Why Nonprofits Fail: Overcoming Founder's Syndrome, Fundphobia, and Other Obstacles to Success
The fundamental message of Stephen Block's new book is that executive directors and other nonprofit managers have a responsibility to ensure that their nonprofits operate effectively. He believes that nonprofit organizations have a duty not to fail — which translates into a duty to take calculated risks and try new approaches to problem-solving if more conventional methods have failed.
Block states that since change is inevitable, the goal of managers is to "ensure that organizational change occurs for the better." He wrote the book to help those leaders solve hard problems and to proactively manage change rather than simply react to it.
The book is divided into two parts. The first four chapters focus on the important role of nonprofit managers and acknowledge the challenges and concerns they face. Here the author describes the basic framework he recommends to assess roadblocks and to develop strategies for solving these problems. He emphasizes the importance of considering alternative strategies to the conventional problem-solving approaches.
The seven chapters in the second part of the book explore specific problems common to most nonprofits and possible solutions. Each chapter focuses on one particular issue, using one or more case studies based on real situations. The topics highlighted in this section of the book, chosen by the author because of their universality, include the relationship between recruitment practices and what really happens when someone joins the board; problems with the organizational culture; behaviors and problems related to organizational politics; problems created by ambiguous roles and responsibilities for nonprofit managers and board members; fiscal instability that increases when board members and staff do not meet their financial responsibilities; "fundphobia," or problems that arise when board members do not participate in fundraising activities; and "founder's syndrome," leadership and power problems that may arise when the nonprofit is managed by the founder. The examples are followed by analysis of the issues, alternative ways to look at the problem, and recommendations for possible intervention strategies.
The author stresses in his examples the importance of using "second-order" approaches rather than "first-order" ones. First-order approaches to change do not require a shift in the usual way of thinking about a problem or its solution. They focus on the "why" and may often equate to applying commonsense logic. Second-order approaches, on the other hand, do require a shift in how one interprets a problem and often result in noticeable organizational transformations. They focus on this question: "What is happening here and now that is perpetuating the problem?" Problem solvers using second-order approaches realize that they do not always need to understand the "why" to solve the problem, but may need to initiate change by looking at the current effects of the problem.
Additional resources found in this book include an overview of seven theories of organizational behavior that Block references throughout the book, a recommended reading list in addition to citations to works cited in the book, and an index.
The author presents some interesting case studies that will be recognizable to anyone working in nonprofits. He offers some "second-order" approaches to solving those problems that should leave the reader thinking creatively about problem solving.
For citations to additional materials on this topic, refer to Literature of the Nonprofit Sector Online, using the subject headings "Nonprofit organizations-administration" or "Nonprofit organizations-management."
