Case Studies: Management Practices in Action

An Organization Run Entirely by Consensus

They believe that collective decision making leads to higher quality work and empowers their employees.

Why: Spruce Run Association, the first domestic violence project in Maine, has a collectivist structure which reflects their organizational commitment to address power imbalances internally and in the community. All decisions are made through a consensus process. A Steering Committee serves in place of a traditional board of directors and works with staff to make financial and organizational decisions. In 2008, Spruce Run used consensus to change their health insurance plan and save the organization significant money.

How: Once it was decided that researching and changing healthcare plans could help deal with reductions in funding, a small group composed of people from the administration and the personnel committee began researching the options. The results of that research, which included consulting with professionals from the insurance industry about options, and sending out an email survey to staff members to explore how the switch would impact them, were compiled into a proposal and presented to the staff at a full staff meeting. The proposal had to balance the perspectives of individuals and the organization’s needs while also providing enough information to develop a common understanding of the options in order to make an informed choice. Using the consensus decision making process (see attachment below), staff consented on switching to a high-deductible plan. That decision was passed on to the Steering Committee, which also came to consensus on it. Once the staff and the Steering Committee had together affirmed a way forward, the administrative staff moved ahead with the nuts and bolts of the change. Throughout the entire process, everyone worked to consider not only the current situation, but the possible needs of future employees, and what would best suit the organization in the long run. Since most organizations operate with some sort of hierarchy, a decision of this magnitude would usually be out of the hands of the staff. Under consensus, each voice is weighed equally, whether that voice belongs to a new staff member or a seasoned Steering Committee member; the organization takes no action that is not consented to by all members of the group.

Outcome: This process allowed Spruce Run to deal with reductions in funding in an unconventional way, while maintaining their commitment to offer health insurance. The switch to a health care plan with a higher deductible is saving the organization about $60,000 a year, and helped better position the organization for difficult financial times ahead. In general, Spruce Run believes that their collective decision making process leads to higher quality work and empowers employees by allowing all to voice constructive feedback to the group. There is less internal resentment and turn-over when all are informed about the choices that affect each employee. Spruce Run’s process costs nothing but time. However, while the process might take a bit more time up front, it results in solid buy-in and support from all parts of the organization. Employees feel more connected to the decision because they helped make it themselves. The organization believes these benefits warrant putting in a bit of extra time.

Lessons Learned: While Spruce run always operates by consensus, this decision involved a lot more research and preparatory work than they typically need to do. Often, simply making a straight up proposal does the trick, and smaller proposals don’t always have to get Steering Committee—or even whole staff—approval. This was one of the more significant, research-heavy decisions they’ve had to make. Though the health insurance industry is so far out of our control, at least the organization is more informed in making health care decisions, both personally and organizationally.

Date Implemented: 2008

Organization:

Spruce Run Association
Bangor, ME
Full time employees: 17
www.sprucerun.net

Contact:

Regina Rooney
207-945-5102
rrooney@sprucerun.net