing and learning by failing
 stepping outside of their comfort zone
 accessing formal and/or informal mentoring.
In addition, consultation participants repeatedly made reference to the

opportunity the not for profit sector has to foster leadership development in three
ways: through greater collaboration, through formal and informal mentoring
and through the process of reflection. These opportunities are explored further
in the identified priority areas.
Finally, through analysing the Alchemy Project Literature Review and

consultations, five priority areas for action for boards, management and staff
have been identified:
1. Leadership Role and Capability at Board and Management Level

2. Human Resource Development
3. Self-Awareness
4. Diverse Experience
5. Building Relationships
Strategies for each priority area are explored and recommendations are listed.
Where possible, brief case studies are introduced to outline existing programs
and initiatives already undertaken within the sector. The recommendations for

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each of these priority areas are designed to encourage a ‘call to action’ for the not
for profit sector, and its partners, to undertake further collaborative work to help
address the sector’s leadership development needs.
The Alchemy Project, within FAR Social Enterprise is committed to collaboratively

developing and designing, one strength based initiative that focuses on one of the
recommendations listed to support Leadership Development in the not for profit
sector.

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2. PURPOSE OF FEASIBILITY REPORT
This report documents and analyses the findings of the cross-sector consultation
undertaken to explore leadership issues, needs, challenges and opportunities in
the not for profit sector.
The report aims to provide a focus for further discussion and collaboration
directly related to leadership development. This document also acts as a ‘call
to action’ for potential project partners to work on the suggested initiatives and
strategies that have been identified.
3. ALCHEMY PROJECT BACKGROUND AND STRUCTURE
The Alchemy Project is a FAR Social Enterprise project to help build a robust,
transparent, accountable and sustainable not for profit sector. The project does
this by working collaboratively cross-sector to harness current resources and
build on current good practice, in order to develop and design innovative and
sustainable solution(s) to the identified leadership shortage within the not for
profit sector.
The aims of the project are to:
 Identify issues, needs and challenges in the not for profit sector relating
to skills and leadership development. This is done through undertaking
research, writing a literature review and conducting consultations
 Ensure a representative cross-section of stakeholders have input into

identifying issues and solution(s) relating to leadership development, and
 Collaboratively design an innovative and sustainable solution(s) to help

address the skills and leadership issues identified.
The project is being delivered in partnership with a Steering Committee of

representatives from United Way, WestWood Spice and the Sydney Community
Foundation. The project is funded by the Westpac Foundation.
This first phase of The Alchemy Project includes:

 Recruiting a cross-sector steering committee
 Researching current understanding of the skills and leadership shortage in
the not for profit sector by undertaking:
o A Literature Review (completed June 2008)
o Cross-sector consultation (completed August 2008)
 Development of this Feasibility Report documenting the research findings
and recommendations for potential strategies (completed November 2008)
 Development and design of at least one particular solution to be
implemented in Phase Two during 2009.

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4. METHODOLOGY
4.1 Consultation Framework and Process
The Alchemy Project Literature Review provided a focus for the consultations
and positioned the project to complement (rather than duplicate) other sector
research being undertaken on broader workforce-skills capacity issues.
The Alchemy Project also acknowledges there is significant work being

undertaken elsewhere to develop workforce capability frameworks and workforce
development strategies for the not for profit sector. Similarly, while training in core
management skills (e.g. strategic planning, budgeting and people management)
is acknowledged as a component of developing leadership capabilities for those
that are engaged with running organisations, it is also not explored in detail within
this study.
The Alchemy Project Literature Review highlighted the consultations for this
project were to specifically focus on the gaps identified in the not for profit sector
around leadership development and the different notions of leadership.
Therefore, the aim of the consultations was to provide a space to discuss

leadership issues, needs, challenges and opportunities in the not for profit
sector and gain representative views on the current leadership practices and
opportunities within the sector. The consultations also aimed to obtain individual’s
experiences, views and ideas to help inform the development of a pilot project(s)
in 2009 to help address the leadership challenges in the not for profit sector.
A framework was established prior to commencing the consultations to identify

key stakeholders who are engaged, influence or have contact with the not for
profit sector. The following categories were identified and formed the basis for
identifying individuals to participate in the consultations.
 The Not for Profit Sector including

o Representatives from not for profit organisations that employ staff,
including representatives from the 30,000 not for profit organisations
that employ under 20 staff (defined as ‘small’) and the 5000 not for
profit organisations that employ over 20 staff (defined as ‘large’)1.
1 There are 35,000 not for profit organisations in Australia, approximately 30,000 of
which have less than 20 employees (source: ACCORD, The Nonprofit Sector in Austra-
lia: A Fact Sheet and SEEEN and Perpetual Foundation, Contrary and Congruent Views
of Leadership and Management in the Australian Social Economy) – see The Alchemy
Project Literature Review for additional information.

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o Representatives of not for profit organisations identified by the

Steering Committee or funding body as having existing leadership
development opportunities that contribute to the sustainability of the
organisation.
o People at the beginning of their career in the not for profit sector
including young people (people under 25 years) and people
transitioning from another sector into the not for profit sector.
o People in senior management positions in the not for profit sector
including CEO’s who have been promoted through the not for profit
ranks and those that have transitioned from another sector.
 ‘Observers’ of the sector - Individuals from organisations who through their

position come into contact with a number of not for profit organisations and
could comment broadly on their observations of leadership opportunities
within the sector.
 Corporate senior managers that have implemented successful leadership

opportunities within their organisation.
All target groups were represented in the consultations. These consultations

were held in August 2008 and were a mixture of:
 One-on-one interviews of one hours duration
 Two Intimate Dialogues, of two to three hours duration (one in Sydney and
one in Melbourne), targeting young, successful leaders from the not for
profit sector
 Two open forums of three hours duration, targeting young people in the
sector; those who have transitioned into the sector in the last five years;
and those working in the sector with an interest in leadership.
Once individuals had confirmed their participation in the consultations, they

were provided with a copy of The Alchemy Project Literature Review in order to
provide them a context for the research.
Additional details on consultation methodology can be found in the Appendices of

this report.

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4.2 Consultation Participants
The table below outlines the number of people who took part in the Alchemy
consultations:
Not
Not for Profit Corporate Govt specified Total
Participated in 352 29 5 2 42
consultations individuals different NFP
who are organisations
engaged
in a NFP
organisation
RSVP but did not attend 12 3 2 17
Sent Literature Review

only (interested in 5 2 4 11
project but could not
attend consultations)
Total 52 10 6 2 70
2 This is the total number of individual not for profit participants. The total number of
not for profit organisations represented was 29 as some organisations had multiple
representatives in the consultations.

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 Size of 29 participating NFP organisations
The chart below represents the percentage of individuals that participated and
were from ‘large’ and ‘small’ not for profit organisations. There were 17 ‘large’ and
12 ‘small’ not for profit organisations.
Size of NFP organisation representation
41%
Large
Small
59%
 Consultation Forum Attended (OF-23, ID-10, I-9)
The chart below shows the methods of consultation and percentage of

participants that engaged in those types of consultations. In total, 23 people
participated in the Open Forums, 10 people in the Intimate Dialogues and 9
people attended interviews.
Participant involvement in consultations
21%
Open Forum
Intimate Dialogue
Interviews
55%
24%

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 Gender Breakdown (F: 24 and M: 18 T: 42)

Twenty-four females and eighteen males took part in the consultations.
Gender Breakdown
43%
Male
Femaie
57%
 Age Breakdown (Under 25 years: 7, 26-35 years: 15, 36 years and

above: 20)
The chart below highlights the age breakdown of individuals who were involved in
the consultations.
Age breakdown of participants
17%
47%
Under 25 years
26-35 years
36 years and above
36%

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5. FINDINGS
The findings of The Alchemy Project consultation are drawn directly from the
discussions that took place in the various consultation forums. They are the
opinions expressed by people working in (or in partnership with) the not for profit
sector. They are not necessarily the opinions of The Alchemy Project Team,
including the Steering Committee or FAR Social Enterprise.
As The Alchemy Project Literature Review, other current research and the
consultations confirm, the not for profit sector is experiencing a significant
period of change. It is also giving increasing attention to the workforce it needs
to deliver on its expanding array of challenges, including greater attention to
effective leadership and workforce development. Nevertheless, The Alchemy
Project consultations have shown that some of the characteristics of the not for
profit sector continue to limit the extent to which organisations and individuals
are focusing on staff or leadership development. These identified characteristics
provide the context for the leadership development findings that follow.
The consultation discussions identified the key characteristics of effective

leaders. This examination of what it means to be a ‘good leader’ helps inform
the analysis of leadership development that follows, including the leadership
development needs identified for the not for profit sector. These needs have
been analysed and are presented through the operating framework for many
organisations in the sector, namely boards, management and staff. The particular
leadership development challenges facing young people in the sector are then
discussed.
The consultations also identified the opportunities that currently exist to

successfully build the key elements of leadership development across the sector.
These opportunities – collaboration, mentoring and reflection – are further
developed in the priority action areas, strategies and recommendations section.

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5.1 Leadership Development – Issues and Needs
5.1.1 The Not for Profit Sector
Within the consultations, people were directed to think about the following types
of questions:
 What are the main challenges that the sector identifies?
 What is hindering an effective approach to finding, developing and
supporting future leaders?
A number of critical challenges were identified.
Some sector leaders, observers and representatives believe that the sector is
held back by the perspective that the sector’s role is just about ‘doing good’.
Some also link this motivation to the development of insular relationships within
the sector and an unwillingness to tackle inefficiencies. For example, concern
was expressed that the way positions are filled (and how people progress in the
sector) does not necessarily help the sector access individuals with the right set
“
of skills.
The not for profit sector needs to promote people based on talent and skills not just years of experience.
CEO, Large Not for Profit
People are so passionate about the sector and their cause but there is just so much duplication
and a lack of consolidation of services. The ego and the passion can prevent consolidation and
collaboration.
CEO, Small Not for Profit
We focus too much on softer outcomes and are less willing to tackle ineffective staff and
processes.
The view that benefit just comes from doing good is a real blocker and has meant that the
sector has become lazy in its development of leaders.
”
People just do not know when to move on – there are long standing and insular
relationships within teams that end up holding the organisation back.
Not for Profit Representatives, Open Forum
Many individuals also talk about being in survival mode and being driven by
12-month competitive funding cycles. Related to this is the view of some that
funding structures only provide for funding of direct service provision and
preclude the allocation of funds for capacity building programs. The upshot of
all this is that many report that funds and time are not available or not being
allocated to staff development.

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“ The sector has to focus firstly on securing funding, then on client service delivery
and only then is it able to focus on people development.
Not for Profit Representative
I really struggle to think of more than one or maybe two funders who were
prepared to fund capacity building and development initiatives.
The Government is now starting to realise that 5% to 20% is needed for

administrative costs and some organisations are now including leadership
development in their administrative budgets.
Not for Profit Observer
”
Participants also talk about the effort required to meet funder-reporting
requirements that are onerous and/or lack consistency. Related to this is a lack
of outcome measures for tracking and reporting progress on capacity building
and service delivery initiatives.
“ A core issue is that for effective not for profit performance, an external agency
such as government should not be able to impose expectations that do not
necessarily fit with what the sector can deliver – defining social return through
evidence and outcomes is harder to do.
Government funding measures numbers, outputs and outcomes and there are not
good measures for social engagement and building social capital. How do you
measure real capacity building and empowerment?
”
Many sector representatives commented on poor (or non-existent) human
resource practices which lead to unstructured work allocation, role duplication,
uncertain accountabilities and in some instances, staff burn-out and high
levels of staff turnover. One of the stated outcomes of this is that leadership
responsibilities are being randomly allocated to “the last person left standing”.
In some cases people report that this is how they were able to step up and
prove themselves, albeit without the support they really needed. However others
acknowledge that this approach to ’developing’ leaders is unsustainable.
A related human resource challenge that was discussed is the limited career
paths and opportunities for staff movement/progression in many (particularly
smaller) not for profits.

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“ The limited resources, small number of staff and lack of spaces to move to are a real
barrier for staff to progress in small organisations in the sector.
CEO, Small Not for Profit ”
Some state that this is being addressed in other ways through rationalisation
of the sector, however this outcome does not necessarily address the
career development gaps identified by people in the sector. This sector has
approximately 30,000 organisations with less than 20 staff and there will continue
to be significant restrictions to career paths in many of these organisations,
especially if this challenge is viewed from a single rather than cross-agency
perspective.
“ Small, efficient organisations need to be able to build capacity in different

ways – we need creative partnerships to build these dialogues.
Not for Profit Observer ”
When discussing the lack of funding and proper human resource practices,
some also point out the related impact of having no time to focus on learning
or reflection. They note that some organisations are so caught in survival
mode that they do not provide the space for reviewing how the organisation is
progressing, the lessons being learnt or the factors impacting on its operating
environment. Some also point out that this is a challenge across the sector:
“ What the sector really needs is a “professional institute” that would provide a place to
reflect, network and obtain peer feedback and support.
”
It is important to note that while the challenges outlined above are typically
seen as barriers to leadership development, in fact they can be reframed as
challenges that can be creatively overcome. More simply they are not excuses
for not taking action.

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5.1.2 A ‘Good Leader’
As the purpose of The Alchemy Project is to explore leadership issues, needs,

challenges and opportunities in the not for profit sector, the consultations looked
into people’s experience of a ‘good leader’ to begin a conversation into both
notions of leadership within the sector, as well as the mechanisms in place to
develop leadership.
Within the consultations, people were asked to reflect on questions such as:
 Are there a set of characteristics that define an effective leader?
 What words are used to describe how leaders operate, how they gain
respect and how they sustain themselves and others?
 From your experience, what is one piece of advice you would give
emerging leaders?
It is important to again note that leadership was explored in its broadest sense:
as both individuals in leadership roles, as well as all people displaying leadership
qualities or actions within their organisations.
When the characteristics of effective or ‘good’ leaders were explored, a key

attribute that emerged was that a leader is able to bring people with them.
People within leadership roles empower others by sharing responsibility and
letting go of control, encouraging participation and helping to unlock the potential
of those around them.
For example, people within the consultations said:
“ Leadership is about understanding how to engage individuals so they feel valued and empowered. A
smart leader knows that the best results will always be achieved through a team of committed people
who will come up with creative ideas which will always be better than those that you try to develop in
isolation.
”
Your vision is your anchor point, but a lot of your focus is engaging people to implement that vision. So
how you relate to others is very strategic. Inspire them, listen to them, appreciate them. Do unto others
as you would have them do to you.
Not for Profit Representatives
Leadership also includes the ability to listen and hear the perspectives of
others – those both internal and external to the organisation. Effective leaders
‘know what they don’t know’ and understand the value of hearing the voices of
others. They are able to step back, listen and observe. They recognise the value
in stopping from time to time and asking some key questions. This is to stop and
check that they have not lost sight of the big picture as well as to provide clarity
to their team to make sure that others are still with them on their journey:

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“ Before you take action, even if you think you understand, stop – make sure you have
consulted, and most importantly that you have listened.
”
Leadership is also about communicating effectively at many levels, including
”
networking and forming relationships across sectors:
“ Don’t lose sight of the fact that this is all and always about people and
relationships – so invest in them.
Young Leader, Large Not for Profit
People note that these relationships serve different purposes – the effective
leader understands the value of developing relationships with allies and
confidants3 – having groups of like-minded people to network with and be
challenged by:
“ Always remember your purpose. Pay a coach, find mentors, develop

confidants, believe you might be wrong and that you might be right.
Know the difference between a confidant and an ally and keep checking this
out.
”
Young Leaders, Not for Profits
In the consultations, participants also noted that effective leaders bring a deeper
sense of purpose, meaning and value to their work and it is this that often
sustains them during challenging times.
Their actions are grounded in a deep sense of identity and integrity:
“ Be authentic and follow your instinct/inner voice.

