Profit From Soaring Like a Nonprofit Eagle

An idealist is a man who helps other people to bework on this project.
prosperous.How did we eventually find participants? We began
- Henry Fordto work with for-profit hospitals. Their leaders cared
Through my continuing studies into the nature ofabout cutting costs because they were financially
rapid improvements, I looked at all kinds ofrewarded for earning higher profits.
organizations. Having been a fan of Peter Drucker'sFrom that experience, I learned that breakthrough
writing since the early 1970s, I was familiar with hisinnovations from nonprofits were easier to spot than
point that nonprofit organizations are often better atbreakthrough-innovating nonprofits. Scanning for
innovating breakthroughs than for-profit companiesnews stories, I began to find those nonprofits that
are. Why? Resources are usually so scarce inhad soared like eagles to go to a higher level of
nonprofits that anyone who wants to provide moreperformance in some particular activity.
benefits has to do a great deal with very little.Then I studied how those organizations had
In addition, nonprofits attract people who aresucceeded and extracted the key lessons from
inherently motivated by the organization's purpose tothese champions. In every case, I found high levels
look for how to do the most. Imagine, for instance,of personal identification among staff and volunteers
the differences in perspective and motivation youwith organizational goals to improve the world for
would experience between working for a for-profitothers. This identification was just as strong among
waste disposal company and a nonprofit organizationstaff and volunteers as it was among the
aimed at eliminating breast cancer.organization's founders.
I continually go in touch with leaders of nonprofitWho were such organizations? Many were pursuing
organizations to see what they were doing. Mostly, Ireligious activities such as the emerging Protestant
found bureaucracies more concerned with their ownmega-churches that Peter Drucker often advised.
perpetuation than with making any improvements.The Salvation Army was another organization that
For instance, I worked on a project while with Theeffectively drew on Christian roots.
Boston Consulting Group in the early 1970s to findSecular concerns drove other groups, such as the Girl
ways to contain health-care costs. One idea thatScouts under Peter Drucker's tutee, Frances
interested the United States Department of Health,Hesselbein, to breakthrough excellence. Concerns
Education, and Welfare (HEW) was to simplify billing inabout eradicating poverty provided the motivation to
hospitals so that the same revenue was generated,succeed for the Grameen Bank in Bangladesh, which
but at less expense. In those days, a bill for aprovides low-cost, small loans to farmers and fledgling
three-day hospital stay could run to 67 pages.entrepreneurs in remarkably effective ways.
HEW gave a grant to our consulting firm and ourIn addition, employees, volunteers, and beneficiaries
accounting firm partner to put demonstrationfound their lives were transformed in positive ways
projects in place to generate shorter bills that wouldbeyond what they could have expected. The
be less expensive to produce. There would be noenthusiasm became contagious, and rapid growth
cost to the organizations that participated in theensued that did not dilute the motivation. For-profit
demonstrations. The grant also provided payments toskills and innovations rapidly invaded the nonprofit
state hospital associations for their efforts inorganizations through the attention of volunteers and
describing the project as one method for enlistingdonors. From these observations, I realized that rate
participants.of improvement was often related to how strongly
My colleagues and I trekked across the United Statespeople felt about gaining the benefits from making
many times to describe the opportunity. The result?improvements.
No nonprofit hospital in the United States wanted toCopyright 2008 Donald W.