These notes are just my skeleton of the book through level 7. When you see a downward pointing triangle without any detail below it, the missing content exists at level 8 or greater. These notes provide an X-ray and topic map. Amazon sells the complete work.
V Preface
V NPOs are central to American society and are indeed its most distinguishing feature
* America’s largest employer
* 2-3% of GNP. Same as 40 years ago.
V NPOs “product” is a changed human being
V NPO
* Cured patient
* A child that learns
* A young man or woman grown into a self-respecting adult
* A changed human life altogether
V Business supplies goods and services
V Has discharged its task when
* the customer buys the product,
* pays for it, and
* is satisfied with it.
V Government …
* Has discharged its function when its policies are effective
V Need management so they can concentrate on their mission
V Work together on their…
* mission
* leadership
* management
* Need management because they do not have a conventional “bottom line”
* Need to learn how to use management as their tool lest they be overwhelmed by it
* There is a “management boom”
V Little that is so far available to the NPO help them with their leadership and management has been specifically designed for them. Little of it pays any attention to the distinct characteristics of the NPO or to their specific central needs
* Their mission
* What are “results” in non-profit work
* Strategies required to market their services and obtain the money they need to do their job
* Challenge of introducing innovation and change in institutions that depend on volunteers and therefore cannot command
* The specific human and organizational realities of NPO
* The very different role that the board plays in the NPO
* The need to attract volunteers, to develop them and to manage them for performances
* Relationships with a diversity of constituencies
* Fund-raising and fund development
* The problem of individual burnout, which is so acute in NPOs precisely because the individual commitment to them tends to be so intense.
V Need materials that are specifically developed out of their experience and focuses on their realities and concerns
* Bob Buford of the Leadership Network
V Get audio tapes. Leadership and Management in the Non-Profit Institutions (“The Non-Profit Drucker”) .
V Train …
* new staff people
* new board members
* volunteers
V NPOs — America’s resounding success in the last 40 years
V In many ways it is the “growth industry” of America
V Health-care institutions
V Examples…
* American Heart Association
* American Cancer Society
V Leadership in …
* research on major diseases
* prevention and treatment
V Community services
V Such as …
* Girl Scouts of the U.S.A.
* Boy Scouts of the U.S.A.
* World’s largest women’s and men’s organization
* Fast growing pastoral churches
* Hospital
* Many other NPOs that have emerged as the center of effective social action in a rapidly changing and turbulent America
* Has become America’s “Civil Society”
V Face very big and different challenges
V Convert donors into contributors
V Need more money to do vital work
* A national disgrace, indeed a real failure, that the affluent, well-educated young people give proportionately less that their so much poorer blue-collar parents used to give
V If a sector is judged by its share of the GNP
* Leisure — doubled
* Medical care — gone up 5 times
* Education (colleges/universities) — tripled
* Share given by American people to the NP, human-change agents has not increased at all
* Giving is necessary above all so that the NPOs can discharge the one mission they all have in common
V To satisfy the need of the American people for…
* Self-realization
* Living out our ideals, our beliefs, our best opinion of ourselves
V To make contributors out of donors means that the American people can see what they want to see—or should want to see—when each of us looks at himself or herself in the mirror in the morning:
* Someone who as a citizen takes responsibility
* Someone who as a neighbor cares
V Give community and common purpose
V People no longer have exposure to community
* Live in big cities and their suburbs
V NPOs are the American community
* Ability to perform and to achieve
V The mission comes first and your role as a leader
V The commitment (of the NPO)
What we really believe in.
V Introduction
* NPO exists to bring about change in individuals and in society
* What missions work and what missions don’t work
* How to define the mission
* The ultimate test of the mission is right action
* The first job of the leader is to think through and define the mission of the institution
V Setting concrete action goals
V Workable examples
* Give assurance to the afflicted
* Help girls grow into proud, self-confident, and self-respecting young women
* Making Jesus the head of this church and its chief executive officer
* Make citizens out of the rejected
* Making gentlemen out of savages
* Be the informed and responsible buyer for the American family
V Unworkable examples
V Our mission is health care
* Nobody can tell you what action or behavior follows.
* Has to be operational, otherwise it’s just good intentions
V Has to focus on what the institution really tries to do
* And then do it so that everybody in the organization can say, This is my contribution to the goal.
V Task of the NPO manager is to try to convert the organization’s mission statement into specifics.
* The mission may be forever—or as long as we foresee
* But the goal can be short-lived, or it might change drastically because a mission is accomplished
* Common mistake is to make the mission statement into a kind of hero sandwich of good intentions.
V It has to be simple and clear
* As you add new tasks, you deemphasize and get rid of old ones
* You can only do so many things
V Have to think through
* what are the very few things we can accomplish that will do the most for us to accomplish the mission entrusted to us, and
V which are the things that
* contribute either marginally or
* are no longer of great significance
* Constantly look at the state-of-the-art
* Look at the opportunities in the community
* Things that were of primary importance may become secondary or even totally irrelevant.
* Watch this constantly
V Three “musts” of a successful mission
V Look at strength and performance
* Do better what you already do well—if it’s the right thing to do.
V Look outside at the opportunities, the needs
V Where can we with our limited resources really make a difference, really set a new standard?
> Limited resources
* One sets the standard by doing something and doing it well. You create a new dimension of performance for the entire human race.
* What do we really believe in (committed to)
V Summary
V Analysis
* What are the opportunities, the needs?
> Do they fit us?
* Do we really believe in this?
V Must reflect all three or it will fall down on what is its ultimate goal, its ultimate purpose and final test
* It will not mobilize the human resources of the organization for getting the right things done.
V Leadership is a foul-weather job
V Crisis leadership
V Depend on a leader when there is a crisis.
* There will always be a crisis
V The most important task of an organization’s leader is to anticipate crisis.
* Perhaps not avert, but to anticipate
> Make the organization capable of
* Called innovation, constant renewal
> Can build an organization that
V The problems of success
V Ruined more organizations than failure
* Creates euphoria
* Outrun your resources
* Retire on the job
* Have to grow with success
V Make sure that one doesn’t become unable to adjust.
* Growth slows down and the institution plateaus
V Has to be able to maintain its … Otherwise, it becomes frozen.
* Momentum
* Flexibility
* Vitality
* Vision
V Hard choices
V Need the discipline of organized abandonment
No “bottom line.” Prone to consider everything they do to be righteous and moral and to serve a cause, so they are not willing to say, if it doesn’t produce results then maybe we should direct our resources elsewhere.
* Need to face up to critical choices
V Need to face up critical choices
* Example: Catholic church in big metropolitan archdiocese trying to abandon their school system
* That’s a value choice.
