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National Geographic Society

Name

Institutional Affiliation

National Geographic Society

The National Geographic Society (NGS) is a nonprofit organization that was founded in 1888 whose headquarters is in Washington. The founders of this society included scientists, scholars, explorers who had an intention of diffusing geographical knowledge to millions of people globally. Ever since it was established, the society has been involved in numerous projects geared to providing knowledge archeology, geography, world culture, history, and environmental conservation (National Geographic Society, 2019). The society has sponsored several educational projects that seek to provide new knowledge of the geographical phenomenon in the world. The society provides employment opportunities to thousands of people in the fields of photography, production, storytelling, and writers. The society develops content that is sold under the brand name of National Geographic, which allows the organization to earn revenue and advance its research projects. The NGS has an 11-member senior team that forms the board of trustees. These members play special roles that help in the running of society.

The organization has a unique mission of enhancing the understanding of our planet through research that would inspire and impact the world. Its vision is to maintain human culture by dismantling ecosystems that impact on human activities. NGS has diverse roles and is considered to be one of the nonprofit organizations that are dedicated to conserving the environment. The society has received numerous rewards and has been lauded for its efforts to uncovering the impact of the planet as a result of human actives (National Geographic Society, 2019). Besides, it provides recreational content to millions of people who in turn realize more about nature and the need to preserve nature. NGS just like other organizations relies on planning, proper budgeting, and risk management to realize its goals and objectives.

Planning

The NGS is an organization that can be described to have harnessed the planning function of management. The organization relies on planning to execute its strategic goals and objectives. NGS has different departments that engage in different areas of interest. The organizational structure of this organization can be described to be functional, and planning functions are also decentralized into each of the units. These units through their leadership come up with their strategic plans that cover a given period. NGS has strategic plans that cover periods up to 30 years. These plans allow the organization to engage in research, document findings, produce these findings and prepare it to be released for the consumer (Bryson, 2018). Since the organization deals with geographical, scientific and archeological content, it means that it must come up with long strategic plans that can be used to address its objectives. The strategic plan of the organization is updated from time to time to address emerging issues and ensure that the organization focuses on achieving its long term goals.

The vision of the organization is simple, “a planet in balance.” The organization is working to ensure that the planet is balanced in all aspects. The goals of the organization are; “Inspire people to place greater value on the natural world and its people; secure the natural systems essential for all life on Earth; and drive innovation that helps create a planet in balance.” These goals are equated to the objectives since the activities of the organization are used to achieve at least one of the goals (Bryson, 2018). Each of the various units of the organization has plans but are linked at the top level of the organizations. The plans must align with the overall organizational plans the reason why the strategic plan is amended from time to time. The strategic plan is the most important tool that is used for resource allocation. The allocation of resources is done with the help of the plan that stipulates the projects that will be undertaken and the projected costs that will be required to finalize these projects. The other levels of plans put in use are those of the employees at the field who oversees the project. The organization conducts projects in different parts of the world where employees are deployed to perform assigned functions. These employees develop plans that are then used to achieve specific goals. The plans are communicated to the head office for synchronization and guidance on how to best make use of resources, time and personnel.

Programming

NGS has several programs that run concurrently since it involves a diverse field of research. These programs are part of the long term strategic plans aimed at expanding existing knowledge and introducing new concepts concerning the unstudied phenomenon. The organization decides the funding of the project based on its importance to the field of exploration, the contribution of new knowledge in the field and the viability of the program in raising additional revenue to sponsor other programs in the future (Bryson, 2018). The level of funding of these projects varies depending on the people behind the project and the level of execution on the strategic plan. If the program involves a partnership with other agencies, the funding might be minimal or regulated to allow the other partner to make a significant contribution to the project. Projects that are developed by the organization such that all the rights belong to NGS are funded fully. There are cases when the organization can seek funding from other agencies to fund the project depending on how important the project is to either party.

A single person does not make the decisions on funding and allocation of resources at NGS. NGS like other organizations value accountability and must assess the suitability of the program before they decide on the amounts of funds to allocate. The organization has a small board that is attached to the research and finance departments whose role is to evaluate suggested programs and make recommendations that would allow the board of trustees to make decisions (Bryson, 2018). The Investment Review Board receives all the suggested programs presented to the organization, analyze the programs and then make judgments that lead to recommendations of the project. These recommendations are taken seriously and can further be scrutinized before the final decision is made regarding funding of the programs.

The decisions for funding is made by the board of trustees; however, before the decisions are made, relevant department heads and chiefs are consulted to shed more light on the project. The purpose of doing this is to make them aware that the proposals have been received and are at the final stages of review before a decision is made. The organization can seek the opinion of independent consultants regarding the issue before the final decision is reached. Nonetheless, the final decision on funding and resource allocation lies at the senior managers who oversee the operations of the organization.

