a business paradigm for social impact
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Sponsored by:A Service
Of:
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
info@synthesispartnership.com
INTEGRATED PLANNING
Sponsored by:A Service
Of:
Affordable collaborative data
management in the cloud.
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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 jfirger@NCSCweb.org
How Do You Define Organizational Greatness?
Organizational Growth
Number Served
Social Impact
Percent of expenses for Administration vs. service
7Jon Firger, MBA, MSW jfirger@NCSCweb.org
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 jfirger@NCSCweb.org
Our Board Members Believe That We Should Operate “Just Like a Business”
Strongly Agree
Agree
Disagree
Strongly Disagree
9Jon Firger, MBA, MSW jfirger@NCSCweb.org
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 jfirger@NCSCweb.org
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 jfirger@NCSCweb.org
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
12Jon Firger, MBA, MSW jfirger@NCSCweb.org
It is much more difficult to lead a nonprofit organization than to lead a business.
Strongly Agree
Agree
Disagree
Strongly Disagree
13Jon Firger, MBA, MSW jfirger@NCSCweb.org
Level 5 Leadership-Getting Things Done Within A Diffuse Power structure
14Jon Firger, MBA, MSW jfirger@NCSCweb.org
The View from The Top
CEO
Board
Staff
Funders
Community
The Realities of the Nonprofit CEO
15Jon Firger, MBA, MSW jfirger@NCSCweb.org
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.
16Jon Firger, MBA, MSW jfirger@NCSCweb.org
“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
17Jon Firger, MBA, MSW jfirger@NCSCweb.org
Getting The Right People On The Bus
Within social sector constraints
18Jon Firger, MBA, MSW jfirger@NCSCweb.org
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 jfirger@NCSCweb.org
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 jfirger@NCSCweb.org
The Hedgehog Concept – Rethinking the Economic Engine without a Profit Motive
Passion
What we do best
Economic Engine Driver
21Jon Firger, MBA, MSW jfirger@NCSCweb.org
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
22Jon Firger, MBA, MSW jfirger@NCSCweb.org
The Fundamental Difference in the Social Sectors
Passion
What we do best
Resource Engine Driver
23Jon Firger, MBA, MSW jfirger@NCSCweb.org
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
24Jon Firger, MBA, MSW jfirger@NCSCweb.org
The members of our community can describe what we do best in a couple simple sentences.
Strongly Agree
Agree
Disagree
Strongly Disagree
25Jon Firger, MBA, MSW jfirger@NCSCweb.org
Turning The FlywheelBuilding momentum by building brand
26Jon Firger, MBA, MSW jfirger@NCSCweb.org
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 jfirger@NCSCweb.org
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 jfirger@NCSCweb.org
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Of:
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