* And it’s critical that it’s faced up to and not pushed under the rug, as we like to do
V Innovation
V Once you acknowledge that, you can innovate
* Provided you organize yourself to look for innovation
* Recognize that change is not a threat. It’s an opportunity.
V We know where to look for change. Here are a few examples
* Unexpected success in your own organization
* Population changes
* Changes in mind-set and mentality
* Don’t wait
* Organize yourself for systematic innovation
* Build the search for opportunities, inside and outside, into your organization.
* Look for changes as indications of an opportunity for innovation
V To build all this into your system,
* you, as the leader of the organization, have to set the example.
V How can we set up systems
V to release energy
V that will allow the proper innovative decisions
* to be made
* and implemented
V and, at the same time, encourage the operation
* to go on at the necessary level
* while it is being changed?
V Organize yourself to see the opportunity
* If you don’t look out the window, you won’t see it
V Go beyond your reporting system
* Most reporting systems don’t reveal opportunities,
* They report problems
* They report the past
* Most answer questions we have already asked
* Whenever you need a change, ask: If this were an opportunity for us, what would it be?
V Then to implement the innovation there are a few point you must be aware of
V The most common mistake is to attempt to build too much reinsurance into the change, to cover your flank, not to alienate yesterday.
> Examples (see page # 13)
V It must be organized separately
* Yet you have to make sure the existing operations don’t lose the excitement of the new entirely.
Otherwise, they become not only hostile but paralyzed.
V The innovative strategy
* Need an innovative strategy. A way to bring the new to the marketplace.
> Successful innovation finds a target of opportunity.
> Should you have part of your organization set up some kind of small task force committed to R&D or to marketing?
V People who will do what the situation calls for (p15). This is effective crisis leadership.
* Churchills may be very rare
V But another group is, fortunately, quite common
> People who can look at a situation and say:
* College president who had to raise money
V Rural electric cooperative
* Everybody has power
> So what do we do now?
V How to pick a leader
V Try to match the strengths of an individual with the needs of the institution
V Look at what the individuals have done, what their strengths are. What the individuals have done with their strength.
* You can only perform with strength
V What is the one immediate key challenge of the institution?
* Raising money
* Rebuilding the morale of the organization
* Redefining its mission
* Bringing in new technology
* Hospital example (see page # 16)
V Look for integrity or character
V Would I want one of my children to work under that person?
* If he is successful, then the young people will imitate him
* Would I want my son to look like this?
* This I think is the ultimate question
V Mediocrity in leadership shows up almost immediately.
* Mediocrity in business & government can survive a lot longer
V Has a number of bottom lines
* No one determinant (like profit)
* Deal with balance, synthesis, a combination of bottom lines for performance.
V Multiplicity of constituencies
* Each of which can say no and none of which can say yes
* Reflected in your board
* The leader must do exceptionally well, because your agency is committed to a cause
* Want leaders who take a great view of the agency’s functions, people who take their roles seriously—not themselves seriously.
V Your personal leadership role
* Have maybe a year to establish yourself
V The role the leader takes has to fit
* the mission of the institution
* the values of the institution
V All of us play roles
* As parents
* As teachers
* As leaders
V To work the role the leader takes has to fit in three dimensions
V You—who you are
* No comic actor has ever been able to play Hamlet
* The task
* Expectations of others
V Two things to build on
* The quality of the people in the organization
V The new demands you make on them
* Determined by analysis or
* Determined by perception (by looking)
* or a combination of both
* depends on how you operate
V No such things as “leadership traits” or “leadership characteristics”
* Some people are better leaders than others
V By & large talking about skills
* Cannot be taught
* But can be learned by most of up
> Some people genuinely cannot learn the skills
V Never say “I.” Think “we” and say “we.”
* Think team
* Understand the leader’s job is to make the team function.
* An identification with the task and with the group.
* This is what creates trust, what enables you to get the task done
V You are visible.
* Example from Henry V. He was now king and had to set different standards for himself because he was visible
* Have expectations to fulfill
* You are constantly on trial
* Example: The German ambassador to London who resigned because he didn’t want to see himself as a pimp for the new Edward VII who liked diplomats to give him stag parties
V To every leader there is a season
* But not quite that simple
V People who are good …
* when things are pretty routine, but who can’t take the stress of an emergency
* in a crisis
V Most organizations need somebody who can lead regardless of the weather.
> What matters is that the leader works on the basic competences.
> Most leaders are self-made. Examples (see pages # 21-23)
V The balance decision
V One of the key tasks is to balance long range and short range, the big picture and the pesky little details
V Seeing only the big picture and forgetting the individual person who sits there (one lonely person in need of help)
* Solution: Being on the firing line a few days, a few weeks, a year, usually does it
V Opposite danger. Becoming a prisoner of the operations
* Much harder to avoid
> Solution: Work in associations and other organizations
* There are always balancing problems in managing non-profits. This is only one example
V Balance between concentrating resources on one goal and enough diversification
V Concentrate
* Get maximum results
* Very risky
* Leaves your flanks uncovered
* There’s not enough playfulness; it doesn’t stir the imagination
V Diversity
* Can easily degenerate into splintering
* Balance between being too cautious and being rash
V Timing: expect result too soon or wait too long
* Know your degenerative tendency and try to counteract it
V Opportunity and risk
* Is the decision reversible?
* What kind of risk is it?
V Is it a risk we can afford?
* Hurt a little
* Kill us
* The risk we can’t afford not to take
V The don’ts of leadership
V Just announce decision and leave it to everyone else to understand
V Make yourself understood
* This is what we were faced with
* These are the alternatives we saw, the decisions we considered
> What is your opinion?
* Be afraid of the strengths in your organization
* Pick your successor alone
* Hog the credit
* Knock your subordinates
* Keep your eye on the task, not on yourself
V Setting new goals — interview with Frances Hesselbein (Girl Scouts)
V The Daisy Scout program
V Only 20% of the councils were enthusiastic about the new program. Another 10% were waiting in the wings
* Took six months to bring another 40% in
* Took 3 years to get all the councils in
V Summary #1
V Market-driven
* Went out
* Looked at needs, the wants of the community you serve
* Developed a service that was market-driven
* Marketed, you have to persuade, you have to create customers for the new mission because they don’t say how high when you say jump
V Make the change
> Looked for “targets of opportunity”
V Ready but not competent
V New training for trainers and for leaders
* The adult education needed
> Making sure that everybody who has to do something
* Wonderful handbook for leaders
* Has to be educationally sound
* Carried out in supportive and helpful way
* Leadership from the widest spectrum
V Spent as much time making the program attract volunteers as on making the program fit the five year-olds
* Recruitment
* Placement
* Training
* They could feel very secure
V Increase in number of volunteers
V Deserved and required superior learning opportunities.
