Could Nonprofits Operate More Like Start-ups?
I recently shared a perspective that addresses many of the concerns I see most often and wanted to pose the question wider: Would nonprofits benefit from operating more like start-ups?
The Similarities
Most of us are a long way from Silicon Valley — physically and philosophically. But we have more in common than you may think, and there’s a lot we can learn.
Start-ups and nonprofits actually share a lot of DNA—we both run on extreme resourcefulness and mission-driven energy. Tech bros think they invented it, but we know nonprofit employees were stretching time, money, and people creatively, long before the internet. In both sectors, employees wear multiple hats and engineered work-arounds even when resources are limited. More importantly, we are also all motivated by a shared sense of purpose and possibility.
So if we are cut from the same cloth, why don’t nonprofits borrow more tactics that seem to work well in Silicon Valley? The following tenets of Start-Up businesses provide an interesting reframing of the way we run our organizations.
A Start-Up Mentality
Agility over perfection - In the nonprofit world, I often see organizations stunted by logistics. We try to solve every problem before we even know what the problems are. Start-ups believe that "done" is better than "perfect." What if we iterated more? Obtained more micro-feedback? Reacted in real time? Treated failure as nothing more than helpful data?
A flat culture - Too often, hierarchy in our sector prioritizes stature over collaboration. We regularly see program staff—the people who know the most about our impact—excluded from the Board rooms where decisions are made. What if we moved toward a culture where everyone, from the board to the volunteers, had a seat at the table?
Customer-centric thinking - A customer-centric company seeks to understand the customer’s journey, needs, and pain points to deliver maximum value. What if we called it “constituent-centric thinking” and proactively explored the ways the clients' wants and needs were being served rather than the ways we have built structures around serving them? Would that mean breaking down carefully built structures? Or could it enable us to share resources and become more agile?
Cohesion with Competition - What if the greatest pivot we can make is moving away from the idea that we are in this alone? Tech companies do this through acquisition of apps and head-hunting compelling individuals for high salaries. While the latter would be nice, it may not be realistic. So what if our more successful organizations considered supporting smaller groups who are doing outstanding work with regranting or shared resources? Could partnerships with grassroots organizations enable them to do a better job building trust in the communities they serve? Could we start building a culture where we are able to compete less for limited grant dollars?
Re-Starting
Maybe most of these ideas are terrifying, out-of-touch, and even impossible. But maybe one or two will stick with you. Perhaps they’ll enable you to operate differently. More collaboratively. More inclusively. What do you think?
