The Meserete Kristos Church has existed as a Church since 1951, continuing as an underground ministry under the socialist regime. Besides its spiritual activities, the Church began relief and development work during the underground period.  Following the fall of the communist government, the organization was registered as the Meserete Kristos Church Relief and Development Association (MKC RDA) in 1998 under the supervision of the Church.  However, a severe leadership crisis resulted in financial instability that made the organization virtually bankrupt by 2016. Since scholars like Drucker assert that “innovation begins with the recognition of new needs or shifts in circumstances” (2006, 99–100). MKC RDA pursued a transformation based on the “5 R’s” framework: repairing, reimagining, repealing and replacing, revitalizing, and resilience assurance (Abebe 2016). MKC RDA responded to the crisis by recognizing its urgent issues and launching structural and financial adjustments. The following points summarize innovative actions taken, challenges faced, and key lessons from the reform process.

Phase 1: Repairing (2016–2017)

MKC RDA immediately set out on the path of restoring financial, structural, and relational damage brought about by years of mismanagement and incompetent leadership. Starting early in 2016, MKC RDA contracted an internal audit to ascertain the level of financial mismanagement and organizational inefficiencies. The process was important in comprehending the causes of the problem and laying the foundational framework for reform. Wrigley et al. (2018), in their work about nonprofit improvements, has made it crystal clear that audits should be a tool for finding financial discrepancies but also one to understand systemic failures in the quest for long-term sustainability.

Some shortfalls were realized in financial oversight after which more open financial policies were set up. These reforms were also critical for gaining confidence from external stakeholders, especially because donors and partners needed to be assured that their resources were well managed. This agrees with the ideas of Aluisius et al. (2018), who note that transparent systems can help gain confidence in an organization that is recovering.  But most importantly, there was a commitment by leadership to reconciliation and open communication that really helped rebuild bridges with the affected partners and employees. Openness became a guiding principle in the new leadership style at MKC RDA. Indeed, according to Taylor et al. (2018), it is open and accountable communications that make transparent leadership the magic ticket to winning back the trust of nonprofits, particularly those organizations that have suffered crises.

Phase 2: Reimagining (2017)

When the foundational repairs were laid, MKC RDA entered a phase of reimagining. It was at this time that the leadership team realized, for MKC RDA, to move forward, it had to redefine the vision and explore other models of operation that could guarantee the sustained development and expansion of the church. As Machado and Davim (2018), emphasize, MKC RDA drew its focus on the identification of innovative streams of revenues such as the strategic engagement of donors and organizational innovation. This not only diversified the revenue base but also aligned MKC RDA’s mission with contemporary models for creating social impact.  Following Plattner’s (2018) design thinking, an iterative process of strategic planning internally and externally was developed by MKC RDA, engaging stakeholders in formulating a new strategic vision for the organization to expand its reach and strengthen community engagement, with particular emphasis on sustainable development. As underlined in Shier et al., in Cross-Sector Partnership Work: From Advocacy to Social Impact (2018), emphasis on community-driven models of growth is also reflective of the commitment to inclusivity and local empowerment in MKC RDA’s work.  MKC RDA ensured further that the new direction was bedded on sound nonprofit best practices. To foster this, MKC RDA collaborated with the best thinking and expertise. As Louisella (2018) pointed out, the inclusion of external specialists brings into the nonprofit new perspectives and helps in finding paths to delivering mission innovation imaginatively. MKC RDA thus came out well as an innovative organization that is forward-looking with clear sustainable paths of growth.

Phase 3: Repealing and replacing (2017–2018)

In the phase of repeal and replacement, MKC RDA began with confidence to identify practices and structures that no longer served the needs of the organization. The first big steps were taken to strip away the bureaucracy that hampered responsiveness. An assistant professor at Soongsil University in Seoul, Korea, Sangmi Choi has made contributions to social welfare and policy research in his work An Inside-Out Marketing Approach for Nonprofits (2018). According to Choi, nonprofits often miss opportunities for marketing because of slow bureaucratic decision making. Due to this, MKC RDA institutionalized more flexible modes of making decisions that had become imperative to introduce rapid transitions in landscapes with respect to nonprofits.

Meanwhile, MKC RDA moved to renew its leadership structure. Here, the work of Shier et al. (2018) on executive leadership and organizational reform was taken up by MKC RDA. Accountability-led structures were built to give decision-making processes integrity. Innovation and adaptability were also a part of this new structure to help the organization in the long run. Noting the leadership’s view on technology, digitalization of operations holds great importance even for nonprofit institutions. According to Nusem et al. (2018), the application of digital means and data-based strategies in everyday operations can enrich operational efficiency within a nonprofit entity. MKC RDA not only improved the internal processes when adopting digital platforms but also reached out more efficiently to its donors, partners, and beneficiaries.

Phase 4: Revitalization 2018–2019

After the reform of the internal systems and structures of the leadership, MKC RDA focused its effort on the resurgence of programs. MKC RDA rolled out a set of community-led development programs, which formed the base of MKC RDA’s revitalized work. The main goals of these initiatives were to address directly local community issues and enhance the organization’s outreach, drawing on the findings of Shier et al. (2018) on community involvement.

In this period, MKC RDA further started building its image through modern methods of communication. Digital channels, like social media, allowed MKC RDA to reach more people and involve them in its work, especially among younger generations. According to Choi (2018), the adoption of digital marketing in a non-profit organization will help it stay in contact with the community and attract new donors. To achieve sustainable leadership, MKCRDA kicked off leadership development programs aimed at grooming future generations of leaders who could have visions for the organization. These were training courses aimed at equipping both the technical and ethical competencies of leaders. According to Dart and Akingbola (2018), the pathway to the success and sustainability of nonprofits in changeable environments starts with the investments in leadership training that any such organization needs to be prepared to make—sharing platforms and leadership development.

Phase 5: Resilience Assurance from 2019

The final stage of transformation was that of resilience assurance for MKC RDA. The organization identified that several measures could apparently provide MKC RDA with resilience capabilities for any crisis and thereby prosper in an extremely dynamic environment. Vassallo et al. (2018) observe that financial risk management and adaptive leadership are the foundation of long-term sustainability, as identified from hybrid models in financial resilience. To this effect, MKC RDA introduced a strong financial management system that would enable it to track its resources and thus prevent any future financial crises.

Furthermore, MKC RDA designed an adaptive leadership model that highlighted the need for flexibility and continuous learning. Stowe and Grider (2018) have indicated that nonprofits must build a culture of innovation and continuous improvement to be relevant and responsive to the needs of their constituents. The resiliency focus for MKC RDA was therefore not just about risk management but about building an environment that fosters ongoing innovation and growth. An independent oversight board for this effect was established. This meant accountability and thorough transparency in its practice, necessities that would retain confidence among stakeholders and donors. Hence leadership was held to the highest standards of governance and ethics.

In conclusion, the metamorphosis of MKC RDA from a crisis-ridden to an innovative, financially robust, and resilient institution can be an excellent example for all other nonprofits wrestling with identical problems in the context of Ethiopia. Guided by the 5 Rs framework—repair, reimagine, repeal and replace, revitalize, and ensure resilience—the process led MKC RDA to get through the crisis, rebuild trust, and cast a pathway for long-term growth and impact. Staying at the head of innovation, renewing leadership, and making commitments toward transparency and accountability, MKC RDA is well-positioned as a healthy organization meeting the needs of the communities it serves.

 

References

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Choi, S. (n.d.). An inside-out marketing strategy for innovation among human service nonprofits in South Korea. Soongsil University.

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