* Management course
V Summary #2
* General ideas, concepts, rules
* Look at the volunteers as your most important market simply because the number of volunteers you can bring in determines how many girls you can serve.
* Make a determined, continued effort to find the right people.
V Treat them as unpaid staff
* Determine their job
* Set the standard
* Provide the training
* Set their sights high
* Get their satisfaction out of their work, not the paycheck
V Recognition (the support and care of the volunteer organization)
* Thank you very much, you’ve made a major contribution.
V Minority communities
V Look at the population projections
* New racial and ethnic composition-an unprecedented opportunity
* Most thoughtful kind of planning and including those community leaders in that planning
* Working on the target of opportunity
V More than one customer
* Girls
* Volunteers
V General conclusions
* Carefully construct a marketing plan
* Understand all the ways there are to reach people and use them
* Need people in the marketing chain
V Continuing evaluation
* Getting feedback on how you are doing
* If a strategy is not working regroup and move ahead in a different way.
V What the leader owes — interview with Max De Pree (Herman Miller, Inc. & Fuller Theological Seminary)
V The leader is indebted to the organization
V A volunteer nation
V People choose a leader
* What they believe that leader can contribute to the person’s ability to achieve his or her goals in life.
V Owes certain assets
V The ability to
* Recruit the right people
* Raise the necessary funds
V A legacy:
V The values of the organization
* Not necessarily the author
* Expresses them
* Makes them clear
* Ensuring to the people in the organization that the values will be lived up to in a way in which decision are made
V A vision
* Leader is primarily future-oriented
V Agreed-upon work processes
* If you come to work in this organization, I can promise you that we’re going to have a participatory process
> People development needs to be oriented primarily toward the person, and not primarily toward the organization. (a duplicate)
V People development needs to be oriented primarily toward the person, and not primarily toward the organization.
* When you take the risk of developing people, the odds are very good that the organization will get what it needs.
V Building on what people are—not about changing them
V Understand
* Their gifts
* What their potential is
V Aim for their potential
* A life matter
V Look at
* The gifts of people, their potential, their strength, what they could be if only they used a little better what they have.
* The objective needs, the objective requirements, the opportunities for accomplishment
V Make a connection between realizing potential and doing it in a very real environment.
* Assign opportunities and assign work that can be realized by that person
* Start with what this person is really good at, and then tries to place the person where the strength can redound to performance
V Accountability and achievement require us to delegate thoroughly
> With a certain abandon so that people have space in which to
V Goal achievement vs. realization of our potential applies to organizations as well
* Goal achievement is an “annual matter”
* Realization of our potential is a “life matter”
V A leader
* Primarily future-oriented
V First duty—Define reality
V Be in touch with reality. To …
* Be healthy
* Have renewal processes
* Survive
* See for the group what reality is
V Have to deserve the person who works for us
V They are committed to us by choice
* Where they’re going to work
* What kind of work they’re going to do
* Mid-career changes
V Opportunity
* For self-realization
* For being part of a social body that is attractive and rewarding
* For doing work which will help me to reach my potential
* To be involved in something meaningful
* To be an integral part of something
V Young people
* What do they have?
* Tremendous desire to contribute
* How do we use what they have to make them want to belong?
V What is it that the non-profit institutions can do to that newcomer, that young person, to acquire self-discipline?
> Err on the side of being more demanding
V Building a strong team of colleagues
* Team held together by a common mission & common vision
V Understand the task
* What is the job that has to be done?
* The key activities of the team
V Selecting people
* A high-risk process
* Have to make some adjustments in assignments
* Assign the work very clearly with a lot of interaction
* Agree on what the process is going to be for getting the work done
* Agree on timetables where those are appropriate
* We agree on how we’re going to measure performance
V The way we judge the quality of leadership by the tone of the body
V Not
* The charisma of the leader
* How much publicity the company gets or the leader gets
* Or any of that stuff
V How well the body
* Adjust to change?
* Deal with conflict?
* Meet the needs of the constituency or customers
* Deals with succession of the leader
V Summary
* Leader as the servant of the organization
V Indebtness of the leader
V The realization that he and the organization owe
> Owe customers, clients, the constituency
> Followers
> To enable people to realize
V Summary: The action implications
V The mission
V Comes first
V Non-profit institutions exist:
* for the sake of their mission
> to make a difference in
* If you lose sight of your mission, you begin to stumble and it shows very, very fast
V Needs to be though through. Needs to be changed
* The basic rationale for the organization may be there for a very long time
V Look at the mission again and again to think through whether it needs to be refocused
> Because
V Vitally important to start out from the outside
The organization that starts from the inside and then tries to find places to put its resources is going to fritter away. Above all, it’s going to focus on yesterday.
* Look for an opportunity
* Look for a need
V The mission is always long-range. It needs short-range efforts and very often short-range results.
V Start with the long-range
* Where should we be ten years hence?
V Then feed back and say, What do we do today?
* Action is always short term
* Is this action step leading us toward our basic long-range goal? or
* Is it going to sidetrack us, going to divert us, going to make us lose sight of what we are here to do?
V We need to be result driven
* Do we get adequate results for our efforts?
> Is this there best allocation?
V Leadership
V First task is to make sure that everybody…
* Sees the mission
* Hears the mission
* Lives the mission
V The leaders’s job
* Make sure the right results are being achieved
V Make sure the right things are being done
> Allocate resources
V Leadership is doing
V It isn’t
* Just thinking great thoughts
* Just charisma
* Play-acting
V First imperative of doing: revise the mission, to refocus it, and to build and organize, and then abandon
> The first action command for any mission
> The first action requirement: the constant reshaping, the constant refocusing, never really being satisfied.
> Think through priorities
V Leadership is also example
* The leader is visible; he stands for the organization. Represents not only what we are, but, above all, what we know we should be.
V Have to live up to the expectations regarding their behavior
> When you do anything as a leader, ask,
> What do I do …
* Take action responsibility.
* What are my own first priorities, and what are the organization’s first priorities, what should they be?
V You are a leader
* We are creating a society of citizens in the old sense of people who actively work, rather than just passively vote and pay taxes
* Each is doing a responsible task
V Tomorrow’s society of citizens. Everybody…
* Is a leader
* Is responsible
* Acts
* Focuses himself or herself
* Raises the vision, the competence, and the performance of his or her organization.
V Mission and leadership
* Not just things to read about, to listen to.