Not for Profit Sector Observer
3 In this context the definition of allies and confidants reflects the adaptive leadership
work of Harvard Professor Ronald Heifetz as outlined in Leadership on the Line (2002).
Allies are people who share many of your values or strategies and can be valuable
members of your coalitions but they operate across boundaries and have a range of
loyalties. Confidants have few conflicting loyalties and provide you with a place to be
completely open and honest – they also tell you what you may not want to hear.

19 | p a g e
Leadership is SERVICE. Be clear about who you are and what you wish to contribute
to the world. In essence be true to yourself.
Know who you are and why you’re doing what you’re doing - this will sustain you in
your position and help keep you on track when your Board’s goals, your lack of time,
overwhelming workload etc start to deplete you.
Integrity. Act with integrity in all that you do. Be true to your values,
your potential, your sense of purpose.
Never tell lies. Operate transparently, acknowledge errors made,

reward your people appropriately.
”
Be ethical in whatever you do in your leadership role, regardless of
whatever situation you are in.
Young Leaders, Not for Profits
Within the consultations, many people highlighted the importance of reflection in

developing as a leader. There was much discussion within the interviews and
sessions that leaders understand the value of reflection and create spaces
for regular reflection in the professional and personal aspects of their lives. This
includes learning from varied experiences and a deliberate focus on reflecting on
‘failure’ – the things that have not worked out as planned.
“ Give yourself time to continually question and reflect on why you are doing
what you are doing and then go for it!
It’s not about getting it right all the time – you learn as much from
the mistakes as you do from the successes, so don’t be afraid to
make them! Trust yourself.
”
Related to this space for reflection, people highlighted a focus on the self, that
is, an understanding that looking after oneself is not just wise but an essential
part of maintaining purpose and vision. This includes a focus on ongoing self-
development, leading by example and demonstrating real commitment to one’s
own leadership development:

20 | p a g e
“ Take care of self – to inspire others into action – to lead an organisation.

Leadership of self, others, organisation – and in that order.
Ask for what you need to support your development – if it’s not available
at first, ask again.
”
While the effective leader brings people with them and consults widely and often,
this does not mean that they are indecisive. In fact, people highlighted there are
times when leaders need to act decisively and be prepared to take some risks
and make difficult decisions. They have a strong sense of direction yet are
able to change direction when this is necessary.
“ Don’t be wedded to your own rightness.

”
Finally, some noted that effective leaders are not necessarily in formal
management roles and in fact, are able to effectively exercise their leadership
capabilities from various roles and levels in an organisation.
“ People in formal management positions aren’t necessarily leaders…a leader is

different to a CEO.
”
In summary, from these consultations, people reflected that effective leadership
within the not for profit sector is about:
 empowering others
 building relationships within organisations at all levels, and cross sector
 not always having the answer
 holding to purpose
 making time to critically reflect.

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5.1.3 Leadership Development – What Boards and Management Can

Do to Support Leadership Development in Organisations
The organisational context for leadership development starts with the governance
structure of an organisation. Therefore, within the consultations, people were
asked about their current issues and needs in relation to organisational structures
and leadership development.
During The Alchemy Project consultations, participants voiced concerns over

the role of not for profit sector boards4. It was an issue that arose regularly,
and these concerns relate to both the capability of boards and the structures of
governance that underpin their operation.
It is clear from the participants that the leadership capability of the board sets
the tone for the overall leadership capability of an organisation and boards which
have few characteristics of effective leaders are unlikely to drive highly effective
organisations.
“ Recognising, promoting and encouraging good leadership starts with the Board.
”
Others commented that skills and expertise gaps in some not for profit boards
mean that some managers and staff do not receive the direction and/or support
they need from their board. For some organisations this results in a lack of
direction, for others it impacts negatively on the motivation levels of management
and staff, and for others it results in poor role clarity. The impact of these skills
gaps are exacerbated by unclear accountability structures and governance
responsibilities, and a lack of training for board members.
“ Boards have become less and less democratic. Accountability is key. My Board does
not clarify roles and structure. They need to be held accountable.
Young Leader, Intimate Dialogue
Boards don’t have accountability. Board members get elected on

specific skills but don’t necessarily have Board leadership skills.
Not for Profit Observer ”
4 In this capacity boards refers to governance mechanisms also known as Committees
of Management and Committees of Governance etc.

22 | p a g e
Therefore, strong board direction and support for leadership development is

critical and some organisations comment on the interest, support and resources
that are provided by their boards for staff and leadership development programs.
“ The role of the Board is to provide resources, support, direction and skills capacity.
Open Forum Participant
We have real support from our Board members, they are involved in our programs
and are interested in our staff – they come and sit in on team meetings.
HR Manager, Large Not for Profit ”
This commitment from the board provides a strong sense of legitimacy for
leadership development activities to be implemented throughout an organisation.
More specifically, leadership development is more likely to occur in organisations

where the board and management have in place:
 An organisational strategic plan (including a plan for skills and leadership

development) which is appropriately resourced and supported by ongoing
demonstrated Board and senior management commitment.
 Human resource strategies and structures that promote clarity in

purpose, role and accountabilities. This includes clear role descriptions,
open recruitment practices and formal induction.
 Formal performance development systems incorporating goal setting,

annual professional development plans and six monthly progress reviews
for all staff.
 Management support and supervision and a culture that encourages

feedback, reflection and ongoing learning at all levels of the organisation.
Participants highlighted that these are not components that are negotiable
depending on the size and resourcing levels of a not for profit organisation.
Rather, they are core to the development of an organisation’s leadership
capabilities. Some larger not for profits (typically with access to greater
resources) have also been able to introduce additional elements to their
leadership development programs. These include more formal professional
development and training programs informed by staff surveys and other
consultative forums.
Similarly, through the project consultations it was highlighted that there are
other leadership development needs that the management of not for profits
can address for minimal cost. Two of the strongest themes emerging from the
consultations were the need to focus on reflection at the organisational and
personal level (this is explored more fully in 5.2.3) and a desire for mentoring at
varying levels (see 5.2.2).

23 | p a g e
Management can encourage a culture of reflection by creating reflection

spaces for staff. This may be undertaken through forums such as regular staff
meetings, structured time for “self-reflection” and/or the establishment of peer
networks within or across organisations. They can also encourage staff to
reflect both internally (e.g. on their role and progress within an organisation) and
externally (e.g. on the relationships that they and their organisation have with
other agencies/sectors).
It was reported that the need or desire for mentoring is widespread in the sector.
This need is expressed in various ways and can include formal and informal
mentoring, within or cross-organisation mentoring and within or cross-sector
mentoring. An important message for organisations is that there is a strong
desire from staff to share ideas and obtain feedback and advice from a more
experienced individual, ideally outside of their formal management structure
to ensure a more honest process. This can be formally provided through
an organisational mentoring program but equally can be facilitated through
the establishment of networks that provide the space for informal mentoring
relationships to form.
Managers of not for profit organisations also need to consider how they can
best meet the strongly held need for staff to gain a diversity of experience
reported by those consulted. The opportunity to take on new responsibilities, gain
experience in different roles, on different projects, and in different organisations/
sectors, is seen as important ways of gaining diverse leadership experience. It
may also act as preparation for assuming more defined leadership positions.
Not for profit organisations that have limited capacity to provide this diversity of
experience can explore ways of partnering with other organisations to provide
opportunities for staff movement and exchange. They can also examine how
work within projects and roles is allocated and link this to the professional
development plans of staff.
These findings clearly highlight from participants a variety of issues and needs
and suggestions of how not for profit boards and management may provide an
appropriate framework to drive leadership development in an organisational
context.
In summary, to support leadership development boards and management may

provide:
 Strong board direction and support for leadership development practices

and programs
 An organisational strategic plan that sets an organisational direction and
priorities and a context for staff and leadership development initiatives
 Proper human resource management strategies and structures
 Formal and compulsory performance management processes
 Management support and supervision that focuses on ongoing learning,
feedback and reflection
 Opportunities for staff to obtain advice and feedback through formal and/or
informal mentoring
 Opportunities for staff to gain diverse experience.

24 | p a g e
These actions provide a strong framework for effective leadership development.

However it was also noted within The Alchemy Project forums that such actions
are likely to be ineffective without sector staff also taking personal responsibility for
their own development as leaders. This is developed further in the next section.
5.1.4 Leadership Development – What Role Staff Can Play in their Own
Leadership Development
The development of leadership capabilities does not start when an individual

assumes a position of authority in an organisation. Nor is it something that just
occurs at particular stages of one’s career. This was particularly highlighted
within the Intimate Dialogue consultations, where people aged under 30 years in
leadership positions discussed their progressive movement through the sector.
Participants highlighted there is a great deal of commonality in what individuals
require to develop as leaders regardless of the career stage they are in. The
picture that emerges when sector staff analyse the things they need to foster
their development is one that often complements what organisations need to do.
It also demonstrates again that many of the needs do not require a significant
financial investment from the organisation or the individual.
In detail, the picture developed from the consultations includes a number of

suggestions.
It was highlighted that staff need to gain diverse experience, ideally cross-
sector but at least cross-agency and in different roles. The rapidly changing
nature of cross-sector relationships (with both corporate and government) means
that individuals who have direct experience in different sectors can bring a range
of perspectives to their decision making and are well-equipped to bring these
‘different worlds’ together.
To effectively develop as leaders, staff need to have structured time for self-
assessment and self-reflection. If it is not available within their organisation,
or some other professional context, it was suggested that an individual can
take responsibility for their development and create their own space and time
for reflection. This space to reflect provides the opportunity to set and assess
progress against goals; to think about achievements, learnings and failures; and
to plan future action.
Examples of reflection undertaken by people in the consultations were:
 Undertaking personal leadership and other development programs

 Having a network of people to share ideas and challenges with
 Taking the time to step away and create some thinking space
 Using a formal space and structure (reflection leave, feedback forums and
support and supervision) provided by their organisations
 Maintaining a work-life balance so that they consciously created time for
self-reflection.

25 | p a g e
Some highlight that individuals also need to be self-aware, understanding the

role their values play in their decision making and in how they form judgments.
Ideally they will develop a sense of purpose and be intrinsically motivated by the
value of the work they undertake.
“ If you are going to be a positional leader you need to be a personal leader first. This
is how you function as a person – your values, how you think and act and it needs
integrity. You need to demonstrate your personal capacity first and have balance.
Understand people’s values framework, morals and your sense of identity.
Always be true to who you really are – develop your own leadership style and
trust it against all odds.
Not for Profit Representative ”
The ability to develop and maintain effective relationships is seen as a core
attribute of effective leaders and building networks and connections provides
an ongoing opportunity to be challenged and stimulated by peers. It also
provides an opportunity to observe what others do and to learn from their actions.
Organisations may not provide the structure for such networks and individuals in
the sector talk about how they can establish these themselves:
“ I am part of a learning circles group – a support group where you share where you
are at and the challenges you are facing.
Networks are important - what you need is a sustainable model where self-directed
learning can take place.
”
I create networks of people – put them in my bag – previous significant managers
have been really important.
Young Leaders, Intimate Dialogue
Being an “accidental leader,” when having to step-up as needed, is common

when organisations are stretched for resources, and many individuals note they
have developed quickly as leaders by just getting in there and trying things out.
In essence they are learning by doing and/or learning by failing. Ideally this
will be in a supported environment with guidance, direction and a recognition that
mistakes will be made.
“ Some of the greatest learning is failure-based.

”
26 | p a g e
Related to this is the need for staff to develop by stepping outside of the
comfort zone of their usual environment, thereby potentially gaining exposure to
new ideas.
“ You need to step outside of your boundaries, take yourself out of your comfort
zones and see what can be done differently.
You can learn as a leader in a range of ways and you need different options
that link together – not just university courses but experiential ones.
”
This can be in a workplace context by taking on new challenges in terms of

projects or roles or organisational responsibilities. It can also be outside of the
work environment through formal programs of development including leadership
programs. Participants of leadership programs typically talk of the value of such
programs as being able to help them to look at things differently and get other
perspectives by building awareness and the ability to reflect and reframe.
“ The real use of the leadership program was that you get to step outside and take
the time and have the space to think.
”
Regardless of whether it is part of a formal structured program or a professional
relationship that develops in an informal manner, many individuals state they
need to be able to access formal and/or informal mentoring. They note that
an effective mentoring relationship provides encouragement, belief, support and
challenge. It can also provide a further reflection space and an opportunity to
test ideas. People talk openly of varied experiences with mentoring, including
recognition that there are no guarantees of a successful mentoring relationship
regardless of whether it is formally set up or develops informally. Participants who
spoke most positively of mentoring use words like connection, advice, support,
questioning, challenge and networking. They have been able to build trust and
the relationship continues because it has mutual benefits.
Finally, individuals will also ideally be benefiting from regular feedback, structured
performance management, supervision and coaching. In other words they will be
receiving comprehensive management support.

