Delivering on the Promise of Nonprofit
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Transcript of Delivering on the Promise of Nonprofit
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Delivering on the Promise ofNonprots
Jefrey L. Bradach
Thomas J. Tierney
Nan Stone
DECEMBER 2008 ISSUE
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Ide in Brief
U.S. nonprots are acing mountingpressure to demonstrate thee!e"tiveness of their progrms
Nonprots are responding by beingmuch more e#pli"it $o%t the res%lts
they intend to deliver and thestrtegies nd orgni&tions the'(ll"reteto achieve those outcomes
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Chllenges for Non)prots in$e"oming res%lt oriented
*%nding +o,s re seldom reli$le enoughto ustiy signicant investments inorgani!ational capacity
" nonprot#s very success can provide ane$cuse or donors to stop giving% becausethe organi!ation no longer &needs' their money
Both public and private unders
over(helmingly (ant to support ne,progrms% so program prolieration trumpsinvestment in e$isting programs
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*rom -Mission. to -Imp"t.
"s they gro(% many non)protorgani!ations struggle (ith the iss%e ofdening the set of progrms they
should ofer to m#imi&e their imp"t *ost organi!ations have a broadly
dened social mission )) or e$ample
+create a more ust society&% buttrnslting $rod visions into ,ell)dened strtegies is a big anddi,cult tas-
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E#mple 1rlem Children(s one
/01
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S%""ess *"tors for Nonprots3
The "uthors suggest that to develop pragmatic plansor ma-ing a diference% leaders o nonprotorgani!ations should rigorously ans(er ollo(inginterdependent 2uestions 3
4hi"h res%lts (ill (e hold ourselves ""o%nt$le for4 1o,(ill (e "hievethem4
4ht (ill results really "ost% and ho( can (e f%ndthem4
1o, do (e $%ild the orgni&tion (e need to deliverresults4
Together% these 2uestions create a rame(or- that canbe used in developing pragmatic% specic plans or
ma-ing a tangible diference
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4hi"h res%lts ,ill ,e holdo%rselves ""o%nt$le for5
The most undamental and most di,cult decisionor a nonprot is to dene the results it mustdeliver
" strong intended)imp"t sttement identiesboth the beneciaries o a nonprot#s activitiesand the benets the organi!ation 5 its program(ill provide
This process entails trnslting theorgani!ation#s mission into gols that aresimultaneously compelling enough to attractongoing support rom sta-eholders and specicenough to inorm resource allocations
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E#mple
6espite the variety o programs 7heedlen8enters or 8hildren revamped itsel
around a very "on"rete set of gols3namely% that 9%111 children% ages 1 to :%living in a ;
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1o, ,ill ,e "hieve res%lts5
>t involves allocating time nd mone'to the most e!e"tive inititivesamong various programs and activities
"n even bigger actor (ill be (hat theylearn as they analy!e their
orgni&tion(s "p$ilities nde"onomi"s% and gather inormationabout ,ht others re doing
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Informtion 6in7ge
6ecision ma-ers need to be amiliar(ith inormation that establishes lin7
$et,een a particular program or"tivit' and a set o positiveo%t"omes
?or e$ample% (hether a tutor meets(ith a child once a (ee- or t(ice% canbe central to a program#s success
1o, ,ill ,e "hieve res%lts5
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Determining 6imits "nother challenge is determining ,here one
orgni&tion(s ,or7 $egins nd ends
%mpstrt% a national nonprot that mentors
young children ofers a good illustration. >tpondered (hether organi!ation should alsodevelop programs ocused on the children#samilies% as amilies (ere crucial in helping
children succeed in school But given its limited resources% and the act that it
couldn#t drive change on both ronts% theorgani!ation decided to stay ocused on
increasing the number o -ids it could serve
1o, ,ill ,e "hieve res%lts5
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Est$lishing 9ps
