McKinsey & Company Australia and New Zealand and the Australian Scholarships Foundation partnered on a major research effort to provide a deeper understanding of drivers of organisational health and capability needs across Australia’s social sector.

This landmark report Building from purpose: Unlocking the power of Australia’s not-for-profit sector examines what makes a not-for-profit organisation “healthy” and identifies a strong ability for organisations to grow and challenge talent, execute with excellence, and shape the system through innovation and collaboration.

It recognises many areas where the Australian NFP sector is world-leading – shared vision and having inspirational leaders – but the research also highlights opportunities for greater focus and support.

The research identified three key capability areas that have a significant role to play:

  • talent growth,
  • execution excellence and
  • system shaping.

For robust health an organisation needs to achieve effectiveness in all these capabilities; however, most organisations face challenges in at least two of these areas.

This is based on a survey of 4,500 people across 37 not-for-profit Australian organisations, interviews with 100 sector leaders and 15 case studies, our research reveals the sector’s world-class strengths, three key areas for growth and 10 bold ideas for collective action to unlock the full potential of the sector.

Read about our scholarships opportunities open now.