> The incentives are fundamentally different and, arguable, at odds with entrepreneurial profit-oriented incentives.
From personal experience, the differences seem simple on paper, but lead to much different social and political culture:
* The board has the power. This is inverse of most companies, where the founders or CEO/President have a tight grip on the board. I've been on NFP boards where our first vote at every meeting was "Shall the executive director be retained." I've worked at a NFP where the board was carefully managed by the Executive Director to ensure he maintained his position, and still had to deal with a level of political subterfuge to keep his job that I've never seen in business, large, small, public or private. Eventually, he lost the board.
* The goal is not to make profits. The goal is simple: 1) survive and 2) gain support to achieve something worthwhile. Survive is the same as private sector, but gaining support is very different than selling. Outside of winning grants which is much more like the private sector RFP/Proposal process, getting support is just different. Appeals to ego (i.e. your legacy, public optics) to get big donors, what feels like selling your soul for corporate support (corporate donors often come with an ask beyond the mission of your NFP), or horse trading for government support.
* Products and services are doable, but difficult because it's easier to throw a couple of boondoggles (destination conferences), local awards dinners and publish a newsletter that build something actually useful. There's value in the conferences, awards and newsletters, but it isn't hard ROI.
From personal experience, the differences seem simple on paper, but lead to much different social and political culture:
* The board has the power. This is inverse of most companies, where the founders or CEO/President have a tight grip on the board. I've been on NFP boards where our first vote at every meeting was "Shall the executive director be retained." I've worked at a NFP where the board was carefully managed by the Executive Director to ensure he maintained his position, and still had to deal with a level of political subterfuge to keep his job that I've never seen in business, large, small, public or private. Eventually, he lost the board.
* The goal is not to make profits. The goal is simple: 1) survive and 2) gain support to achieve something worthwhile. Survive is the same as private sector, but gaining support is very different than selling. Outside of winning grants which is much more like the private sector RFP/Proposal process, getting support is just different. Appeals to ego (i.e. your legacy, public optics) to get big donors, what feels like selling your soul for corporate support (corporate donors often come with an ask beyond the mission of your NFP), or horse trading for government support.
* Products and services are doable, but difficult because it's easier to throw a couple of boondoggles (destination conferences), local awards dinners and publish a newsletter that build something actually useful. There's value in the conferences, awards and newsletters, but it isn't hard ROI.
> listening more ... Servant Leadership
This is extremely good advice.