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5.1.5 Young People in the Sector and Leadership Development
The Alchemy Project Literature Review5 highlighted that organisations in all

sectors need to understand and respond to the motivations of younger workers.
This includes a desire for cultural connection, a collaborative and results-oriented
culture and ongoing learning. The review noted that traditional (strength and
authority based) models of not for profit sector leadership might not be of interest
to younger emerging leaders. In addition, research suggests the next generation
is looking for a different set of characteristics in leadership (collaborative,
participative, supported and balanced) and this is encouraging debate on the
appropriateness of existing leadership frameworks.
Young people were therefore a particular target group for The Alchemy Project
consultation and the opportunity to specifically hear their opinions was provided
in various consultation forums. What emerged from this research is young people
in the sector expressed very similar views to others about the primary challenges
facing the sector, and the issues and needs that have to be addressed to develop
future leaders. However the impact of these challenges and issues is often felt
harder by young people, in some instances because they have different (and
higher) expectations and in others because the need for proper management,
mentoring, training and direction-setting is greater in the early stages of one’s
career. Accordingly, the absence of these has more detrimental impact.
“ When a person shows they are capable of doing their job well they are given more
roles or responsibilities instead of being mentored to do new things – then you
have so much work that you cannot take time off to attend training.
”
Staff need to be looked after as well as clients – there are all these programs for
clients and none for staff.
There is not enough money to attend training – they just find funds for people to
enrol in leadership courses.
Young People, Open Forum
This issue was explored in more depth with a group of young sector leaders
who articulated the real challenge in stepping up and assuming leadership
responsibilities without having breadth of experience or clear direction and
support from their board / management.
5 FAR Social Enterprise, The Alchemy Project Literature Review, (June 2008) pp 4
and 11

28 | p a g e
“ When I started working with formal organisations I was given a lot of responsibility very quickly
and that worked in two ways…it gave me confidence and then constant learning curves.
Young Leader, Intimate Dialogue ”
While the young sector leaders were highly motivated, pleased to be identified
as someone with real potential and willing to step up, they also acknowledge that
‘sink or swim’ was not a sustainable approach and simply led to burn-out.
“ I was suddenly put in the position of managing a big team…little support was provided
in management and how to manage the people as they transitioned…I was not always
supported in the basics and there were different expectations. I really struggled – trial
and error went on for a bit too long.
”
You are given responsibility and show that you can step up and take it on. Then it
becomes expected, give it to her, she’ll do it. Show capacity and you become the one
they rely on for one thing or lots of things…you burn out.
Young people also discussed how dictatorial or strongly hierarchical approaches

to leadership demotivated and disempowered them and they did struggle to “get
their voices heard” in the structures of some workplaces.
“ People have ageist views…within senior management I am very young. It’s an interesting
place to sit…senior people with 20-30 years of experience and trying to transfer their way
of leadership that isn’t so respected. The younger people are not wanting the dictator
leadership…they want to develop their own style.
”
Emerging leaders don’t care about hierarchy and don’t need the title, it’s hindering and limiting
to be caught in the structures.
I feel my own leadership within myself is better than leadership in some organisations…
organisations don’t have capacity to support staff and are stuck in the past.
It’s very hard to question the people above you – there is no space in the organisation to bring
up issues.

29 | p a g e
Some noted their organisations and/or managers were not able to give them the
guidance they needed and so they simply sought this elsewhere. For example
by:
 establishing their own informal networks of support with peers from other
organisations
 obtaining an informal mentor or coach
 observing and learning from leaders in other spaces (e.g. volunteer work)
giving themselves a space to reflect outside of work.
“ There is not enough space in our organisation to reflect so I do it in personal

time. I feel like I need space for reflection both in a work space and outside.
You pick leadership skills from what you have seen other people do in the past.
”
Coaching early on in my not for profit career- I paid for it out of my own wallet
to get the professional supervision to deal with the ethics of what you deal with.
I had strong mentors both consciously and unconsciously…professionally set

up relationships…someone you get to know and you bounce ideas off each
other.

30 | p a g e
5.2 Leadership Development - Opportunities
Consultation participants repeatedly made reference to the opportunity the not for
profit sector has to foster leadership development through greater collaboration,
through formal and informal mentoring and through the process of reflection.
5.2.1 Collaboration
Partnerships and collaboration are widely seen to be important and beneficial

and the desire for collaboration is widespread in the not for profit sector. The
challenge (and opportunity) is working out what can be put in place to facilitate
collaboration within the sector and in relationships with government and
corporate sectors/agencies.
The evidence from the consultations, which is also supported by research6

undertaken whilst completing the Literature Review (June 2008) highlights there
is currently a strong sense of competition, not collaboration, within the not for
profit sector. It is reported that this is driven by competition for funding, fighting
for survival and a lack of clarity on what collaboration might look like.
“ The nature of funding is to compete to deliver the same services - what we need is a
collaborative model.
The not for profit sector is engaged with “helping” but it is not driven from
collaborative partnerships.
Open Forum Participants
There appears to be this big versus small battle with small/medium size
organisations losing funding as bigger organisations get favoured.
”
However, there were some examples discussed of partnerships or networks
forming, such as on a regional basis and of consolidation through larger not
for profits taking over smaller agencies. There is also a desire for further
opportunities for connections and partnerships to be explored, which is potentially
being hindered by a lack of successful case studies and the fear of losing
organisational identity.
Similarly, there is a desire to work more collaboratively with the corporate sector
and to learn from this sector. Less clearly articulated is how this could, or should
happen.
6 SEEEN and Perpetual Foundation, Contrary and Congruent Views of Leadership and
Management in the Australian Social Economy (2007)

31 | p a g e
“ Corporate management is seen as what we should be aiming for. Effective,

efficient and ethical community management is often about the same skills (as
corporate) – which is people skills.
”
While corporate partnerships are widely discussed, there are mixed views in
regards to the benefits of partnering/collaborating with this sector. Some highlight
key learning opportunities from the corporate sector, such as:
 the value of investment in capacity building, including training and

development
“ The not for profit sector has plenty of dreams but not discipline. Corporate measures
its success…and impact. If the not for profit sector can learn anything from corporate
it is discipline and delivering.
”
 the value of structure and clear focus in roles and accountabilities
 the value of consolidation, a focus on improvement and reducing

duplication
“ Corporate has a focus on reflection both internally and externally – needed to

survive and focus organisational direction – not for profits lack this.
”
 the diversity of available career paths that value management and
leadership skills as well as subject matter expertise.
Other people within the consultations, however, expressed real concern about
the broad application of corporate sector practices to the not for profit sector.
They note the danger in direct sector comparisons and describe imposing models
from one sector to another as simplistic and patronising.
“ The solutions (we need) are long term but the expectation is that you can get
short term fixes from the corporate sector.
Corporates want completely different things than not for profits. You should not
compare yourself with corporates using the same measures.
”
32 | p a g e
The nature of the relationship with the government sector is also changing with
some discussing the need for more collaboration with government and others
advocating strong lobbying and influencing of government.
“ The sector needs to push and government needs to accept that training
needs to be allocated and included in budgets.
Open Forum Participant ”
Funding is often the key issue that arises when discussing the relationship to
the government sector. There are many concerns expressed over government
funding processes (e.g. short-term funding cycles, onerous reporting
requirements, that funding for training and development will not be supported and
that they encourage competition and a silo approach rather than collaboration).
These concerns dominate discussions about the relationship to the government
sector and limit the extent to which many can consider what collaboration might
look like with the government sector.
A related issue to collaboration, and one that may provide some insights into how
it might be facilitated, is the wide-held recognition of the value of staff gaining
cross-sector experience, and that greater movement of staff across all sectors
would be beneficial.
“ Crossing over between sectors should be encouraged, embraced and offered…so

all worlds are coming together.
Open Forum Participant ”
Such a movement of staff between sectors was seen as something that would
build understanding, break down barriers and help demonstrate potential new
career paths.
“ We need to partner better with government – for example via a cross-sector

development scheme whereby staff start in the not for profit sector and rotate to the
government sector – to encourage movement into and out of the sectors.
HR Manager, Large Not for Profit

”
Gaining cross-sector experience is seen as an important aspect of effective
leadership development and the relationships that form as a result can also help
break down the perceived barriers between sectors. For example, individuals
who have transitioned from the corporate sector to the not for profit sector
highlight the similarities in the leadership and other skills required to operate
successfully in each sector. These sector leaders also note that a real barrier

33 | p a g e
to cross-sector collaboration and staff movements is the focus on perceived

differences between the sectors and that one of the key learnings from their
transition is that the sectors are not as different as many people think.
“ We need to increase the level of exchange between corporate and not for profit to build
individual learning and break down perceived barriers. It should be seen as a positive to
want to go between corporate and not for profit. The skills gained from being a leader in the
not for profit sector should be acknowledged in corporates.
”
At times I felt a real lack of respect of my capabilities from corporate partners who
would pass judgment on my capability because I was in the not for profit sector. In fact I
often had more corporate experience than them.
The widespread recognition that collaboration within and across sectors

is needed presents an opportunity that is best tackled from a variety of
perspectives. The existence of programs that facilitate the movement of staff
across not for profit organisations as well as into and out of other sectors
would send a very strong message that collaboration can happen. It would also
contribute in a practical way to providing an opportunity for staff to gain quality
diverse experience – a key identified need in developing leadership capabilities.
5.2.2 Mentoring
Mentoring is widely discussed as an important component in developing as a

leader and there is a range of perspectives on what a mentoring relationship
could, or should look like.
“ Mentoring is what everyone says they want but this needs to be

examined further – what is it that people actually want – and is having a
mentor the best way of getting that?
”
When discussing the value of mentoring, people tend to highlight the opportunity
it provides to stop, reflect, share ideas and obtain feedback. For example, young
people in the sector discuss mentoring in the following context:

34 | p a g e
“ Mentors that not only teach but challenge. Being able to talk to someone
about the challenges and have support.
An objective mentor or coach – if your mentor is internal it can potentially be

harder to be open – external to the sector could provide new perspectives.
”
Not just having a boss but a mentor.
Mentoring that links up and coming leaders with existing leaders.
The mentor and the individual need clear roles, responsibilities and structure
and mentoring outcomes need to be measurable.
Young People, Open Forum
Mentoring is seen as potentially beneficial at various levels and from various

sources, e.g. organisation to organisation (within and cross-sector), sector leader
to sector leader, within projects and within organisations (formal leader to new
employee, experienced person to person at beginning of career).
Participants reflected that their experience of mentoring takes place both

formally and informally. For example, some people talked about formal mentoring
opportunities, such as those that are arranged by their organisation and typically
include a structure for the relationship and some form of organisational support,
such as training and the allocation of time for meetings.
On the other hand, many people discussed their experience of informal

mentoring. Young leaders in the not for profit sector reflected that informal
mentoring can take place outside of organisational structures and is typically
maintained by the strength of the relationship.
“ Speaking to a friend that is a CEO provided me with support.
What helped most were mentors – key supporters that offered belief.
”
I had some disastrous experiences with conscious mentors… I’ve created networks
of people who fall into the mentor relationship…not structured but they are part of
the journey. Some might be surprised to know they are mentors.
Impartial coaching from another person – when their intervention has been about
personal and individual development as opposed to just organisational.

35 | p a g e
When discussing what leadership development might look like for the next
generation of leaders in the not for profit sector, various consultation participants
highlight the potentially valuable role that mentoring can play as part of a
structured program of development.
For example, Open Forum participants discussed a leadership development

program that would incorporate formalised mentoring at various career phases.
At the beginning of one’s career the focus of the mentoring could be project-
based, supporting a structured learning program that provided exposure to
different areas within a large not for profit organisation. It might then also
incorporate formally ‘shadowing’ a leader within a smaller not for profit to
compare and contrast the two organisations and approaches. As one’s career
progressed, the formal mentoring would continue as a way of extending networks
and facilitating ongoing reflection. Then once someone had extensive experience
in being mentored, they could take on responsibility for mentoring someone
themselves, thereby helping to sustainably build a mentoring culture within the
sector.
Two sector CEO’s also identified the opportunity for a program that brings
together a group of experienced individuals, providing them with cross-sector
executive experience over two years within a formal structure incorporating
inductions, mentoring and six monthly performance reviews. The mentoring
component would be drawn from a partnership with the corporate sector ‘taking
the best of their thinking’ and applying this back in the not for profit sector. Such
a program would expose emerging sector leaders to areas and experiences that
their current organisations cannot provide.
“ This program is a means of identifying, examining and critically testing leaders

in the sector. When individuals show the passion to want to develop as a
leader this can show them the pathway – it would allow individuals to gain an
understanding of the pathways for growth.
”
5.2.3 Reflection
The importance of having the time, space and capacity for reflection was
repeatedly highlighted in the consultations. The term reflection was articulated
in different ways and meant slightly different things to different people. Primarily,
people talk about wanting a space away from busy work environments to think
about their experiences in a structured way, focusing on goals, achievements,
failures and learnings.

36 | p a g e
“ You need the time and space to reflect – failures are overlooked and buried – need to
learn more from individual and organisational failures.
CEO’s cannot reflect to their Boards…they need space to think out loud – to meet once a
month and talk through issues.
What helped my development was a reflection process when I was in a space which
allowed me to try things out. I realised my abilities and what I can do.
I was hindered by the lack of space to reflect – on the role of the organisation, what to
”
work towards and internal and external factors.
In general, reflection was described as a process that may also include (or be
linked to):
 gaining self awareness (of what you don’t know and your strengths and
weaknesses)
 networking (including peer discussions such as learning circles)
 receiving support and feedback (including regular support and supervision)
 mentoring and coaching.
Reflection was primarily discussed as something that could be undertaken by an

individual. However consultation participants also noted the individual process
would ideally be supported by an organisation encouraging a reflection culture
and providing:
 a clear intention or purpose for the reflection
 structured time for self reflection to occur
 a framework for goal setting and feedback.
“ Organisations need to take people out of the busy-ness and give them
experiences to develop their emotional and spiritual intelligence - and
opportunities to reflect.
Having reflection time off site can help people see the connections
”
between initiatives.
As was the case with mentoring, when discussing what leadership development
could look like for the next generation of sector leaders, various consultation
participants highlight the important role that reflection can play as part of a
development program.

37 | p a g e
Young sector leaders identified the potential value of bringing together people
from across sectors to share experiences with a shared purpose in a formal,
ongoing reflection space. The group would receive training to help build a
coaching culture as well as support from their own organisations to report
back on how they dealt with particular situations. However, importantly, the
participating individuals would drive the group learning, not necessarily the
organisations.
“ It would be about gaining personal insight through asking powerful

questions as opposed to structured mentoring.
A sustainable model where self-directed learning could take place.

”
Empowering the group to find their own needs.
Underpinned by a philosophy that it is okay to fail – celebrate and learn.

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6. PRIORITY AREAS AND RECOMMENDATIONS
In this section the five priority areas for action for boards, management and staff
are identified and potential strategies explored for each priority area.
Once again, strategies are drawn directly from the insights provided by the
Literature Review, and during the consultations; including individuals opinions
and ideas on the question, “What does leadership development look like for the
next generation of leaders?” In developing these strategies, priority has been
given to actions that will have high impact for relatively low cost. In order to
build on initiatives already in place, case studies that demonstrate how these
leadership development priority areas are being addressed by not for profit
organisations are also included. 7 Where appropriate, the strategies are a ‘call to
action’ to boards, management and individuals to adapt or change their actions
to further foster leadership development in the sector. It is acknowledged that the
strategies may not apply to all organisations and individuals and that they can be
adapted to suit organisational/individual need.
The recommendations for each priority area are also a potential ‘call to action’
for the not for profit sector per se, including its partners, to undertake further
collaborative work to help address the sector’s leadership development needs.
FAR Social Enterprise is committed to supporting the findings of The Alchemy

Project. Specific areas that FAR Social Enterprise could potentially support are
listed in the recommendations section. FAR envisage working collaboratively
with interested parties to devise one strength based project / intervention for
leadership development in the not for profit sector.
A note on the recommendations about management practices and competencies

It was evident throughout the consultations and whilst undertaking research (including the
Literature Review) that there is a strong cross over between management and leadership.
Although this study and therefore the priority areas and strategies are focusing on leadership,
it is recognised that positional leadership also requires essential management skills and
competencies. It is also acknowledged and recognised that leaders who are going to
be managers require a range of practical skills and a good knowledge of areas such as
organisational theory, governance and the legislative context.
7 The Alchemy Project Team appreciates the organisations and individuals providing
these case studies who have agreed to be identified in this report. Further information
including contact details for the organisations/individuals can be obtained by contacting
FAR Social Enterprise.

