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Posted by Sarah Brown on 29 Jan '25

2025 Focus on the fundamentals

Focusing on the fundamentals will be critical to success and survival this year, regardless of whether you are an organisation or an individual. In this blog, I am focusing on why, in the current climate, it is critical to get each step right;

I signpost to other blogs and information on the website to find out how to do each step or give me a call to chat through what you need to do.

Introduction

For me, the fundamentals mean:

  1. Your Values: Identifying your core values and ranking them by importance is crucial. By concentrating on what truly matters to you, you'll find greater motivation and accomplish more. In any organisation, everyone needs to understand and commit to the most important values to ensure consistency.
  2. Your Behaviour: Understanding how your values translate into actions clarifies how you operate your organisation or life. Creating the environment to support these behaviours, including training and systems, will make it easier to act swiftly and seize opportunities.
  3. How you change the world: Developing a theory of change enables you to outline how you plan to make a difference in the world. This structured approach helps you use resources more efficiently and enhances your outcomes. Furthermore, it allows you to understand and measure your impact effectively. For charities, a well-defined theory of change can significantly boost marketing and fundraising efforts. For individuals, having a clear theory of change demonstrates your values and goals, making you a more attractive candidate to potential employers.

First, identify your values and get them in order!

If you search our website to find blogs on values, you will find at least 20 articles on the importance of values and ranking them. Trust is critical to the success of anybody or any organisation, particularly charities and social enterprises. The foundation of trust is consistency in enacting your values and knowing the top value which trumps the others. Ranked values mean that staff understand what is most important and what will make them a hero or a villain; it doesn't change depending on the manager or the day. In a perfect world, you fulfil all your values, but sometimes you must choose, and then you need that ranking.

For the customers and individuals you serve, this consistency translates into reliable experiences. They receive uniform treatment and know what to anticipate, eliminating any sense of favouritism or uncertainty about the quality of service they may receive. This dependable atmosphere fosters deeper connections and reinforces the trust essential for thriving relationships and successful organisations.

When staff become confused about a company's top values, it can lead to severe consequences, including loss of life and significant financial repercussions, as demonstrated by Boeing's experience. Boeing has repeatedly claimed that safety is their top value. Yet, the crashes of the 737 Max, which resulted in the deaths of 346 people, along with more recent failures and over 200 whistleblower reports citing safety concerns, indicate that safety is not prioritised in practice. Beyond the reputational damage, the financial impact has been estimated at around $20 billion, encompassing costs related to grounding the aircraft, compensation for victims, lost orders, and legal settlements, including lawsuits from shareholders for compromising the company's core values.

Therefore, the first step is clearly identifying and ranking your organisation's values.

Second, reflect your Values in what you do and say

Once you know your values, the next step is to turn them into reality - what they mean in practice, what words or phrases capture what you mean, how you behave, systems, training, etc, as the diagram below shows.

By linking your values to activities, you can ensure that people are doing what is most important and what will build trust in your organisation.

By linking your values to activities, you can ensure that people are doing what is most important and what will build trust in your organisation.

Third, map how you change the world

Your values and behaviours will provide the starting point for your theory of change.

Importance for business

A Theory of Change (ToC) is a roadmap for businesses navigating today's rapidly changing market. With fast technological advancements and shifting consumer preferences, a clear ToC is essential for maintaining a competitive edge. It defines objectives and outlines the strategic steps needed to achieve them, creating a unified direction across the organisation.

Imagine the ToC as an advanced navigational system that guides decision-making and enables businesses to track their progress effectively. It establishes a logical framework that intricately connects specific activities and resources with desired outcomes, ensuring that every team member is aligned with the company's overarching vision. This alignment fosters enhanced collaboration and accountability, vital elements for operational success.

Businesses that adopt a Theory of Change (ToC) are better equipped to adapt to unexpected challenges and take advantage of new opportunities. By regularly reevaluating their strategies based on fresh insights, they can innovate more effectively and position themselves for sustainable growth in a changing market. In essence, a strong ToC empowers organisations to respond to change and actively shape it, allowing them to thrive in a dynamic environment.

Importance for charities

A Theory of Change is particularly important for charities in 2025 because of:

  1. Increased Demand and Resource Constraints: Charities are facing higher demand for their services while dealing with limited resources. In May-June 2024, the Charities Aid Foundation (CAF) found that demand had increased for 86% of charities, with 88% expecting demand to continue to rise. Meeting demand was one of the top three challenges facing charity leaders (50%), and those hit hardest are charities working in poverty relief, human rights, equality and diversity, and those helping people in need. A clear Theory of Change will help you prioritise actions and allocate resources effectively. In 2024, charity leaders said they spent most of their time firefighting – an average of at least 75% of their time solving day-to-day problems to keep their charity operating. Charities with under £1 million annual incomes are most likely to experience this. The clear road map the theory of change provides should reduce these problems
  2. Economic Pressures: Charity finances face a "triple squeeze" from increasing costs, reduced funding, and higher service demand. With rising costs and economic uncertainties, charities must be strategic and efficient. A robust theory of change ensures that every activity contributes towards the desired impact, making the best use of available funds.
  3. Transparency and Accountability: Donors and stakeholders expect transparency and accountability. A well-defined theory of change provides a clear roadmap of how funds will be used and the expected impact, as well as building trust and credibility.
  4. Navigating Complexity: The social issues charities tackle are often complex and interconnected. A Theory of Change helps break down these complexities into manageable steps, making addressing the root causes of problems easier.
  5. Adapting to Change: The charity sector constantly evolves, with new challenges and opportunities emerging. A Theory of Change allows charities to be flexible and adaptive, ensuring they can respond effectively to changing circumstances. Otherwise, the worry is that responses will be reactive, short-term fixes rather than strategic helping progress towards the charity vision and objects
  6. Attracting funding: I have a limited amount to give and want evidence it will have an impact; the same is true of funders.

Conclusion

If you would like to learn more about any of the three steps, here are some helpful blogs and information.

First, identify your values and get them in order!

Use your values to show you are different | Inspire2Aspire

council, charity, social enterprise are your values working | Inspire2Aspire

Creating a values led culture | Inspire2Aspire

Second, reflect your Values in what you do and say

Can you guess VW's values from the way they act? | Inspire2Aspire

Creating a winning culture | Inspire2Aspire

Third, map how you change the world

Be really clear about what you offer | Inspire2Aspire

Changing the world | Inspire2Aspire

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Tags: values theory of change behaviours

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