* Things to do something about
* Things that you can, and should, convert from good intentions and from knowledge into effective action, not next year, but tomorrow morning
V From mission to performance: effective strategies for marketing, innovation, and fund development
V Converting good intentions into results
V Results
Until these things have happened the NPO has had no results; only good intentions
* The NPO is not merely delivering a service
* It wants the end user to be not a user but a doer
* It uses a service to bring about change in a human being
V It creates …
* Habits
* Vision
* Commitment
* Knowledge
V It attempts to become a part of the recipient
* Rather than merely a supplier
V NPOs need 4 things
* Plan (part one)
* Marketing (this section)
* People (parts 4 & 5)
* Money (this section)
V Strategies that convert the plan into results
* How do we get our service to the “customer,” that is to the community we exist to serve?
* How do we market it?
* How do we get the money we need to provide the service?
V Marketing in a NPO is quite different from selling
V More a matter of …
* Knowing your market (market research)
* Segmenting your market
* Looking at your service from the recipient’s point of view
V Have to know …
* What to sell
* To whom
* When to sell
V Selling an intangible
* Something you transform into a value for the customer
* Selling a concept, an abstraction
V Basic strategy tasks
V Design of the right marketing strategy
V Marketing must be built into the design of the service
> A top management job
> Examples
> Rules of effective marketing
V Needs
* Market knowledge
* A marketing plan with specific objectives and goals
> Marketing responsibility
Which is to take one’s customers seriously. Not saying, We know what’s good for them.
V Fund development strategy
V Raises money from donors
* From people who want to participate in the cause but who are not beneficiaries.
V Money is always scarce
> Fallacious beliefs
V Purpose: Enable the NPO to carry out its mission without subordinating that mission to fund-raising
> The term has been changed from “fund-raising” to “fund development”
V First constituency in fund development is your own board
* Old style (in sympathy) is simply not enough
> Need a board…
* Need people on the board who are willing to help develop the mass base by giving example and leadership
A few wealthy people used to support … Now the … is more expensive. The demands on people of wealth have gone up out of sight. And proportionately, there are so many fewer of them around. So NPO E must build a mass base.
See “compassion fatigue” p 58
* Develop a mass base
V In fund development …
* you appeal to the heart, but
* you also have to appeal to the head, and
* try to build a continuing effort
* NPO manager has to think through how to define result for an effort
* Then report back to the donors, to show them that they are achieving results
* Have to educate donors so that they can recognize and accept what the results are.
V Constituency building over the very long term
* See Claremont Colleges
V Winning strategies
V Introduction
* Good intentions don’t move mountains; bulldozers do
* In the non-profit management, the mission and the plan—if that’s all there is—are good intentions
* Strategies are the bulldozers
V About Strategies. They …
* Convert what you want to do into accomplishments
* Lead you to work for results
* Convert intention into action
* Convert busyness into work
* Tell you what you need to have by way of resources and people to get the results
* Are action-focused
* Are not something you hope for
* Are something you work for
V Brown University (a marketing strategy)
* Excellent faculty
V No distinction
* Also ran
* Harvard’s little sister
V Question: What do we have to do to become a leader despite the tough competition?
* Harvard to the north
* Yale to the south
* And about 12 first-rate liberal arts colleges within an hour’s drive.
V Two focuses (goals)
V Make women full citizens of the university
> Bringing in those women who wanted to go where women supposedly don’t go (the non traditional areas for women)
* Systematically recruiting young women who were doing exceptionally well in these areas that tradition doesn’t consider particularly feminine.
* Build closeness to the student into the way the university runs
* Had strategies for each of these goals
* Has become the “in” university for bright kids in the East
V This is almost a textbook case of a successful marketing strategy
V Recognized changes in the market
* Career-focused young women
* Desire of students to have a “community”
* Then developed specific campaigns to reach his potential customers
* Went to work
V Improving what we already do well
V A clear strategy for improving
V How can we do better what we are already doing?
* Something very mundane
> Very major change
V The focus is always on improving
* the product
* process
* the way we work
* the way we train
* You need a continuing strategy for doing so
V To work systematically on the productivity of the institution
V Need a strategy for each of the factors of production
V People
* It’s not a matter of working harder. Its a matter of working smarter
* Placing people where they can produce
V Money
* How do we get a little more out of the money we have?
* Time
V Need productivity goals—and ambitious ones
* Set the goal twice as high as one hopes to accomplish because one will always fall by 50 percent short
* Not so high that people say this is absolutely absurd
* High enough so that they say: we’ve got to stretch
V Constant improvement also includes …
* Abandoning the things that no longer work
V The innovation objective
V In business
> 3M
* What is our innovation strategy?
* Where are we going to do something different?
* or Where are we going to do the same thing quite differently?
* Set the goals
* Go to work
V For NPO managers, the signposts are less clear
> In a mental-health clinic, for instance,
> The people in a really successful research laboratory cannot quantify their research results ahead of time
> Theses are qualitative measures
V Strategy development structure
V Example: How does a pastor set a strategy?
V Define the goals
* What is he trying to do?
> Make certain assumptions (p62)
* The goal is to build a congregation
> What kind of congregation? Not every pastor has the same vision
V What are specific results I want?
> Whether that market is a church, hospital, Boy Scout troop or a public library you have the same structure for your strategy
> The pastor who sees his or her church in terms of large massesÚ
V Example: Public library
V Look at the ultimate beneficiaries—call them the market—the ultimate clients
* Whether that market is a church, a hospital, a Boy Scout troop, or a public library, you have the same structure for your strategy
V If you are a public library …
> You have …
> Think of each of these groups as a separate market
* Develop a marketing plan
> You will need money
* You will have to communicate
* You will have to feed back
V Steps in strategy development
* The goal must be clearly defined
V Convert the goal into specific results, specific targets
* each focused on a specific audience, a specific market area.
> May need a great many such specific strategies
V Develop a marketing plan and marketing efforts for each target group
* How are you really going to reach this specific segment?
V You now need resources
* People (above all)
* Money
* And the allocation of both
V Communications—lots of it— and training
* Who has to do what, when, and what results
* What tools do they need?
> In what language do they have to hear it?
V Logistics (for lack of a better word)
* What resources are required?
* Example — Napolean “How many horses does it require”
V Feedback and control points
> When do we have to see results?
* What feedback do you need?
> How do you measure your achievement so that you realize …
* You need feedback and control points
V Process of strategy development
* Steps are the same in every organization
* How you carry them out depends very much on what kind of an organization you are.
V To carry out the process, you need to use both written and verbal communication
* Hand out a sheet to everybody
* Go down the line
* Check it off
* Any question on point number …
* You talk about it
* You invite questions
* Encourage people to come back and say “This is what I heard. Am I right that you expect me to do this?
This is much better done in speaking than in writing. Partly because there is less misunderstanding and partly because it’s freer and less formal.