39 | p a g e
6.1 PRIORITY AREA ONE: Leadership Role and Capability at

Board and Management Level
Although the Alchemy Project did not focus specifically on boards in the
consultations, the participants identified that the support and actions of boards
are an important part of supporting leadership development.
6.1.1 Board Strategy – boards providing strong leadership direction

and support around leadership development through practical
understanding, skills and experience
It was highlighted that the commitment of not for profit boards to leadership
development can be demonstrated in a number of ways. One example is by
the board having appropriate skills and capabilities, including an underlying
understanding of human resource management. Another support mechanism
boards may offer is by having access to expertise in leadership development,
either via specific board members or pro-bono support.
Board members may also review their membership specifically looking at skills
and experience in relationship to leadership development. By doing so, board
members may acknowledge areas they need to develop, and can also hold each
other accountable in setting the tone in maintaining and obtaining relevant skills
and expertise. This may be particularly powerful when developed in line with
individual and organisational leadership development opportunities and needs for
an organisation.
6.1.2 Management Strategy – a strategic plan for the organisation with

an internal as well as external focus and a corresponding budget line
Management of not for profit organisations can develop a strategic plan,

endorsed by the board, which includes an internal focus, with specific human
resource strategies, including leadership development and skill based
competencies. It acknowledged that many organisations have strategic plans in
place, either already covering such issues, or in some cases may benefit from
a specific refocus in this area. For example, by having a budget and resource
allocation associated with the specific leadership development strategies, an
organisation optimises on being able to deliver, plan and grow their commitment
to leadership activities for boards, management, staff and if relevant, volunteers.
6.1.3 Recommendations: Leadership role and capability at board level
As the Alchemy Project did not explore board leadership capability in detail, the
following recommendation is based on the potential need for further exploration
of more detailed and specific recommendations.

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The existing research highlighting the role and capability of boards and their
governance structures in supporting leadership development could be collated,
analysed and discussed in order for the sector to determine whether further
research into the extent of board leadership capability is required.
6.2 PRIORITY AREA TWO: Human Resource Development
It is recognised that core to the effective development of an organisation’s

leadership capabilities is the existence of a comprehensive approach to
human resource development. This is not just about day-to-day human
resource practice, it also includes an approach to competency development
and leadership development that is informed by the strategic direction of the
organisation and supported and enabled by the board.
6.2.1 Management Strategy - Ensuring comprehensive human resource

development strategies and structures are in place
Not for profit management is responsible for the development and

implementation of strategies and structures for human resource development
as specified and endorsed by the board in the strategic plan. Such systems,
policies and procedures are there to provide clarity in roles and accountabilities.
They ideally include processes for structured management support and
supervision to be delivered at all levels of the organisation. Within the model, the
board is responsible for providing this support to senior management and the
management is responsible for other staff. The strategies and structures can be
further reinforced through appropriate training and staff inductions.
CASE STUDY8
Oxfam: The transformation of their human resource management
practices
The primary goal for staff learning and development at Oxfam Australia is to
support the achievements of the agencies strategic change goals through
enabling individuals and teams to better carry out their present and likely future
responsibilities. To do this the Learning and Development program works with
and through people to build strong supportive relationships based on mutual trust
and respect, facilitate strong performance management and mutual accountability
and learn from our monitoring and evaluation of our programs and initiatives.
cont. next page
8 Case studies are written by the participating organisations and individuals.

41 | p a g e
One of Oxfam Australia key priorities is to build management and leadership

capabilities across the organisation. To do so we have been working with
managers to adopt sound Human Resources practices through providing them
with comprehensive learning pathways including, a new managers induction
program, five day training program for supervisors, coaching, mentoring,
learning forums and resource development. Managers are provided with clear
expectations of their roles and are performance managed and developed against
these.
As noted by an Oxfam Australia employee:

“I had no idea how BIG supervision is, before it was an add on, now I realise
how integral it is to the performance of my team and most importantly the
health and well-being of myself and those I work with.”
6.2.2 Management Strategy - Implementing formal performance

development and evaluation systems
If not already in place, management can also implement formal performance

development and evaluation systems. As is recognised, these systems provide
an organisation with a culture that encourages feedback, reflection and ongoing
learning. Performance development and evaluation systems ideally also include
goal setting, personal development and core skill development plans for all
management and staff. This is usually undertaken through a process of regular
progress reviews. Core skills may include developing an understanding of
accounting, finance-budgeting, fundraising, planning, understanding legalities/
compliance issues, communication and inter-personal skills. Additionally, staff are
encouraged to take responsibility for their own learning.
CASE STUDY
The Shalom Institute and Social Ventures Australia: Providing
skill development and leadership development for not for profit
organisations
The Shalom Institute is a Jewish Adult Education service who is working in

partnership with Social Ventures Australia (SVA) to deliver a Professional
Development Series aimed at young Jewish adults, working or volunteering in
Jewish not profit organisations.
The concept and framework of the Professional Development Series, came

about from staff at the Shalom Institute recognising that there were many small
not for profit organisations in their network, which were finding it challenging to
provide staff with professional development opportunities and opportunities for
organisational growth and development due to the size of the organisation.
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42 | p a g e
The Professional Development series is a new initiative, which consists of 5

one-day interactive workshops (over a 5 month period) and aims to improve
young Jewish adults’ professional skills and learn how to grow or optimise their
organisation. It is also seen as an opportunity to give something back to staff.
The five workshop topics are:

1. Leadership & Personal Mastery
2. Strategy and Planning
3. Organisation Building & Growth
4. Financial Management
5. Skilled volunteers and board development
The workshops are primarily focused on developing “organisational” skills, with

the inclusion of a personal development workshop, as it was acknowledged
that having self-awareness (including knowing your strengths) also benefits an
organisation indirectly.
The content of the series was devised in partnership with SVA, informal
conversations with young adults and CEO’s affiliated with the not for profit sector
and a 1 page market research questionnaire being distributed to individuals in the
Shalom Institute Network.
The Professional Development Series aims to:

• Give something back to staff
• Create opportunities for individuals to gain professional development and
• Foster growth of not for profits through skill, knowledge and development
acquisition
CASE STUDY
Oxfam: Providing leadership development within an organisation
As part of their commitment to personal leadership development Oxfam Australia

provides a twenty week coaching program focusing on personal and inter-
personal leadership for staff within the first twelve months of employment.
Feedback directly from staff includes:
“I think the program has given many people the tools with which to stop, think
and make a difference in their circumstances, which is far better than the past
system of get frustrated, complain and not move forward.”
“I think this course came at a great time for me. It has helped me to face the
challenges in my professional role with greater tact and confidence, and to
recognize the value of deliberate choices I have made in my personal life as
well.”

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6.2.3 Recommendations: Human Resource Development
It is recommended that:
1. Further investigations be undertaken to scope the financial cost of

establishing a comprehensive human resource development framework
in not for profit organisations, which encompasses a variety of leadership
development competencies.
2. To inform this work in the sector, a comprehensive case study illustrating

the process and learnings and costs could be developed on the work
Oxfam Australia has undertaken to transform their approach to human
resource management and leadership development over the past three
years.
3. A cross sector leadership development program with a focus on skill

building for emerging leaders could be investigated based on the Shalom
Institute and SVA partnership for wider participation from the sector.
6.3 PRIORITY AREA THREE: Self-Awareness
An ongoing commitment to building self-awareness is an essential part of

developing leadership capabilities for individuals at all levels of an organisation.
Developing self-awareness is about undertaking activities – such as reflection,
mentoring, active listening and stepping out of one’s comfort zone – that help
an individual to develop an understanding of their values; their decision-making
processes; and their sense own of purpose. Further, it is also often about
developing a sense of purpose in their work: an underlying driver that will help to
sustain them and ‘anchor’ their own leadership work.
6.3.1 Board and Management Strategy – Promoting a culture of

learning
Not for profit boards and management can promote a ‘culture of learning’ in
their organisation. By doing so, such organisations not only demonstrate their
commitment to learning, but also often recognise the powerful message it sends
when all levels of staff are seen to be developing in a learning environment.
One example of a learning culture is one that encourages regular staff reflection
and supports this with clear purpose and processes. This will typically be linked
to human resource practices including performance evaluation. The processes
for reflection are likely to be most effective if they include reflection on both
achievements and failures, and if the reflection practice occurs as both part of
the day to day work environment as well as encouraging reflection outside of the
work environment.

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CASE STUDY
Inspire Foundation: Reflection Leave
Staff have the opportunity to take up to 5 days leave annually in order to

personally and/or professionally reflect. This formalised leave is in addition to
staff annual leave entitlements.
Reflection leave is part of Inspire’s values around investment in people on an

ongoing basis. The organisation believes that reflection leave encourages “open-
hearted” leadership throughout the staff team, regardless of position. Such an
approach enables Inspire to work more effectively together. It also provides each
person an opportunity to reflect on where they are at and to stretch themselves
at a steady pace in order to encourage gradual personal and/or professional
change.
Fundamental to this principle is the notion that a focus on personal reflection

invariably leads to professional development.
In terms of organisational investment, Inspire measures this as:

• Time of appropriate staff member in a leadership position to meet and
debrief with members of staff
• Up to 5 days pay for each staff member
• Organisation time for staff feedback session
A comment by staff member regarding reflection leave includes:
“Inspire is the number one leader in the field in investing in staff and
culture. I believe the output and quality of social projects run by all
charities in Australia could be improved by the adoption of a staff
development program similar to Inspire. Specifically, a culture that
encourages staff to reflect on their own mental and physical health and
put this first.”
CASE STUDY
NEAMI: Leadership and Development Pilot Program (2008)
Neami has recently completed a Leadership and Development Pilot Program

(2008) to promote self awareness, reflection, and learning in senior
organisational staff. This project has utilised Emotional Intelligence as the
foundational base for the program, encouraging staff to consider their capacity
to effective manage themselves as a means to better managing others. We also
incorporated some technical skills into the latter part of the program to assist
managers in key areas of identified deficit
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45 | p a g e
This program has been developed via a close collaboration with the Northern
Melbourne Institute of Tafe (NMIT) and is accredited against the Advanced
Diploma of Frontline Management. A range of creative learning platforms
were used in the program, including traditional workshops, online tutorials, the
development of ‘communities of practice’ in local geographic areas and self
paced modules.
Key modules in the program include: Emotional Intelligence; Creative Problem

solving, Creating A Learning Environment, Control and Influence, Managing
Change and Development, and Managing Conflict. Technical areas included:
Finance Management, Project Management, Human Resource Management,
and Legal and Ethical Issues.
The program also involved participants engaging a voluntarily chosen mentor

to assist them in their discovery journey and build links between the Leadership
Development Program (LDP) and their daily practice. Participants also kept a
LDP Journal for the duration of the program to encourage reflection and revision
of current approaches and methods.
Participant evaluations of the project suggest it has provided opportunities for

staff to effectively reflect on their practice, embed Neami culture and values,
develop relationships across the organisation and learn practical new skills and
knowledge which will directly assist them in their management roles. Roles for
which many staff have had no previous training or expertise.
6.3.2 Individual Strategy - Undertaking self assessment and reflection
Some organisations do not provide formal structures for reflection and individuals
therefore need to create their own spaces to ‘take time out’ and think about their
goals, progress and learning development. Such a process may be undertaken
in formal or informal ways, and may include elements such as peer networks,
structured supervision or an individual reading program.
Reflection is a process that can be taught and learnt. It is a critical process of

learning characterised by openness, insight, detachment and it is future looking.
Reflection can help an individual really understand what is happening for them in
a situation and what they can learn from this.

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CASE STUDY
CEO Forum
Roger West from WestWood Spice, human service consultants, convenes two
forums for CEOs of not for profit NGOs. Each group comprises 14 members and
they meet for 4 hours every two months, beginning with informal discussions over
a light breakfast. The groups are opportunities for structured discussion, dialogue
and information exchange. The idea is not to be a lobby or pressure group,
but rather to discuss, in an open and “safe” environment, common issues and
challenges faced by leaders of community sector organisations, to share ideas
and solutions that some may have tried (or at least thought of) and to exchange
information and intelligence from the field. They operate in environment of
confidentiality. One of the great strengths of the groups has been the willingness
of members to be open and frank about issues and challenges, and this only
happens when trust has developed over time.
6.3.3 Individual Strategy - Stepping out of the comfort zone
Self-awareness is typically accelerated when individuals are prepared to seek out

and take on new opportunities. This may include practising what it is like to take
risks and stepping into a ‘learning zone’. Such an experience may be in a work
environment, for example by taking on new roles or short-term secondments
and/or projects. It can also be undertaken outside the work environment through
experiential programs of learning such as leadership or personal development
programs. This experience can be enhanced if complimented by mentoring.
CASE STUDY
An individual’s experience of an Adaptive Leadership Program
My participation in the Q&A Adaptive Leadership Program provided a valuable

opportunity for me to understand how I could personally effect change in my
community. Q&A operated largely by forcing participants out of their comfort
zones. This included acknowledging that many of our habits as community
workers – focussing on understaffed administration and under funded budgets,
blaming fellow committee members for non-compliance with our visions, or
targeting outside forces such as political parties which conflict with our views – as
avoiding the deeper, and more difficult, work of creating lasting cultural change
within our organisations. On a personal level, Q&A forced me through the painful
process of examining the hurt I carried within me as a victim of homophobia, and
how that affected my ongoing work within the GLBTQI community. By receiving
permission to model my pain instead of denying it, and speaking from the heart
publicly about my experiences, I discovered the value of deep empathy from my
audience in inspiring the change needed to make my community safe.

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6.3.4 Individual Strategy - Identifying formal or informal mentors
For many individuals the role of a mentor is critical to building self-awareness.

In this context, the mentoring relationship is maintained by the strength of
the relationship rather than formal structure or a particular focus on skills
development in an organisation. The role of the mentor is to challenge, support,
pose questions and potentially act as a role model.
CASE STUDY
An individual’s experience of mentoring
As a new executive, I tried to do everything and be everything to everybody.

