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Managing the Non-Profit Organization: Principles and Practices

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Title: Managing the Non-Profit Organization: Principles and Practices
by Peter F. Drucker
ISBN: 0-88730-601-2
Publisher: HarperBusiness
Pub. Date: 03 August, 1992
Format: Paperback
Volumes: 1
List Price(USD): $16.95
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Average Customer Rating: 4.67 (9 reviews)

Customer Reviews

Rating: 3
Summary: He didn't make a strong argument for each point
Comment: This book contains a lot of useful information, yet the only problem lies on his way to express and prove it. Normally, I saw he made a point, then gave an example for that point which also help him jump to another point... After all, it's really hard to absorb something out of this book. It will be better if the author pays more attention to explain his point, makes his argument stronger.

Rating: 5
Summary: Invaluable for all non-profits
Comment: Non-profit institutions, the agents of human change, have moved from the margins to the center of American society because government has limited ability to perform social tasks. As non-profits are the nation's biggest "employer" when considering the numbers of hours contributed by volunteers they need good management. There is not much material available to help non-profit leaders and management with such areas as mission, strategy, organization, marketing, raising money, innovation, use of volunteers and human resources, the role of the board, and relationships with a diversity of constituencies. This lack of material combined with high levels of commitment may contribute to the high rate of burnout. Although non-profit institutions have been America's resounding success and growth industry over the last fifty years they still receive only 2-3% of GNP while the share for medicine and education has increased several times. Drucker considers the first task ahead for non-profits to be the conversion of "donors" into "contributors." Contributing time to a non-profit gives people a sense of community, purpose, direction and the ability to perform and achieve. But most non-profits still have to learn this. This book therefore sets out to do two things: provide advice from the business world appropriate to the non-profit and, through interviews with distinguished non-profit performers, show what can and should be done.

The book has five sections, the first being "The Mission Comes First: and your role as a leader." I provide a few snippets that were particularly meaningful to me. Some mission statements work while others don't work, the ultimate test being right action. Almost every hospital says "Our mission is health care" which is wrong because no one can tell you what action or behavior follows. The mission statements for some colleges are confused. On the other hand Sears Roebuck went from a near-bankrupt, struggling mail-order house at the beginning of the last century into the world's leading retailer within less than ten years by having a mission statement that was operational and focused on what they tried to do so that each person involved can say "This is my contribution to the goal." When an emergency room got its mission statement right, everyone was seen by a qualified person in less than a minute. But missions have to be reviewed, revised and perhaps measures need to be taken for organized abandonment. Things that were of primary importance may become secondary or totally irrelevant. The author tells us to watch this carefully or we may become a museum piece.

To get the mission statement right, there are a number of searching questions that must be asked such as "where can we, with our limited resources, make a difference?", "can we set a new standard?", "what are the opportunities or needs?", "do they fit us?", "can we do a good job?", "are we competent?", "do the needs match our strengths?" and "do we really believe in this?" The author closes this section with the following paragraph:
"So you need three things: opportunities; competence; and commitment. Every mission statement, believe me, has to reflect all three or it will fall down on what is its ultimate goal, its ultimate purpose and final test. It will not mobilize the human resources of the organization for getting the right things done."

In the section "Leadership is a Foul-Weather Job" Drucker takes a refreshingly different approach by recalling that Winston Churchill was the most successful leader of the last century. But from 1928 to 1940 he was on the sidelines and almost discredited because there was no need for a Churchill. Fortunately he was there when the crisis came. The one predictable thing in an organization is the crisis. That is when you do depend on the leader. But to wait until the crisis hits is abdication. One has to make the organization capable of anticipating the storm, weathering it, and being ahead of it. That is called innovation or constant renewal. You have to build an organization that is battle ready. Having told us this the author goes on to say "Problems of success have ruined more organizations than has failure, partly because if things go wrong, everybody knows they have to go to work. Success creates its own euphoria. You outrun your resources. And you retire on the job, which may be the most difficult thing to fight." Let me quote one more observation on leadership. "To every leader there is a season. There is profundity in that statement, but it's not that simple. Winston Churchill in ordinary peaceful, normal times would not have been very effective. He needed the challenge. Probably the same is true of Franklin D. Roosevelt, who was basically a lazy man. I don't think FDR would have been a good president in the 1920s. His adrenalin wouldn't have produced. On the other hand, there are people who are very good when things are pretty routine, but who can't take the stress of an emergency. Most organizations need somebody who can lead regardless of the weather. What matters is that he or she works on the basic competencies."

We are indeed fortunate that such an outstanding mind as Peter Drucker has turned his attention to the non-profit sector. There will be few institutions that cannot improve their performance by absorbing the lessons from this book. In this period of rapid change as Drucker says "the only predictable thing is a crisis." If you are a trustee of a non-profit you need this book as a constant reference and guide. If you hold a position of power you should be thoroughly familiar with every piece of information that is relevant to your institution. If you are working for an organization that you fear may be heading downhill this book will help you to become the champion. There is so much wisdom in this book that only the foolhardy will believe that they have a superior wisdom and can do without it.
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Rating: 5
Summary: Great Book of Leaders of NonProfits
Comment: This delightful book is a collection of essays and interviews by Peter Drucker concerning the management, mission, performance strategies, people development and leadership development of the non-profit organization. The format of essay and interview gives the reader not only the wisdom of Druckers insights, but also the wisdom and practical applications of those who manage non-profits organizations. I am especially appreciative that Drucker did not ignore the church in this book; his insights to church management are worth the price of this book.

I have heard of this sage of business and economics for years, but have never had the privilege of reading one of his books. His advice is born out of years of experience in the business community. He has a knack to communicate complex ideas with simple words. The fact that his book was not especially written for churches (although it does not ignore them) is one of its greatest strengths for the pastor. It demonstrates that service is service; mission is mission; and leadership is leadership, no matter what the nature of the non-profit is. As I looked at the examples given in the text I can see the strength and weaknesses of the church.

It is a book full of helpful advice. Some of Druckers insights are: the importance of mission over natural charisma; one does not have to be a dynamic leader to do great things. It is important to set high standards for your people to aim at. Good intentions are not enough; one needs a plan, marketing, people and money to get good results. Leadership takes courage. Good ideas are a dime a dozen; we need people with ability and willingness to get results. It is important that we see the community and not church members as our consumer base. Change takes time, so be patient.

It's a great book for any leader of any non-profit.

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