Empathy, Adaptability, and Collaboration with Tracey Newman

In this Innovation Insider episode, we dive deep into the world of innovation in the social sector with Tracey Newman, Director at Impacto Consulting. Tracey has spent decades leading transformative projects across aged care, disability services, and other mission-driven spaces. Her insights reveal a straightforward yet powerful approach to innovation, emphasising empathy, adaptability, and collaboration as core principles. As she sees it, these aren’t trade secrets – they’re essential building blocks that anyone striving for impact should master.

Innovation Isn’t About Secrets; It’s About Being ACE

Tracey is quick to demystify innovation, stating that her ‘secrets’ aren’t hidden gems but open truths: adaptability, collaboration, and empathy. Whether working with vulnerable communities or driving change in corporate environments, these three tenets form the backbone of impactful innovation. Adaptability, she believes, is key to responding to the unexpected, while collaboration ensures no one is trying to “go it alone” in the complex world of innovation. Empathy, meanwhile, is vital to understanding and meeting the needs of the people we’re trying to serve – a principle Tracey lives and breathes in her work with not-for-profits.

It’s an “ACE” framework she’s developed intuitively over the years, helping her lead organisations that face resource constraints and complex regulations. Innovation isn’t about reinventing the wheel, she explains, but about staying grounded in these foundational values, particularly when things don’t go as planned.

Barriers to Innovation: Why Timing Is a Myth

One of Tracey’s most resonant points is the fallacy of waiting for the “perfect time” to innovate. It’s an approach she likens to waiting for the ideal moment to start a family – that moment rarely arrives. Innovation, she says, should be embedded in day-to-day processes rather than relegated to a discretionary expense or something “we’ll get to when we’re ready.” In tough economic times, she notes, innovation budgets are often the first to be cut. But ironically, these times may be when innovative solutions are needed the most, to outpace competitors or adapt to changing needs.

For Tracey, the answer lies in treating innovation as a fundamental part of the business rather than an optional extra. Organisations, especially in mission-driven sectors, are starting to see the value in this, asking her team to help embed innovation deeply into their DNA, so it’s less about specific projects and more about how they operate as a whole.

Not-for-Profit Innovation: Balancing Purpose and Risk

Tracey’s work is steeped in the complexities of the not-for-profit sector, where the approach to innovation differs markedly from the corporate world. Here, the risks feel more profound – any misstep can impact vulnerable communities, so organisations tread carefully, balancing the need for experimentation with a responsibility to those they serve. This doesn’t stop innovation but rather reshapes it, creating solutions with the unique perspective of putting people first. The flip side, however, is that these organisations hold a powerful advantage: an inherent trust and community connection that can fuel meaningful, community-aligned innovation.

Tracey shared an example from her work with the Continence Foundation, where they co-designed a series of videos with the community to raise awareness without language barriers. By involving people directly affected, they were able to craft an engaging, culturally inclusive campaign, using a relatable (and somewhat unexpected) animated character – a bladder – to tell a universal story of lived experience. The project demonstrated how innovation that respects lived experience can resonate widely, even across linguistic and cultural divides.

Cross-Sector Collaboration: The Power of Shared Purpose

For Tracey, cross-sector collaboration is essential to tackling society’s most pressing issues. One standout example she highlights is the Australian Alliance to End Homelessness, where government, councils, service providers, and people with lived experience work together to end chronic homelessness. It’s a true ecosystem approach, with each player crucial to the whole. Tracey sees this as the future of solving large, complex problems: bringing different skills, resources, and perspectives together to create a force greater than any one group could achieve alone.

Cross-sector collaboration is powerful, but it’s also challenging. Tracey recognises that finding the right balance and rhythm between organisations with different operational cultures is no easy task. But she’s optimistic that with persistence, collaboration across sectors will continue to drive meaningful change, especially for those committed to long-term missions.

Listening and Learning: The Essential Role of Empathy

One of the qualities that define Tracey’s approach is her commitment to empathy, not as a soft skill but as a strategic advantage. Her clients often rely on her team’s ability to listen, understand, and translate needs into actionable insights. But she’s clear – while her role is to guide innovation, her clients are the experts in their own fields. Tracey’s approach is collaborative to its core, blending her innovation expertise with her clients’ deep knowledge of their communities to create solutions that work.

Tracey frames lived experience as another form of expertise that should be valued and resourced. As she puts it, people with lived experience are experts in their own right. Their insights aren’t just helpful – they’re essential. By treating lived experience with the same respect as any other form of knowledge, organisations can create truly inclusive and impactful solutions.

Final Thoughts: ACE Your Innovation with Empathy, Adaptability, and Collaboration

Tracey Newman’s work is a reminder that innovation, especially in the not-for-profit sector, isn’t about quick wins or flashy projects. It’s about embedding empathy, adaptability, and collaboration into everything we do – ACE. From rethinking resources to respecting lived experience and driving cross-sector collaboration, Tracey’s insights challenge us to see innovation as an essential, ongoing journey rather than a destination.

To connect with Tracey or learn more about her work, head to Impacto Consulting. And if you’re an innovation enthusiast, make sure to subscribe to her podcast, Innovate for Impact, where she shares stories and advice that resonate well beyond the not-for-profit world.

Takeaway for Innovators: Innovation as a Way of Working

In Tracey’s words, innovation isn’t a “nice to have.” It’s a way of working, learning, and adapting every day. By keeping empathy, adaptability, and collaboration at the heart of our processes, we can drive change that makes a lasting impact, even in the face of today’s toughest challenges.