A series of great posts over at the Tactical Philanthropy blog on high performance and impact.
Sean starts by comparing high performance and high impact (make sure you check out the debate in the comments as well) and arguing:
"that the best way for philanthropists to achieve impact is not to focus on analyzing impact directly, but through identifying and funding High Performance nonprofits."
He then looks in more depth at defining high performance.
In the first part, Sean cleverly applies Warren Buffet's rules/questions for identifying high performing companies to the non-profit sector. These are:
- Is the organisation simple and understandable?
- Does the org have a consistent operating history?
- Does the org have favourable long term prospects?
- Is management rational?
- Is management candid with shareholders?
- Does management resist the Instituional Imperative?
- Focus on return on equity, not earnings.
- Look for companies with high profit margins.
In his second post, he takes the six practices identified in the 'Forces for Good' book to produce a 'robust definition of high performance'. The six practices are:
- Advocate and Serve
- Make Markets Work
- Inspire Evangelists
- Nurture Nonprofit Networks
- Master the Art of Adaptation
- Share Leadership