Forbes magazine recently published an article by Dan Ehrenkrantz entitled ‘Why You Should Run Your Business Like a Non-profit’, which turns the tables on the traditional thinking that it is only ever the NFP’s that learn from business, and not the other way around.
However, Ehrenkrantz, acknowledging that NFP’s can and have learnt much from business, also believes it is time that business looked closely at the NFP sector. In particular he highlights the following areas where NFP’s often outperform business:
1. Focus on the Mission, Not the Money:
- It’s time for business to recognise the world at large, and that shareholders, customers, employees, and just about everyone, is interested in a company’s social values.
2. Treat Employees Like Volunteers:
- Just like volunteers, the best employees in any company can leave and easily find other options. And often for a company’s best employees, it is not the remuneration that keeps them turning up each day. Employee engagement, autonomy and purpose are frequently more important than money, all factors that the NFP sector has recognised and learnt to deal with effectively.
3. Treat Customers Like Donors:
- How is it that NFP’s can attract money from people without providing a product or direct service in return? Typically they have identified who their target market is, they then communicate very well, and express appreciation. Imagine the good will generated with customers if a business did this.
So Ehrenkrantz has highlighted that it is a two-way learning environment for business and NFP’s, where both can benefit.
If you would further information on how Avondale Business School can help your organisation, contact Warrick Long
P: 02 4980 2168