The PDSA Cycle for Nonprofit Improvement

Understanding the Four Stages of PDSA

The PDSA cycle is comprised of four distinct yet interconnected stages:

Plan

This initial phase involves identifying a problem or opportunity and developing a plan for a change or test. It requires clearly defining your objectives, outlining the steps you’ll take, predicting what results you expect, and determining how you will measure the success of your test. Keeping the scope of your initial plan small and focused is key in this phase.

Do

In the “Do” stage, you put your plan into action on a small scale. This is the implementation phase where you carry out the test or change you’ve outlined. It’s important to document any observations and collect data as you execute your plan. This information will be needed for the next stage.

Study

Once you’ve completed the “Do” phase, the “Study” stage involves analyzing the data and observations you collected. Compare your actual results to the predictions you made in the “Plan” stage. What did you learn? Were there any unexpected outcomes? This is where you gain insights into your test.

Act

Based on the findings from the “Study” phase, the “Act” stage involves deciding what actions to take next. If the test was successful and yielded the desired results, you might decide to implement the change on a larger scale. If the results were not as expected, or if you uncovered areas for improvement, then refine your plan and repeat the cycle. This iterative process of PDSA allows for continuous learning and improvement.

Applying PDSA to Fundraising: A Practical Example

Let’s consider a nonprofit aiming to improve its initial outreach to potential donors. Their current approach isn’t yielding the desired number of introductory conversations. Applying the PDSA cycle might look like this:

Plan: The team plans to have one development staff member reach out to 20 contacts from their targeted list each week. The goal is solely to schedule a brief introductory meeting (via Zoom or coffee), without making any immediate fundraising requests. Success will be measured by the number of meetings scheduled.

Do: The development staff member implements the plan, sending out personalized emails to 20 contacts each week with the sole aim of securing a conversation. They track who they contacted and the responses they received.

Study: After a month (or another defined period), the team reviews the results. They analyze the response rate: How many “yes” responses for meetings did they receive? How many “no” responses? Were there any requests to be removed from the list? What were the common reasons for accepting or declining a meeting?

Act: Based on their findings, the team can make adjustments. If the response rate was low, they might revisit the initial email message to make it more compelling. Perhaps they need to refine their targeting or increase the number of outreach attempts per week. Conversely, if the response was positive, they might consider scaling up the number of weekly contacts. The team then enters a new “Plan” phase with these adjustments, continuing the cycle of testing and learning.

Embracing Iteration for Sustainable Improvement

The PDSA cycle is a powerful tool for fostering a culture of continuous improvement. By breaking down larger changes into manageable tests, organizations can learn and adapt along the way, minimizing the risks associated with large-scale implementation. This iterative approach allows for flexibility and ensures that changes are data-driven and more likely to lead to sustainable success. Whether you’re testing a new fundraising strategy, working to gain back more time during your day, or streamlining an internal process, the PDSA cycle is a roadmap for navigating change and achieving your goals.

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