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When resources contract dramatically, the typical mantra of "doing more with less" becomes unrealistic. The UN Refugee Agency candidly accepted the need to "do less with less," forcing a ruthless prioritization of which activities to stop entirely, acknowledging that efficiency alone cannot bridge a massive funding gap.
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To overcome the slowness of its hierarchical structure, the UN agency shifted decision-making away from its Geneva headquarters. Empowering local teams who are closest to refugees allows for faster, more relevant responses, fostering a "whole-of-agency" approach rather than a top-down one.
While saying "yes" to every opportunity fueled Baby2Baby's initial growth, true scale required learning to say "no." They strategically began refusing donations like used items or non-essential goods during crises, as these created logistical costs that outweighed their benefits, proving that disciplined focus is key to efficiency.
After nearly failing, OpenGov adopted a frugal culture and discovered it grew faster. Less spending reduces system noise and inefficiency. A leaner, more focused sales team, for instance, can become more motivated and effective, leading to better results.
Transformation doesn't always need a new business case. Large organizations already invest heavily in ongoing projects. The key is to analyze this existing portfolio, measure success differently, and steer current spending toward more impactful outcomes, starting with the cost of the status quo.
Treat government programs as experiments. Define success metrics upfront and set a firm deadline. If the program fails to achieve its stated goals by that date, it should be automatically disbanded rather than being given more funding. This enforces accountability.
Pahlka recounts a senior Air Force leader claiming a 50% budget cut would force the DOD to be more effective. Severe constraints would eliminate bloated, slow-moving projects and compel the adoption of faster, streamlined processes, ultimately improving defense capability.
Applying a core venture capital and business principle to public spending could radically improve outcomes. Governments should double down on competent, effective agencies while defunding and cutting losses on incompetent, failing projects.
A colleague praised Dick's CMO not for her new initiatives, but for her ability to prioritize by stopping historical activities. True strategic focus requires actively de-prioritizing and freeing up resources from less important tasks.
To maintain morale during painful budget cuts, the UN agency's leadership adopted a strategy of extreme transparency. This meant constant communication, not only to share updates but also to be honest about uncertainties. Acknowledging what you don't know builds more trust than projecting false confidence.
The loss of US aid didn't just defund specific projects; it dismantled an entire operational 'architecture.' The collapse of shared resources, like UN-funded logistics and transportation, created cascading failures across the sector, showing how the entire humanitarian value chain can depend on a single keystone funder.
