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Nonprofit leaders are beginning to confront the most important unfinished business of their sector. Having invented scores of successful model programs to address virtually every type of social problem or goal, they are discovering that large-scale, sustained impact remains elusive. Today, the only way to get the full benefit of successful programs, however, is for nonprofit leaders to begin building high-performance organizationsi¿½nonprofits that are capable of creating sustained, effective impact. That requires reversing decades of under-investment in the capacity of nonprofits. A sector that has been indifferent, if not hostile, to the needs of its organizations, where leaders are forced to manage upstream, against countless obstacles, now needs to apply its ingenuity and passion to the challenge of creating high-performance organizations.

Drawing on management techniques used by successful managers in both businesses and nonprofits, High Performance Nonprofit Organizations outlines approaches that nonprofits can use to build their capacity for learning, innovating, ensuring quality, and motivating staff. Illustrated with case studies and examples, the book outlines processes for achieving these goals, including:

• human resources management-to attract and develop employees truly in synch with an organization's mission
• benchmarking-to identify practices that best meet a nonprofit's needs
• responsiveness and quality systems-to continuously review and upgrade quality of service
• product development-to tap the talents of every employee to create effective programs

The authors argue that these processesi¿½far from corrupting a nonprofit with practices that evolved to make companies more profitablei¿½actually help an organization convert its values and integrity into results for clients and communities. These adaptive capacities help nonprofits deliver on their mission, building the model organization that will make the biggest impact with model programs.

High Performance Nonprofit Organizations goes further, laying out an agenda for changing the nonprofit environment, making it more supportive of its managers and more aware of the potential of organizational capacity. The authors assess the special opportunity of several stakeholders-including the nonprofit board, foundations, and the national office of multisite nonprofitsi¿½to create a new culture that values organizational performance. For the nonprofit manager trying to build an organization that is truly responsive to its clients and community, High Performance Nonprofit Organizations is an essential review of best practices. For the board member, foundation program officer, or nonprofit leader trying to create sustained impact, it is a provocative challenge to deal with the sector's unfinished business with a new approach

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CONTENTS

Introduction = 1

 Fulfilling the Promise of the Nonprofit Sector = 2

 A Cross-Sector Look at Performance = 4

 Finding the Right Questions = 6

 The Challenge for Nonprofit Leaders, Boards, and Funders = 8

 Using This Book = 8

PART I : CONNECTING ORGANIZATIONAL CAPACITY, PERFORMANCE, AND SOCIAL IMPACT = 13

 Chapter One : Organizational Performance : The Hidden Engine of Social Impact = 15

  Current Strategies for Social Impact : Program, Program, Program = 16

  An Overlooked Strategy for Social Impact : High-Performing Organizations = 18

  Organizational Capacity : The Means for High Performance = 19

  Why Adaptive Capacity? = 23

  Size and the Power of Performance = 25

  Building an Agenda for Organizational Capacity = 26

 Chapter Two : Cross-Sector Lessons on Organizational Capacity = 29

  Excellent Management Practices Are Important : They Help Advance an Organization's Mission in Both Sectors = 30

  The Marketplace Supports the Organizational Capacity of Businesses - The Nonprofit Environment Starves It = 31

  Indifference to Organizational Capacity Has Its Roots Deep in the Nonprofit Culture of Service = 33

  Building Adaptive Capacity for High Peformance = 35

PART Ⅱ : BUILDING THE ORGANIZATIONAL CAPACITY THAT LEADS TO HIGH PERFORMANCE = 37

 Chapter Three : Quality Processes : Advancing Mission by Meeting Client Needs = 39

  Ritz-Carlton Hotel Company = 40

  AVSC International 43

  Wellspring House = 46

  Delivering on Mission with Disciplined Information Analysis = 48

  Conclusion = 54

  Organization Profiles = 55

 Chapter Four : Product Development : Better Ideas and Better Implementation = 59

  A World-Class Business Model for Product Development = 62

  The Boston YWCA's Youth Voice Collaborative = 67

  Vera Institute of Justice = 69

  Using World-Class Product Development for Nonprofit Ends = 71

  Conclusion = 80

  Organization Profiles = 80

 Chapter Five : Benchmarking : An Organizational Process That Links Learning and Results = 85

  Xerox Corporation = 87

  CARE USA = 89

  The Boston Ballet = 93

  Why Benchmarking? = 96

  Conclusion = 103

  Organization Profiles = 103

 Chapter Six : Human Resources : Developing Employees to Advance Organizational Goals = 107

  Common Nonprofit Responses to Human Resources = 108

  Redefining Human Resources as a Strategy for Delivering on Mission = 110

  Hewlett-Packard = 110

  Greater Boston Rehabilitation Services = 114

  Public Allies = 117

  Using Strategic Human Resources to Advance Social Missions = 120

  Compensation : A Critical but Limited Human Resources Tool = 121

  Understanding Jobs, Results, and Motivation = 123

  Investing in Human Potential = 125

  Organization Profiles = 126

PART Ⅲ : MOBILIZING STAKEHOLDERS FOR HIGH PERFORMANCE = 129

 Chapter Seven : The Nonprofit Board : Creating a Culture of Performance = 131

  The Challenge for Performance-Oriented Boards : Governing Upstream = 133

  The First Step : Defining and Measuring Performance = 134

  Reconciling High Performance and the Group Dynamics of Volunteers = 136

  Fundraising : A Distraction or a Resource for Performance? = 140

  Conclusion = 142

 Chapter Eight : The National Office: Leading Program Expansion by Supporting High Performance = 145

  Bruegger's Bagels = 147

  Summerbridge National = 149

  MacTemps, Inc. = 151

  YouthBuild USA = 152

  Making the Commitment to the New Role of a National Office = 155

  Developing Learning Systems That Support High Performance = 157

  Measuring, Supporting, and Demanding Performance by Affiliates = 161

  Tensions in the Central-Local Relationship = 163

  Conclusion = 165

  Organization Profiles = 165

 Chapter Nine : Virtuous Capital : Investing in Performance = 169

  The Foundation Funding Focus : Program Development = 170

  The Venture Capital Focus : Organization Building = 171

  Comparing the Funding Models = 173

  Strategies for Changing Foundation Practice = 181

  Strategies for Changing Nonprofit Practice = 187

  Conclusion = 190

 Chapter Ten : Building a Nonprofit Agenda for Performance = 193

  Why an Organizational Performance Agenda? = 193

  What Is an Agenda for Organizational Performance? = 197

  The Role of Researchers and Educators = 200

  Conclusion = 201

Index = 203