Under the pressure of mounting demand and shrinking resources, nonprofit organizations are struggling more than ever. Whether a start-up, growing or turn-around enterprise the expectations of most nonprofit Boards has moved toward “running like a business” Although a strong nonprofit must employee sound business practices, it is critical that both the management and Board understand the differences between a business enterprise and a nonprofit enterprise. Based upon the framework of Jim Collins’ Good To Great and the Social Sectors –Why Business Thinking is not the answer, this webinar will focus on the 4 stages of building a great nonprofit organization and how they are similar and different than the 4 stages of building a great business.

1. A Business Paradigm for Social Impact
Jon Firger
April 4, 2012
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4. Today’s Speaker
Jon Firger
Executive Director
Newton Community Service Center
Assisting with chat questions: Hosting:
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5. This Isn’t Your Business
A BUSINESS PARADIGM FOR
SOCIAL IMPACT

6. Today’s Presentation Content
 Comparison of business and the social sector.
 Jim Collins methodology and model
 Defining great performance in the social sector
 Comparative leadership – challenges
 Getting and keeping the right people
 Application of the “hedgehog concept” in the
social sector.
 Creating your brand
 Summary of the 5 keys to success
Jon Firger, MBA, MSW jfirger@NCSCweb.org 6

7. How Do You Define
Organizational Greatness?
 Organizational Growth
 Number Served
 Social Impact
 Percent of expenses for Administration vs.
service
Jon Firger, MBA, MSW jfirger@NCSCweb.org 7

8. Defining Great – Calibrating
Success without Business Metrics
• A Great organization is one that delivers superior
performance and makes a distinctive impact
over a long period of time.
• In business, money is both an input and output.
In the Social Sector it is only an input, not a
measure of greatness.
• Measurable Social Impact is the defining output
in the Social Sector
– All indicators are flawed, whether qualitative or quantitative.
– What matters most is not finding the perfect indicator, but
settling upon a consistent and intelligent method of assessing
your output results.
Jon Firger, MBA, MSW jfirger@NCSCweb.org 8

9. Our Board Members Believe That We Should
Operate “Just Like a Business”
 Strongly Agree
 Agree
 Disagree
 Strongly Disagree
Jon Firger, MBA, MSW jfirger@NCSCweb.org 9

10. A great social enterprise is
more like a great business,
then it is to a mediocre
social enterprise
 Very different access to resources, structure,
functions and outputs.
 Similar focus upon people, organizational
discipline, strengthening capacity and
measuring results.
Jon Firger, MBA, MSW jfirger@NCSCweb.org 10

11. Good To Great And The Social
Sectors - Why Business Thinking
Is Not The Answer – Jim Collins
1. Defining “Great”
2. Level 5 Leadership
3. First Who?
4. The Hedgehog Concept
5. Turning the Flywheel
Jon Firger, MBA, MSW jfirger@NCSCweb.org 11

12. Defining Great Social Sector
Performance
 The Philanthropic definition confuses input
with outputs.
 Develop a “mental model”
 Shift focus from inputs to outputs
 Measure outputs the best you can
 Establish a baseline and track improvement
with rigor
Jon Firger, MBA, MSW jfirger@NCSCweb.org 12

13. It is much more difficult to
lead a nonprofit
organization than to lead a
business.
 Strongly Agree
 Agree
 Disagree
 Strongly Disagree
Jon Firger, MBA, MSW jfirger@NCSCweb.org 13

14. Level 5 Leadership-Getting
Things Done Within A Diffuse
Power structure
Jon Firger, MBA, MSW jfirger@NCSCweb.org 14

15. Jon Firger, MBA, MSW jfirger@NCSCweb.org 15
The View from The Top
The Realities of the Nonprofit CEO
Board
Community
CEO Staff
Funders

16. The Level 5 Leader
Power is rarely “raw”
but rather found
more subtly: power
of language, power
of inclusion, power of
shared interests.
Level 5’s compelling
combination of
personal humility and
professional will is a
key factor in creating
legitimacy and
influence.
Jon Firger, MBA, MSW jfirger@NCSCweb.org 16

17. “Social Sector leaders are
not less decisive than
business leaders as a
general rule; they only
appear that way to those who
fail to grasp the complex
governance and diffuse power
structure common to social
sectors” – Jim Collins
Jon Firger, MBA, MSW jfirger@NCSCweb.org 17

18. Getting The Right People On
Jon Firger, MBA, MSW jfirger@NCSCweb.org 18
The Bus
Within social sector constraints

19. We have all of the skills
and talents on our Board and
staff to be a successful
organization.
 Strongly agree
 Agree
 Disagree
 Strongly Disagree
Jon Firger, MBA, MSW jfirger@NCSCweb.org 19

20.  Sometimes it is more difficult to get the
wrong people off the bus.
 Focus on early-assessment and a strong
system.
 Don’t focus on motivating the unmotivated.
 Selectivity can lead to increased interest
and therefore better applicants.
 Social sectors have a distinct advantage
over business sector: people are desperately
craving meaning in their lives.
Jon Firger, MBA, MSW jfirger@NCSCweb.org 20

21. The Hedgehog Concept – Rethinking
the Economic Engine without a Profit
Motive
Passion
Economic
What we
Engine
do best
Driver
Jon Firger, MBA, MSW jfirger@NCSCweb.org 21

22. The Hedgehog Concept
 To attain piercing clarity about how to
produce the best long-term results.
 Exercise relentless discipline to say “no” to
opportunities that fail the hedgehog test
Jon Firger, MBA, MSW jfirger@NCSCweb.org 22

23. The Fundamental Difference
in the Social Sectors
Passion
Resource
What we
Engine
do best
Driver
Jon Firger, MBA, MSW jfirger@NCSCweb.org 23

24. The Implications of a
resource engine
 The evaluation of the contribution made by
any given service extends beyond earned
revenue to its success in attracting other
resources.
 volunteers
 In-kind
 Contributions of funds
Jon Firger, MBA, MSW jfirger@NCSCweb.org 24

25. The members of our community
can describe what we do best
in a couple simple
sentences.
 Strongly Agree
 Agree
 Disagree
 Strongly Disagree
Jon Firger, MBA, MSW jfirger@NCSCweb.org 25

26. Jon Firger, MBA, MSW jfirger@NCSCweb.org 26
Turning The Flywheel
Building momentum by building brand

27. Turning the Flywheel –
Building Momentum by
Building Brand
 Hedgehog discipline creates a steady
momentum that leads to unstoppable
momentum.
 More emphasis on “clock building” and less
on “time telling”
 The key link in the social sector is between
brand reputation and attracting resources.
Jon Firger, MBA, MSW jfirger@NCSCweb.org 27

28. The 5 keys to a great social
enterprise.
1. Define greatness for your organization.
2. Develop level 5 leaders throughout the
organization.
3. Get the right people on the bus
4. Clarify your hedgehog concept – have the
discipline to say no.
5. Turn your flywheel by persistently building
your brand.
Jon Firger, MBA, MSW jfirger@NCSCweb.org 28

29. Find listings for our current season
of webinars and register at:
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