Small businesses and nonprofits both have to deal both with large ambitions and limited resources – material, financial, and human. The key to managing each of these types of enterprises is also twofold: Make the most of what you have, and co-opt what you don’t.
Nonprofits tend to make effective and intelligent use of all of the assets under their control. Efficient use of material and financial assets is of obvious benefit. But the best ones also take maximum advantage of the wealth of human resources at their disposal. They know that their employees tend to be committed and motivated, and they feel able to delegate much to them that would ordinarily be viewed by commercial organizations as managerial – or even leadership – level issues.
However, an intelligently managed for-profit knows that the key to unlocking the exponentially rewarding capabilities of its employees is to acknowledge their natural tendency to commit and contribute to an enterprise that encompasses large interests in a collaborative environment. These managers manage the leadership that exists naturally within their organization, and that in all organizations is seeking expression through its members.
Nonprofits also tend to obtain extra-organizational assistance – donated volunteer-hours, equipment, services, and even financing. In an intelligently managed for-profit, employees are also found to be identifying and bringing into use extra-organizational assets for the benefit of the outfit. Examples range from discovery and generation of word-of-mouth marketing channels to establishing informal alliances. Many of these initiatives have direct operational and bottom-line oriented, results. A closer examination of how nonprofits operate can help managers identify additional practical ideas in this area.
The key is managers who understand that leadership of the organization needn’t – even shouldn’t – arise solely from them. Leadership is an organizational asset that they manage, just as they manage any other organizational asset. This makes life much easier for them, and makes their managerial effectiveness much more comprehensive and wide-reaching. It is no wonder that the late Peter Drucker once described one of them – The Salvation Army – as the best-run organization in the country. Managers should consider taking a closer look at the more successful of these enterprises.
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