Strategic Management for Non-Profit Organizations (Routledge Studies in the Management of Voluntaryand Non-Profit Organizations, 3)

337 Pages·2002·1.11 MB·English

by  Roger Courtney

Strategic Management for
Voluntary Nonprofit
Organizations
The voluntary nonprofit sector is now involved in all aspects of people’s
lives, from the cradle to the grave. The management of these organizations
has never been of more interest and has been changing rapidly, with well-
meaning amateurs being replaced by highly committed and professional
leaders.
With one in every six employees in the service sector now working in the
voluntary sector, Strategic Management for Voluntary Nonprofit Organizations
examines arguments for and against whether voluntary organizations should
now be more businesslike and considers how many organizations have
responded to this challenge.
A unique collection of case studies presents important examples of how
some voluntary organizations have developed, and the challenges they have
faced, whilst other pedagogic features include review and discussion ques-
tions and an extensive bibliography.
Strategic Management for Voluntary Nonprofit Organizations provides an orig-
inal insight into the theory and practice of strategic management for
voluntary nonprofit organizations, for both practitioners and students of
voluntary sector management.
Roger Courtney was the Chief Executive of a voluntary nonprofit organiza-
tion for sixteen years and is now a freelance consultant in the voluntary
nonprofit sector. He has published widely on the subjects of managing
voluntary organizations, fundraising and homelessness.
Routledge Studies in the Management of
Voluntary and Non-Profit Organizations
Edited by Stephen P. Osborne
Aston Business School, UK
The Management of Non-Governmental Development Organizations
An introduction
David Lewis
Financial Management in the Voluntary Sector
New challenges
Paul Palmer and Adrian Randall
Strategic Management for Voluntary Nonprofit Organizations
Roger Courtney
Alsoavailableinthe‘ManagementofVoluntaryandNonprofitOrganizations’
series from Routledge Research:
1 Voluntary Organizations and Innovation in Public Services
Stephen P. Osborne
2 Accountability and Effectiveness Evaluation in Nonprofit
Organizations
Problems and prospects
James Cutt and Vic Murray
3 Third Sector Policy at the Crossroads
An international nonprofit analysis
Edited by Helmut K. Anheier and Jeremy Kendall
4 Public–Private Partnerships
Theory and practice in international perspective
Edited by Stephen P. Osborne
Strategic Management
for Voluntary Nonprofit
Organizations
Roger Courtney
London and New York
First published 2002
by Routledge
11 New Fetter Lane, London EC4P 4EE
Simultaneously published in the USA and Canada
by Routledge
29 West 35th Street, New York, NY 10001
Routledge is an imprint of the Taylor & Francis Group
This edition published in the Taylor & Francis e-Library, 2002.
© 2002 Roger Courtney
All rights reserved. No part of this book may be reprinted or
reproduced or utilized in any form or by any electronic,
mechanical, or other means, now known or hereafter
invented, including photocopying and recording, or in any
information storage or retrieval system, without permission in
writing from the publishers.
British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging in Publication Data
Strategic management for voluntary nonprofit organizations / Roger
Courtney.
p. cm.
Routledge studies in the management of voluntary and nonprofit
organizations
Includes bibliographical references and index.
1. Nonprofit organizations–Management. 2. Associations,
institutions, etc.–Management. 3. Voluntarism–Management. 4.
Volunteers. 5. Strategic planning.
HD62 .6.C686 2001
658'.048 dc21
12474236
ISBN 0–415–25023–4 (hbk)
ISBN 0–415–25024–2 (pbk)
ISBN 0-203-47211-X Master e-book ISBN
ISBN 0-203-78035-3 (Glassbook Format)
Contents
List of illustrations viii
The author ix
Preface x
Acknowledgements xii
PART I
An introduction to the voluntary nonprofit sector 1
1 An introduction to strategic management in the
voluntary nonprofit sector 3
2 The growth and development of the voluntary nonprofit
sector 12
3 The rise of professional management in the voluntary
nonprofit sector 26
4 What is the voluntary nonprofit sector and how is
it different from other sectors? 36
PART II
The development of different approaches to strategic
management 55
5 The development of strategic management 57
6 What is an excellent organization? The Attributes of
Excellence School 73
vi Contents
7 Starting with the people: the Human Resources
School 81
8 Post-modern perspectives on strategy 94
PART III
Strategy and the voluntary nonprofit sector 107
9 The development of strategic management in the
voluntary nonprofit sector 109
10 How to measure success 121
11 Is strategic management effective? 139
PART IV
Strategic analysis, formulation, choice and
implementation 147
12 Strategic analysis: reviewing the organization 149
13 Strategic analysis: the external environment 171
14 Strategic formulation: creating the plan 179
15 Strategic formulation: basic choices 195
16 Strategic implementation: making it happen 210
PART V
Case studies 219
Save the Children Fund 221
Care In The Home (CITH) 230
World Wide Fund for Nature (WWF) 235
CARE 242
Contents vii
The Simon Community 246
Grameen Bank 255
Homeline 265
NSPCC 276
Oxfam 289
References 295
Index 316
Illustrations
Boxes
1.1 Definitions of strategy 7
2.1 Barnardo’s 15
2.2 Amnesty International 19
2.3 Apex Trust 22
12.1 Typical list of stakeholders of a voluntary nonprofit
organization 151
12.2 Investors In People standard 162
13.1 Examples of external changes for a cancer charity 175
14.1 Mission statements 181
14.2 Vision statements 183
14.3 Typical values in the voluntary nonprofit sector 187
14.4 The values of Voluntary Service Overseas (VSO) 188
14.5 The long-term aims of Centrepoint 190
14.6 Examples of performance indicators for services provided
by a medical charity 193
15.1 Mergers in the voluntary nonprofit health field 203
15.2 Commercial piggybacking: Fundación Social 204
15.3 Matrix of strategic choices for voluntary nonprofit
organizations 207
16.1 Examples of objectives for a faith-based training organization 214
Figures
4.1 The ‘four overlapping circles’ model of sectors 50
4.2 Types of organization in and around the social economy 52
10.1 General model of nonprofit effectiveness 133
10.2 A competing-values model of effectiveness criteria 134
10.3 The EFQM excellence model 136
12.1 Boston portfolio matrix 152
13.1 Environmental scanning 173
13.2 Issues impact analysis grid 173
13.3 Force field model 178
14.1 Strategic planning pyramid 189
The author
The author was born and brought up in Belfast. After obtaining a
psychology degree and training as a community and youth worker, he set up
and ran the Crescent Youth & Community Resource Centre in South Belfast,
which eventually became Crescent Arts Centre. He became the Chief Officer
of the Simon Community Northern Ireland in 1981, which by 1998 had
expanded from two small rundown houses for people who are homeless, with
three staff, to an organization with a turnover of over £2M, over 200 staff
and accommodation projects for homeless people all over Northern Ireland.
Over this period, in parallel with the practical experience of managing a
rapidly expanding organization, Roger Courtney gained a Diploma in
Management Studies, a Master’s in Human Resource Development, and an
NVQ in Management at level 5. He is currently carrying out doctoral
research on strategic management in the voluntary nonprofit sector.
Since 1998, Roger Courtney has been working as a freelance writer and
consultant in the voluntary nonprofit sector, mostly in Ireland. He special-
izes in strategic planning, fundraising, governance, quality, human resource
development and evaluation work.
He is the author of several books about fundraising, a book on new
approaches to managing voluntary organizations and a guide to mentoring,
as well as a number of publications on homelessness.
Roger Courtney was awarded an MBE in 1996 for his work with home-
less people.