Nonprofits inherently have purpose, but purpose doesn’t take care of itself.
Nonprofits have what for-profits envy: an authentic Purpose that inspires their team (and their donors) to work with passion and enthusiasm. Only, in my experience, nonprofit leaders often take this amazing opportunity for granted, assuming that the Purpose side of a nonprofit will take care of itself.
As I've built my companies over the last two decades, several of which are nonprofits, I've developed a methodology (The Purpose Playbook) to help leadership teams build a trusting culture, leverage and operationalize their Purpose, Vision, Tenets, and Values (PVTV), and embrace the mindset of an entrepreneur to unlock their potential.
Below are five core concepts that I've seen help nonprofits thrive:
1. Establish and Live by PVTV
- Define PVTV: Clearly articulate the organization's Purpose (why it exists), Vision (what it aspires to achieve), Tenets (core beliefs and guiding actions), and Values (standards for behavior). This alignment inspires commitment and clarifies the direction.
- Communicate Consistently: Share these foundational principles regularly with stakeholders to ensure clarity and alignment.
Your Purpose needs to be front and center in all your communication, internally and externally. It should be what guides your key decisions, specifically during times of difficulty.
2. Build a Trusting Leadership Team
- Promote Open Communication: Encourage transparency and vulnerability among leadership team members to build trust.
- Right People, Right Roles: Ensure the leadership team includes individuals who align with the organization's PVTV and are committed to its success.
You'll never stop working on creating trust in the team. As a leader, showing vulnerability is key to letting your team know that it's okay to admit mistakes and that you're all in it together.
3. Create Quick Wins and Celebrate Success
- Identify Tangible Goals: Break down the Vision into smaller, achievable milestones to demonstrate progress and build momentum.
- Celebrate Achievements: Recognize and reward contributions that align with the PVTV, fostering motivation and unity.
When implementing change, it is important to strive to quickly show the team that winning is possible. If you start with a BHAG (Big, Hairy, Audacious Goal) and it takes six months to achieve, the team can lose steam. Look for quick ways to build momentum and keep the team engaged – and then celebrate those wins, no matter how small!
4. Foster an Undeniable Culture
- Prioritize Engagement: Develop a culture of inclusion and collaboration that reflects the PVTV. For instance, organizing "Weness" activities helps create a sense of belonging.
- Empower Team Members: Provide resources and authority to team members to take initiative, ensuring they feel valued and integral to the mission.
At the end of the day, your culture is going to be the reason people stay or leave. The good news is that a strong culture will permeate everything you do. It will affect your volunteers, the people you serve, and even your board and donors. The bad news is that a weak culture will do the same. This is why it's imperative that you focus on building what I like to call an "undeniable" culture.
5. Embrace a Startup Mindset
- Act with Agility: Encourage flexibility and swift decision-making to adapt to opportunities and challenges.
- Welcome Purposeful Failure: View failures as learning opportunities to refine strategies and improve outcomes.
Nonprofits, like most companies, can fall into a rhythm where they aren't innovating or taking any chances. This will stifle growth and create a sense of lethargy throughout the organization. Thinking like an entrepreneur – being open to change, embracing failure, and moving nimbly – will help you lead your team to new heights and keep everyone excited about the future.
By embedding these principles into your organization's foundation, cultivating trust within the leadership team, and adopting entrepreneurial strategies, you can unlock sustainable growth and create greater impact.
I wish you the best of luck. We're all counting on it.