From: Prof. James Post, Reuters
Published December 30, 2008 09:43 AM
Managing nonprofits in an "age of hope"
— Prof. James Post, an authority on corporate governance, teaches
“Strategies for Nonprofits” at the Boston University School of Management.
The views expressed are his own. —
I am inclined to think the Bernard Madoff affair has blown the lid off the
financial madness of this decade. We have been living in an age of fraud,
and now must rethink the way we do business. As John Kennedy once appealed
to the nation’s better angels to call us into public service, Barack Obama’s
inaugural address should instruct us on our obligation to serve the greater
good. It’s not just a moral concept; it’s good business. I offer a corollary
as well: Without good business, how far will a moral concept take you?
The management cliché about nonprofits goes something like this: What they
lack in business savvy or operating budgets they make up for in passion and
vision. This notion was especially apt in an age of decreased governmental
support. And there’s a private-industry parallel declaring that firms may
have a wealth of professionally trained managers but run in the red when it
comes to inspiration. Few organizations have it all, so private and public
industry must continue to collaborate to serve the community.
If Obama can keep the lives of real Americans in his sights, despite the
overwhelming urge to obsess over Wall Street and Baghdad, he can have a
profound effect on reversing the destruction wrought by the age of fraud. He
can strengthen the bond between public industry and the private sector in
ways that benefit all of the stakeholders. In many ways, the time is ripe
for nonprofits to set a new example, one that marries sound management and
ethics, and proves they can stay together for the long haul.
How do nonprofits rise to that challenge?
For starters, Obama’s Social Entrepreneurship Agency for Nonprofits and
Social Investment Fund Network purportedly will “build the capacity and
effectiveness of the nonprofit sector.”� Not exactly a trillion dollar cash
infusion, but a seat at the policy table. That means better lobbying access,
governmental R&D/capacity-building support, a streamlined grant-making
process, more explicit encouragement of civic involvement, and greater
accountability. More attention will be paid to the energy, education, and
training sectors, meaning added incentive for people to get involved in
these areas.
Nonprofits, you need to dust off your gym bags. If you’re finally going to
have that equal playing field in the competition for governmental attention
and support, you need to hone your skills and get your team into shape for
the upcoming season. Whether a senior manager looking to move up the
professional ladder or a new executive director seeking more effective ways
to guide and manage your organization, you need to strengthen your skill
set, increase your confidence to lead, and join a focused network of people
who share a vision of management excellence.
For instance, when was the last time you stepped away from the day-to-day
tactical management of your underfunded, overburdened organization to think
about long-term strategic planning, more efficient project management
practices, or funding innovation? How often do you network with your peers
in other organizations and report best practices? What steps have you taken
to insulate yourself from the consequences of our unhealthy economy?
Most importantly, you must avoid scandal (or the appearance of scandal) by
having unquestionable ethics and demanding the same from your team. You must
engage in new and innovative partnerships — with other nonprofits and with
corporations; think like an entrepreneur — creatively, resourcefully,
relentlessly. And you must improve your accounting and assessment practices.
These are just non-negotiable, and if I have to explain why, you’re more out
of shape than you thought.
In short, nonprofits are not exempt from Obama’s call to change. Reject low
standards. Raise your sights. Find new ways to be heard and taken seriously
in a communications landscape that seems to have the bandwidth for only two
to three stories a week. Most importantly, get the training you need to run
your organization efficiently. You can’t capitalize on any of these
opportunities if you’re out of breath before you even warm up.
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