Notes: Peter Drucker, Managing the non-profit organization.

Chapter: “Converting Good Intentions into Results”

Discussion Questions: (at the end of the post)

This chapter discusses essential, but often times overlooked aspects of management of non-profit organizations.  While previous chapters address planning strategies, this chapter looks at effective marketing, the needs, desires, and roles of 'customers' and the need for funding strategies. One important point to remember: the nonprofit is not just a small 25 person operation; it can be a hospital, even a university. 

Regardless, of its size, a successful non-profit needs:

1. a plan
2. effective marketing
3. people
4. money

A plan:
Basically, an understanding of where the organization is going, what it hopes to achieve. (see previous chapters)

Marketing:
Marketing is highly important, but often times overlooked.  the non-profit needs to have a marketing plan with specific objectives and goals.  It needs to observe marketing responsibility, learning about the 'customers' needs, values, and the best way to reach them. 

People:
The non-profit needs 'customers' - people dedicated and invested in the organization's mission.  The nonprofit “wants the end user to be not a user by a doer.” (53)  Can develop this by marketing the nonprofit to specific market segments. Creating specific roles and responsibilities for people.
 
Money:
the non-profit needs a fund development strategy.  not just about raising money for specific projects, but to cover operating costs as well. The goal is to get people to see the non-profit as a part of who they are and what they do so that donating money and resources is seen as 'self-fullfillment. 

Drucker discusses Strategies and their central role in generating a successful organization:
“Strategies are not something you hope for; strategies are something you work for.”  How do we do better what we are already doing? (60)
In establishing a strategy you have to ask: “what are the specific results I want?”

Drucker's 5 step Structure of Strategy: (63)
    1. need a goal. goal must be clearly defined and converted into specific results, specific targets, each with a specific audience and market area.
    2. Need a marketing plan and marketing efforts for each target group.
    3. Communication and training. need to define who will do what, when, and with what results.
    4. Logistics: i.e what resources will one need to get the work done?
    5. Results: when will it be clear that you are on track?

* two don'ts on strategy: “don't avoid defining your goals because it might be thought “controversial.” (65)  “Don't try to reach different market segments with the same message.” (66)

Innovation:
    “the successful non-profit organization is organized for the new--organized to perceive opportunities.” (66)

The common mistakes made by non profits:
    Failing to do a pilot stage or a testing an idea.
    Being too arrogant about one's idea to actually incorporate it into 'reality'
    working to solve old problems instead of creating new ideas.
    Assuming that there is only one right way to solve a problem. Instead, come with an open mind and a willingness to try new approaches. Start with one needs to learn, not what one knows.
    Don't give up. Strategies often require a few attempts. 

Questions for Discussion:

1. Mergers are a common occurrence in the business setting, but when it comes to the nonprofit sector, it isn't something we hear much about.  When does it make sense for nonprofits to think about merging?  What potential benefits do you see stemming from such a move? What might be some drawbacks?  (see Managing Mergers and Consolidations: John A.Yankey, Barbara Wester, and David Campbell (online search)
 
2. What sort of Web 2.0 applications / tools / strategies might a nonprofit employ to ensure - specifically - long term financial sustainability?