| The problem in the nonprofit sector is a macro-economic problem involving implementation of concepts of economies of scale, and overcoming organizational and sector inefficiencies. The purpose of this research is to demonstrate that strategic restructuring is an innovative, successful management strategy for a nonprofit organization to maintain sustainability and maximize impact. This research study used three different research methods to demonstrate that idea. The first research method was a quantitative analysis of several different financial ratios using the MANOVA statistical test. The second research method was a qualitative analysis of interviews that the researcher held with 10 different third-party payers. The third research method was an archival analysis of 57 case studies of organizations that have gone through a strategic restructuring process from 2007-2010. This research failed to show conclusive evidence on the effectiveness of structural reorganization in terms of improvement in financial ratios. However, there is a definite perception among funders' regarding the strategic restructuring process for nonprofit organizations, as well the case studies provided excellent evidence for what factors contribute to a successful strategic restructuring partnership. Funders do support strategic restructuring and want organizations to engage in this management activity, if the nonprofit organization feels it will further their mission. Given mission-focused leaders, team-oriented, mission-focused organizations, with continued financial support from third party payers, to fund consultants who use the strategic restructuring formula, strategic restructuring can be a tool to maintain sustainability in an economy that constantly challenges the principles of sustainability. |
