In economic theory, the goal of a business is to provide something of value that another entity will exchange something of equal value for. Bridging the gap between vision and exchange is the mission. For a for-profit, the exchange is for an item or service. The value may be utilitarian, such as a car for transportation. It may also serve as a non-utilitarian personal reward for the purchaser. And finally, the car purchase may provide a more esoteric sense of well-being or status for the purchaser. The sense of well-being is a completely altruistic act. The purchase of status could be purely for status or a combination of sense of well-being and status.
For a non-profit, the exchange is only for the latter sense of well being and status or combination of the two. The vision will focus on the sense of well being and may or may not hint at achieving status. The non-profit mission is to provide each with or without a physical item or service in the exchange.
Here’s where the difference occurs. In a for profit, mission is how a business generates revenue. For a non-profit, mission is also how the non-profit goes about generating revenue but also, how effectively it achieves the stated vision.
By example, I might buy a computer because it’s the best for my business needs. If the company states their vision is to become the best selling or most efficient or whatever lofty goal makes no difference to me. The purchase is personal. For a non-profit, however, I’m investing in the vision and how well they achieve that vision. A seasoned donor will look at both how well a non-profit achieves or approaches its stated vision but also how efficiently it does this, managerial flow, costs to revenue ratios, bootstrapping and marketing strategy etc...
With this understanding of the non-profit two-fold mission, strategy development around the how to can be done, keeping in mind that this more art than science.
Love to hear your thoughts!
No comments:
Post a Comment