Porter, M. E. (2007). Doing Well at Doing Good: Do You Have a Strategy? In: Willow Creek Association Leadership Summit. South Barrington, Illinois, 10 August 2007. Boston: Harvard Business School. 원문보기
Doing Well at Doing Good
- In serving the community or the needy, charity, philanthropy, and giving are the wrong mindset
The Right Mindset
- Delivering social services
- Meeting the needs of a “customer”
- That achieve high value
Doing Good: Defining Appropriate Goals
- Good intentions are not enough
- The act of charity is not enough
- The obligation of a social enterprise is to create social value
- Society depends on us to use our time, relationships and financial contributions to do the most possible good
– Taking a tax deduction makes society a partner
- Social benefit must be defined and measured if social value is to be created
Strategy For Doing Good
- WHERE TO SERVE
What services should we provide to our community and to other needy communities?
- HOW TO SERVE
How can we create the greatest social value in delivering each service?
Choosing Where to Serve
- There are many worthy causes
- There are many unmet human needs
- No congregation can address all these needs, even if it wanted to
- Where can we add the most value?
Choosing Where to Serve: Strategic Principles – 1
- What are the most pressing needs of our own community?
- What are the pressing problems in other communities in need?
- What other organizations and institutions are available to meet those needs? Are they effective?
- What capabilities and resources do we have as a congregation/organization?
- Where can we add value beyond good intentions?
– Where can we do more than give money or unskilled labor?
- Which services excite the greatest passion and commitment in our congregation?
Choosing Where to Serve: Strategic Principles – 2
- What limited set of services should we focus on to provide as a congregation?
– What combination of services would be synergistic?
- Which excellent organizations should we contract with or support rather than providing services ourselves?
- Where could we scale up over time, or partner with other congregations?
- Most non-profits (and corporations engaged in community activities) try to do too many things, achieve limited impact, and do not use their resources for the highest and best use
Choosing Where to Serve: Words of Caution
- Lack of focus
- Pet projects
- Agenda creep
- Underutilizing volunteer capabilities
- “Not invented here”
- Imitating versus differentiating
Setting Strategy Flawed Concepts
- Strategy as aspiration
– “Our strategy is to serve one thousand families…”
– “…create 250 jobs…”
- Strategy as action
– “Our strategy is to build a new building…”
– “… give $100,000 in family support…”
- Strategy as vision / mission
– “Our strategy is to serve our community…”
– “…demonstrate our charity…”
Strategy is about an overall approach to creating the maximum social value for the target recipients/customers
Strategy Principles: 2. Choosing a Sustainable Solution Model
Addressing Inner City Poverty
|Traditional Model||New Model|
|Reduce Poverty||Create Jobs, Income and Wealth|
|Focus on Community Deficiencies||Focus on Competitive Advantages|
|Need: Social Services||Need: Business Investment|
|Geographic Space: Neighborhood||Geographic Space: Region|
|Lead: Government||Lead: Private Sector|
Sustainable Solution Models: Health Care Delivery in Resource-Poor Settings
|Current Model||New Model|
|• The product is treatment||The product is health|
|• Volume of services(# tests, treatments)||Value of services(health outcomes per unit of cost)|
|• Discrete interventions||Care cycles|
|• Individual disease stages||Sets of prevalent co-occurrences
– e.g., HIV and TB
|• Fragmentation of entities and programs||Integrated care delivery organizations|
Strategy Principles: 7. Making Clear Tradeoffs
- To be excellent at delivering any services, organizations must choose what not to do
Neutrogena Soap (1990)
- Forgo cleaning, skin softening, and deodorizing features
- Choose higher costs through the configuration of:
– packaging/manufacturing/detailing/medical advertising/skin research
- Give up the ability to reach customers via:
– promotions/television/some distribution channels
Barriers to Strategy in Non-Profits
- Unclear goals that allow any program to fit, and make performance impossible to measure
- Multiple or conflicting goals/target populations: Lack of consensus on goals
- Services driven by donor, staff, or CEO passions and preferences, not value or effectiveness
- No attempt to measure performance
- Limited attention to the costs of providing services, and thus the value
- Inability to make tradeoffs – all things to all people
- Inability to sunset any program or activity
Severe risk of agenda / program proliferation
The Role of Leaders in Strategy
- Lead the process of choosing the organization’s strategy
– Where to serve
– How to serve
– The choice of strategy cannot be entirely democratic
- Drive operational improvement while pursuing a clear strategy
- Communicate the strategy relentlessly to all constituencies
- Maintain discipline around the strategy, in the face of many distractions
- Measure progress against the strategy and value delivered
- Commitment to strategy is tested every day, especially in non-profit Organizations
- Today, government cannot solve all of society’s problems, at home or abroad
- We will have to solve these problems ourselves
- Congregational leaders must see this as a central part of their mission
- Your role is to mobilize your organizations to do good beyond the walls of the church
- Doing well at doing good is challenging, and must be approached strategically
- Delivering value to society will require raising the bar on utilizing your resources well