MRELP. MN Rural Education Leadership Program

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1 MRELP MN Rural Education Leadership Program

2 Why Business Thinking is Not the Answer: Good to Great & the Social Sectors A Monograph to Accompany Good to Great Jim Collins 2005

3 Why is This Important? Page 1: Most businesses fall between mediocre & good - why use their practices? Page 2: What principles explain the difference between good to great? Powerpoint - page 2 Page 3: Five issues that form the framework of this small book: 1) Defining Great - Calibrating Success Without Business Metrics 2) Level 5 Leadership - Getting Things Done Within a Diffuse Power Structure 3) First Who - Getting the Right People on the Bus Within Social Sector Constraints 4) The Hedgehog Concept - Rethinking the Economic Engine Without a Profit Motive 5) Turning the Flywheel - Building Momentum by Building the Brand

4 Issue #1: Defining Great Calibrating Success Without Business Metrics Page 4: Page 5: Page 5: Page 7: Example - Stanford Athletic Spearmint The confusion between inputs & outputs stems from one of the primary differences between business & the social sectors. In business, money is both an input (a resource for achieving greatness) and an output (a measure of greatness). In the social sectors, money is only an input, and not a measure of greatness. Key Point: Separate inputs form outputs, & hold yourself accountable for progress in outputs, even if those outputs defy measurement. BHAG: (Big Hairy Audacious Goal). Then ask What do we mean by great results? (Page 8: Religiously tracking trajectory)

5 Issue #2: Level 5 Leadership Getting Things Done Within a Diffuse Power Structure Page 9: Page 10: Page 11: Page 12: Page 13: Nonprofit leaders do not usually have the full power of decision. There is the power of inclusion, the power of shared interests, and the power of coalition. Power is all around you to draw on, but it is rarely raw, rarely visible. and...most nonbusiness leaders simply do not have the concentrated decision power of a CEO. Level 5 leadership (illustration on page 12). True leadership only exists if people follow when they have the freedom not to.

6 Issue #3: First Who Getting the Right People on the Bus Within Social Sector Constraints Page 13: A) You can build a pocket of greatness without executive power. B) First Who System: Get the right people on the bus, the wrong people off the bus, & the right people in the right seats C) Early assessment mechanisms, rigorously employed.

7 Issue #4: The Hedgehog Concept Rethinking the Economic Engine Without a Profit Motive Page 17: Page 18: Page 19: Page 18: Page 21: Hedgehog concept:...attain piercing clarity about how to produce the best long term results, and then exercising the relentless discipline to say No thank you to opportunities that fail the hedgehog test. Nonprofits have a Resource Engine (time, emotional commitment,hands, hearts, minds and funds) How can we develop a sustainable resource engine to deliver superior performance relative to our mission?

8 Issue #5: Turning the Flywheel Building Momentum by Building the Brand Page 23: Page 23: Page 26: Flywheel concept: Thousands of constant pushes in an intelligent & consistent direction, imperceptible progress, finally breakthrough! Each turn builds upon previous work, compounding your investment of work. Focusing on the hedgehog concept builds results. Results attract resources & commitment. Resources & commitment build a strong organization, which delivers better results, gathering greater resources & commitment...

9 Implications & Expected Outcomes Pages 32 & 33: Pages 34 & 35: Definitions Takeaway (page 23): Focusing on the hedgehog concept builds results. Results attract resources & commitment. Resources & commitment build a strong organization, which delivers better results, gathering greater resources & commitment...