V The best example of a winning strategy: The Nature Conservancy
V The clear goal …
* To preserve as much as possible of God’s ecological diversity of flora and fauna, which is endangered by man
V The board members developed on strategy to
* Find the places that needed preserving
> Get the money to buy them
* Manage it (the preserves, the organization & the money)
V Strategy don’ts
V Don’t avoid defining your goals because it might be thought “controversial”
> Hospital example
> With strategy, one makes compromise on implementation.
V Don’t try to reach different market-segments with the same sales message.
* May use the same program
* But have to have a different sales message for each group
V How to innovate
V Introduction
V No lack of ideas in NPO
> Lack … to convert those ideas into effective results
V The successful NPO is organized for the new
> Organized to perceive opportunities
* See responsibility of top management & then the search for change
V Refocus and change the organization when you are successful
* This strategy is practically infallible
V Resistance
* Don’t rock the boat
* If it ain’t broke, don’t fix it
V Need some character willing to be unpopular and to say, “Let’s improve it”
* We have obtained our objectives; now let’s improve on them
* If these people are forced out you can expect the organization to go down.
* Ask Can’t we do better?
V Best rule for improvement strategies is to put your efforts into your successes.
* Improve the areas of success and
* Change them
V Responsibility of top management
* As in everything that has to do with the spirit of an organization
V The search for changes
V Executives of innovative organizations must train themselves to look out the window, to look for change
> College
> Pastoral church
* The change outside is an opportunity
> You can force yourself to…
V Then you look inside your organization and search for the most important clue pointing the way to changes
Easier to learn to look out the window than to look inside, and that’s also a smart thing
> Generally it will be the unexpected success
V The requirements for successful innovation
V Look at change as a potential opportunity instead of a threat
> Faced with a change we should ask
V Who is our organization should really work on this?
* Most new things need to be incubated
> Should be piloted by somebody who
V Think through the proper marketing strategy
> What are you really trying to do?
V The common mistakes (In doing anything new)
V Don’t go from idea to full-scale operation. Don’t omit testing the idea.
* Don’t omit the pilot stage
* If you do, and skip from concept to the full scale, even tiny and easily correctable flaws will destroy the innovation
V Don’t go by what “everybody knows” instead of looking out the window
* It is usually twenty years out of date
V Righteous arrogance. Unwillingness to adapt the innovation to reality
* Everything that’s new has a different market from the one the innovator actually expected
V Patching up the old rather than to go all-out for the new.
* Auto industry example
> There comes a point when
V Don’t assume that there is just the one right strategy for innovations
> Every one requires thinking through anew
V When a strategy or action doesn’t seem to be working
> If at first you don’t succeed, try once more. Then do something else
> The exceptions
V Defining the market — interview with Philip Kotler (Northwestern University)
* Strategic Marketing for Non-Profit Institutions 4th edition by Philip Kotler
V Many institutions confuse marketing with hard selling or advertising
V Most important tasks in marketing
* Studying the market
* Segmenting it
* Targeting the groups you want to service
* Positioning yourself in the market
* Creating a service that meets needs out there
* Advertising and selling are afterthoughts
* Marketing is finding needs and filling them. It produces positive value for both parties
* Marketing starts with customers, or consumers, or groups you want to serve well
* Selling starts with a set of products you have, and want to push them out into any market you can find
V But isn’t the need the NPO serve obvious?
V Many organizations are very clear about the needs they would like to serve, but they often don’t understand these needs from the perspective of the customers. They make assumptions based on their own interpretation of the needs out there
* Hospital example p75
V Different marketing efforts
V Money raising
* Segmenting the marketing
* Working up the most cost-effective marketing mix of tools for raising money
* Recruiting students
* Attracting and holding first-rate faculty
V The problem marketing has to solve
* How do I get the response I want?
* The answer marketing gives is that you formulate an offer to put out to the group from which you want a response
V The process of getting the answer is called exchange thinking
* What must I give in order to get?
* How can I add value to the other party in such a way that I add value to what I want?
* Reciprocity and exchange underlie marketing thinking
V Institutional differentiation
V Competition Examples
* University / colleges: couple of hundred in the area
* Local hospital: maybe 3 in the same area
* How important is it?
* How do you do it?
* Marketing is now thought of as a process of segmenting, targeting, and positioning (STP marketing)
* As opposed to LGD marketing—lunch, golf, and dinner, which has its place
V Positioning raises the question
* How do we put ourselves across to a market we’re interested in?
* How do we stand out in some way?
V So most organizations engage in the search for their own uniqueness, what we might call a competitive advantage or advantages
V Comes by
* Cultivating certain strengths
* Putting them across as meaningful to the market you’re going after
V Example—Hospital
* Alternative 1 — offer the normal range of services to the patients
> Alternative 2 - identify needs in the community that are not being satisfied
V First steps in marketing
V Define its markets, its publics
* Think through to whom you have to market your product and your strengths
* Before you think through the message
V Church example
* On the one hand, a church should go after every person who wants religious experience, and so on. It should therefore be a diverse institution
* On the other hand, marketing would suggest that it would be more successful if it defined its target group. The interesting thing about diversity is that most customers don’t like to be with people who are not like themselves.
* The church needs well-defined groups who are looking for one or more particular satisfactions
V Market orchestration
* How do you orchestrate very diverse groups and have a successful institution?
* That alone puts pressure on trying to define your market.
* It’s not everyone; but it’s more than one group
* The church needs well-defined groups who are looking for one or more particular satisfactions
V The mission may well be universal. And yet to be successful …
V the institution has to
* think through its strategy and
V focus on the main target groups in
* marketing and
* delivering its service
V This applies to fund-raising
* Careful identification of the appropriate sources of funds and the giving motives
* Why does that donor give money?
* To whom does the donor give money?
* Consumer research is important in the process of trying to direct your efforts
V The extent to which a NPO has to mold what they are, do what they can for the market (p 78)
V Church example
* A community of older people that’s your prime community, but they want a very different church from the one that attracts the singles.
* So each church would then have to change what it does to serve its high potential market
V May establish different services and different ministries for its different groups
* Early services for one group
* Later morning service for another
* Different leaders and lay ministries serving the different groups
* “Boutiques” are very successful for NPO
* Translate boutiques into niches
V Route of niching versus mass production
V Theater groups example
> Chicago 120 theatrical groups
* Do you want to satisfy one type of audience deeply or do you want to satisfy a number of audiences more superficially?
V Museum example
V The universal general museums of the nineteenth century
* Metropolitan in New York is still the leading American example
* No real clientele
V Can be too narrow
* American Indian in LA
V More and more niching
V Hospital examples
* Community hospital is giving way to boutiques
* Free-standing surgical unit
* Specialty hospital
V We need product differentiation in NPO as much as we need it in business
V Poses a problem for 19th century institution
> Do they break themselves up?
