Building from Purpose: Unlocking the Power of Australia's Not-for-profit Sector

Building from Purpose: Unlocking the Power of Australia's Not-for-profit Sector

McKinsey & Company & the Australian Scholarships Foundation have released a report, "Building from Purpose: Unlocking the Power of Australia's Not-for-profit Sector". This report is released at a critical time for the sector as we look to move forward after shouldering the demands of the pandemic. It highlights that the sector has been stretched to its limits, with many leaders needing to focus on the short term, and the sector's underlying health has suffered.

The research data has highlighted that in many areas, the Australian NFP sector is world-leading – for example in the areas of shared vision and having inspirational leaders. The research also highlighted opportunities for greater focus and support.

The research identified three key capability areas that have a significant role to play:

  • talent growth,
  • execution excellence, and
  • system shaping.

For robust health an organisation needs to achieve effectiveness in all these capabilities; however, most organisations face challenges in at least two of these areas.

This research contributes tangibly to ways organisations can improve their organisational health whilst recognising that a collective national effort is needed to sustain and enhance the health of the not-for-profit sector. The report provides practical guides, proactive steps, and case studies for leaders to apply to all these focus areas, and more.

Read Executive Summary.

Download full report.


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