It seems that every so often the zeitgeist impels us to debate the
question of whether we'd all be better off if nonprofit organizations
were run more like for-profit organizations.
My first response to this question tends to be wake me up when this conversation is over.
If pressed, I have to concede that I think nonprofit organizations are
inherently different from businesses. Specific business practices
may be beneficial for specific nonprofit organizations; such practices
should be and sometimes have been implemented successfully.
Nevertheless, there's nothing magical, for example, in bringing in a
CEO from a Fortune 500 company who holds an MBA from an elite
university and who knows all the latest business management fads.
However, there's one way that I think nonprofits should be more like
for-profits, and that is in their information technology budgets.
I have a fantasy scenario for achieving this.
We'll
match a small or medium-sized nonprofit with several businesses that
have comparable staff sizes and annual operating budgets. Then
we'll bring the CEOs, COOs, and CIOs over for a grand tour of the
nonprofit organization's technology infrastructure, not neglecting to
display ample evidence of how much is being done with very little.
Then
we'll stand by while the business executives weep over the inadequacy
of the nonprofit's technology and pull out their personal checkbooks,
begging to be allowed to help the nonprofit acquire an infrastructure
that is comparable to the ones that the businesses take for
granted.
Naturally, the nonprofit organization's IT and development staff will be very gracious about accepting their donations.
NPtech
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Should a nonprofit organization be run as if it were a business?
Comments
Re: Should a nonprofit organization be run as if it were a business?
by
Deborah Elizabeth Finn
on Sun 01 May 2005 03:24 PM EDT | Profile | Permanent Link
Over the past few days, I've been re-reading Paco Underhill's brilliant book, "Why We Buy." He is a cultural anthropologist who goes out to the field (e.g., shopping malls) and uses ethnographic tools to understand how retail customers actually buy things. It turns out that most retail organizations do not have the faintest idea of what creates customer satisfaction, and Underhill has a deservedly lucrative consulting practice in telling them.
I mention all this, because it occurs to me (yet again) that nonprofit organizations do not have much insight into how to structure their services so that they will satisfy their clients, constituents, donors, and volunteers - not to mention how to serve the needs of staff members, who are key stakeholders and whose job satisfaction is an important factor in the delivery of high quality services. Perhaps another way in which nonprofit sector should be run more like the for-profit is that we should be availing ourselves of Paco Underhill's ethnographic insights about what it is like to be on the receiving end of an organization's services. And now for a not-very-random example from my own experience: My primary care physician practices at a city hospital that is also a teaching hospital for a large medical school. There's no lack of brains or of orientation to public sevice in this organization. What went wrong there? Why didn't the hospital bring in someone (such as Paco Underhill) to stand around for days at a time, watching and listening to patients and staff actually navigating their way though office visits and medical procedures? Can it really be that it's more cost-effective to skip that step, and then to have members of every stakeholder category nursing an implicit or explicit grievance about the way things are structured? And how often do we make that mistake in nonprofit technology? |
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