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Motivating Change: Forward-Thinking Strategic Growth
June 20, 2008
Managing a Nonprofit Organization like a For-Profit Business
By Joyce Harper
Charitable organizations are well acquainted with the do-more-with-less philosophy. In fact, some are quite skilled at stretching budgetary dollars to accomplish their goals without sacrificing quality, service or organizational growth.
However, these organizations are a rarity in the nonprofit arena. As more nonprofit groups vie for the same shrinking pot of money, an organization's focus can shift from long-term planning and strategic development to crisis management and agency sustainability. Unfortunately, the crisis management approach leads to inefficient organizational structures and hinders the agency's long-term growth.
Many nonprofit managers, directors and board members think that long-term planning and strategic development are organizational luxuries reserved for the largest charities with the biggest budgets. The problem with this thinking is that it discounts the long, hard road taken by some nonprofit leaders who work diligently to build an organization that will thrive beyond their reign. Nonprofit leaders who want to build flourishing organizations that thrive in the long term must understand that short-term success or growth is hard to maintain without sufficient organizational structures in place. Without organizational structures, such as long-term strategic planning, biannual goal setting and overall performance evaluation, growth quickly becomes more of a problem than a success.
Strategic planning, goal setting and performance evaluations fall under the umbrella of organizational development. This process brings the agency's stakeholders to the table to participate in a series of discussions around the vision, mission, purpose and values adopted by the organization. From these discussions, the agency's stakeholders determine how best to meet the challenges and capitalize on the opportunities facing the agency. At the end of the planning sessions, the agency should have a succinct document that outlines where it is going over the next several years and how it will get there. From this, the organization's leaders can begin to plot a course for growth with action steps and deadlines for achieving each of their predetermined goals.
Some forward-thinking nonprofit leaders have begun to embrace the concept of strategic growth for long-term success. This is especially true for a number of established nonprofits that have found themselves victims of a shrinking economy with fewer charitable dollars available. These cash cow organizations have been blindsided by the loss of lucrative grants and contributions; and have found that they are now in the uncomfortable place of learning, in some cases for the first time, how to plan strategically.
Developing an effective organizational structure is not quick nor is it easy, but it is beneficial when done correctly. The structure and direction an agency receives from this process is invaluable as the organization considers partnership or funding opportunities. It also provides a benchmark for evaluating the effectiveness of the agency in meeting its goals.
For help with this challenge, the nonprofit community has enlisted the assistance of experienced business leaders with a background in for-profit leadership. This new wave of nonprofit leaders is taking a more tactical approach to long-term sustainability. A tactical approach makes long-term strategic planning, coherent goal setting and candid performance evaluations a priority; because together they form a strong strategic foundation upon which any business can grow.
Nonprofit principals with an eye on lasting sustainability and growth know that trying to run any organization—nonprofit or for-profit—without proper planning and strategic development is like driving from New York City to California without a road map. You know where you want to go, but you’re not sure how to get there.
Experienced business leaders know that if an organization is unprepared for the future, they won't recognize when the future arrives. Therefore they are willing to take on the pains and problems associated with changing the management style of nonprofit organizations to bring more accountability and responsibility to ensure long-term sustainability.
Joyce Harper is an online columnist for Sales & Marketing Management. She is the Founder/CEO of Sharper Solutions, LLC, a management consulting firm specializing in organizational development and strategic management. She works with companies nationwide helping them create organizational effectiveness and increase their revenue building potential. Joyce is a sought after speaker, trainer and business consultant. Contact her through the company Web site at www.sharpersol.com.
Sales & Marketing Management Magazine
This article is brought to you by Sales & Marketing Management, the leading authority for executives in the sales and marketing field.
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