Managing Your Non-Profit Like Your For-Profit

21 Feb

Business is business. Whether you’re managing a for-profit company or a non-profit association, there are common denominators that demonstrate few differences between the two business models.

As with any business, your goals guide the path you set to achieve your desired outcomes. By simply breaking this down into five common goals, it’s easy to see the similarities. Regardless of your business model, these five desired outcomes are essential to achieve a healthy organization that remains relevant, fiscally strong, and ensures loyalty among members/clients:

Goals of Your For-Profit Organization

  1. Generate income
  2. Minimize expenses
  3. Ensure customer satisfaction
  4. Increase customer base and market share
  5. Achieve profit for owners and/or shareholders

Goals of Your Non-Profit Organization

  1. Generate income
  2. Minimize expenses
  3. Ensure member satisfaction
  4. Increase membership and community awareness
  5. Accrue financial reserve for long-term financial viability

To remain focused on the main goals/objectives of your organization, I compare planning and decision-making to a bicycle tire. Often referred to a “hub and spoke” model, it clearly demonstrates that your core goal (represented by the hub of the wheel) remains strong and supported by the actions and strategic plans that lead to the hub (represented by the spokes of the wheel). 

Bike Tire1So how does this analogy prove useful as you manage your organization? It provides a touchstone for each decision you make and each work group or committee you establish. All strategies and tactics should lead back to supporting the hub.

As such, continually ask these questions of yourself and your colleagues: Does my plan or decision support the hub (goal) of my organization’s overall desired outcomes? Are my decisions, project work group, or committee contributing to the overall goal? If so, how do I demonstrate that connection? If not, do I need to reevaluate the relevance or strategic plan of my work group or committee?

That said, how does this apply to the adage, “business is business?” It simply means putting aside your own personal feelings, personal agenda, or decisions in the best interest of the business. This is easier said than done. However, an inability to do so results in failure if not today then tomorrow. Your first obligation is to the business and the health of that business and its employees, shareholders, members, and stakeholders. Keep in mind that the leadership and management you provide today determine the legacy you leave tomorrow.

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2 Responses to “Managing Your Non-Profit Like Your For-Profit”

  1. Nicolette Winner, CVA April 30, 2014 at 7:46 am #

    Great article! You hit the nail on the head… Nonprofit organizations and for-profit businesses have much more in common than they often admit. I put together a blog post that references your article as well at http://nrwinnerconsulting.weebly.com/1/post/2014/04/trading-best-practices-business-to-nonprofit.html. Enjoy!

    • Cindy Rosen April 30, 2014 at 8:00 am #

      Hi Nicolette, thank you for taking the time to comment. It’s always nice to get feedback and certainly a mention in your blog post. I look forward to following your blog.

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