Should nonprofit organizations be managed in the same way that for-profit organizations are managed?
This reminds me of the "Government should be run like a business" mantra.
The rub is of course that the very people who use that mantra fail to understand it. If a business does not have the income it needs, then it does one of a few things, it raises the price, it lowers the cost of production, or it launches a new product and gets people to pay for that. Better yet it does all three. Whatever the business, the goal is to grow bigger and earn more.
But the "Government should be run like a business" folks would never think of raising taxes (raising the price, earning more), or launching a new product then getting folks to pay for it (new program = new tax). The only option they look at is lowering costs and offering less for "product". And that sounds like the approach from, GM, Ford, etc leading them ever downwards (could it be said - Running a business like a Government?).
So if the translation was right, and Government was truly "run like a business", it might just be a good thing.
In the same way if the the concept of nonprofit organizations being managed in the same way that for-profit organizations are managed is not an all bad idea. It is all in the translation. What is the equivalent of a product? Who gets charged? What is quality? What is good management?
Clif
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Clif Graves Consulting
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