Changing Ourselves: What does it take to be a systems change funder?
Photo: Mali Maeder / Pexels
The Peter McKenzie Project (PMP) has always been a bold experiment – an effort to fund differently and learn from the results. Developing out of the economic, social and philanthropic context of the first decade of the 2000’s, it has evolved and changed considerably since it was conceived in 2011. PMP today is quite different from what Peter McKenzie originally envisioned – but as an innovator and disruptor we believe he’d be excited by what it’s become.
Over the past decade, PMP has evolved into a systems-focused, relational, participatory funder. This evolution did not happen all at once. It unfolded through experimentation, reflection and feedback from ngā kaikōkiri (our funded organisations).
The core elements that now define PMP’s funding approach are:
Investing in relationships through high-trust, flexible funding, convening and supporting connections.
Participatory practice, with our committee now including ngā kaikōkiri members.
Hard Lessons About Systems Change
PMP’s understanding of systems change has also evolved and matured. Our early aspirations were ambitious. Over time, we’ve learnt first hand that systems shift incrementally and unevenly, influence is partial, and progress is emergent, rather than linear. For example, during the 2018–2023 period, much energy was invested in influencing government policy. However, when political priorities shifted, many apparent gains proved fragile.
Our understanding now is more grounded and realistic. For example, we see our role as:
Supporting conditions for change, rather than ‘big ideas’
Investing in relationships as necessary change infrastructure
Supporting organisational resilience and leadership so that capacity and capability is maintained through difficult times.
PMP has also come to appreciate the scale and sophistication of opposition to changes to the economic and social status quo. Combined with institutional inertia, this makes most systems change efforts the work of decades, not years. And it’s why systems change organisations require sustained resourcing, resilience and sophisticated analysis of where power and opportunity lie in any given period.
Building the Ecosystem
Perhaps the most significant learning is that systems change requires social and organisational infrastructure. When PMP began, this infrastructure was minimal in Aotearoa. This has changed over time, with PMP contributing by supporting several organisations focussed on building systemic practice locally. It’s been heartening to see a network of systems aware organisations and funders slowly growing here.
Yet this ecosystem remains fragile. Leadership transitions are risky because experienced systems practitioners are scarce. Succession planning is complex in small organisations doing demanding work. And funding is difficult to sustain when most funders still prefer tangible and easily measurable outcomes.
What Does it Take?
To enable a shift to systems change funding, the PMP team and committee have had to challenge and evolve our own ways of thinking, working and relating.
We’ve had to stick with relationships when they’ve become difficult and keep faith when external shocks (e.g. Covid-19) have thrown plans and progress off course.
We’ve needed to build our own understanding and capability in complexity theory, systems thinking, power analysis and Te Tiriti-based practice. This has also involved ensuring that our leadership is adaptive, and that we have the right combination of people and skills in our staff team – encompassing both strategic systems thinking, relational expertise and reflective learning.
We needed to stretch beyond our comfort zones and let go of the desire for silver-bullet ‘solutions’. We’ve had to expand our understanding of the time-horizons needed for success, recognising that because systems change is emergent, it doesn’t follow predictable pathways.
We’ve needed to let go of the illusion of control, while maintaining our systems focus. This has meant creating the right conditions for collective understanding and mahi to emerge amongst ngā kaikōkiri, then supporting these relationships to grow. We’ve also followed the lead of ngā kaikōkiri when organising our collective gatherings (Mahi Tahi). Sometimes they have designed and facilitated these events, and at other times we’ve taken the lead in response to their suggestions. The key thing has been to notice and lean into the areas where there’s energy and interest, and to pull back where there’s not.
As we’ve moved forward, we’ve also needed to remain alert to slipping into the comfort of ‘business as usual’ - the familiar ways of thinking, working and relating that we’ve learnt in the past. This has led us to gently challenge ourselves (and others) when old mindsets resurface. It has meant cultivating our own reflective practice as a team, and continuing to develop and deepen our own understanding of systems change through reading, connecting and continuous learning.
Learning by Doing
As a funder, PMP hasn’t got everything right. But we’ve been willing to adapt and learn alongside the organisations we’ve funded.
One transition was moving from a traditional linear theory of change, to an understanding of systems change as emergent and relational. This also relates to an important shift in how we see ourselves. Now, rather than being a funder of individual ‘big ideas’, we know our key role is supporting an inter-connected ecosystem of change makers.
Not all of our shifts have been straightforward. For example, it was challenging to add a systems change lens after we’d already decided on a funding focus (child poverty) and to develop a participatory funding approach after we’d started with a contestable round. In hindsight, there are many things we’d do differently now if we had the opportunity to start again.
So, our message to other funders is that there’s probably not a single model of ‘best practice’ systems change funding to replicate. Instead there are key skills and qualities (like reflection, humility and flexibility) that will enable you to adapt as you learn more and your context evolves. No matter how you begin, be prepared to change yourself as the system changes.