I quickly lost control, motivation, and direction. A colleague recognised my
predicament and offered to help. This person became my coach and mentor – a
person I trust implicitly. My coach helped me to re-take control, firstly by helping
me to recognise what drove me at a deep, emotional level, and hence what was
important and what was not. He listens, guides, challenges, questions, and keeps
me focused. Being coached has taught me how to interact with others and I
now ‘coach’ my staff, rather than simply ‘manage’ them, with astounding positive
results. I have become a trusted and respected leader and my staff have become
a focused, motivated, and independent team of professionals. I don’t believe I
could have developed as a leader simply by doing a course or reading a book. I
believe that to be a good leader requires you to be a good coach, and becoming
a good coach comes from being well coached yourself.
Philip Petrie (M.Ed.Stud., BN, RN)

Executive Director, Bankstown Handicapped Children’s Centre Association
(BHCCA)
6.3.5 Organisational Strategy - Focusing on communication and active

listening
Taking time to step back, actively listen and truly hear the perspectives of others
is a process that builds self-awareness. It is also a key characteristic of effective
leaders. Active listening includes hearing internal and external perspectives;
being aware of the assumptions and judgments that one brings to the listening
process; and leading discussions with questions not answers.
6.3.6 Recommendations: Self-Awareness
1. A forum could be established to provide a space of action learning and

reflection for a group(s) of emerging sector leaders. Such a forum would

48 | p a g e
facilitate reflection, networking and peer feedback. This initiative could be

adapted from the model used by the existing CEO Forums and “Community
Sector Leaders Forum” convened by WestWood Spice in NSW.
2. An experiential cross-sector program could be designed and delivered

collaboratively based on the Sydney Leadership and Q&A Adaptive
Leadership Program for emerging leaders.
3. The process of reflection exercise used in the Q&A Adaptive Leadership

Program could be adapted, formally documented and disseminated to build
reflection capabilities and resources in the not for profit sector.
6.4 PRIORITY AREA FOUR: Diverse Experience
This priority area is about developing leadership capabilities by taking on new

responsibilities, be it in differing roles, projects, organisations and/or sectors. It is
about experiencing a variety of work environments, thereby better equipping an
individual to bring a range of perspectives and experiences to strengthen their
own leadership capabilities. For organisations, it may be about the development
of mechanisms for staff to gain diverse, quality experience (including within and
across organisations and sectors, where possible).
This priority area can also potentially demonstrate collaboration in action: a

way to collaborate in order to increase understanding, break down barriers and
establish new career pathways.
6.4.1 Board and Management Strategy – Provision of opportunities for

staff to gain diverse experience
Those boards and management which actively develop creative approaches

to providing staff with diverse experience often feel the benefit of such action.
This approach not only helps to develop an individual staff member’s skills
and competencies, but also has a flow on effect to the organisation. Such an
approach could include opportunities for staff to work on different roles and
projects within an organisation. It could also incorporate internships, staff
rotation, or secondment programs that provide cross-agency or even cross-
sector placements. This type of program is potentially very relevant for smaller
not for profit organisations who may be less able to provide staff with experience
in varied roles and projects.

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6.4.2 Strategy - Building an understanding of different organisations

and sectors
Individuals working in the sector may obtain cross-sector and/or cross-agency

experience to build their understanding of how these different environments
operate. This is seen as particularly important in the early stages of an
individual’s career. Gaining this experience also requires a personal commitment
to a flexible career path, which can often lead to meaningful career planning.
CASE STUDY
The Benevolent Society’s Community Care Eastern Sydney (CCES)
and JewishCare: Professional Development Exchanges
The Benevolent Society’s Community Care Eastern Sydney (CCES) and

JewishCare services work together with a number of clients from time to time and
it is important that we coordinate our joint work to achieve the best outcome.
It is important that workers from both agencies have a clear understanding of:
• The roles and responsibilities of each agency
• The opportunities each agency offers to promote client independence,
access to services and service provision
• Interagency collaboration and its necessity for effective outcomes for all
clients
• The skill set, expertise and experience of each agency
• The approach used by each agency in providing best practise.
Professional development exchanges between the agencies enable workers to

participate and observe the work of colleagues in the hosting agency. It enables
the development of collaborative relationships and helps to build rapport between
those who are working towards the goal of excellent service provision for clients.
6.4.3 Recommendations: Diverse Experience
It is recommended that partners be identified to collaboratively develop options

for not for profit sector employee rotation programs. Examples include rotation
programs for emerging sector leaders and/or programs targeting specific groups
such as recent graduates. As a starting point, project partners could utilise
the work of FAR Social Enterprise in developing the framework for a potential
graduate employment program for the sector incorporating:
1. A cross sector two-year program of three placements of eight months

duration with each placement in a different organisation and/or sector
2. A program of formal leadership and management training, support for
post-graduate study in community management and formal mentoring
from a sector leader

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3. A range of participating organisations to be drawn from the not for profit

and corporate sectors, with the aim of including diverse not for profit
organisations, trusts/foundations and corporate organisations who have
a demonstrated a tangible commitment to sector partnerships and a
philanthropic/corporate social responsibility focus.
6.5 PRIORITY AREA FIVE: Building Relationships
Being able to develop and maintain effective relationships is a core leadership

capability. Building diverse networks and connections provides individuals
with the opportunity to form different types of relationships across agencies
and sectors. This experience is about sharing ideas, building knowledge and
obtaining feedback and advice. Networks exist formally and informally and may
be facilitated by the creation of structured networking forums and/or mentoring
relationships.
6.5.1 Organisation Strategy - Building connections through sector

networking
The size and diversity of the not for profit sector necessitates formal and informal
networks and forums. This is specifically to build collaboration, share resources,
strengthen impacts, explore partnership opportunities and help reduce sector
duplication. Such structures work most efficiently with a clear purpose and
can often form around varied shared interests including issues, workplace
specialisation, roles (e.g. Directors and CEO’s) and regions.
CASE STUDY
Macarthur Regional Peak: Jane McIvor, Director
Macarthur Community Forum is a regional peak body which aims to work

collaboratively cross sector to raise the profile of the not for profit sector and work
in partnership to develop mechanisms to strengthen the service systems through
formal and informal networking opportunities at local, regional, state and federal
level. The Forum’s position as a focal point enables connections to be made that
enables growth and development within organisations and across the various
sectors.
Interagencies and networks form an important base to enable this collaborative

approach to be effective. Macarthur Community Forum runs both geographically
based interagencies that incorporate diverse sectors and sector based networks.
The diverse networks provide important cross sector development but face
limitations in the outcomes that can be achieved. Sector based networks
that focus on common issues provide vital avenues to build collaboration,
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51 | p a g e
share resources, provide strong mechanisms for local input into planning and
development at all levels and encourages collaboration and a partnership
approach to service delivery. They also provide a strong collaborative voice to
support advocacy and lobbying.
The Managers Network is a current example of this approach. This network

addresses strategic issues across the Macarthur / Wingecarribee region through
collaboration, peer mentoring and support and a strong united voice.
MacUnity is another important network which is exploring how mainstream

opportunities can be harnessed to support and resource Aboriginal service
delivery across the region.
One of the challenges facing this model is ensuring there are adequate resources
allocated to services to enable them to effectively engage in the networks. Too
often individual and organisational participation and development is compromised
because of under resourcing. Funding sources need to recognise the importance
of this collaborative approach in strengthening service systems and in turn
strengthening individuals and organisations and allocate funding accordingly.
6.5.2 Board and Management Strategy - Creating opportunities for

structured mentoring
Boards and management can facilitate the development of organisational and

individual relationships by creating structured mentoring opportunities for their
organisations. This may be undertaken from a variety of perspectives. In this
context mentoring has a formal skills-sharing component, typically around a
project or the provision of advice to a targeted group or individual. This transfer
of knowledge from the mentor aims to build the capability of the ‘mentee’, as
well as promote shared understanding and collaboration. It can take place within
and across not for profit organisations and with other sectors. It is typically
accompanied by formal guidelines and structure and exists for a designated time
period.
CASE STUDY
Australia Business Arts Foundation (AbaF): adviceBank
Montsalvat and Michael Rowe of Run Property

AbaF KPMG adviceBank Award National Winner
Recent MBA graduate Michael Rowe wanted to get involved in community work
to keep him sharp and connected to the real world, but what he found took him
back in time to the artistic legacy of Justus Jorgensen, who in 1934 had founded
an artists’ community at Montsalvat on a hilltop in Eltham, now on the outskirts of
Melbourne.
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In 2007, following a year of turmoil during which Montsalvat faced off a takeover,
Montsalvat CEO Robyn Quigley was looking for a way to salvage and secure the
organisation’s reputation and future.
“Montsalvat had never really had a business plan before,” Ms Quigley said. “Or
rather it had a few, but they had never exerted influence on the direction the
organisation had taken. This time things had to be different. There had been
financial difficulties the previous year that had all but resulted in a hostile takeover
by a consortium of outside interests. Without a solid plan, and government
support, the future was hazy,”
Rowe quickly grasped the essential fact about Montsalvat – that it had to become
more businesslike without losing its artistic soul. The aim was to create a living,
thriving artistic community, accessible to the public and aiming to educate and
promote cultural practice.
Together Rowe and Quigley developed a comprehensive business plan,

restructured the board, and most impressively secured a $150,000 Arts Victoria
grant that has enabled Montsalvat to hire key staff including a marketing manager
and cultural programs manager.
“This unique opportunity to develop a complete end-to-end plan in association

with the CEO of Montsalvat gave me exposure to a much wider range of
considerations than I would ever have encountered in a strictly business context,”
Rowe says.
Rowe continues to be involved with Montsalvat as chairman, and has secured

a senior position with RUN property, a public company – which he credits partly
to his experiences as a volunteer. “There is no doubt at all in my mind that the
depth of my experience at Montsalvat has added value to my career and was a
discussion point during interviews that led me to attaining my current position.”
Benefits for Michael Rowe

• Chance to apply MBA training and business skills
• Developed ‘complete end-to-end’ business plan
• Arts experience a recruitment point-of-difference
• Sustained CEO and board contact
• Government relations and arts experience
Benefits for Montsalvat

• New strategic business plan
• $150,000 Arts Victoria grant secured
• Board restructure
• Financial difficulties resolved
• Simplified organisational structure
• Growth plan for each area of Montsalvat operation
• New cultural programs manager and marketing manager

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6.5.3 Individual Strategy - Creating opportunities for informal

mentoring
Individuals may also wish to create their own opportunities to build varied
relationships through informal mentoring. Such relationships build self-awareness
and networks, and are often most effective with a clear purpose. They can
operate either within or across organisations but are often most useful when
providing an external perspective across organisational boundaries. They are
also often sustained by the mutual benefits in the relationship.
6.5.4 Recommendations: Building Relationships
1. The opportunities that are currently available for senior staff networking,
for example, CEO Forums and Director’s lunches be used to inform the
development of new opportunities for networking for individuals at various
stages of their career (and adapted to meet the needs of individuals at the
stage they are at). Organisations can support this participation by allocating
time and resources and incorporating it into staff development plans.
2. Disseminate the findings of The Alchemy Project and the findings from
AbaF adviceBank to help to provide robust learning opportunities for all
levels of the sector.

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6.6 Recommendations: Conclusion
It is clear from the Alchemy Project consultations and through the brief case
studies outlined in this report, that leadership development programs aimed at
emerging leaders can, and are, run collaboratively cross-sector and within the
not for profit sector. Further, many of the recommendations outlined above may
be implemented by organisations, by individuals or in combination.
Within this study, when consultation participants were asked to devise a

leadership development program, there was a great deal of consistency in
the program components identified. In addition, when particularly looking at
emerging sector leaders, participants outlined that ideally the program would be
available in the early stages of a person’s career and would also incorporate the
five Alchemy Project priority areas outlined above.
Participants suggested such a program might include:

 Individuals from across agencies or sectors coming together with a shared
purpose
 A space for critical reflection through action learning
 Self-directed learning
 A focus on personal development (not necessarily organisation specific)
 Professional supervision or coaching.
The Alchemy Project team and FAR Social Enterprise are keen to explore the
opportunity to work with interested parties. Organisations and individuals are
now invited to voice their interest to discuss potential design solutions and/or
initiatives to commence in 2009.
Please contact FAR Social Enterprise Project Officer, Jenni Iloski, at jenni@
farsocialenterprise.com if you know of any work already happening, that fits with
the findings of Alchemy or you are interested in collaborating and/or designing an
initiative/solution.

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APPENDICES
Appendix One - Methodology Logistics and Limitations
The Alchemy Project team acknowledge the limitations of the consultation

process. The project team discussed and actioned risk assessment strategies to
limit the impact of potential consultation risks. The following section outlines the
logistics and related limitations of the agreed consultation methodology.
 Dissemination of Forum Invitations

The Open Forums were advertised and invites were distributed through the
networks of the following groups in order to access a representative cross-
section of the consultation target groups:
o The Alchemy Project Steering Committee
o FAR Social Enterprise
o The Alchemy Project funding body grantees
o Sydney Mechanics’ School of Arts (SMSA)
o The Benevolent Society Sydney Leadership Alumni
 Time constraints
In order to deliver on The Alchemy Project timelines, one month was allocated to
this first stage of consultation. This contributed to the gaps in representation from
corporate and government sectors. The Alchemy Project aimed to consult with
individuals in the corporate and government sectors to ensure a representative
perspective. However it became evident during the consultation period that
one month was insufficient to confirm interviews (especially in the government
sector). It was agreed that any major gaps identified from the first phase of
consultations would be noted, and if possible, addressed in the next phase of the
project.
 Consultation logistics
All consultations were Sydney based, except for one Intimate Dialogue, which
was held in Melbourne. All consultations were held in business hours and on
weekdays. Two Open Forums were held – one less than originally planned. This
was the only Open Forum scheduled for outside of business hours and this may
have impacted on participants’ availability to attend.
During the planning of the consultations, it was decided that the Open Forum
participants would be broken into smaller working groups. This was determined
by the category they most identified with, i.e. young person, individual who
had transitioned into the not for profit sector in the last five years, or individual
engaged in the not for profit sector with a general interest in leadership. The
numbers and the type of participants that attended the first Open Forum enabled
the groups to be split into these groups for parts of the Forum. However the
second Open Forum had slightly less people (and no young people), so the
group was therefore randomly split into two general groups.