V Problem: being identifiable and yet at the same time not becoming separatist
> In a good many institutions
V University examples
> Those that have done well
> Comprehensive universities are losing character in the public mind
V I think we will see a good deal of — not niche marketing in the NP section but product identification, as you would call it in a business
* The market, very largely, will determine the character of the institution and the character of the product
V Why does the NPO have to be interested in marketing and have to be engaged in marketing?
* Is it to be sure that it really fulfills the need?
* Will it satisfy the customer?
* Is it to know what it should focus its energies on?
V What are the real reasons for doing marketing for a non-profit institutions?
* The presence and the increase in competition
V Most organizations don’t get interested in marketing when they are comfortable
> Help us understand
V Who should really do the marketing job in the NPO?
* CEO is the CMO
* Yet the CEO can’t do the marketing
V The work has to be delegated to someone who is skilled in handling marketing
* Director of marketing (has “skills will travel”)
V Vice-president of marketing
* Policy-making or policy-influencing
* Should sit with all the other officers as they try to visualize what the future of their institution will be
V How can we tell whether marketing is making a genuine contribution?
V Marketing is supposed to build up “share of mind” and “share of heart” for the organization
V At any time a NPO has a certain …
* level of awareness in its target market
* amount of favorable attitude
V Good marketing program will build up more … with the public you are trying to serve
* awareness
* loyalty or bonding
V The cost side
* Budgets must be developed for the work that must take place
V It is very hard to gauge the impact of marketing without setting objectives
V For example
* Go from 30% of the target market knowing about us,
* And 80% of those who know about us, liking us, to 90% of those who know about us liking us
* The more specific the objectives, the more likely to be productive
V Hospital example
V Using their budgets for advertising purposes
> Trying to communicate
> Wondering: Have they established in the minds of the community
* Some CEOs are disturbed about the results
V Wrong use
* A character to their hospital
* True patient focus in their hospital
V Haven’t really gone into marketing in the right order
* Do some customer research to understand the market you want to serve and its needs
* Develop segmentation and be aware of different groups that you’re going to be interacting with
* Develop policies, practices, and programs that are targeted to satisfy those groups
* Communicate these programs
V Haven’t really gone into marketing in the right order
* Do some customer research to understand the market you want to serve and its needs
* Develop segmentation and be aware of different groups that you’re going to be interacting with
* Develop policies, practices, and programs that are targeted to satisfy those groups
* Communicate these programs
V Hospital who resist to the bitter end the kind of communication their market research shows them the public wants
V How many of the people who come in to have hip replacement can walk after six months. Because not everybody does. If we (see page 83)
* Fear of falling is the greatest concern among older people
V Adopting marketing
* NPO with little or no marketing takes 5 to 10 years to really install effective marketing procedures and programs if they’re fully committed to installing them.
Many organizations give up after 1-2 years, especially if the early results are so good that they think they are already there.
V More than a department
* Everybody’s business
* Certainly everybody who has anything to do with the customer
* Not a function
* Though there is specific work
* Basic commitment
* The basic action that results in an organization that is both dedicated and positioned to satisfy its basic purpose
V Everyone in the organization pursuing one goal
* Satisfy the customer
* Serve the customer
V Getting everyone to understand…
* Hard
* Takes time
V Marketing becomes effective when the organization …
* is very clear about what it wants to accomplish
V has motivated everyone in the organization to …
* agree to that goal
* see the worthwhileness of that goal
V has taken the steps to implement this vision in a way which
* is cost effective
* brings about that result
V Marketing is …
* the work—and it is work—that brings the needs and wants and values of the customer into conformity with the product and values and behavior of the supplier, of the institution
* a way to harmonize the needs and wants of the outside world with the purposes and the resources and the objectives of the institution
V Building the donor constituency — interview with Dudley Hafner (American Heart Association)
V Fund development
V Recognizing that your true potential for growth and development is the donor, is someone you want to cultivate and bring along with your program
* Helps an organization move forward by having a broad, sound, solid advocacy base. One of the places to develop that is within your giver group
* Not simply someone to collect this year’s contribution from
* Reduces the cost of getting the money, when you have a donor base that is already sold
* You’re going to help them increase their support to the organization
V Tools used by the local organization
* Acquaint donors with what you are as an organization
* What you are trying to get accomplished
* So they can identify with your goals
V Need a very clear mission
* Prevention of premature death and disability from cardiovascular disease and stroke
V Very clear goals that relate to our mission
* Number of people that we convince to stop smoking or using tobacco or not start in the first place
* People change their dietary habits
* Biomedical research we want to fund
V Process
V Present a case for support
* The magnitude of the challenge
* What we propose to do about it
* How realistic it is to achieve that challenge
* How your gift can make a difference
V Cultivating you
* in a series of mailings throughout the year
> ask you to get involved in some of our activities
* means giving you a chance to make a difference in what it is we’re trying to achieve.
V Basic fund development goals
* Get people to start giving
> Long-term goals for making them “members” in terms of their commitment
V Development means
* bringing the donors along,
* raising their sights in terms of how they support you
* giving them ownership in the outcome of your organization
* Development requires a long-term strategy
rather than putting together an annual campaign to go out and collect money.
V Donor segments
* Health community: Donors are really giving to themselves
* Large corporate foundation-giver types
V Have to think through to whom you make sense, basically
* Then appeal to them in a very forceful, forthright manner
V Materials / tools for creating constituency
V Have a prescribed structure that is offered to the local leadership
* Job descriptions
* A way for them to formulate goals for now and five years out
> Materials that support each one of those elements of the fund-raising
V Summary
* Focus your message on what in marketing we would call the values of the potential customers
* Very clear goals for a marketing campaign in which you market the American Heart Association to potential investors, to people willing to commit themselves, if only in the beginning to a token donation just to get rid of the collector
V Door to door fund raising
* Don’t go Sunday afternoon during pro football games
* How much do you want so I can go back to my TV
V Ability to answer questions I get
* Effective spokesman for the organization
V vs. the emotional appeal “You know how many babies are dying.”
* Gets money if there has been a horror story on TV or in the newspaper headlines yesterday
* Leave material
* Next year
* That literature you left was very interesting
* Last year you gave …; how about 2.5X (or a target goal based on ability) this year? 50% success rate
* Appeal to the rational in the individual as well as the emotional part of the individual
V In building local campaigns
V Think of the person who does door-to-door
* Who is treated as a salesperson by a potential contributor
V Opportunity to educate those potential donors about
V what they can do … plus their gift
* for themselves personally, if it’s a disease
> in terms of
* Your greatest opportunity to create a long-term strategy
V Competition for funds
* Well ahead of inflation
* Cannot afford to create a strategy that will cause one of them to do better at the expense of another NPO.