Budgeting

NGS is an organization that is involved in numerous projects throughout the year and over a lengthy period. The analysis of the budgeting system within this organization shows that a program project system is used mainly for performance measurement (Weikart, Chen & Sermier, 2012). The program budget is suited to the organization as it simplifies the management of projects. Besides, this budgeting system makes it easier to prioritize projects based on their importance and urgency. As such, it ensures that greater attention is given to proposals, so that appropriate funding is allocated for the project. Besides, this kind of budgeting system pushes the project managers to effectively make use of resources and avoid unnecessary expenses that could create a crisis when the project fails to be completed.

The most interesting thing about budgeting at NGS is the process that is being used and the length of time in which the budgeting process takes place. Majority of the projects undertaken at NGS lasts for more than one year. However, budgeting must run for one financial year. NGS has employed a system where budgeting is done throughout the year. The move helps in monitoring the usage of resources and provides projections on the expenses of each of the project (Weikart, Chen & Sermier, 2012). The uniqueness of this budgeting is that projects that generate revenue before their completion are identified so that the same revenues can be used to complete the project. The management of this organization encourages the generation of revenues within the organization to fund projects. The desire of the management is realized through the program budgeting that helps to cut on unnecessary costs and allows for monitoring how resources are used in different projects.

Budget Execution

NGS has spending plans just like any organization that strives for accountability. The organization has established measures and procedures that must be followed by the employees when it comes to spending. The spending is regulated, and each department has a limit of spending that must be observed to avoid potential confrontations with the top management (Weikart, Chen & Sermier, 2012). The spending plans are reviewed from time to time to enhance efficiency and ensure that the core functions of the organizations are realized. The approach of monitoring spending is the use of spending guidelines for every level of management. The organization has developed a system of spending that notifies employees of their spending limits. The system provides warnings to staff if they attempt to exceed the approved spending limits. The automation of spending systems has revolutionized the manner of monitoring spending.

NGS has a reporting system that varies at different levels of management. The reporting is done monthly, quarterly, mid-year and annually. Employees are required to report to their heads every month. However, each department submits a quarterly, semiannual and annual reports to the top management for scrutiny and evaluation. These reports are critical for the evaluation of organizational process and gauging how it influences the performance (Zietlow et al., 2018). The reporting is done through a formal presentation. Even though it is done through writing, presentation in different formats is a requirement of the management. The organization has simplified the process of reporting by developing a standard reporting template that can be used by employees to simplify reporting. Different templates exist depending on the level of the employee within the organization. Employees must, however, learn how to use the template.

Accounting System

NGS uses the accrual system of accounting based on the nature of its activities. The accrual system of accounting records expenses once they are incurred. Even if payments have not been made, the expenses are recorded for accounting. The system further recognizes revenues once they are earned. The decision to use this kind of accounting system is the nature of the projects implemented by the organization (Zietlow et al., 2018). The projects cut across different accounting years. It is necessary to record the expenses when they occur, so that accurate financial reports are formulated. The program budgeting used in this organization is suited to the accrual system of accounting as it ensures that appropriate records are kept. Accountability can easily be achieved with the use of this system. Organizations that engage in long term projects are advised to use the accrual system of accounting.

The interesting thing about the accounting approach of NGS is strict adherence to supporting the documentation. All accounting records in the organization should be accompanied by supporting evidence. Even though accounting systems are used in the organization, they are not enough in ensuring that transparency and accountability are guaranteed. The organization also conducts different types of audits throughout the year (Zietlow et al., 2018). The move to focus on auditing helps to discover and rectify potential loopholes in the accounting system. These two unique activities conducted by the organization makes their accounting systems admirable. Besides, the activities have become a norm in the organization something that has seen NGS being declared one of the nonprofit organizations that are transparent and accountable.

Risk Management

The perception of risk at NGS is positive. The organization has prioritized risk management to avert situations where these risks could lead to failure. All projects have risk managers whose work is to ensure that risk assessment is conducted for each project and appropriate measures are taken to mitigate these risks. Risk management is a senior management function by risks that are common at the operational level. The process of evaluating projects involves risk assessment and the plans project managers have to mitigate the risk (Zietlow et al., 2018). The decision on the number of funds that should be allocated for the project receives input on the outcome of risk assessment. When it comes to risk management, the organization take risks seriously and involves independent consultants in risk management. The success of NGS as a nonprofit organization can be credited to its massive efforts in managing risks. Performance management is also conducted at NGS to evaluate projects. Organizations must evaluate each project to determine if objectives have been achieved and the challenges that were faced during the project. Performance management cuts across different departments, and it is a resourceful tool for making decisions for future projects. The task of conducting performance management is done at the top level management.

Conclusion

NGS is an organization that puts much emphasis on environmental conservation. The efforts of this organization to expand knowledge in the field of geography, science, and archeology has been guided by its enormous desire to engage in research. NGS provides the perfect case study on how a nonprofit organization can manage large and long term projects with limited funding. The move by the organization to generate its funding rather than relying on donations is a result of the focus on research whose findings provides information that can easily be purchased by the target consumer.

References

Bryson, J. M. (2018). Strategic planning for public and nonprofit organizations: A guide to strengthening and sustaining organizational achievement. John Wiley & Sons.