This is a fantastic article on the salient features of high impact effective non-profits. I volunteer for a non-profit that raises funds in the US to support child-welfare projects in India. Last yeat I lead one of the fund raising events and unconsciously used many of the strategies the authors have talked about - collaborating with local corporations willing to reach out to the South Asian community, collaborating with local non-profits by sharing some of the proceeds in return for co-marketing our fund-raiser event etc. I will make this a must read in my organization.
#2 of the six practices, “Make Markets Work” is of particular interest to me because it identifies our assumed ideological distinction between business that create a profit and non-profit organizations with regard to their impact on society: i.e. profit-minded business are more likely, if not properly regulated, to have a negative impact on society while non-profits are more likely to create a positive impact. While I agree strongly with the latter, the nature of profit-minded business is no proper explanation for social and environmental detriments often excused in the name of such. In my opinion, best business ideas and models (many of which have yet to be uncovered) will be capable not only of benefiting our wallets and environments simultaneously but will do more as one unit than the combined efforts of a profit and non-profit organization of similar size. The most profound business models of our future will capitalize on their ability to create products and services that unlock our environment and societies’ potential while benefiting it even more, and the degree to which we embrace this model will be the law for the limit of our success.
I believe this “Make Markets Work” mentality is one that reciprocates for business (i.e. make non-profit work), that businesses and nonprofits will gain success in the degree to which they model and meld with each other, and that this mentality, when uncovered, can help business owners and non-profits who relate to both friendly and unfriendly corporations find deeper, more structural, more collaborative, and more unified ways of transforming our businesses and societies.
As an “Evangelist” for Habitat for Humanity (currently on a 6 month leave from McKinsey to lead a project for Habitat in Bolivia), and having served many of McKinsey’s non-profit clients, your findings resonated with my experiences in the social sector.
Two I would consider adding that I’ve observed in high performing non-profits: 1) Methodically Nurturing Talent, and 2) Cutting Losses
Habitat for example sends up-and-comers to a Leadership academt at Harvard. There is significant opportunity for rotation within the organization to continually learn new things and grow into leadership opportunities.
Similarly, some (but unfortunately not all) leading non-profits have successful systems and processes in place to conduct programmatic reviews, not only to determine funding and budgets, but to eliminate inefficient or misaligned programs. This, in fact, is a “habit” that even more non-profits should nurture. Pruning the tree is good for all the branches.
Best regards, and congratulations for the thought-provoking article.
This is a truly excellent article. It seems to me that your work identifies an approach to analyzing nonprofits in a business-like way; recognizing the importance of financials and how money is spent, without forgetting that impact is what it is all about.
“Teach for America” is an interesting program. However, I have seen experienced teachers deprived of more desirable teaching assignments in order to entice participants from this program. It is certainly sad to see those who have made the commitment to education by receiving a degree in the field passed by so that those who have practically no life experience or commitment to the field placed in these more desired positions. As a highly experienced teacher, my observation is that the “skill”, if you may, that these young people provide is motivation due to access to a person who is quite young and who has not been taught, through the mentoring that also takes place in college education programs, to apply best practices based on research in the field. Also, although Teach for America participants may be increasing local test scores few of us really know if the state-wide test is a valid tool for assessing applicable skills. This information is not available until the students takes the national IOWA test at 10th grade level, results that are a little to late for these students. Teach for America participants may well find themselves in positions of responsibility in charter schools, where they will offer a lot of “razzle and dazzle”, but ultimately, will not listen to parents or experienced teachers and find that their schools simply have reduced or unstable populations (both students and teachers). As long as administrators provide Teach for America participants valued positions where there are also applicants with teaching credentials and teaching recommendations these teachers will be unwanted decorations within the schools.
Looks very interesting.
I believe this “Make Markets Work” mentality is one that reciprocates for business (i.e. make non-profit work), that businesses and nonprofits will gain success in the degree to which they model and meld with each other, and that this mentality, when uncovered, can help business owners and non-profits who relate to both friendly and unfriendly corporations find deeper, more structural, more collaborative, and more unified ways of transforming our businesses and societies.
Great article with interesting information. My favorite line is “The secret to their success lies in how high-impact nonprofits mobilize every sector of society – government, business, nonprofits, and the public – to be a force for good.” I find it rare that nonprofits, especially social nonprofits, mobilize all sectors of society specifically government. Often state and local government have offerings to bring to the table in terms of valuable resources and data. This can be instrumental when it comes to finding metrics that are meaninful to your social venture.
The Teach For America program is a fantastic example for this article. I remember hearing about the struggles that Teach For America faced when they were first starting up. I think mastering advocacy is the key to a successful nonprofit organization. Teach For America addressed struggles that is so prominent for so many people. That is why it is successful. Chrysalis School Montana, for example, aims to involve experimental education in the lives of girls ages 13 to 18. This is another example of an organization that can solves problems that are prominent in many lives searching for different ways of education.