=ighlight gpsbet(een (hat is supposedto happen and (hat is actually occurring
>t is not unusual to nd% or instance% thatthe people using a nonprot#s services arenot the intended $ene"iries% or anorgani!ation may discover a dis"repn"'in ho( the progrms are $eingdelivered
1o, ,ill ,e "hieve res%lts5
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4ht ,ill res%lts rell' "ost 33nd ho, "n ,e f%nd them5
Leaders should determine (hicho%t"omes the' "n reson$l'"hieve given current and potential
levels o support
This entails understanding the f%ll
"osts of "%rrent progrmsand ho(each is afecting the organi!ation#soverall nn"il helth
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*inn"il Iss%es
*any essential programs cannot ully covertheir o(n costs. >t is essential to determine
(hether dditionl f%nding from other"tivities can be used to support activities(ith the greatest potential to help theorgani!ation achieve its intended imp"t
@rograms not completely aligned (ith thestrategy are (orth maintaining i theygenerte "sh that can be applied to otherareas
4ht ,ill res%lts rell' "ost 33nd ho, "n ,e f%nd them5
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*%nding Iss%es
>n the nonprot sector% *%nders( "hoi"es areoten inAuenced by personal relationships or
the emotional appeal o the mission ratherthan by organi!ational perormance
@eople may stop unding organi!ations
delivering demonstrable results (hen theirpersonal interests shit% a phenomenon calleddonor ftig%e
4ht ,ill res%lts rell' "ost 33nd ho, "n ,e f%nd them5
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*%nding Iss%es
Nonprot must "lerl' rti"%lte (hat theorgni&tion needs nancial support or%
and identiy appropriate sources to meetthose needs
>t is important to invest in $%ilding the"p$ilities to attract and manage
appropriate types o unding 8ultivating private donors re2uires
capabilities very diferent rom those neededto apply or government grants
4ht ,ill res%lts rell' "ost 33nd ho, "n ,e f%nd them5
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Strtegi" nd*inn"i
lClrit'Mtri#
4ht ,ill res%lts rell' "ost 33nd ho, "n ,e f%nd them5
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Creting $etter pro"esses
Staf members may eel passionate% but insurveys they also report eeling under)
supported and under)developedproessionally
The absence o processes or settingemplo'ees( gols and obtainingfeed$"7% or instance% disconnectsindividuals and their perormance rom theorgani!ation#s strategy
1o, do ,e $%ild the orgni&tion,e need to deliver res%lts5
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B%ilding 6edership "p"it' ven though many nonprots need e$ecutives
(ith speciali!ed s-ills% the an$iety amongstemployees about und)raising and sha-y nancial
sustainabilityCtheir organi!ations# and their o(n%can be a signicant barrier to lling thosepositions
That is (hy the (illingness to provide fir p' in
e$change or topAight e$ecutive perormance (illbe a -ey diferentiator bet(een nonprots thatcan deliver great results consistently and thosethat cannot
1o, do ,e $%ild the orgni&tion,e need to deliver res%lts5
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Disting%ishing $et,een good nd $doverhed
>nvesting in an >T system that can trac- programresults is goodD paying e$cessive rent or opulent
o,ce space is bad "ttempts to limit all overhead blur this distinction
and severely undermine nonprots# ability to investin the people and =7 processes necessary to deliver
great results Leaders (ho understand this must ma-e these
needs transparent to unders% and alsocommunicate and support these investmentsthroughout their organi!ations
1o, do ,e $%ild the orgni&tion,e need to deliver res%lts5
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?inal thoughts E
The dis"ipline of ledership must replace thediscipline o mar-ets. The leader shoulders theheavy burden o engging 7e' st7eholders ina rigorous consensus)building process% in (hich all
parties "onfront the f%ndmentl :%estionsin this articleCand f%ll' em$r"e thes%$se:%ent ns,ers
Fhen such leadership is "omplemented $'donors% $ord mem$ers% and st! mem$ers(ho are e2ually committed to e$cellence% theresults (ill be outstanding