For-Profit Leaders can Learn Something from Non-Profit Leaders

Most of my posts are relevant for all types of organizational leadership, but this time I'm going to focus on a leadership skill more prevelant in the non-profit sector, which is leadership through influence. I contend that for-profit sector leaders could benefit greatly from honing this skill, which is often overlooked in the corporate world, which tends to focus more on motivation through power and position than influence.

One of the hallmarks of most businesses -- despite the lip-service given to having "flatter," matrix style organizational charts -- is heirarchy. You have the CEO at the top of the pyramid with progressively wider layers until you reach the wide base of line-level workers. What distinguishes non-profit from for-profit management is that there are, in fact, two heirarchies -- parallel pyramids, if you will.

One heirarchy is the staff, which matches the for-profit corporate structure just mentioned, and the other is a volunteer heirarchy. At the top of the volunteer pyramid is the elected board of directors, with progressively wider layers of committees, working groups and task forces with the wide bottom layer being the dues-paying members or contributors that support the organization but don't hold a volunteer role.

A unique aspect of non-profit leadership is that the customers (members), not the employees, "own" the organization - although they reap no direct financial benefit from ownership. Furthermore, the volunteer heirarchy is the ultimate authority and has the ability to hire and fire staff and even change the mission of the organization. Thus, staff are employed solely at the will of the volunteers.

The challenge of this structure is that it is staff that best understands the business of the organization, as they run it every day. And it is the staff that is held most accountable for the success of the organization. Yet, staff must follow the dictates of individuals whose leadership positions are part-time (i.e., they have a day job), usually unpaid and temporary -- generally no more than a 1- to 2-year term in a specific role.

And the volunteer leadership is elected, not hired, so there is no means for maintaining true accountability. If a volunteer "checks out," or is acting in a way that is truly harmful to the organization, in many cases, there is little if any recourse available. In some cases, the only course of action available is for the board to request that the individual voluntarily resign. Sometimes they will. Usually, they won't.

While the non-profit sector is perceived by some as a "lesser" profession than the for-profit corporate sector (the thought being the best and the brightest can only be attracted by high salaries and stock options), to be truly effective, I contend non-profit organizations require a much higher standard of staff leadership and management than for-profit entities.

Why?

Precisely because of the non-profit CEO's inability to use a paycheck or the ability to hire and fire as a form of motivation within the volunteer hierarchy. To enlist others in the peformance of a common task, non-profit CEOs cannot simply dictate organizational policy because their position is subordinate to the volunteer board of directors. A more nuanced form of leadership is required, where influence, rather then power and position, brings results.

Non-profit CEOs are the ultimate influencer leaders. President Ronald Reagan was famous for saying, "There's no limit to what you can accomplish as long as you don't care who gets the credit." Effective non-profit CEOs have that quote tatooed on their foreheads. They must be forever the Wizard of Oz behind the curtain. (I've had to bite my tongue more than once when a volunteer leader has taken credit for my idea, saying something like "This is one of the key objectives of my administration.")

This style of leadership requires consensus-building, being able to "sell" your ideas by providing the benefit of your knowledge and experience, building confidence among the volunteers that you have the best interest of the organization at heart and can "see the big picture." This is a form of leadership that is more difficult than handing down policy from the corner office knowing the footsoldiers have to implement it or find another job.

The command and control form of leadership may get results, but what it may not get is commitment and confidence. Leadership through influence, which comes from trust and relationship building gets results, but it also gets commitment and confidence.

Everyone is a Volunteer

As employers or organizational leaders, we sometimes view the contributions others make to the organization as "owed" to us. They get a paycheck, after all. Or, if they are volunteers, they "signed up for this" and owe us a commitment.

As leaders we need to recognize that everyone, even if they get a paycheck, is a volunteer.

Even though we as leaders may live under the delusion that others do our bidding because they are compelled to do so because of our position or title and their desire for self-preservation, the reality is they choose how they will do it, when they will do it, how well they will do it, and even if they will do it. If this weren't the case, then performance appraisal, discipline, etc., would be unnecessary.

Whether one uses the carrot or the stick, it is important to remember that we can only influence behavior, we cannot compel or control it. One need only consider the prisoner of war who, despite hellish torture and deprivation, is still able to choose not to be compelled -- even if doing so means annihilation. While all of us may have had "the job from hell" at some point in our careers, no one, I think, has faced the conditions of a prisoner of war in the corporate environment.

We might take the perspective, then, that those under our leadership provide their time and talent as a gift freely given. Whether we recognize it or not, people do have other options and could make different choices. If they do the job assigned, it is because they choose to provide service to us and our organization.

With this in mind, we can view leadership differently. What do we need to consider if everyone is a volunteer?

Personal Priorities: Our priorities are measured by where we put our time. If I say my family is my priority but spend all my time at work, I'm kidding myself. Clearly, whether I am willing to acknowledge it, work is my priority. Thus, an employee who truly values family more than work may choose not to do a task assigned because it interferes with family time. Being clear, then, on our volunteers' priorities can assist us in recognizing how to create an environment where the task can be done without having to compete with a higher priority. Attempting to change another person's inner priorities will only lead to frustration.

Desire to Make a Difference: One aspect of voluntarism is a desire to make a difference. Is my contribution meaningful? Does it have an impact? Sometimes, the tasks that must be performed seem meaningless and of little influence. The reality is, every action, no matter how small, is meaningful. Processes are interdependent. A simple invoice sent with the correct information, sent to the right address in a prompt manner can have enormous impact on a customer's perception of your business and their desire to continue working with you. While a salesperson may get the glory for bringing in the customer, the accounts receivable clerk may have just as much impact on your profitability. Thus, communicating the importance of even the small actions and appreciating the contribution made in the context of its impact on the success of the organization is very important.

Passion for the Cause: We willingly gift our time and talent with no expectation of return when we are passionate about a cause. What makes people passionate about a cause? It is the perceived positive impact being made in the world. Does your organization have a cause others can be passionate about? Does your product or service truly contribute to a better world? Or, maybe more indirectly, does your production of that product or service enable the organization to contribute to a better world? If so, then that should be communicated and reinforced by organizational leadership.

Other reasons people have for volunteering include:

• Achievement: to enjoy a sense of accomplishment.
• Recognition and Feedback: to be held in high esteem by your fellows and get a "pat on the back."
• Personal Growth: to stretch and learn.
• Giving Something Back: to return the blessings you have received. In the job setting, this could be someone who has had an exquisite career but now wants to teach, mentor or counsel.
• Friendship, Support and a Feeling of Belonging: how often have you stayed in a job longer than you might have simply because you loved the people you worked with? How often have you heard that "people don't leave jobs, they leave people?"

Employees seek and stay in jobs for many of the same reasons they volunteer. Finding out what stirs their passion to volunteer can also help you determine what stirs their passion for work in general.