Nonprofit organizations, according to Judith Sharkin Simon, go through typically five stages of development. Christian schools are no different. These stages should be of great importance to leaders so they can better recognize the trajectory of their school.
To help us remember the stages, Simon has developed short, two-word titles that set the primary tone or activity an organization faces in that period of their development. Here are the stages with brief descriptions of their challenges and opportunities (as taken directly from her book: The 5 Life Stages of Nonprofit Organizations):
STAGE ONE: Imagine and Inspire
This is the vision or idea stage, where the organization is not yet formalized and where imagination and inspiration abound. The primary question at this stage is, “Can this dream be realized?” This stage is characterized by lots of enthusiasm, energy, and creativity, but at this point, the organization really is merely a dream of a better world that is inspirational and worth striving for.
STAGE TWO: Found and Frame
This is the start up phase of the organization, when it receives it official nonprofit status and all the activities of founding and framing an organization occur. The key question at this stage is: How are we going to pull this off?” Like Stage one, this is a stage that is characterized by excitement and high levels of interest by many people, accompanied by the fear that formalizing the dream may result in the loss of its magic. The act of incorporating formally established the organization.
STAGE THREE: Ground and Grow
In this stage the organization is concerned with building its foundation by grounding its activities and growing the business. The overriding question is “How can we build this to be viable?” Organizations in this stage are focused on establishing systems of accountability; however, the need for growth on multiple fronts may be overwhelming to those running the organization. The Ground and Grow stage can have a mundane feel of “taking care of business”, but it also brings with it many possibilities as new opportunities and challenges evolve.
STAGE FOUR: Produce and Sustain
This is the mature phase of the organization’s life when production is at its peak and sustaining the organization is high priority. The primary concern is, “How can the momentum be sustained?” The organization is very stable, yet that same stability may make it stale as concerns for procedure slow creativity and growth. Stage Four is a productive place that, at its peak, feels like automatic pilot. Staff and Board are doing their work effectively and enthusiastically.
Mature nonprofits revisit one or more aspects of their organization—mission, vision, products, services, structure—sometimes changing them drastically, sometimes only tweaking them, as they rediscover who they are and how they fit with the changing world.
STAGE FIVE: Review and Renew
In this stage the organization is reinventing itself in some way, shape, or form through a process of review and renewal. The primary question is “What do we need to redesign?”
It can be a time of large or small, exciting or stressful, but always necessary change. Mature nonprofits revisit one or more aspects of their organization—mission, vision, products, services, structure—sometimes changing them drastically, sometimes only tweaking them, as they rediscover who they are and how they fit with the changing world. Depending on how much is changed, the organization may revert back to a previous stage. For example, if you totally revamp the primary mission of an organization, it may find itself back in Stage Two, while minor alterations in organizational structure may mean revisiting of Stage Four.
Decline and Dissolution
Sometimes it happens -- an organization is forced or chooses to shut its doors. In this model, Decline and Dissolution is not thought of as an inevitable stage, but a route that an organization can choose at any stage of development for a variety of reasons.
Eight Assumptions that Drive the Life Stages