For-Profit Execs: Are you ready for the big crossover?

Posted on 07. Oct, 2009 by in Career, Guidance for Good, Nonprofit

After years of straddling the line between nonprofits and for-profits (many nonprofits recruit board members from the corporate sector), there’s one conversation I have with the for-profit executives pretty frequently.

It always starts like this: “I’ve worked at OmniCorp for 20 years. I’m thinking about moving to a non-profit …”

The nonprofit world is alluring to for-profit executives, and their motivation is almost always pure and altruistic. They see the move as one where they can loosen their tie — or cut it off altogether — take a pay cut and change the world.

And while that may be true, the transition is often more challenging than some executives expect. Here are some other questions to consider:

  • Are you ready for fuzzier math? While the business sector’s primary goal is to make a profit for shareholders through the sale of goods and services, nonprofits strive to be agents of change, which is usually tougher to measure.
  • Are you ready for a whole new kind of marketplace? In the business sector, outcome measurements are driven by shareholders; in the nonprofit sector, funders drive outcome measurements.
  • Are you ready for less support? Nonprofits tend to be high on commitment to mission but low on investing resources in staff, such as improving compensation, on-going education, cross-functional training, and retirement planning.
  • Are you ready to get involved in multiple disciplines? At many nonprofits, there is an understanding that “we’re all in this together.” In addition to their original job description, many executives end up becoming de facto CIOs, CFOs, or CMOs.
  • Are you ready to work hard? I mean, really hard? Almost all executive jobs are tough, but many executives who move to a nonprofit indicate that they are working harder than they expected, since existing management talent is overextended.

If that doesn’t scare off my executives considering a crossover, we then start talking about how to make the crossover happen, which we’ll save for a separate post.

If you have answered “yes” so far, the next steps involve creating a resume and biographical sketch outlining the transferable competencies that would add value to a nonprofit. If you have never served on a nonprofit board, now is the time to explore missions that you want to pursue and offer to join a board committee. All nonprofits welcome expertise on their committees, and this is the spring-board to a governance role. With this in hand, you are ready to take your leap.

Can you do more with less? Yes!

Posted on 07. Oct, 2009 by in Guidance for Good, Nonprofit, Recruiting

Nonprofits and Talent Management in Tough Economic Times

Before we talk about why nonprofits should continue hiring during a recession, I want to paint a picture of you in the near future.

It’s spring, 2011. You’re standing in front of your board, every one of them eager to know the state of your nonprofit. Here’s what you get to say:

“The last three years weren’t easy for us. Donations were down and we had to make hard decisions about how we funded our programs. But I’m here today to tell you we are emerging smarter and stronger than ever and, with some strategic hires, we are poised to exceed our program goals and the realization of our vision.”

Want to give that speech in 18 months? Now is the time to start thinking about it by strategically attracting and retaining the best talent.

Why focus on talent now? Because successful talent management delivers the twin benefits of lowered costs and increased productivity, which are especially welcome in a constrained business climate. Regardless of market conditions, organizations need to hire and manage their talent to fill positions and manage performance.

Recruiting now is also a good long-term competitive strategy. It’s useful to actively recruit people who have been laid off by your competitors and score some talent that will make your organization shine well after the economic storms have passed.

The best talent management guides hiring and performance processes. Done correctly — especially in a down market — it can be the best use of a nonprofit leader’s time.

And, it might just get you a standing ovation.