This article and “Ten Nonprofit Funding Models” was spot on. Well written, readable, and adaptable to nonprofits of all sizes. I run a consulting company, OS, Inc., that partners with nonprofits to achieve their goals in fundraising, marketing, and management efficiency. These articles were most helpful and increased my arsenal of material to teach nonprofit best practices. I enjoyed these articles so much that I’m going to subscribe to Stanford Social Innovation. It’s already well worth the investment.
Volkswagen’s SmileDrive software used the effectiveness of mobile and YouTube to turn people’s morning commute into a shareable experience, reaching a lot more than 200,000 individuals and capturing moments
away from home.
If you want your videos to have found by new individuals via search, YouTube is still the place to be.
Any movie content you would like people to be able to learn through organic
search must be uploaded towards YouTube channel.
This is a great piece. It is great because it states the (forgotten) obvious: in order to make effect, you need to think and act strategically (i.e - your interface with the surrounding environment) and not just internally; therfore you need to understand the factions in the ecosystem (gov., NGOs, activist etc.) and to work with them to advance change.
Wow, I’m so inspired by your achievements and vision-creative ideas and actions. Thanks so much for your support. I am the Founder/ CEO of the Youth Aid Ministries (YAM),Inc in Liberia established in 2005 to give hope and future to less fortunate Liberian kids through the Gospel and Education. It’s a registered NGO fostering change in the Liberian society since its establishment . How can you partner with YAM? I need your partnership for more effectiveness and efficiency of my dream. Hope to hearing from you!
COMMENTS
BY Vijesh Unnikrishnan
ON September 5, 2007 08:44 PM
This is a fantastic article on the salient features of high impact effective non-profits. I volunteer for a non-profit that raises funds in the US to support child-welfare projects in India. Last yeat I lead one of the fund raising events and unconsciously used many of the strategies the authors have talked about - collaborating with local corporations willing to reach out to the South Asian community, collaborating with local non-profits by sharing some of the proceeds in return for co-marketing our fund-raiser event etc. I will make this a must read in my organization.
BY Eugene Chan
ON September 7, 2007 06:35 AM
Heather and Leslie:
Great article and I would agree that your finding resonate with me—they parallel a lot of what I see in the sector. Can’t wait to get the whole book.
And congrats to you both!
BY Luke Spink
ON September 7, 2007 10:43 AM
#2 of the six practices, “Make Markets Work” is of particular interest to me because it identifies our assumed ideological distinction between business that create a profit and non-profit organizations with regard to their impact on society: i.e. profit-minded business are more likely, if not properly regulated, to have a negative impact on society while non-profits are more likely to create a positive impact. While I agree strongly with the latter, the nature of profit-minded business is no proper explanation for social and environmental detriments often excused in the name of such. In my opinion, best business ideas and models (many of which have yet to be uncovered) will be capable not only of benefiting our wallets and environments simultaneously but will do more as one unit than the combined efforts of a profit and non-profit organization of similar size. The most profound business models of our future will capitalize on their ability to create products and services that unlock our environment and societies’ potential while benefiting it even more, and the degree to which we embrace this model will be the law for the limit of our success.
I believe this “Make Markets Work” mentality is one that reciprocates for business (i.e. make non-profit work), that businesses and nonprofits will gain success in the degree to which they model and meld with each other, and that this mentality, when uncovered, can help business owners and non-profits who relate to both friendly and unfriendly corporations find deeper, more structural, more collaborative, and more unified ways of transforming our businesses and societies.
BY Naomi Allen Gary
ON September 11, 2007 08:14 AM
As an “Evangelist” for Habitat for Humanity (currently on a 6 month leave from McKinsey to lead a project for Habitat in Bolivia), and having served many of McKinsey’s non-profit clients, your findings resonated with my experiences in the social sector.
Two I would consider adding that I’ve observed in high performing non-profits: 1) Methodically Nurturing Talent, and 2) Cutting Losses
Habitat for example sends up-and-comers to a Leadership academt at Harvard. There is significant opportunity for rotation within the organization to continually learn new things and grow into leadership opportunities.
Similarly, some (but unfortunately not all) leading non-profits have successful systems and processes in place to conduct programmatic reviews, not only to determine funding and budgets, but to eliminate inefficient or misaligned programs. This, in fact, is a “habit” that even more non-profits should nurture. Pruning the tree is good for all the branches.
Best regards, and congratulations for the thought-provoking article.
Naomi (Allen) Gary, GSB Class of 2003
BY Sean Stannard-Stockton
ON September 28, 2007 07:07 PM
Bravo!
This is a truly excellent article. It seems to me that your work identifies an approach to analyzing nonprofits in a business-like way; recognizing the importance of financials and how money is spent, without forgetting that impact is what it is all about.
I discussed your article in my most recent column for the Financial Times.
