By Ruby Maddox
Many nonprofit professionals are familiar with the term, Mission-based Management; a term made popular by Peter Brinkerhoff‘s publication bearing the same name. In it Brinkerhoff describes the cornerstone of Mission-based management in 3 core principles: 1)Nonprofits are businesses, 2)Funds donated to an organization carry an expectation of outcome/service, and 3) Nonprofits should not consider themselves restricted from making a profit, nor should they be cautioned from doing so by their environment. (Brinkerhoff, 2009) .
He then goes on to describe the 10 characteristics of effective nonprofit organizations.
1. A viable mission.
2. Ethical, accountable and transparent.
3. A businesslike board of directors.
4. A strong, well-educated staff.
5. Embracing technology for mission.
6. Social entrepreneurs.
7. A bias for marketing.
8. Financially empowered.
9. A vision for where they are going
10. A tight set of controls.
From an organizational sustainability context, this approach makes sense. An organization can not survive if there is no plan for the future or careful consideration on how the organization will sustain its work. And everyone knows you can’t start off your fiscal year at $0. While it’s true that community-based nonprofit managers must be diligent in their oversight to maximize resources, truly fulfilling the mission of the organization may run contrary to this “Return-on-investment-hyper-efficiency” philosophy; since an organization may prove to be less efficient but still very much effective.
People-based Management for Community-based Organizations
Whereas people-based management in business refers to an employee-centered viewpoint for greater and more long-term results, people-based management offers something more to community-based organizations. It represents an innovative philanthropic paradigm where steps are taken in separating the preservation of the mission from the preservation of the organization itself. It considers the perspective that an organization should NOT exist solely on the basis for it’s own survival.
People-based management in this sense, refers to the way in which an organization relates to it constituents, volunteers, and employees. It is the perspective that declares that each stakeholder is an activist in the organization’s shared endeavor, capable of applying their skills to advance the mission.
People-based management for community-based organizations considers several aspects :
• Community leadership training
• Opportunities for applied leadership
• Exchange of power dynamics
• Emphasis on relationship building and networking
• Prioritizing constituent agenda
• Meaningful & consequential systems of accountability
People-based management for CBOs believes in the capabilities of every person to be a leader in his or her own way. Because Leadership happens in various arenas (not just formal ones), people-based management taps into that capacity, develops it, and applies it. It addresses the inequity in access to power and considers the level of self-efficacy among stakeholders. There is an emphasis on relationship building not only as a means of networking but as a way of establishing trust and developing opportunities for further engagement to create a shared vision, based on that trust.
Many of the concepts of Mission-based Management are still quite valid however if adhered to in a vacuum especially in the matter of CBOs, there is a risk of the organization being conceived of as illegitimate, inauthentic, and ultimately irrelevant.
Part 2 of this series will discuss further what this concept looks like in practice.
Does your organization practice any form of People-Based Management?