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Resilience Insights from a Qualitative Longitudinal Study

This study explores the resilience of third sector organizations and their ability to adapt to continuous transitions. It examines coping strategies, the concept of financial resilience, and the need for organizations to embrace new skills and improve their business models.

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Resilience Insights from a Qualitative Longitudinal Study

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  1. Third sector resilienceinsights from a qualitative longitudinal study Rob Macmillan Third Sector Research Centre University of Birmingham ESRC Festival of Social Science – Third Sector Resilience BVSC, Birmingham, 6th November 2013

  2. Summary • Resilience and transition • Transition as policy • Insights from a qualitative longitudinal study • ‘Real Times’ in a nutshell • Three coping strategies • Hawthorn – a case of resilience? • Conclusion

  3. Alternative indicators…

  4. Resilience From our perspective, ‘financial resilience’ is a better descriptor than ‘sustainability’. It suggests organisations that are better able to withstand financial shocks: for example, a major funder withdrawing a grant. It also suggests that gaining financial strength, progressing towards a healthy balance sheet, and securing an appropriate level of reserves is difficult and on-going, rather than a one-time fix. Improving financial resilience is, in our experience, an on-going struggle, ‘a journey rather than a destination’. Venturesome (2008)

  5. Resilience Resilio- ‘bouncing back’ and ‘beating the odds’ – positive outcomes in the midst of adversity The process of withstanding the negative effects of risk exposure, demonstrating positive adjustment in the face of adversity or trauma, and beating the odds associated with risks (Bartley et al 2005) Focus tends to be on: • Processes, rather than fixed attributes • Capabilities/assets (‘forms of capital’), rather than deficits • Actors/organisations, rather than contexts

  6. Transition The defining characteristic of this environment is that of continuous transition, in which survival means being able to adapt to new and shifting sets of circumstances… …transition has become an essential and permanent feature of what it is for an organisation to survive, thrive and make a difference. IVAR (2013) ‘Turning a Corner’, p.9

  7. Supporting the sector…to change Civil society organisations will need to embrace new skills, partnerships and organisational models if they are to seize the opportunities that lie ahead. It will be vital for civil society organisations to improve their business skills, become more entrepreneurial and strengthen their governance . Government wants to invest in a new programme of strategic interventions which will help organisations modernise and become more efficient and more entrepreneurial in order to take advantage of the opportunities ahead (Cabinet Office 2010: 6, 8)

  8. Transition as policy • Transition Fund (£100m, 2010-12) • Transforming Local Infrastructure (£30m, 2012-13) • Advice Services Transition Fund (£33.6m, 2012-14) In order to thrive and secure its future sustainability, the independent advice sector will also need to be more enterprising and business-minded. Simply funding direct services will not secure this future for local providers. The traditional sources of funding that the advice sector has relied on in the past are changing, and the amounts available are reducing. The Advice Services Transition Fund is to support changes that will help the sector to become more enterprising and resilient.

  9. ‘Real Times’ in a nutshell… Overall aim • To establish, maintain and analyse a qualitative longitudinal sample of third sector organisations, groups and activities Research structure and timing • Diverse set of 15 core case studies plus a range of related ‘complementary’ case studies • Spring 2010 to Summer 2013: five waves of interviews, observations and documentary analysis Purpose and research questions • Understanding how third sector activity operates in practice over time • Fortunes, strategies, challenges and performance • What happens, what matters, and understanding continuity and change

  10. An overall story (so far…) • A picture dominated by cuts for some, but not for all • From anticipatory anxiety to the experience of public spending cuts • Coping strategies: • Restructuring and redundancies • Merger and acquisition • Repositioning and rebranding • Ongoing uncertainty about the scale, scope and impact of cuts • Thwarted plans and contained ambitions • The struggle for ‘room’

  11. 1. Restructuring/redundancy • Cutting costs – shedding hours, projects and staff • Multiple agendas and managerial restlessness – necessary evils and organisational agendas • Substitution between paid and unpaid work “it’s some of the most painful stuff I’ve ever had to do, it’s absolutely horrible, absolutely horrible. People come in and really look you in the eye and tell you how desperately they want their job and they enjoy their job and you just feel dreadful because, you know, it’s not about whether you want your job or not…It’s about how much money we’ve got and as much as you like your job, we’re not going to have a job for everybody at the end of this and it’s shit, what can I tell you?”

  12. 2. Reconfiguration/merger • An on-going but contested theme in third sector conversation – ‘small drops in millions of buckets’ • A preference for ‘sharing without merging’ ‘On the sniff’ • Acquisition as a growth strategy (housing group structures): “the strategy around that has to be tacit and not overt so I don’t think you go out there and openly pursue a kind of merger and acquisition strategy” • Due diligence, and lots of talk, but little action (family support): “so there’s quite a lot of potential basket cases out there if I’m honest, and it wouldn’t be sensible for either charity to… the coming together of two baskets is not a good idea”

  13. 3. Repositioning/rebranding • Niche (in relation to others): “you’ve got to be aware of what other people are doing. We certainly try and stay close to key competitors and their tactics to understand what the world is going to look like and we try and adjust our plans accordingly. We do quite a lot of I suppose what the private sector would call market analysis, you know... what is the world going to look like, what are the political directions, how do we position ourselves to work in that way….” • Branding as a strategy of affiliation and distinction: “where I want to be by the end of the year, which will be a completely different organisation, a fresh new start and that kind of professionalism will be seen by our stakeholders, which I think then by the end of the following year we really would be in a good position to have the data, have a proven track record of delivering quality services, to go and get more funding”.

  14. ‘Hawthorn’ – a case of resilience? • Liability of smallness? – boundaries and informality • Who’s in charge? - leadership • Commissioning-ready? • Capacity building – business planning and tendering

  15. Uncertain futures – ‘Birch’ • Timescales of transition – fast and slow • Weathering the storm, cuts and reprieve through ‘transition’ • Buying time – ‘laying down funds’ “we are a different animal now than we were 12 months ago. We would not have focused on half the things that we’ve focused on. We’re not as good as we need to be, and that’s what I mean about it takes a long time to change. “It’s been difficult to plan for….and that’s the big thing even at the moment, that actually it is still difficult to see what’s in front of you.. The plans have to be ‘we’re as flexible as we need to be to do what we need to do’, you know… But it doesn’t necessarily feel comfortable really, that you’re having to be so quick on your feet that actually you don’t want to lay things down because that might slow you down, so let’s keep it open and fluid”

  16. Conclusion • Resilience and transition – an active (political) project • Reconfiguring relationships • within the sector • between the sector, the state… and the market? • Organisational adjustment strategies over time to preserve/advance ‘room’ = an acknowledged ‘space’ (role, position) for an organisation to exist and operate in a given field • Seeing things differently? • effort, struggle and conflict • looking back: a longer view • looking ahead: time horizons and anticipations What we’re doing at the moment is planting all these seeds hoping that they will grow and we’ll have a strong enough service come April that we can deliver in this new regime…at the moment we’re still really in a bit of no man’s land….

  17. Further information • Seeing things differently? The promise of qualitative longitudinal research on the third sector(TSRC WP56, Mar ’11) • First Impressions: introducing the ‘Real Times’ third sector case studies (TSRC WP67, Nov ’11) • Making sense of the Big Society: perspectives from the third sector (TSRC WP90, Jan ’13) • The third sector in unsettled times – a field guide (TSRC WP109, Aug ’13) www.tsrc.ac.uk

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