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 Information for participants prior to consultations

All participants received the Alchemy Project Literature Review prior to the
consultation. Initially, individuals who had agreed to participate in one on one
interviews did not receive the questions prior to the meeting. However, after
conducting approximately four interviews, it became evident that providing
the participants with the questions prior to the interview would facilitate more
prepared and informed responses and this then occurred for the remaining
interviews.
 Qualitative data
The consultations were primarily discussion based and therefore the data
obtained is qualitative. The documented findings accurately reflect the range
of views expressed by consultation participants. The findings are not weighted
based on the number of people who expressed the views though there was
significant consistency in the themes that emerged across the consultations.
Some of the language and terms used by the participants had slightly different
meanings for each individual. Although the Alchemy Project team checked for
meaning where possible, when collating the data it was evident that some words
(e.g. mentoring and coaching) were used interchangeably and had various, albeit
similar, meanings to different people.
 Method of recording, obtaining and analysing data

The Alchemy Project team designed the questions for the consultations.
A discussion guide was developed with the aim of drawing out individual
perceptions and experience of leadership issues, needs, challenges and
opportunities within the not for profit sector.
The Alchemy Project and FAR Social Enterprise team members facilitated
the consultations and recorded the data. The method of recording data varied
according to the type of consultation i.e. Interview, Open Forum or Intimate
Dialogue. Some of the interviews were conducted by one person (both
interviewer and note taker), whereas other interviews had one person conducting
the interview and another person writing notes. In the larger forums, when
individuals were in smaller working groups, the facilitators of the groups took
notes from the discussions.
When analysing the data, all data was allocated codes depending on the
consultation method and then data was put into themes. Themes were measured
against the consultation framework in addition to themes and topics mentioned
consistently.

57 | p a g e
ALCHEMY PROJECT
LITERATURE REVIEW
FAR Social Enterprise
TABLE OF CONTENTS
1. Background
2. Context
3. Not for Profit Sector Skills and Leadership Shortage
4. The Response - Workforce Development and Leadership Development

4.1 Need for Workforce Planning and Development
4.2 Need for Leadership Development
4.2.1 Different Types of Leadership
5. Conclusion
6. Bibliography
Appendix One - What Is Being Done – Summary of Recent Initiatives and Research

58 | p a g e
1. BACKGROUND
FAR Social Enterprise has been established to promote, support and enable
social change through being accountable, transparent, progressive, sustainable
and effective. The organisation’s goals are to develop collaborative strength-
based interventions focusing on management practices, adaptive leadership
and engaging in innovative philanthropy. FAR is working in partnership with
organisations in the not for profit and corporate sectors, and is funded by
individual donations, corporate support and the Westpac Foundation.
The Alchemy project is a FAR Social Enterprise project that aims to help build a
robust, transparent, accountable and sustainable not for profit sector. It will do
this by working collaboratively cross sector to harness current resources and
build on current best practice in order to develop and design an innovative and
sustainable solution(s) to the skills and leadership shortage within the not for
profit sector.
This first phase of the Alchemy project includes:
 Recruiting a cross sector steering committee

 Researching current understanding of the skills and leadership shortage in
the not for profit sector by undertaking:
o A Literature Review
o Cross Sector Consultation
 Development of a Feasibility Report documenting the research findings and
recommendations for potential solutions
 Development and design of at least one particular solution to be implemented
in phase two during 2009.
This Literature Review summarises the key themes emerging nationally and
internationally from research undertaken on the skills and leadership shortage in
not for profit sectors. Detailed information on the recent initiatives and research in
this area is in Appendix One.
The Literature Review will aid the steering committee and the FAR project team
to determine the focus and content for the cross-sector consultation enabling
the team to build on current activity and ideology within the sector. The data
from the consultations will be analysed and reported in the Feasibility Report by
September 2008. This Feasibility Report will then be used for further consultation
to collaboratively refine the scope of the Alchemy Project and identify potential
solution(s) or strategies to address aspects of the sector skills and leadership
shortage. These solutions will be outlined in a Program Design Report in early
2009.

59 | p a g e
2. CONTEXT
The Australian not for profit sector is a diverse sector which:
 consists of over 700,000 organisations1, with 35,000 employing staff2 -

approximately 30,000 of which have less than 20 employees3
 has an annual income of $33 billion4
 employs 6.8% of Australia’s workforce - a contribution to total employment of
similar size to the United States not for profit sector and larger than that of the
UK and most European countries5
 has employees across social services (26%), education and research (24%),
culture and recreation (including registered clubs) (21%), health (15%),
business and professional associations and unions (2.5%) and other areas
(11.5%)6
 accounts for around 5% of Australia’s GDP7
 delivers over 50% of total Australian expenditure on community services8
The sector is undergoing a significant period of change and is attracting

increasing attention from corporate and government sectors. Key characteristics
of the sector’s current operating environment include:
 Growth in its size and complexity including acquisition of new responsibilities

 Wider recognition of the role the sector plays in the well-being of society
 Greater emphasis on accountability and efficient and effective asset and
resource management
 Growth in adoption of social enterprise models and the adoption of for-profit
business practices
 Increasing number of government and corporate sector partnerships
 Questioning of the pattern of insecure employment and limited investment in
staff development arising from short term funding arrangements and other
resource constraints
 Acknowledgement that broader skills shortages and lack of suitable
candidates in the general labour market will be exacerbated by demographic
factors such as the ageing population
1 Data from the Australian Bureau of Statistics (ABS) initial survey of not for profit
organisations will provide detailed information on the structure and activity of NFP
organisations, including workforce characteristics. This survey was conducted in respect
of the 2006-07 financial year with initial data to be available from July 2008.
2 ACCORD. The Nonprofit Sector in Australia: A Fact Sheet (2003)
Management in the Australian Social Economy (2007) Summary p4
4 Ibid
5 Ibid
6 Ibid
7 Includes volunteer wages - from Stronger Community Organisations Project-Report of
the Steering Committee (2007), p8
8 Stronger Community Organisations Project-Report of the Steering Committee (2007),
p21

60 | p a g e
 Recognition that organisations need to understand and respond to the

motivations of Generation Y workers (such as desire for cultural connection, a
collaborative and results-oriented culture and ongoing learning).
The many challenges for the sector arising from the above has resulted in the
sector turning its attention to the workforce it needs to deliver in this environment.
As detailed in the next section, this has highlighted emerging skills and capability
gaps and calls for greater focus on leadership and workforce development.
The availability of a skilled, motivated and supported pool of potential leaders to

help deliver the future work of the sector requires a commitment to longer term
development and to the establishment of infrastructure to attract and retain high
potential people. The sector will not be seen as an employer of choice simply
because of its role and contribution to society. It also needs to demonstrate its
professionalism and its commitment to employee development and career paths
across organisational and sector boundaries.
When researching the issue of leadership development for the sector it became
clear that there is a lack of consistency in defining leadership throughout the
research. Many sources refer to “leadership” and “senior management” and
often these terms are used interchangeably meaning CEO positions, executive
positions or board members. There are few clear definitions being offered of what
is actually meant by these terms.
For the purposes of this report, senior managers refer to people that are
employed by a not for profit organisation to fulfill a senior role. CEO refers to
anyone who is the ultimate manager and can be known by a myriad of other
names including General Manager, Executive Officer, Executive Director; Board
members are referred to as Board Members.
Senior managers, CEO’s and “Leaders” are not necessarily the same thing.
While some studies view leadership solely in the context of senior management
roles, others discuss a broader notion of leadership noting that leadership
capabilities can be developed throughout many levels of an organisation.
In an “adaptive leadership”9 context, leadership can be exercised at all levels

(and does not lie only in a formal position of authority). It is about fostering
change (hence solutions) through questioning values and behaviours, which
result in the ability to adapt to various circumstances. This notion of leadership is
yet to be widely explored in the Australian research.
9 The theory of adaptive leadership was initiated by Harvard Professor Ronald Heifetz
and is outlined in Heifetz, RA, Leadership Without Easy Answers (1994)

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3. NOT FOR PROFIT SECTOR SKILLS AND LEADERSHIP SHORTAGE
Not for profit organisations are increasingly reporting difficulty in attracting

and retaining appropriately skilled staff. This includes problems in sourcing
appropriate staff as well as high staff turnover.
For example, a survey undertaken by Challenge Consulting in January 2006

identified many common factors impacting staffing at 50 Australian not for profit
organisations with almost all respondents reporting difficulties in sourcing and
recruiting quality staff members across a range of professional functions10.
The Report of the Victorian Stronger Community Organisations Project cites
a number of studies that highlight recruitment and retention challenges11 and
demonstrate sector staff turnover levels that are well above industry average.
Furthermore as noted, changing client demands and new delivery models for the
sector require new skill sets (including cross-sector knowledge) and more diverse
professional backgrounds – and this is at a time when skilled staff are in short
supply.
The VCOSS research paper12 uses a range of Australian studies to illustrate

the key factors that exacerbate the impact of broader labour market shortages,
namely:
 poor public perception of the not for profit sector
 lack of resources dedicated to recruitment and other human resource
processes
 lack of job role permanency arising from short term and insecure funding
arrangements
 lower and outdated models of remuneration
 limited career paths due to the size and flat structure of many organisations.
The issue of staff and leadership training is also seen as a factor in the human
resources challenges facing the sector. Some studies highlight the lack of
resources dedicated to training and other staff development, while others note
that existing training is uncoordinated, not linked to skill needs and that desired
training outcomes are not clearly understood13.
The research undertaken by the Social Economy Executive Education Network

(SEEEN) and Perpetual Foundation found that 17% of sector employees
believed that they were not suitably qualified for their current role and
around 30% stated that they did not have adequate access to professional
development14. However the research also found that the proportion of not for
10 Challenge Consulting, Not for Profit Industry Survey Report (2006)

11 Stronger Community Organisations Project – Report of the Steering Committee
(2007), pp110-115
12 VCOSS, Recruitment and Retention in the Community Sector (2007), pp5-7
13 University of SA and SACOSS, Community Services in South Australia (2007), pv

62 | p a g e
profit respondents that had actually undertaken professional development in

the previous two years was higher than in the corporate sector. This backs-up
the notion that there is a disconnect between actual training and desired skills
development outcomes.
These factors are contributing to real staffing gaps at an agency level. In the
2007 ACOSS Community Sector Survey15, 57% of NSW respondents indicated
that they had experienced difficulty attracting appropriately qualified staff in the
previous year. In South Australia, just 21% of respondents have reported that
it was easy to attract qualified and experienced applicants and 60% indicated
that they often had to fill vacancies with less qualified or less experienced
candidates16.
The Australian experience mirrors that of the United States where a recent
survey17 of not for profit job seekers found that 75% of respondents agreed
that nonprofits had to immediately change their recruitment, employment and
professional development practices. The 2006 Bridgespan Group18 study that
highlighted the emerging leadership deficit in the sector also notes that current
recruitment and retention practices are unsustainable. The reasons why staff
are leaving the sector has also been explored by the US Young Nonprofit
Professionals Network19 which identified that 45% of experienced staff are
planning to leave the sector (even temporarily), primarily due to burnout, low
salaries, stress and lack of career advancement.
The United Kingdom voluntary sector is also reporting skills shortages in an

increasingly complex and uncertain operating environment. Organisations report
a strong desire for more training and development while recognising that there is
a lack of time and funding for training to actually occur20.
The ‘leadership crisis’ facing the United States non-profit sector has been the
subject of many studies, typically highlighting that the sector is ill-prepared for
Management in the Australian Social Economy (2007) pp32-35
15 ACOSS, Australian Community Sector Survey (2007), p37
16 University of SA and SACOSS, Community Services in South Australia (2007), p133
17 Commongood Careers, The Voice of Nonprofit Talent in 2008 - Improving recruitment
and retention by responding to the needs of nonprofit employees and jobseekers (2008),
p7
18 Tierney, T. The Nonprofit Sector’s Leadership Deficit, The Bridgespan Group (2006),
p4
19 Young Nonprofit Professionals Network, Stepping Up or Stepping Out – A Report on
the Readiness of Next Generation Nonprofit Leaders, 2007
20 United Kingdom Workforce Hub, UK Voluntary Sector Skills Survey (2007), Chapter
5.

63 | p a g e
the impending departure of around 75% of its current CEO’s.21 Such studies
have led to debates about how best to identify new leaders, how to develop them
and recently, how the sector might need to reframe its approach to leadership.
Similarly, Canadian researchers have explored their own forthcoming leadership
deficit, reporting high levels of leadership turnover and that forthcoming labour
shortages will exacerbate the problem of attracting new, younger potential
leaders to the sector. This research also highlights that the profile of existing
leaders in the Canadian not for profit sector does not reflect the communities
that the organisations serve and that this lack of diversity needs to be addressed
through targeted leadership development activities.22
In Australia, demographic changes are also increasingly recognised as a

key human resource challenge for the sector; however a potential leadership
shortage has not yet been widely reported. The Australian focus has been on the
need to build greater leadership capacity within the sector, as highlighted in the
Victorian Stronger Community Organisations and SEEEN reports. A number of
submissions to the Victorian project identified leadership development as a key
area for investment to support sector organisations.23
Research undertaken for the SEEEN study found that just over half (57%) of
respondents from within the sector believe that not for profit leadership and
management capability and performance is of high quality and that just 32% of
for profit respondents agree with this statement.24 One-third of all respondents
believe that sector leadership is one of the top five most important issues facing
the sector – ranked below issues such as funding and resources (78%) and
capacity building (48%). The SEEEN study concludes:
 that sector executives would benefit from greater general management and
leadership capability through education and training; and
 that building this capability needs to be undertaken through a variety of
approaches and programs – to reflect the diversity of the sector.
21 Corvington, P. and Kunreuther, F., Next Shift: Beyond the Nonprofit Leadership Crisis,
Annie E. Casey Foundation and Building Movement Project, (2007), p1
22 Toupin, L and Plewes, B., Exploring the Looming Leadership Deficit in the Voluntary
and Nonprofit Sector, The Philanthropist, Volume 21, No. 2 (2007), pp128-137
23 Stronger Community Organisations Project – Report of the Steering Committee
(2007), p107
Management in the Australian Social Economy (2007) p28

64 | p a g e
4. THE RESPONSE: WORKFORCE DEVELOPMENT AND LEADERSHIP DEVELOPMENT
4.1 Need for Workforce Planning and Workforce Development
There is now a widespread recognition of the changing skills needs of the

not for profit sector and that existing recruitment and development practices
need to change. Accordingly, a significant theme arising from recent Australian
not for profit sector studies is the need for workforce planning and workforce
development strategies at a sector level. Such strategies would provide
a framework for the suite of human resource related activities needed to
ensure that the sector has the skills and capabilities required to deliver on its
responsibilities.
In Victoria, the State Government’s Action Plan for Strengthening Community

Organisations25 provides for the development of a Workforce Capability
Framework to clarify future skills and capability needs at a sector level
(potentially through a competency model). Such a framework would include
developing the career paths, professional development, management practices,
remuneration and staff recognition needed to improve staff recruitment and
retention and ultimately, service provision. The Victorian Department of Human
Services is also developing a five year workforce planning strategy for the
disability sector. The University of SA/SACOSS26 research calls for an integrated
sector-wide occupational framework to drive workforce capability issues. In NSW,
the NCOSS Sector Development Strategy27 includes a proposal for them to lead
the development of a state wide Non Government Organisation (NGO) sector
development strategy including a workforce development strategy.
It is also recognised that workforce capacity in the not for profit sector can
be developed through placement and mentoring programs such as graduate
development programs, cross-sector staff secondments and rotations and
cross-sector mentoring. The Victorian Action Plan and groups such as Nonprofit
Australia are progressing initiatives in some of these areas.
At an industry (not sector) level, the work of the Community Services & Health
Industry Skills Council (ISC) is an example of the workforce development being
undertaken. This ISC is the recognised peak national body providing advice on
the training and skills development needs of the community services and health
workforce - comprising 1.07 million employees across 350 occupations (10.4% of
the total Australian workforce). The ISC has recently released its Environmental
Scan 2008 which includes a comprehensive study undertaken by the Workplace
Research Centre, University of Sydney into the workforce development
challenges faced by this industry. This study identified seven key preconditions28
25 Victorian Government’s Action Plan: Strengthening Community Organisations (2008),

p.16
26 University of SA and SACOSS, Community Services in South Australia (2007), p vi
27 NCOSS, Sector Development Strategy 2007-2010, p 1.

