How to manage a Voluntary Organisation

By David Hussey and Robert Perrin (Kagan Page 2003)

The size of the voluntary sector is difficult to determine, since it comprises organisations of various size, operating in different areas and often not registered, or known other than to those who share their interest. In the same way that the private sector includes both a recorded and a "parallel" economy, the voluntary sector has a visible core and a hazy and mobile periphery. Much of what the voluntary sector does complements the public sector and increasingly compensates for its inadequacies.

For most of history the voluntary sector has been run by amateurs, often for motives of charity. Its growing size and favourable tax regime have driven a large expansion in the last 100 years and has made its regulation by the Charity Commission increasingly necessary. Some major charities now have an annual turnover in excess of £100 million.

This book is an attempt to bring to the voluntary sector the rigour of governance and administration developed to meet the needs of the private sector, where ownership and direction are usually separated. The private sector has been forced by competition to professionalise its management, to the point where managers often behave as if they owned the company. David Hussey and Robert Perrin bring their experience of private sector management into the context of the voluntary sector, in order to offer a template for use by trustees who may lack the support of professional managers. In doing so they have produced a very thorough and usable framework of processes and compendium of experience.

Out of this framework could emerge a number of specialist studies eg in governance, strategy, marketing etc. There is an excellent chapter on managing people - a competence which is crucial in the voluntary sector which depends so heavily on unpaid volunteers. Leadership is examined thoroughly, using Martin and Nicholls' "three pillars" model for winning commitment. These focus on creating "a sense of belonging", developing "a sense of excitement" (and accountability) and building trust in management's leadership. In the voluntary sector there is a fundamental need for "selflessness" - one of Lord Nolan's principles of governance in the public sector (not evident in the private sector!).

One area which is not sufficiently developed in the book is the impact of the external world on the voluntary sector. The managerial emphasis of the book fails to address sufficiently the abiding sin of "special interest groups" - a lack of sense of proportion. Charities and voluntary groups do not exist in a vacuum but can only function well as part of an integrated community, both global and local. Some charities are aware of a wider world and the need to relate to a wide range of stakeholders - such charities use techniques such as scenario planning to widen their horizons and position themselves into the future. With reducing government commitment, waning consumer interest and an oversupply of voluntary organisations, more radical thinking is needed than the book can engender.

Another area which needs development is the life cycle of charities. There are some good examples among the case studies of renewal but fuller treatment of winding up would be welcome. It is believed that the life of the average commercial enterprise is 42 years; organisations in the voluntary sector are subject to a similar life cycle and need to understand when to wind up. External pressures usually force companies to be liquidated - how many organisations in the voluntary sector outlive their usefulness?

This book is a valuable basic manual for trustees of voluntary organisations. It begs a number of questions but it does help intelligent trustees to see where more knowledge is needed.

Adrian Davies