Chapter 4: What the nonprofits are teaching business

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Chapter 4What the nonprofits are teaching
business

• Christine Grammerstätter
• Gerald Leimhofer
• 6.4.2004

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Americas nonprofit Organisations

• Red Cross
• Girl Scouts
• Pastoral Churches
• Salvation Army
• Nature Conservancy

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A Commitment to Management

• Good intentions can not replace
• organization
• leadership
• accountability
• performance
• results

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The Mission

• focuses the organization in action
• defines the specific strategies
• identify the goals
• creates a disciplined organization

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The Mission - Examples

• Catholic hospital chain
• increase of revenues
• raising patient-care
• raising medical standards
• Daisy Scouts
• reaction to demographical changes
• lower number of latchkey kids
• far more successful than expensive government
  programs

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Effective Use of the Board

• Board
• performance should be reviewed annually against
  preset performance objectives
• Chief Executive Officer
• clearly accountable to the board
• performance reviewed annually by a board
  committee

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Why nonprofit boards are better than others

• money
• personal commitment to the organizations cause
• deep knowledge about the organization

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Ways to make the boards effective

• audit committee has to become responsibility
• meetings of the board committee with senior
  executives to discuss performance and plans
• work plans for the boards
• reviews of boards performance
• systematic training of new board members

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To offer Meaningful Achievement

• We do not pay volunteers, so we cannot
• make demands upon them.
• Volunteers must make a greater
• contribution precisely because they do
• not get a paycheck.

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To offer Meaningful Achievement

• nonprofits change, in response to need
• money is always short in supply
• for reaching more productivity, more
• work and responsibility has to be given
• to the volunteers

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To offer Meaningful Achievement

• nowadays, volunteers are not satisfied
• with beeng helpers.
• to attract and hold them, the nonprofits
• have to offer meaningful achievement.

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How to find volunteers with leading abilities?

• Why do the volunteers stay in the
• organization, even if they do not earn
• money?
• the contribution to society and
• environment is clearly defined

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How to find volunteers with leading abilities?

• many nonprofits systematically recruit for
• people
• if such a newcomer with potential leading
• ability is found, he is placed accordingly
• he is also assigned a mentor and a
• supervisor

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How to find volunteers with leading abilities?

• The Girl Scouts 6000 paid staff, 73000
• volunteers for 3.5 million girl members.
• driving youngsters once a week to a
• meeting
• selling cookies with Girl Scouts, assisting
• a Brownie leader on a camping trip.
• training newcomers

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How to find volunteers with leading abilities?

• knowledge workers demand responsibility
• they expect to be consulted and
• to participate in making decisions
• they want more demanding assignments
• and to participate in making decisions
• Thence, various nonprofits have
• developed carreer ladders for their
• volunteers.

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How to find volunteers with leading abilities?

• each step has its own training program
• each step has specific performance
• standards and performance goals
• review of performance once a year
• nonperformers can be moved to
• more fitting assignments, according to
• their capabilities

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A warning to Business

• move from nonprofit volunteers to
• nonpaid professionals
• the nonprofits are generating a powerful
• countercurrent to decay of family and
• community and the loss of values
• What the nonprofit contributes to the
• volunteer is as important as what the
• volunteer contributes to the nonprofit.

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A warning to Business

• This development also carries a clear
• lesson for business.
• Managing the knowledge worker for
• productivity is the next great challenge
• for management. The nonprofits are
• showing us how to do that.

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A warning to Business

• a clear mission
• careful placement
• continual learning and teaching
• management by objectives and self
• control
• high demands by corresponding
• responsibility and
• accountability by performance and results

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Conclusion

• To achieve success, enterprises still have
• to learn a lot from nonprofit
• organizations.
• They should focus on mission and goals
• They must not underestimate their
• members of staff, but take them on
• more demanding assignments

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• In my paying job, there is not much
• challenge, not enough responsibility and
• there is no mission, there is only
• expedience.