What are the best ways to foster experimentation and risk-taking in nonprofit innovation?

Failure is a crucial aspect of innovation, especially for nonprofits working in complex environments. These organisations are often tackling challenges so entangled that they don't have an obvious solution. This unpredictability naturally leads to failure, which, although uncomfortable and sometimes stigmatised,is essential for progress and learning. The outcomes of interventions or efforts to this complexity is unpredictable and seldom result in anticipated outcomes. By reframing failure as learning and as a scientific, evidence-based approach—characterised by forming hypotheses, experimentation, and gathering tangible evidence—can help. Run a portfolio of experiments, which are run simultaneously, to build confidence.

“You miss 100% of the shots you don’t take.” - Michael Jordan Things don’t work out all the time, but if you try to do enough things consistently over a long enough time horizon, you will see results. It’s important not to be turned off of something because it is not an overnight success.

Absolutely agree - embracing failure is indeed a stepping stone to innovation. It's crucial to foster a culture where missteps are seen as learning opportunities, not setbacks. Encouraging diversity of thought and experience can also fuel creativity and innovation. Experimentation is vital - it allows us to test new ideas, iterate, and improve. Celebrating both successes and well-intended failures can create a more resilient, innovative environment. Collaboration and strategic partnerships can further enhance our capacity for innovation by bringing in fresh perspectives and resources. Remember, innovation isn't a one-time event, but an ongoing process that requires persistence, courage, and an openness to change.

Scenario planning is key for innovation and experimentation in a non profit. If you have an excellent team with an open, curious & learners mindset along with a strong strategic leadership to support your ideas, that itself is a bonus to get your ideas into a strategy and experiment .

In my experience, failure is an opportunity for curiosity and innovation to take place. It helps guide how we pivot, however our shift in decision-making should center the community and solutions are co-created.

Indeed, diversity is a catalyst for innovation. By embracing a range of perspectives, backgrounds and skills, we enrich our collective knowledge and broaden our problem-solving approaches. An inclusive culture where everyone feels valued fosters greater collaboration and creativity. Open dialogue and constructive feedback are key to continual growth and improvement. Also, continually seeking inspiration from outside our organization or sector can lead to fresh ideas and unique solutions. Let's remember that innovation thrives in environments where diversity and inclusion are not just encouraged but actively pursued.

Innovation is indeed a journey, not a destination. It's about fostering a culture of curiosity and exploration, where hypotheses are tested, and lessons are learned from the outcomes. Small, fast, and cost-effective experiments can yield valuable data, enabling us to refine our solutions or change direction as needed. Sharing results encourages collective learning and adaptation. Empowering staff to experiment and iterate, individually or in teams, fuels a dynamic environment that is conducive to continual growth, learning, and innovation. Remember, every step forward is progress, even if it doesn't look like it at first glance.

Embracing innovation as a cornerstone of the organizational ethos, nonprofit leaders propel their missions forward through a continuous cycle of experimentation and iteration. This dynamic process requires a mindset steeped in curiosity and exploration, urging leaders to venture into uncharted territories, test hypotheses, and glean insights from results. The key lies in designing and implementing experiments that are nimble, cost-effective, and yield valuable data. Transparency is pivotal; leaders must analyze and share experiment outcomes, leveraging them to refine or pivot solutions. Cultivating a culture of perpetual learning and adaptation is paramount, empowering staff to embark on their experimentation journeys.

It's important to celebrate both successes and positive attitudes towards learning from failure. Creating the right culture for Impact innovation can be challenging and creating the conditions, such as psychological safety, are essential for people to feel empowered and Innovation is often faced with resistance. It's change. Rewarding and incetivising those who see opportunities, are resilient and willing to drive positive change in the face of adversaries or actively overcome barriers is an integral part of creating a successful culture of Innovation.

To truly tackle complex, wicked systemic challenges we need more than one actor. We need to work collaboratively and combine efforts through innovation ecosystems. There is some great work from the Griffiths Centre of Systems Innovation on challenge-led Innovation which highlights the benefits and ways to do this successfully. This requires a shift from the dominant others are "competitors" framing to working in partnership and across networks to drive change. Complex adaptive systems, often require a portfolio of interventions across various intervention or leverage points which is very difficult for one actor to do alone, especially with limited resources or without established value networks.

Want to experiment and maybe even take a risk at your nonprofit? First: make a profit. The word "profit" frequently gets misunderstood in the nonprofit world. It really only means that the organization made more money that it spent. It doesn't necessarily mean anyone's greedy or unethical. You can use that "left over" (unrestricted) money many ways. While sometimes you should invest it in programs, at other times you should invest it in trying new things. For example, if you learn to harness emerging technology, that might allow you to multiply your impact. But you have to take time to learn how to use it, adapt it, train staff on it, and more. And that will take money because most nonprofit staff are already stretched thin.