65 | p a g e
for training and skills growth in this industry. This work is being used by the ISC
to drive industry skills development and the development of national training
packages for community services and health workers.
While not for profit workforce planning at a sector level is still largely in its
development phase, work such as that undertaken in the Aurora Project (see
Appendix One for more detail) demonstrates how workforce planning at an
occupational or agency level can drive improved recruitment and retention
of staff. The Project was developed following research to identify the core
knowledge and skills required by Native Title Representative Body (NTRB)
Lawyers29, any existing skills gaps in this group and the range of professional
development activities required to address the gaps. The research clearly
demonstrated the need for improved recruitment and retention of staff as a core
strategy to deliver short-and long- term business outcomes. Subsequently, a
suite of human resource strategies (including secondments, student placements,
staff induction, performance evaluation, mentoring, training and scholarships)
have been implemented through a variety of cross-sector partnerships.
4.2 Need for Leadership Development
The growing demand for leadership development in the not for profit sector is
reflected in Australian and international literature. This is being driven by varied
factors, including:
 some criticism of existing leadership capabilities;
 concerns about impending leadership shortages;
 a lack of training and professional development activities for staff in senior
roles;
 the narrow range of academic leadership training targeting the sector; and
 the limited data available on desired capabilities for sector leaders.
There is also some debate about the tendency for organisations to ‘buy in’
senior leaders rather than developing them internally. For example, the SEEEN
and Perpetual study notes how almost all the larger Australian not for profit
organisations have appointed their CEO’s from the corporate sector.30 This
SEEEN research also includes an assessment of current management and
leadership capability in the sector. The research also notes that the lack of
meaningful data on actual leadership capabilities and professional development
28 The seven key preconditions are: funding model, employer ownership profile,
employment structures, job design and perception, employee receptiveness to train,
organisation of professional groups, perception of customer need – from Community
Services and Health Industry Skills Council, Environmental Scan 2008, pp24-36.
29 Potok, R with the Castan Centre for Human Rights Law, Monash University, A report
into the professional development needs of Native Title Representative Body Lawyers
(2005)
30 SEEEN and Perpetual Foundation , Contrary and Congruent Views of Leadership and

66 | p a g e
within the sector is in itself a barrier to further management and leadership

development31.
The Action Plan for Strengthening Community Organisations32 provides for the
Victorian Government to fund a feasibility study to determine the best way of
developing sector leadership capabilities. The study will identify the leadership
skills and capabilities most needed in the sector. This will include examining the
viability of a National Academic Centre of Leadership Excellence. The recently
established Centre for Social Impact at the University of NSW will also provide
managerial education, executive support and research for the not for profit sector.
The development of new graduate/post-graduate programs specifically targeting
the sector is partially being driven by the recognition of the additional complexity
of management and leadership in this sector, as noted in the SEEEN study33.
Leadership development through formal mentoring is also increasing. For

example, Nonprofit Australia is delivering one year mentoring programs for ‘non
profit executives’ that matches them with corporate professionals as a way of
building networks, sharing knowledge and promoting leadership development.
Similarly, the Social Ventures Australia (SVA) Community Mentor Program
matches ‘social entrepreneurs’ (non profit CEO’s and senior managers) with
corporate executives and provides them with two days of training (in coaching,
communication and mentoring) as preparation for a one year facilitated mentor
relationship.
Significant resources are therefore now being invested in leadership

development for this sector, particularly in an academic context. The primary
focus of this development is leadership at a senior manager level.
4.2.1 Different Types of Leadership

It is also important to consider whether developing solutions based on the
existing leadership framework is the only or best way forward. Are there other
questions that need to be asked to help examine leadership development from a
different perspective?
For example, a recent theme emerging from the United States is that the
issue of leadership development needs to be framed from the perspective
of the next generation of leaders rather than the views of the ‘baby boomer’
leaders. This perspective is highlighting that ‘traditional’ models of not for profit
sector leadership may not be of interest to this younger group and that core
structures, roles and decision making processes may need to be reframed. The
‘traditional’ model of leadership is one that is strength and authority based where
responsibility rests with a single leader, typically at great personal cost.
32 Victorian Government’s Action Plan: Strengthening Community Organisations (2008),

p.15
Management in the Australian Social Economy (2007) pp26-28

67 | p a g e
Studies34 are now identifying that the next generation of sector leaders are calling
for a different type of leadership – shared, participatory leadership rather than a
traditional top-down authority based approach. They reject leadership that places
an inordinate amount of responsibility in one person (with limited support) with
no opportunity to show ‘weakness’ and one that is set up for failure (especially
in relation to fundraising). Many younger leaders are interested in collaborative
and supportive models of leadership. They state they don’t look like nor act
like existing leaders and they are not interested in the key characteristics they
see in existing leadership roles (great personal sacrifice, low financial or other
rewards and long work hours). They are concerned with work-life balance and
note they can have community impact in various ways and if formal leadership
roles in the not for profit sector do not meet their needs then they will achieve this
impact elsewhere. They also state they feel invisible to existing leaders, receiving
minimal encouragement and mentoring and that their different ways of viewing
issues is often not valued.
This reframing of the leadership shortage is starting debate around issues such
as:
 how leadership responsibilities and decision making might be shared with a
reduced focus on hierarchy and top-down decision making;
 how younger leaders can be progressively mentored to take on leadership
responsibilities;
 the potential role of multi-generational leadership teams;
 how organisation structures might be changed to provide leadership
development to a wide range of employees regardless of formal role;
 the need to fund career path and leadership development programs; and
 that having robust organisational leadership is not just about the role of a
CEO.
This US debate on the very nature of leadership in the sector is not widely
reflected in Australian initiatives even though there is some acknowledgement
that leadership development is about practical experience not just academic
courses for senior managers.
The most significant local example of leadership development in the context of a

more participatory leadership model is that of The Benevolent Society’s Sydney
Leadership Centre. This Centre delivers a suite of leadership development
programs underpinned by a different leadership model – adaptive leadership
– which reflects many of the leadership attributes highlighted in the recent US
research. Adaptive leadership is also the basis for the Q&A Leadership Program
which commenced in 2008 for young leaders (aged 18-28) in the gay, lesbian,
bisexual, transgender and queer (GLBTQ) communities.
34 Corvington, P. and Kunreuther, F., Next Shift: Beyond the Nonprofit Leadership Crisis,
Annie E. Casey Foundation and Building Movement Project, 2007
Cornelius, M., Corvington, P. and Ruesga, A., Ready to Lead? Next Generation Leaders
Speak Out, Compasspoint Nonprofit Services, Meyer Foundation, Annie E. Casey
Foundation, 2008.

68 | p a g e
5. CONCLUSION
The not for profit sector skills and leadership shortage and other sector capacity
issues are now acknowledged nationally and internationally and in the last twelve
months increasing attention has been given to this issue in Australia. Major
research has been undertaken, various new initiatives announced and new
partnerships formed. Most significantly:
 the Victoria Government’s Action Plan for Strengthening Community

Organisations has established a model for a government led approach to
building sector capacity; and
 the establishment of the Centre for Social Impact means that there is now a
cross-sector funded academic centre focused on building the sustainability of
the sector.
The response to the broad issue of a sector skills shortage is being framed in
two key areas – the need for workforce development and the need for leadership
development. Capacity building initiatives in both areas are now typically driven
by cross-sector partnerships (not for profit, government, universities, corporate).
There are increasing calls for a sector-wide approach to workforce development

issues with a strong push to establish workforce development frameworks
for the sector at a state level. This should not preclude the identification and
implementation of workforce development initiatives at an agency or cross-
agency level, as illustrated by the Aurora Project and potentially including
graduate and other rotation and mentoring programs. The identification of other
such projects will be a focus of the forthcoming consultation process for the
Alchemy Project.
A multi-faceted approach to leadership development is needed – one that

includes academic training, cross-sector placement and mentoring programs and
that makes leadership training and experience available to a variety of potential
leaders. The emerging theme from the US that traditional models of leadership
need to be challenged for the not for profit sector to be attractive to potential
future leaders is yet to be fully explored in Australia. This is another potential
focus area for this project.
The challenge for the Alchemy Project is to now use the information in this
Literature Review and subsequent consultation to identify how the project can
work with others to ensure that it complements rather than duplicates other
initiatives. The proposed process of consultation for the Alchemy Project will
be used to gather information to help refine the project’s target activities and
identify how it can best make a worthwhile contribution to help deliver sustainable
solution(s) to the not for profit skills and leadership shortage.

69 | p a g e
6. BIBLIOGRAPHY
Australian Centre for Co-operative Research and Development (ACCORD), The

Nonprofit Sector in Australia: A Fact Sheet, presented by National Roundtable of
Nonprofit Organisations, Victoria, 2003.
Australian Council of Social Service (ACOSS), Australian Community Sector

Survey, 2007.
Bell, J., Moyers, R., and Wolfred, T., Daring to Lead 2006: A National Study of
Nonprofit Executive Leadership, Compasspoint Nonprofit Services and the Meyer
Foundation, San Francisco, 2006.
Challenge Consulting, Not-for-Profit Industry Survey Report, 2006
Commongood Careers, The Voice of Nonprofit Talent in 2008 - Improving

recruitment and retention by responding to the needs of nonprofit employees and
jobseekers, 2008.
Community Services and Health Industry Skills Council, Environmental Scan 2008
– incorporating Identifying Paths to Skills Growth or Skills Recession: Decisions
for Workforce Development in the Community Services and Health Industries
Research Report by the Workplace Research Centre University of Sydney, 2008.
Cornelius, M., Corvington, P. and Ruesga, A., Ready to Lead? Next Generation
Leaders Speak Out, Compasspoint Nonprofit Services, Meyer Foundation, Annie
E. Casey Foundation, San Francisco, 2008.
Corvington, P. and Kunreuther, F., Next Shift: Beyond the Nonprofit Leadership
Crisis, Annie E. Casey Foundation and Building Movement Project, Baltimore,
2007
Cryer, S., Recruiting and Retaining the Next Generation of Nonprofit Sector
Leadership, The Initiative for Nonprofit Sector Careers, New York, 2004
Heifetz, RA, Leadership Without Easy Answers, Harvard University Press,

Cambridge, 1994
Hudson Global Resources, Education Pathways for Community Service Careers,

2007
New South Wales Council of Social Service (NCOSS), Sector Development

Strategy, 2007-2010

70 | p a g e
Nonprofit Australia, Context and Rationale for Establishment of Nonprofit Australia,

2006
Potok, R with the Castan Centre for Human Rights Law, Monash University, A
report into the professional development needs of Native Title Representative
Body Lawyers 2005
SEEEN and Perpetual Foundation, Contrary and Congruent Views of Leadership

and Management in the Australian Social Economy, Sydney, 2007
Shergold, P., The Centre for Social Impact (CSI), A Planning Framework, Sydney,
2008.
Teegarden, P, Nonprofit Executive Leadership and Transitions Survey, Silver

Spring, 2004.
Tierney, T, The Nonprofit Sector’s Leadership Deficit, The Bridgespan Group, San
Francisco, 2006.
Toupin, L and Plewes, B., Exploring the Looming Leadership Deficit in the
Voluntary and Nonprofit Sector (Canada), The Philanthropist, Volume 21, No. 2
2007, pp128-137.
United Kingdom Workforce Hub, UK Voluntary Sector Skills Survey, Ch. 5, 2007.
University of South Australia Research and South Australian Council of Social

Service (SACOSS), Careers at the Coal-Face? Community Services in South
Australia: Workforce Development, Adelaide, 2007.
Victorian Council of Social Service (VCOSS), Recruitment and Retention in the

Community Sector: A snapshot of current concerns, future trends and workforce
strategies, Melbourne, 2007
Victorian Government, Stronger Community Organisations Project – Report of the

Steering Committee, Melbourne, 2007
Victorian Government’s Action Plan: Strengthening Community Organisations,

Melbourne, 2008
Western Australian Government - Industry Plan for the Non-Government Human

Services Sector, Building the Organisational Capacity of Non-Government
Organisations: Supporting Sector Reform and Development, Perth, 2005.
Young Nonprofit Professionals Network, Stepping Up or Stepping Out – A Report

on the Readiness of Next Generation Nonprofit Leaders, San Francisco, 2007.

