Enhancing Efficiency for a Nonprofit Energy Consortium

I. Executive Summary

This case study explores the importance of organizational design and financial modeling to execute a future strategic vision. Key findings reveal that sometimes the starting point is the vision and not where the organization is now.

II. Introduction

A nonprofit energy consortium needed to redesign its organizational structure to prepare for industry growth in new energy sectors, as well as prepare the team for new product development and an exiting senior leader with ingrained institutional knowledge.

III. Problem Statement

The organization, in its current state, was ill-prepared for success in accomplishing its 5-year strategic vision in design, talent, and within budgetary constraints, leading to concerns that the goals were too ambitious and not achievable.

IV. Detailed Analysis

a. Situation Analysis:

Analysis of future energy use showed a shift to non-traditional energy sources, which required increased training and education on how to offer and explain benefits to new and existing customers.

b. Stakeholder Analysis:

Key stakeholders included energy providers, the Nonprofit Board of Trustees, and Government regulators, each accountable for ensuring cost savings were efficiently passed on to other non-profits and low-income neighborhoods that needed it.

c. Data and Evidence:

Data showed an increasing lack of dependence on gas and electric energy and an increase in demand for solar and EV energy sources.

d. Problem-Specific Analysis:

Strengths included being a one-stop shop for all energy needs and passing consortium savings on to the customer. Weaknesses included a need for education and a lack of capacity to manage more customers.

V. Solution Exploration

a. Proposed Solutions:

Remove names and current skills – rewrite job descriptions for Point of Arrival with a focus on renewable energy. Create a Point of Next as an interim stage when existing staff would work toward a new organizational structure.

b. Implementation Plan:

Proposed a phased adjustment of the organization to the Point of Arrival state that only added 2 FTE but put more capacity toward renewable energy and fewer resources on BAU traditional energy sources.

VI. Results and Impact

a. Outcome Analysis:

Nonprofit staff embraced change and the opportunity to grow their careers or try something new. The new budget based on the Point of Arrival organization would save $8M in Net Profit due to reuse and repurpose of current staff along with new revenue potential.

b. Long-term Effect:

The solution provided a 5-year roadmap to achieving the strategic vision with the option to increase FTE if revenue came in higher than expected.

VII. Lessons Learned

The project highlighted the importance of organizational design and financial modeling going hand in hand to ensure operational efficiency within parameters.

VIII. Conclusions and Recommendations

The case study concludes that the nonprofit energy consortium’s strategic vision needed roles and responsibilities and budget alignment to support its success.