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Not-For-Profit Organizations

Not-For-Profit Organizations

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Not-For-Profit Organizations

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  1. Not-For-ProfitOrganizations

  2. There are lots of not-for-profit (NFP) organizations • Many different types • Some coexist and compete with for-profit (FP) organizations • Strategic management issues differ greatly among various types of NFP organizations

  3. Revenue Sources are Key 100% Sponsor generated Revenue Customer/client generated 0%

  4. CSU Revenue Sources

  5. “Golden Rule” He/she with the gold makes the rules

  6. Patterns of Influence -1 Organization Customer/client

  7. Patterns of Influence -2 Organization Organization Sponsor Customer/client Client

  8. Some NFP Differences • Results intangible & hard to measure • Client influence may be weak • Sponsors may have different priorities • Volunteers • Strong staff commitments to causes • Constraints on financing • Constraints on rewards & punishments

  9. Some Impacts on Strategic Mgt. • Identify goal ambiguities & conflicts • Deal with emphasis on inputs • Politics may be more complex • Rewards less related to performance • Professionals may have major role in d/m • Tendency for “defensive centralization” • Need for “linking pins” and buffer roles

  10. Some NFP Strategies • Strategic piggybacking (requires) • Having something to sell • Critical mass of management talent • Entrepreneurial attitude & skills • Trustee/board/sponsor support • Venture capital • Strategic alliances • Mergers