71 | p a g e
APPENDIX ONE
WHAT IS BEING DONE – SUMMARY OF RECENT INITIATIVES AND

RESEARCH
Victorian Government – Stronger Community Organisations Project,

October 2007.
This project provided strategic advice to Government on not-for-profit sector

trends, influences, challenges, strategic vision and the issues and way forward
on sector capacity including workforce and leadership development and
organisational sustainability. It included literature research, 10 discussion groups,
special roundtables and 90 written submissions and was led by a Steering
Committee from community, philanthropic, business and academic sectors. It
produced a comprehensive 183 page review, making 21 recommendations,
including 13 on the capacity of community organisations. These covered areas
such as leadership development, leadership capacity, tertiary scholarships, staff
exchange programs, a graduate development scheme and workforce capability
framework. The project was accompanied by a concurrent review of not for profit
regulation by the Victorian Government State Services Authority.
Victorian Government Action Plan: Strengthening Community

Organisations, April 2008.
The formal Victorian Government response to the above reviews. Sets out
Government priorities and ambitions for the not for profit sector. Outlines 25
actions in five theme areas:
1. reducing the regulatory burden and streamlining interaction with government
2. building the capacity of community organisations
3. supporting innovation and growth
4. enhancing the role of NFP’s in local community life
5. recognising community organisations and coordinating effort across
government.
Establishes a new Office for the Community Sector to implement the Plan and
lead coordination and policy for the sector. Provides for ongoing information
exchange through state-wide forums and other events. Aims to help inform the
national agenda for supporting the not for profit sector.
Includes five actions to build capacity of community organisations with the

following three being of most relevance to this project:
Action 12: Investing in leadership development

Funding a feasibility study to determine the most effective means of developing
leadership capabilities within the sector. Includes examining the viability of a
National Academic Centre of Leadership Excellence for the sector, other models to

72 | p a g e
build the sector’s capacity as well as examining the leadership skills and knowledge
unique to community and non-profit organisations
Action 13: A Community Services Workforce Capability Framework

Specifically identifies the workforce challenges for NFPs in the decades ahead
and commits to developing a Capability Framework focusing on how NFPs can
develop skills and capabilities they need. Will address issues such as recruitment
and retention of staff, skills and professional development and career paths in the
sector. Also provides funding to help establish portable long service leave for the
community services sector.
Action 14: Community sector placement and mentoring

A placement and mentoring program will be set up to second and place public sector
workers with interested community organisations, and encourage businesses to
consider similar arrangements. Will also investigate possibility of incorporating
community placements into existing twelve month Victorian Government Graduate
Recruitment and Development Scheme.
Establishment of the Centre for Social Impact (CSI), 2008
In February 2008 a new Centre for Social Impact commenced operations with the
aim of building the capacity of the Australian not for profit sector (in particular through
building the quality of management and leadership in the sector), encouraging
philanthropy and social responsibility in the corporate sector. The stated purpose
of the CSI is to enhance the capabilities of voluntary commitment, philanthropic
support, nonprofit business endeavour and corporate citizenship in order to create
public value35.
The Centre is headed by Dr Peter Shergold, former Secretary of the Department

of Prime Minister and Cabinet. The Centre is a partnership between Swinburne
University of Technology, the University of Melbourne and the University of New
South Wales (the host institution) and will provide managerial education, executive
support and research for the not for profit sector.
The Commonwealth Government has provided an upfront endowment of $12.5

million which is to be matched by other funds. A grant of $1.5 million has also been
provided by the Helen Macpherson Smith Trust to establish the Chair of Not-for-
Profit Leadership at the newly created Asia-Pacific Centre for Leadership at the
Melbourne Business School of University of Melbourne. This has been matched by
the Melbourne Business School and this position will play a major role in the CSI.
35 Shergold, P., The Centre for Social Impact (CSI), A Planning Framework (2008)

73 | p a g e
Victorian Council of Social Service (VCOSS) Research Paper – Recruitment

and Retention in the Community Sector: A snapshot of current concerns,
future trends and workforce strategies, 2007.
Funded by the Victorian Government Community Sector Investment Fund, this

research paper is part of the VCOSS Showcasing the Community Sector project
(a three year project from 2007). It uses a range of research sources to highlight
recruitment and retention challenges in the Australian Health and Community
Services industry. The need for meaningful workforce strategies is highlighted as
are the potential elements of an effective marketing campaign for sector recruitment
to promote the sector. The research also examines potential recruitment target
markets for the sector including university students, career change staff and mature
age workers. Further research will be undertaken to refine a marketing campaign
to promote sector employment options.
University of South Australia Research and South Australian Council of

Social Service (SACOSS) Project, Careers at the Coal-Face? Community
Services in South Australia: Workforce Development, 2007.
This comprehensive research project used a literature search, a workforce

survey of 1000 community service organisations and selected case studies to
profile and highlight issues affecting the South Australian community services
workforce. The research highlights the recent rapid growth in the sector without
concurrent attention to issues of capacity building, resourcing and sustainability
and emphasises the importance of a sector wide approach to these issues. A
shortage of experienced applicants for job vacancies was identified, as well as
the need for a sector workforce development strategy to attract and retain quality
staff. Calls for a sector wide training and occupational framework and longer term
service delivery planning were also highlighted.
Social Economy Executive Education Network (SEEEN) and Perpetual

Foundation Research Paper – Contrary and Congruent Views of Leadership
and Management in the Australian Social Economy, 2007.
Commissioned by the Perpetual Foundation, this research aims to provide insights

into the drivers of leadership and management in the sector and to consider
how this information may be used to help build sector skills and capabilities.
The research involved more than 1000 respondents via an on-line survey, focus
groups and other forums and also included a literature review. Its overarching
research question was: How do leaders and managers in the Australian social
economy understand and misunderstand issues and challenges of their practice?
It expanded this question to include areas such as governance, capacity building,
leadership and skills development.

74 | p a g e
The report highlighted wasted resources, underdeveloped accountability, lack of

cooperation and transparency and poor governance in the sector. It also noted
that executives in the sector have insufficient access to professional development
and that the sector suffered through a lack of data, decision-making frameworks
and education. It concluded that greater general management capability including
through education and training provision is required to enable sector leaders to
better deal with its complexities.
NSW Council of Social Service (NCOSS) Sector Development Strategy 2007-

2010
Outlines key NCOSS strategies including the planned development of a NSW state
wide sector development strategy including a workforce development strategy.
NCOSS plans to develop a greater research capacity on community sector
sustainability issues and to further influence and advise government on sector
needs for workforce development, sustainability and other capacity issues.
Government of Western Australia - Industry Plan for the Non-Government

Human Services Sector, Building the Organisational Capacity of Non-
Government Organisations: Supporting Sector Reform and Development,
2005.
As part of the WA Government’s Industry Plan for the Non-Government Human

Services Sector (2004), this Discussion Paper outlined a new framework to build
the capacity of the non-government sector. It outlined options for capacity building
in areas such as governance, leadership, policy development and human resources
management. The Paper focused on how to connect NGO’s with capacity building
resources and identified ways to better link individual agencies to service providers
through, for example, a central coordination body. Subsequent developments in this
area in WA seem to be driven by the establishment in July 2007 of the Government
and Non-Government Sector Human Services Industry Roundtable.
Nonprofit Australia, 2004-2008
Nonprofit Australia was established in late 2004 following a 2002 feasibility

report that identified significant capacity issues for the sector including the need
for strategic leadership from its senior leaders. The organisation was formed to
improve the viability of nonprofit organisations. Its target areas include increasing
the capabilities of nonprofit leaders, reducing sector operating costs, improving
returns from volunteers and increasing overall capacity of the sector. To date
delivered programs include mentoring programs that match nonprofit leaders with
business executives. The organisation is funded by the Federal Government (to
2008-09), major Foundation partners and other larger NFP organisations.

75 | p a g e
Aurora Project, 2005-2008
The Aurora Project (www.auroraproject.com.au) is a local example of a cross-

sector capacity building program. It is the collective name for a number of programs
that work with Australia’s Indigenous communities and organisations. The Project
focuses on the professional development of Native Title Representative Body
(NTRB) Lawyers. It was developed following research undertaken in 2005 into the
professional development needs of this group that identified significant recruitment
and retention challenges. Project partners include government (Department of
Families, Housing, Community Services and Indigenous Affairs), corporate (Rio
Tinto and Allens Arthur Robinson) and universities (Monash, UNSW, UTS, AGSM,
Melbourne, ANU). The project provides a range of activities including student
placements in NTRB’s, executive management programs, scholarships, staff
training and professional development, performance evaluation and staff handbook
tools.
The Benevolent Society Sydney Leadership Centre
The Benevolent Society delivers a number of leadership development programs,

ranging from short courses to programs running over several months. The Centre
uses an adaptive leadership model in these programs, not a traditional leadership
model focusing on individual authority. Adaptive leadership views leadership as an
activity that can be learned, it:
 Focuses on getting people to face reality
 Mobilises people to tackle tough problems
 Emphasises purpose
 Requires people to deal with complexity and uncertainty36
The range of leadership programs delivered by The Benevolent Society includes:

 The nine month Sydney Leadership Program
 Accelerate and Ignite – two leadership values and ethics programs for the
National Australia Bank
 A Community leadership program for local government
 Unify - a Youth Leadership program in South Western Sydney
 An Introduction to Adaptive Leadership four day retreat
 Preparing for Leadership – a leadership module delivered for final year students
in the University of NSW School of Social Work
Association of Childrens Welfare Agencies (ACWA)/Centre for Community

Welfare Training (CCWT): Emerging Leaders Program
This leadership program commenced in 2008 and aims to build participant
awareness of the leadership dimension of management. It consists of three
36 The Benevolent Society Website, The Sydney Leadership Centre, 2008

76 | p a g e
single day workshops (leading with purpose, you as a leader and creating great
places to work), three individual coaching sessions and a work-based change
project.
Twenty10 and FAR Social Enterprise: Q&A Adaptive Leadership Program
Q&A is a four month adaptive leadership program for established and emerging
young leaders (aged 18-28) in the gay, lesbian, bisexual, transgender and queer
(GLBTQ) communities. The program aims to build the skills and capacities of
young GLBTQ leaders to take action effectively, cope with the pressures of
leadership and tackle social issues and challenges. Q&A includes eight days
training in adaptive leadership, a formal learning partner program and the
opportunity to practice individual and group leadership interventions.
United States Studies
The US Nonprofit sector employs around 10% of the US workforce, almost 100
new nonprofit organisations are formed every day and there has been a 300%
increase in the number of nonprofit organisations in the last 20 years.37 Over the
last five years, a number of studies have highlighted an emerging workforce crisis
in the sector, particularly in terms of the availability of future leaders. These studies
have focussed on the impending departures of “baby-boomer leaders”, the massive
growth in the sector (size and complexity) and the lack of investment in building
leadership capability. For example, see:
Tierney, T, The Nonprofit Sector’s Leadership Deficit, The Bridgespan Group,

2006.
Teegarden, P, Nonprofit Executive Leadership and Transitions Survey 2004.
Bell, J., Moyers, R., and Wolfred, T., Daring to Lead 2006: A National Study of
Nonprofit Executive Leadership, Compasspoint Nonprofit Services and the Meyer
Foundation, 2006.
In the last two years, some studies have started to reframe this leadership crisis
by shifting the perspective to the viewpoints and expectations of younger future
leaders. They note that this notion of crisis and the solutions put forward (eg
for leadership succession) are framed by a traditional definition or structure of
leadership. This style of leadership is unattractive to many younger leaders. These
studies focus on examining ways to reframe leadership in more collaborative,
participative ways with a renewed focus on shared leadership, work-life balance
and ongoing mentoring of successors. See the following:
37 Commongood Careers ,The Voice of Nonprofit Talent in 2008 - Improving recruitment

and retention by responding to the needs of nonprofit employees and jobseekers
(2008).p 3

77 | p a g e
Corvington, P. and Kunreuther, F., Next Shift: Beyond the Nonprofit Leadership
Crisis, Annie E. Casey Foundation and Building Movement Project, 2007
Cornelius, M., Corvington, P. and Ruesga, A., Ready to Lead? Next Generation
Leaders Speak Out, Compasspoint Nonprofit Services, Meyer Foundation, Annie
E. Casey Foundation, 2008.
Young Nonprofit Professionals Network, Stepping Up or Stepping Out – A Report

on the Readiness of Next Generation Nonprofit Leaders, 2007.
Commongood Careers ,The Voice of Nonprofit Talent in 2008 - Improving

recruitment and retention by responding to the needs of nonprofit employees and
jobseekers, 2008.
United Kingdom Studies
UK Workforce Hub, UK Voluntary Sector Skills Survey, 2007
This research was undertaken by the UK Workforce Hub to gather information

on the skills and workforce development needs of voluntary sector employees
in England. The major aim of the research was to explore the nature, scope and
impact of skills shortages and skills gaps in the sector.
The survey found that in recruitment problems and skills gaps are evident across
the sector particularly within specialist functions such as youth work, social care
and health care and specialist skills areas such as marketing, fundraising and
leadership. Employers also anticipate growing skills shortages and while they
acknowledge the importance of training, half of all employers surveyed identified
that the skills gaps were caused by the lack of time and funding for training in
their organisation.

Project F Report

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THE ALCHEMY PROJECT

A project of FAR Social Enterprise

2. PURPOSE OF FEASIBILITY REPORT 7

3. ALCHEMY PROJECT BACKGROUND AND STRUCTURE 7

5.2 Leadership Development - Opportunities 30

6. PRIORITY AREAS AND RECOMMENDATIONS 38

We wish to acknowledge especially the contribution made by the many

FAR Social Enterprise also thanks:

A note on FAR Social Enterprise:

FAR SOCIAL ENTERPRISE – DECEMBER 2008

Alchemy is a FAR Social Enterprise Project

Consultation participants discussed their perspectives of the current state of the

Therefore, what can be done by organisations and individuals to develop these

Alchemy is a FAR Social Enterprise Project

In addition, consultation participants repeatedly made reference to the

Finally, through analysing the Alchemy Project Literature Review and

1. Leadership Role and Capability at Board and Management Level

Alchemy is a FAR Social Enterprise Project

The Alchemy Project, within FAR Social Enterprise is committed to collaboratively

Alchemy is a FAR Social Enterprise Project

2. PURPOSE OF FEASIBILITY REPORT

3. ALCHEMY PROJECT BACKGROUND AND STRUCTURE

The aims of the project are to:

 Ensure a representative cross-section of stakeholders have input into

 Collaboratively design an innovative and sustainable solution(s) to help

The project is being delivered in partnership with a Steering Committee of

This first phase of The Alchemy Project includes:

Alchemy is a FAR Social Enterprise Project

4.1 Consultation Framework and Process

The Alchemy Project also acknowledges there is significant work being

Therefore, the aim of the consultations was to provide a space to discuss

A framework was established prior to commencing the consultations to identify

 The Not for Profit Sector including

Alchemy is a FAR Social Enterprise Project

o Representatives of not for profit organisations identified by the

 ‘Observers’ of the sector - Individuals from organisations who through their

 Corporate senior managers that have implemented successful leadership

All target groups were represented in the consultations. These consultations

Once individuals had confirmed their participation in the consultations, they

Additional details on consultation methodology can be found in the Appendices of

Alchemy is a FAR Social Enterprise Project

4.2 Consultation Participants

RSVP but did not attend 12 3 2 17

Sent Literature Review

Alchemy is a FAR Social Enterprise Project

 Size of 29 participating NFP organisations

 Consultation Forum Attended (OF-23, ID-10, I-9)

The chart below shows the methods of consultation and percentage of

Alchemy is a FAR Social Enterprise Project

 Gender Breakdown (F: 24 and M: 18 T: 42)

 Age Breakdown (Under 25 years: 7, 26-35 years: 15, 36 years and

Alchemy is a FAR Social Enterprise Project

The consultation discussions identified the key characteristics of effective

The consultations also identified the opportunities that currently exist to

Alchemy is a FAR Social Enterprise Project

5.1 Leadership Development – Issues and Needs

5.1.1 The Not for Profit Sector

A number of critical challenges were identified.

Not for Profit Representatives, Open Forum

Alchemy is a FAR Social Enterprise Project

The Government is now starting to realise that 5% to 20% is needed for

Alchemy is a FAR Social Enterprise Project

“ Small, efficient organisations need to be able to build capacity in different