a business paradigm for social impact
DESCRIPTION
Under the pressure of mounting demand and shrinking resources, nonprofit organizations are struggling more than ever. Whether a start-up, growing or turn-around enterprise the expectations of most nonprofit Boards has moved toward “running like a business”Although a strong nonprofit must employee sound business practices, it is critical that both the management and Board understand the differences between a business enterprise and a nonprofit enterprise.Based upon the framework of Jim Collins’ Good To Great and the Social Sectors –Why Business Thinking is not the answer, this webinar will focus on the 4 stages of building a great nonprofit organization and how they are similar and different than the 4 stages of building a great business.TRANSCRIPT
Sponsored by:A Service
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A Business Paradigm for Social Impact
Jon Firger
April 4, 2012
Sponsored by:A Service
Of:
Advising nonprofits in:
• Strategy
• Planning
• Organizational Development
www.synthesispartnership.com
(617) 969-1881
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Today’s Speaker
Jon FirgerExecutive Director
Newton Community Service Center
Hosting:
Sam Frank, Synthesis PartnershipAssisting with chat questions: April Hunt, Nonprofit Webinars
A BUSINESS PARADIGM FOR SOCIAL IMPACT
This Isn’t Your Business
Today’s Presentation Content
Comparison of business and the social sector.
Jim Collins methodology and model
Defining great performance in the social sector
Comparative leadership – challenges
Getting and keeping the right people
Application of the “hedgehog concept” in the social sector.
Creating your brand
Summary of the 5 keys to success
6Jon Firger, MBA, MSW [email protected]
How Do You Define Organizational Greatness?
Organizational Growth
Number Served
Social Impact
Percent of expenses for Administration vs. service
7Jon Firger, MBA, MSW [email protected]
Defining Great – Calibrating Success without Business Metrics
• A Great organization is one that delivers superior performance and makes a distinctive impact over a long period of time.
• In business, money is both an input and output. In the Social Sector it is only an input, not a measure of greatness.
• Measurable Social Impact is the defining output in the Social Sector– All indicators are flawed, whether qualitative or quantitative.
– What matters most is not finding the perfect indicator, but settling upon a consistent and intelligent method of assessing your output results.
8Jon Firger, MBA, MSW [email protected]
Our Board Members Believe That We Should Operate “Just Like a Business”
Strongly Agree
Agree
Disagree
Strongly Disagree
9Jon Firger, MBA, MSW [email protected]
A great social enterprise is more like a great business, then it is to a mediocre social enterprise
Very different access to resources, structure, functions and outputs.
Similar focus upon people, organizational discipline, strengthening capacity and measuring results.
10Jon Firger, MBA, MSW [email protected]
Good To Great And The Social Sectors - Why Business Thinking
Is Not The Answer – Jim Collins
1. Defining “Great”
2. Level 5 Leadership
3. First Who?
4. The Hedgehog Concept
5. Turning the Flywheel
11Jon Firger, MBA, MSW [email protected]
Defining Great Social Sector Performance
The Philanthropic definition confuses input with outputs.
Develop a “mental model”
Shift focus from inputs to outputs
Measure outputs the best you can
Establish a baseline and track improvement with rigor
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It is much more difficult to lead a nonprofit organization than to lead a business.
Strongly Agree
Agree
Disagree
Strongly Disagree
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Level 5 Leadership-Getting Things Done Within A Diffuse Power structure
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The View from The Top
CEO
Board
Staff
Funders
Community
The Realities of the Nonprofit CEO
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The Level 5 Leader
Power is rarely “raw” but rather found more subtly: power of language, power of inclusion, power of shared interests.
Level 5’s compelling combination of personal humility and professional will is a key factor in creating legitimacy and influence.
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“Social Sector leaders are not less decisive than business leaders as a general rule; they only appear that way to those who fail to grasp the complex governance and diffuse power structure common to social sectors” – Jim Collins
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Getting The Right People On The Bus
Within social sector constraints
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We have all of the skills and talents on our Board and staff to be a successful organization.
Strongly agree
Agree
Disagree
Strongly Disagree
19Jon Firger, MBA, MSW [email protected]
Sometimes it is more difficult to get the wrong people off the bus.
Focus on early-assessment and a strong system.
Don’t focus on motivating the unmotivated.
Selectivity can lead to increased interest and therefore better applicants.
Social sectors have a distinct advantage over business sector: people are desperately craving meaning in their lives.
20Jon Firger, MBA, MSW [email protected]
The Hedgehog Concept – Rethinking the Economic Engine without a Profit Motive
Passion
What we do best
Economic Engine Driver
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The Hedgehog Concept
To attain piercing clarity about how to produce the best long-term results.
Exercise relentless discipline to say “no” to opportunities that fail the hedgehog test
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The Fundamental Difference in the Social Sectors
Passion
What we do best
Resource Engine Driver
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The Implications of a resource engine
The evaluation of the contribution made by any given service extends beyond earned revenue to its success in attracting other resources.
volunteers
In-kind
Contributions of funds
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The members of our community can describe what we do best in a couple simple sentences.
Strongly Agree
Agree
Disagree
Strongly Disagree
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Turning The FlywheelBuilding momentum by building brand
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Turning the Flywheel –Building Momentum by Building Brand
Hedgehog discipline creates a steady momentum that leads to unstoppable momentum.
More emphasis on “clock building” and less on “time telling”
The key link in the social sector is between brand reputation and attracting resources.
27Jon Firger, MBA, MSW [email protected]
The 5 keys to a great social enterprise.
1. Define greatness for your organization.
2. Develop level 5 leaders throughout the organization.
3. Get the right people on the bus
4. Clarify your hedgehog concept – have the discipline to say no.
5. Turn your flywheel by persistently building your brand.
28Jon Firger, MBA, MSW [email protected]
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Of:
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