* Figure out how to get new monies that have not been previously given
* Have a long-term really positive impact on the good that the NPO are trying to do.
* Most say “We want people who give to nobody but us”
V Market research
* Because we feel a commitment to the volunteers who go out as our ambassadors
V We give them the best possible materials
* Things we know will work
V Kind of knowledge about the market is relevant
* Kinds of prior experience in that person’s life will cause them to be more responsive
* What are they dealing with today that is the button you want to press in terms of have them see you as a unique organization?
V Rise above the clutter of information out there about
* What to buy
* What to do with your leisure time
* What charitable organizations, volunteer organizations you support
V Asking for a specific gift dramatically improves the return in our campaign
* Level of income you should give so much
* They are usually flattered
* Once a donor has given a gift that falls into the suggested amount they should be cultivated (pay special attention): The long-term strategy of upgrading that gift
V The long-term strategy of upgrading that gift
V First target of opportunity
* Pick out the people who give more than suggested
* Increase the size of the gift you ask for each year form those people who have given the suggested amount. Gently nudges them to a higher level
V Building the relationship
V Classify the individual by the kind of follow-up
* Personalized thank-you letter
* Inviting them to specific activities
* Sending an annual report
* Showing them what you’re planning to do with the money or how the money has helped
* Constant emphasis is on the mission to upgrade your potential high-yield donors
V Market research tries to identify
V Market segmentation
* Forty-one different discrete markets
* Any groups that simply aren’t customers at all?
V Areas that you don’t want to put a lot of time in because your contribution base is not going to grow that much
> More that just raising money
* Cannot build your long-term growth strategies, income strategies, on that philosophy, however. It has to be built on cultivating the larger donors and raising their sights
* Market value expectations
V Fund development
* Go where the money is
V Look upon fund development as an educational campaign
* To get money
* Strengthen the objectives of the American Heart Association
V Justification for having a broad-based annual campaign
* Strategy for your fund development
* Know what you expect out of the various strategies, what your return expectations are
* Measure your success against that
* Larger givers, you have one strategy and one expectation
* Smaller givers, another strategy and another expectation
V Strategy definition
* How we use our resources to get the attention of that individual to do what it is we hope he or she will do
* Always focused on the individual
V Strategy development for a segment
V People age 50 (high risk age)
* Show these individual how they can reduce their risk of heart attack
* How research or education is going to have immediate feedback, because that’s their interests
* Provide something they can relate to—and give to at the same time
V Information provided to fund-raisers
* Information about the potential donors before they go to them
* If this is a fifty-year-old man you use strategy A, and a twenty-five-year old woman you use strategy B
V Receive material of most interest based on the neighborhood in which you live
* General statements
V Emerging for the future (p 95)
V Organizing around value groups
> Value group
* An identified market
* with their own materials
* their own strategies
* their own support system
V Critical factors
* The care and treatment and cultivation of the donor
* Ask for a gift that is in relationship to the individual’s ability to give
V Give you
* Long-term, stable growth
* Broad-based advocacy
* Identification of potential donors (donor acquisition) ? disappointing results from investing considerable resources
* Volunterism
* Applies to all NPOs (big & small, local)
V Summary
* The central importance of the clear mission
* The importance of knowing your market, not just in generalities, but in fine detail
* Enabling those volunteers of yours to do a decent job by giving them the tools that make it almost certain that they can succeed
V Don’t appeal to the heart alone, and you don’t appeal to the head alone
* You have to have a very rational case, but
* You also must appeal to our sense of responsibility for our brethren
V Do you really need volunteers? p97
* Computer
* TV
* Telemarketing
* Many organizations facing a crisis
* When you lose your volunteer base, you lose your constituency, the course of strength and growth in the organization
* Technology as a way of helping the volunteers do a more effective job
V Summary
* Fund development is people development
* Both for donors and volunteers
V You are building …
* a constituency
* understanding
* support
* satisfaction
* human satisfaction in the process
V That is the way …
* To create the support base you need to do your job
* You use your job to enrich the community and every participant
V It is based on
* Clear mission
* Extensive and detailed knowledge of the market
* Making demand on both your volunteers and donor
V Feedback from your performance
> Most organizations are pretty weak
V This applies to purely local and small organizations as well
* A lot of well-meaning people, but very often have no sense of direction
* A need, but no message
V Summary: The action implications
V About strategy
* Strategy converts mission and objectives into performance
* Strategy ends with selling efforts
V Strategy begins with knowing the market
V Who the customer
* Is
* Should be
* Might be
V The whole point of strategy is not to look at recipients as people who receive bounty, to whom the non-profit does good.
* They are customers who have to be satisfied
V Three strategies
* Needs a marketing strategy that integrates the customer and the mission
V Needs strategies to improve all the time and to innovate
* The two overlap
* Nobody can ever quite say where an improvement ends and an innovation begins
V When introducing something new (innovation) careful thought and planning is required
> Where to start
* With whom
> Look for a target of opportunity
> The strategy in innovation is to think through this process at the start, so that you can identify somebody…
> The worst thing in strategy
> Knowing the customer enables to know what results to expect.
V Needs a strategy to build its donor base
* Needs to develop a donor constituency
* Don’t say “Here is the need.” “This what you need. These are the results. This what we do for you.”
* Look upon the donor as a customer. (The essence of strategy)
V All three strategies begin with research and research and more research
V Organized efforts to find out
* who the customer is
* what is value to the customer
* how the customer buys
V The important person to research
V The individual who should be the customer
* The person who are believers but who have stopped going to church
* Non-customers always outnumber customers
> The most important knowledge is the potential customer
V Training your own people
* Everyone in the hospital must be patient-conscious.
* That’s a training job—not just preaching.
* It isn’t attitude, its behavior
* Behavior training. This is what you do
V Train the volunteers (may be even more essential)
* Where they are the interface with the customers, with the public.
V Need to organize itself to abandon
V What no longer …
* works
* contributes
* serves
V If not built in …
* Soon overload
* Put good resources where the results don’t follow
V The question always before the non-profit executive
* What should our service do for the customer that is of importance to that customer?
V Think through how the service should be
* structured,
* offered
* staffed
V Nuts and bolts
* What to do
* When to do
* Where to do
* Who is to do
V Strategy
* Begins with the mission
* Leads to a work plan
V End with the right tools
V A kit, say for volunteers, which tells them
Without the kit there is no strategy
* Who to call on
* What to say
* How much money to get
V The last thing to say about strategy that it exploits an opportunity,
V The right moment. The point when the new is received
* Needs are likely to be there forever in one form another
They are part of the human condition.
