In the Information Systems Forum group that I participate in, there has been a running dialog lately about whether a nonprofit should operate as a business.   At my current organization, I’ve watched the tide change from a President who came from the business world who clearly used business principles in his management style, to a new management which has reverted to a more traditional nonprofit style.

From the technology side, there are clearly an emphasis on fundraising which affects much of the software that I use.  In addition, the nonprofit focus on ‘mission’ is very different from the bottom line objectives of a corporation.  Yet I believe there are many business principles that can be used effectively in a nonprofit environment.  As a project manager, I think nonprofits have much to gain from systematically managing projects, e.g. making sure there is a project plan and that all stakeholders are involved in the process from the beginning.

I recently completed First, Break All the Rules, part of a series of books co-authored by Marcus Buckingham that includes Now, Discover Your Strengths and a recent addition, Go Put Your Strengths to Work: 6 Powerful Steps to Achieve Outstanding Performance.  Some of its ideas can be applied effectively in a for profit or nonprofit environment:

1. Select for Talent, described as ‘recurring patterns of behavior that can be productively applied.’  While skills and knowledge can be taught, talents cannot.
2. Define the Right Outcomes, then let your staff decide how to best achieve those outcomes.
3. Focus on Strengths, not on weaknesses as is traditionally done.
4. Find the Right Fit, where staff can apply the talents they already have

Some core elements needed to attract and maintain your most talented staff members include:

• do your know what is expected of you?
• is recognition and praise given regularly?
• does your manager encourage staff development?
• does the mission/purpose of company make your job feel important?
• do you have the opportunity to do what you are best at?

While nonprofits are different from businesses, there’s a lot we can learn from what from business on how to manage effectively.