BY S. C.
ON November 4, 2007 06:16 AM
“Teach for America” is an interesting program. However, I have seen experienced teachers deprived of more desirable teaching assignments in order to entice participants from this program. It is certainly sad to see those who have made the commitment to education by receiving a degree in the field passed by so that those who have practically no life experience or commitment to the field placed in these more desired positions. As a highly experienced teacher, my observation is that the “skill”, if you may, that these young people provide is motivation due to access to a person who is quite young and who has not been taught, through the mentoring that also takes place in college education programs, to apply best practices based on research in the field. Also, although Teach for America participants may be increasing local test scores few of us really know if the state-wide test is a valid tool for assessing applicable skills. This information is not available until the students takes the national IOWA test at 10th grade level, results that are a little to late for these students. Teach for America participants may well find themselves in positions of responsibility in charter schools, where they will offer a lot of “razzle and dazzle”, but ultimately, will not listen to parents or experienced teachers and find that their schools simply have reduced or unstable populations (both students and teachers). As long as administrators provide Teach for America participants valued positions where there are also applicants with teaching credentials and teaching recommendations these teachers will be unwanted decorations within the schools.
BY john
ON December 16, 2007 06:40 AM
Looks very interesting.
I believe this “Make Markets Work” mentality is one that reciprocates for business (i.e. make non-profit work), that businesses and nonprofits will gain success in the degree to which they model and meld with each other, and that this mentality, when uncovered, can help business owners and non-profits who relate to both friendly and unfriendly corporations find deeper, more structural, more collaborative, and more unified ways of transforming our businesses and societies.
BY Wendy Gibson
ON December 5, 2010 10:24 PM
Great article with interesting information. My favorite line is “The secret to their success lies in how high-impact nonprofits mobilize every sector of society – government, business, nonprofits, and the public – to be a force for good.” I find it rare that nonprofits, especially social nonprofits, mobilize all sectors of society specifically government. Often state and local government have offerings to bring to the table in terms of valuable resources and data. This can be instrumental when it comes to finding metrics that are meaninful to your social venture.
BY Janine McMaster
ON May 17, 2011 02:20 PM
The Teach For America program is a fantastic example for this article. I remember hearing about the struggles that Teach For America faced when they were first starting up. I think mastering advocacy is the key to a successful nonprofit organization. Teach For America addressed struggles that is so prominent for so many people. That is why it is successful. Chrysalis School Montana, for example, aims to involve experimental education in the lives of girls ages 13 to 18. This is another example of an organization that can solves problems that are prominent in many lives searching for different ways of education.
BY Bill Peck
ON July 21, 2011 09:42 AM
This article and “Ten Nonprofit Funding Models” was spot on. Well written, readable, and adaptable to nonprofits of all sizes. I run a consulting company, OS, Inc., that partners with nonprofits to achieve their goals in fundraising, marketing, and management efficiency. These articles were most helpful and increased my arsenal of material to teach nonprofit best practices. I enjoyed these articles so much that I’m going to subscribe to Stanford Social Innovation. It’s already well worth the investment.
BY sylpheed.sraoss.jp
ON October 15, 2015 01:54 PM
You might think it’s an irresistible game but in reality it’s one of the
most beatable poker games out-there.
BY Werner
ON October 27, 2015 05:53 AM
Volkswagen’s SmileDrive software used the effectiveness of mobile and YouTube to turn people’s morning commute into a shareable experience, reaching a lot more than 200,000 individuals and capturing moments
away from home.
BY Alisa
ON October 27, 2015 07:27 AM
If you want your videos to have found by new individuals via search, YouTube is still the place to be.
Any movie content you would like people to be able to learn through organic
search must be uploaded towards YouTube channel.
BY DoAlogue
ON November 9, 2015 02:19 PM
This is a great piece. It is great because it states the (forgotten) obvious: in order to make effect, you need to think and act strategically (i.e - your interface with the surrounding environment) and not just internally; therfore you need to understand the factions in the ecosystem (gov., NGOs, activist etc.) and to work with them to advance change.
BY Isaac G. Kerkulah, Jr
ON August 19, 2016 09:22 PM
Wow, I’m so inspired by your achievements and vision-creative ideas and actions. Thanks so much for your support. I am the Founder/ CEO of the Youth Aid Ministries (YAM),Inc in Liberia established in 2005 to give hope and future to less fortunate Liberian kids through the Gospel and Education. It’s a registered NGO fostering change in the Liberian society since its establishment . How can you partner with YAM? I need your partnership for more effectiveness and efficiency of my dream. Hope to hearing from you!
Thanks,
Isaac, CEO/YAM-Liberia/West Africa
BY Ryan
ON January 1, 2017 07:44 AM
Hi Heather & Leslie . Thanks for the brief explanation on High-Impact of Nonprofits. It’s very inspiring for everyone.