> But the need presents itself in a specific form
V Strategy
* Commits the non-profit executive and the organization to action
V Its essence is action
* Putting together mission, objectives, the market—and the right moment
* The tests of strategy are results
V Begins with needs and ends with satisfaction
* Need to know what the satisfaction should be for your customer
* What is really meaningful to them?
* Listen to their values and understand their satisfactions
V Managing for performance: how to define it; how to measure it
V What is the bottom line when there is no “bottom line”?
* NPOs tend not to give priority to performance and results
V Yet performance and results are far more… than in a business
* important
* difficult
V In a business, there is a financial bottom line
* Profit and loss are not enough by themselves to judge performance
* but at least they are something concrete
V A NPO E faces a risk-taking decision when you try to think through your performance
* First think through the desired result
* Then the means of measuring performance and results can be determined
V How is performance for this institution to be defined?
V Examples
V Hospital emergency room
* How fast the staff sees people who come in?
* The number of heart-attack victims who pull through the first few hours after they arrive?
V Church
> What is the performance of a church?
* Either is perfectly respectable
* Leads to very different ways of running the church.
V A organization to tackle AIDS
* Does not have to worry about the need for its efforts
> But it must be clear whether its performance is to be measured by …
V Not enough to say we serve a need. Really good ones create a want.
V Example — Museums
> From cultural custodians
> To creating customers for taste, for beauty, for inspiration
V As NPO E begin to define the performance that makes the mission of their institution operational two common temptations have to be resisted
V Recklessness
* So easy to say the cause is everything, and if people don’t want to support it, too bad for them
> Performance means concentrating available resources where the results are
V Go for the easy results rather that for results that further the mission
> Avoid overemphasis on
> Example — Universities & “Mickey Mouse” chairs
V These temptations have the same root
* The NPO doesn’t get paid for performance
* Even if it charges fees, it can only generate a fraction of the funds it needs to operate
* In business, performance is what the customer is willing to pay for.
* NPO do not get paid for performance
* But it does not get money for good intentions, either.
V Planning for performance
* Performance in the NPO must be planned
V This starts with the mission
* NPO fail to perform unless they start out with their mission
* The mission defines what results are in this particular non-profit institution
V Then one asks: Who are our constituencies, and what are the results for each of them?
V One of the basic differences between businesses and non-profits is that non-profits always have a multitude of constituencies
> About business
V NPOs have a multitude of constituencies (each with a veto power) and each has to be satisfied at least to the point where they don’t have a “negative reaction”
> Examples
V First task — but also the toughest — of the NPO E is to get all these constituencies to agree on what the long-term goals of the institution are.
> Building around the long-term is the only way to integrate all theses interests
* If you focus on short-term results, they will all jump in different directions
* Defining the fundamental change that the NPO wants to make in society and in human beings
V Project that goal onto the concerns of each of the institution’s constituencies
> Think through the concerns of each of the institution’s constituencies
V Integrating constituency goals into the institution’s mission is almost an architectural process, a structural process.
* Not too difficult to do once it’s understood
* It’s hard work
V Moral vs. economic causes
* Illustration
* Thinking through what results will be demanded of the non-profit institution can protect it from squandering resources because of confusion between moral and economic causes.
* NPO — almost impossible to abandon anything
V Have to distinguish between moral causes and economic causes
V Moral cause is an absolute good
* The absence of results indicates only that efforts have to be increased
V Economic causes: Is this the best application of our scarce resources?
* There is so much work to be done
* Let’s put our resources where the results are
* We cannot afford to be righteous and continue this project where we seem to be unable to achieve the results we’ve set for ourselves
V Have a duty toward its … to allocate its scarce resources for results rather than to squander them on being righteous.
* Donors
* Customers
* Staff
V NPO are human-change agents
V Their results are therefore always a change in people—in their…
* Behavior
* Circumstances
* Vision
* Health
* Hopes
* Competence and capacity (above all)
V The NPO has to judge itself by its performance in creating
* Vision
* Standards
* Values and commitment
* Human competence
* NPO need to set specific goals in terms of its service to people
* NPO needs to constantly raise these goals—or its performance will go down
V Don’t’s and Do’s — The basic rules
Disregarding them will damage and may even impair performance
V The Don’t’s
V Seeing the institution as an end in itself
* Does it service our mission?
V Does it fit our rules?
* Inhibits performance
* Destroys vision and dedication
* Example: How the hospital handled the nursing shortage.
V Testing moves, decisions, policies
* In every move, every decision, in every policy, the NPO needs to start out by asking, Will this advance our capacity to carry out our mission?
It should start with the end result, should focus outside-in rather than inside out
V Feuding and bickering
* This is not the dissent of decision making
V Must not be tolerated
* Destroys the spirit of an organization
V Symptoms of the need to change the organization
> Fast growth/outgrown its structure
* Meal on wheels example p 114
* Are you organized for yesterday rather than today?
* When the noise level rises, its a sign of discomfort
* Your organization structure and the reality of your operations aren’t congruent anymore
V Tolerate discourtesy
V Manners are the social lubricating oil that smoothes over friction
* Bad manners rub people raw; they do leave permanent scars.
* Learn to be courteous. It needed to enable different people who don’t necessarily like each other to work together
V Do
V Build the organization around information and communication instead of around hierarchy
V Everyone all the way up and down should be expected to take information responsibility
* Especially upward communication
* Their colleagues
V Ask
> What information do I need to do my job
> What information do I owe others so that they can do their job
* Mayo Clinic example
V In the information-based institution people must take responsibility for informing their bosses and their colleagues
> Responsibility for
> Requires
> This builds mutual trust (see p 116)
V Delegation
* Clear rules to become productive
V It requires
> The delegated task must be clearly defined
* Mutually understood goals
> Mutually agreed-on deadlines
> Above all
> Delegators must follow up
They are still accountable for performance
* The delegatee must inform the delegator of anything unexpected that happens, and not to say, “But I can take care of it.”
V Standard setting, placement, appraisal
V Standards
V For each person to take responsibility for … requires standards
* own contribution and
* being understood
V Standards have to be …
> Concrete
> Set high (world class)
* Clear
* Uniform
V The NPO that is both centrally run and a “confederation” of autonomous locals.
* Clear standard are particularly important
* Standards have to be uniform across the board
* Each local organization has to be autonomous and has to make its own decisions
> Squaring these conflicting demands for autonomy and conformity requires
> Need control of standards
> People
V Placement
V Standards should be very high and goal should be ambitious
* Yet they should be attainable, at least by the star performers of the institution
*