Whether you are an employee or business owner, we are all looking for ways to excel in our business. The key to excellence is looking outside of your immediate world and adopting practices that other businesses and organizations are doing well. While many companies stick to seeking advice from similar businesses, looking outside the business world will offer an even greater insight. Nonprofits are often overlooked by businesses who think they are solely “nice people doing nice things”. However, most nonprofits are also corporations striving to deliver better results, maximize revenue and increase productivity. The following are three lessons businesses can learn from nonprofit organizations:
- Focus on mission before quarterly profit. Requiring management to meet measurable financial goals in an allotted period of time can certainly result in productivity gains. However, if employees are only focusing on the goal for the near future, they will miss the heartbeat of the company.A nonprofit’s focus is on mission, not profit. By focusing on the mission before the profit, nonprofits are able to produce amazing results with the little resources they possess. When you focus on your mission, such as creating products that exceed customer expectations, your profit will soon follow.
- Tap into experience of the board of directors. Just as the board of directors in a for-profit board offers experience, perspective and contacts, a nonprofit board offers the same wealth of information. However, most nonprofit boards do not pay their members to serve on the board. Members of a nonprofit board are volunteers and have a personal commitment to the organization’s mission.Because most nonprofits lack financial and human resources, they have learned to utilize the strengths of their board members. For example, when nonprofits need to make a decision that will have a long-term impact (such as outsource certain aspects of their back-office work or enter into a new project), board members offer insight and help the organization come to a decision. When the organization has made the decision, board members can often identify the consultants and contractors the nonprofit needs.Boards serve as highly competent advisors to a nonprofit organization. As any need arises, the organization has instant access to the board’s highly-trusted advice and insight. A for-profit that adapts this method will not only benefit internally, but they will also gain a competitive advantage.
- Collaborate as both a means and an end. Nonprofits leverage their limited resources by collaborating with people in the community to accomplish their mission. In the language of for-profits, this is called the formation of strategic alliances.Nonprofits have learned that collaboration can be an end to itself. With the barriers between the organization and the community gone, many nonprofits find that collaboration produces many benefits that are not otherwise achievable. For example, a nonprofit’s mission could be to reduce the length of time a person might be homeless. While collaborating with the circle of stakeholders that are needed to make improvements, the nonprofit can turn to businesses, labor unions, government officials and community activists. The stakeholders can create bonds that carry influence and reduce unproductive conflict in future interactions. Through this process, the larger community becomes aware that there is a process available to address problems, questions and concerns. In turn, the community acts more cohesively and responds better in circumstances.
In order to become successful, businesses and nonprofits can learn from each other. By blending together both worlds, businesses can strive to make a profit and focus on the mission of their company at the same time.