You've Gotta Have Heart: Achieving Purpose Beyond Profit in the Social Sector
If you're inclined to cynicism (like me), you might think the publishing industry, at this point, has put out enough business management titles to keep a typical middle manager busy for the next year or two. Indeed, given the volumes that have been written and all the ink that has been spilled on the subject, even those of us with only a passing interest in business and management should be world-beating CEOs by now. Trouble is, if you set aside a week to peruse all the most talked-about business titles of recent years, you'd be forgiven by the end of it for wondering, "Is that all there is? What about nonprofits? What about a metric other than profit? Or a focus other than on strategy? Where's the heart?"
Funny you should ask. Cass Wheeler, who served as CEO of the American Heart Association from 1997 until his retirement in 2008, has penned a management book of his own, and in it he addresses the hunger for charitable-minded business advice with aplomb.
Don't get me wrong. Wheeler isn't "old school" when it comes to nonprofits and how they should be managed. The days of charities as scrappy little institutions, muddling by on their wits and the kindness of strangers are long gone, he says. Rather, he espouses a more pragmatic, clear-eyed view of what nonprofits need to do to succeed. Not surprisingly, it's a view that entails adopting many tactics from the for-profit world, including an enthusiastic embrace of state-of-the-art marketing techniques and the need for a well-thought-out, detailed business plan.
At the same time, Wheeler understands that many nonprofit leaders are uncomfortable about adopting techniques from the world of business, fearing that it may cost them the values and sensibility that attracted them to the nonprofit sector in the first place. To those leaders, he says: "We must stay true to our missions and purpose and not compromise our organizations simply to make more money or serve more people. But we must embrace some of the tactics and practices of for-profit corporations to stay competitive and achieve our goals."
To that end, Wheeler has written a very helpful guide, complete with bullet points and chapter summaries, for nonprofit leaders who aspire to lead their organizations to the next level of effectiveness. Along the way, he offers advice on both the more regimented aspects of nonprofit work — business model development, branding, collaboration and partnerships — as well as the traditional nuts-and-bolts aspects of charity work — advocacy, volunteer management, developing a mission statement. His greatest achievement, however, might be the way he seamlessly weaves his discussion of business-minded practicality and charitable-minded idealism into a compelling, coherent presentation that does justice to both without slighting either.
Wheeler insists, for example, that beyond the intention to "do good," nonprofits must be strategic about doing good — and must measure their effectiveness in pursuit of that goal in a concrete way. While he notes that some charity watchdog groups measure a nonprofit's effectiveness by determining whether its fundraising and general operating costs exceed 25 percent of the organization's revenues (i.e., north of that and you're deemed to be ineffective), he correctly observes that such a calculation says very little about a nonprofit's true effectiveness.
AHA, Wheeler says, came up with a very different measure to determine success that entailed establishing a "breakthrough goal" — in its case, reducing coronary heart disease, stroke, and key risk factors by 25 percent by 2010 — and stresses the need for every nonprofit to develop a breakthrough goal of its own, in part to measure its effectiveness and provide accountability to stakeholders, but also because such a goal "forces you to get serious about being the best you can be." Indeed, he infuses each topic he covers with the theme of strategy and measurement. In discussing staff management, for example, he recommends using a "people strategy" that involves categorizing staff according to their potential. In structuring a board of directors, he offers up a competency-based model tied to an organization's strategic plan. And in terms of advocacy efforts, he offer AHA's own nine-part federal public policy agenda as an example.
Throughout, Wheeler humanizes his advice and guidance with stories of lessons learned during his tenure at the American Heart Association — lessons that really help to bring his advice to life. Bullet points and references to other management books are well and good, but they are no substitute for real-world examples that illustrate how an organization applied a particular technique — and the outcome(s) that followed. It's one thing, for example, to be told about the value of partnering with an influential person or company; the term "strategic alliance value proposition," on its own, is enough to set anyone's head swimming. It's something entirely different to hear how AHA was able to meet with former president Bill Clinton following his successful heart surgery in 2004 and subsequently form an alliance with the William J. Clinton Foundation to combat childhood obesity.
By now, you've probably noted that this skeptic developed, well, a bit of a soft spot for Cass Wheeler and the book he has written. Plainspoken and straightforward, his words ring with pragmatism based on years of experience, success, and the occasional setback. And as he notes early on, anyone moved to pick up a book like this — whether she's an executive, a board member, a staffer, or a volunteer — is, in their own way, already well on their way to being a nonprofit leader.
