First understand your surroundings to get the strategy right.

The 'environment' concept in organisations and systems is central to understanding the forces shaping the third sector today. The NOBL framework for defining environment refers to the external conditions determining behaviour, decision-making, and strategy. These are structural realities that organisations cannot shape but navigate-from political and economic shifts to technological changes and cultural trends. With the UK facing crises-economic insecurity, public trust, and AI disruption-the third sector environment is changing dramatically.

Changing landscape

Third Sector magazine summarises the sector's happenings. To start the year, let's look at a random post and synthesise some pointers regarding the environmental change. Behind the headline, certain patterns emerge:

Established power structures endure.

The New Year Honours list reflects the resilience of long-standing hierarchies. This indicates how existing power dynamics are increasingly challenged yet remain intact, while a positive for the space, and no slight on the winners.

Consolidation and survival

The acquisition of Relate and redundancy notices at Macmillan indicate wider consolidation. Therefore, the pressure on organisations to scale, pivot, or perish is greater than ever. Smaller charities will be most affected and least resourced and networked to adapt.

Risk aversion amid radical pivots

The rejection of the Children's Society donation from the outgoing Archbishop of Canterbury highlights a growing risk management imperative. Many charities are doubling down on their core mission to ensure a long-term market position.

Network fluidity

The retirement of Oxfam's chief executive and other top changes will continue to reshuffle networks and generate opportunities for new alliances. However, old connections will be tested, and winners and losers will emerge as individuals and organisations reposition themselves.

Signs of the times

These environmental shifts are not just disruptive—they are changing the rules. Broader implications include:

• The sector’s shape is changing from larger organisations absorbing smaller ones to strategic collaborations.
• Surviving through adaptability: The advantage will go to those who can pivot with key external trends, like AI and data-driven solutions.
• Increased mission focus: Charities are reviewing their focus areas where risks are higher to avoid over-extension and ensure impactful results.

How The Developer Society Will Support the Sector's Evolution

The Developer Society embraces these as opportunities for change. We sit at the forefront, as a digital partner for charities and NGOs, of how these environmental shifts are traversed. Here's what we'll do:

• Empowering organisations with adaptive tools, prioritising charities to consolidate and collaborate through scalable digital solutions, from CRMs to service directories.
• AI integration for ethical impact As AI reshapes workflows and engagement, we want to prevent waste and misinvestment in designing ethical, inclusive AI tools that amplify mission delivery while fighting automation anxiety.
• Improved strategic clarity. Through workshops, Wardley Mapping, and systems thinking, we’ll help organisations identify where to adapt, pivot, or focus to succeed in this new environment.
• Building resilience in networks As leadership transitions reorder the sector, The Developer Society will make more of our team available for consulting as people settle into new roles and need support with digital transformations and projects. We will host platforms and strategies to help organisations maintain resilient networks and forge new alliances.
• Central to our mission, we'll help the sector make every resource count- from budgets to time-keeping precious resources working for good.
• Supporting radical innovation Beyond survival, we’ll challenge our partners to consider innovations that excite, surprise, and set new standards for the sector.

Looking Ahead

The third sector is used to change, but the collision of crises and tech has dramatically accelerated both the speed and intensity of transformation. By understanding the environment and acting strategically, we can ensure charities not only survive but redefine their impact. The Developer Society is proud to guide organisations to turn environmental challenges into growth.

Steve Hawkes