Earlier this year we developed the ‘10 Question Business Model Diagnostic‘ to provide NFPs with insight and goals.
We’ve found that NFP orgs typically fit into 4 typologies: Walking Dead, Living on the Edge, Comfortable and Heroes.
Walking Dead
These organisations are low on both vitality and funds. It’s possible that poor financial or commercial management led them to this point, and probable that strangling or ineffective governance keeps them there. There is often no doubting the intent of the people working there, however their model is fatally flawed. These organisations don’t have long to live.
Living on the Edge
High on energy, low on cash – this is the poster start-up style organisation. They may be led by a charismatic dreamer, who is better at rallying the troops and selling a vision than making the model work day-to-day. A low viability score doesn’t necessarily mean no money at all – in fact they can be well funded in the short-term. However, the question of whether the model can be managed towards sustainability remains unresolved.
Comfortable
Often sitting on substantial assets or endowments, these organisations seem to be more focused on yesterday than tomorrow and are characterised by boards of tenure or honorary membership who run things as they always have been run. Some critics say that these organisations are chewing up market share, inefficiently consuming funds that could be used more effectively by other organisations to multiply the social benefit.
Heroes
These organisations not only have their model and culture right, they have a proven and regular capability to assess the proximate and remote future and execute adjustments to their model and culture to continue pursuing their mission.You probably already have an idea on which type matches your own.
To see which you fit into (and for advice on how to get to that Heroes status) try the tool out for yourself.
George is the Founder and Director of Spark Strategy and brings 30 years of experience in the strategic development of not-for-profit and public sectors organisations. He is one of Australia’s most experienced sector strategists and facilitator. George excels at helping organisations move from complex challenges to clear direction. He combines deep sector knowledge with genuine, long-term partnerships that drive meaningful and lasting impact. George is passionate about developing strategic thinking in leaders and boards and is the author of Spark Change, a practical guide to building strategic capability in the social sector and was a Business Book of the Year finalist.
Credentials
- 30+ years strategic advisory and facilitation experience
- Founder & Director, Spark Strategy
- MBA, Melbourne Business School
- GAICD
- Seasoned Board Chair