HBR IdeaCast

Reinventing an Organization to Do More with Less

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Key takeaways

  • Effective organizational change requires listening, understanding organizational culture, and aligning reform initiatives with leadership vision.
  • Decentralizing decision-making and involving local voices enhances responsiveness and effectiveness in complex organizations.
  • Innovation and technology can significantly improve operational efficiency, from connectivity solutions to cash transfer systems.
  • Partnering across sectors—including with corporations—can improve resource utilization and expand impact.
  • Resilience in the face of political and financial shocks is built through contingency planning, diversified funding, and continuous adaptation.
  • Strong internal communication, empathy, and maintaining a shared mission are crucial for staff morale during challenging times.

Summary

Introduction and Context of the Organization

The episode begins with a discussion about organizational change in complex institutions like the UN Refugee Agency (UNHCR). Kelly T. Clements shares how she navigated entering and reforming a large and traditional organization with a focus on managing bureaucracy and motivating teams. The context involves a global increase in displaced populations and shrinking resources, highlighting the need for operational efficiency and innovative reforms.

Identifying and Prioritizing Change Needs

Kelly explains that her approach involved listening and learning from within the organization, understanding perceptions versus reality, and aligning with the new leadership’s vision. She emphasizes the importance of solutions-oriented strategies—shifting focus from emergency relief to sustainable solutions like self-reliance for refugees, even amid resource constraints. Priorities were set based on funding realities and strategic goals set by leadership.

Transformational Reforms and Innovation

Kelly discusses the ambitious transformation program undertaken over several years, which included decentralizing decision-making, overhauling systems and processes, and involving refugee voices. These reforms aimed to improve efficiency and responsiveness, particularly in the face of a massive income contraction in the humanitarian sector. Examples include adopting technology and innovation in connecting refugees, providing cash support, and streamlining operations.

Operational Efficiency and Partnerships

To do more with less, the UNHCR partnered across sectors – notably with the World Food Program – to reduce costs by sharing resources like fleet management. The agency also shifted toward sustainable relief items and cash-based aid, which are more efficient, less fraud-prone, and better tailored to refugees’ needs. Innovation offices and accelerators have been created to test scalable ideas, emphasizing local engagement and technology to improve operations.

Cultural and Structural Change Within UNHCR

Kelly underscores the importance of fostering a culture of inclusion, empowering decision-making at the local level, and ensuring voices of staff and refugees are prioritized. She advocates for decentralization to promote faster, more effective responses, and stresses the value of community-led efforts over top-down approaches. These cultural shifts are designed to make the agency more adaptable and human-centered.

Dealing with Political and Funding Shocks

The episode highlights how funding cuts—particularly in recent years—have seriously impacted operations. Kelly describes a cautious, phased approach to managing decline, regional and country-specific assessments, and efforts to mobilize new resources. She emphasizes resilience through contingency planning, efficiency, and diversified funding sources, while acknowledging the emotional toll on staff and beneficiaries.

Maintaining Staff Morale and Engagement

Despite austerity and organizational change, Kelly advocates for open communication, empathy, and a shared sense of purpose to keep staff motivated. She attributes resilience to dedicated personnel driven by a clear understanding of their impact, and discusses ways to sustain morale through constant updates, human connection, and emphasizing the importance of their work.

Lessons for Public and Private Sector Leaders

Kelly notes that the UNHCR has learned from corporate partners in areas like shared services, technology, and inclusive employment. She highlights examples like IKEA employing refugees and Vodafone’s innovative education programs as models for social-impact collaborations. The episode underscores that cross-sector partnerships and leveraging corporate expertise are vital for social impact and organizational agility.

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Show notes

What does it take to manage a complex global institution when change is constant and resources are scarce? For Kelly T. Clements, Deputy High Commissioner at the UN Refugee Agency (UNHCR), it's about building resilient teams, partnering across sectors, and balancing operational efficiency with humanity. In her more than a decade with the agency, Clements has helped steer key reforms in challenging circumstances, and she shares lessons for both public and private sector leaders about how to modernize systems, decentralize decision-making, and embrace innovation.

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