1. Not-For-Profit Organizations

2. There are lots of not-for-profit (NFP) organizations Many different types Some coexist and compete with for-profit (FP) organizations Strategic management issues differ greatly among various types of NFP organizations

3. Revenue Sources are Key Revenue Sponsor generated Customer/client generated 0% 100%

4. CSU Revenue Sources

5. “Golden Rule” He/she with the gold makes the rules

6. Patterns of Influence -1 Customer/client Organization

7. Patterns of Influence -2 Customer/client Organization Sponsor Client Organization

8. Some NFP Differences Results intangible & hard to measure Client influence may be weak Sponsors may have different priorities Volunteers Strong staff commitments to causes Constraints on financing Constraints on rewards & punishments

9. Some Impacts on Strategic Mgt. Identify goal ambiguities & conflicts Deal with emphasis on inputs Politics may be more complex Rewards less related to performance Professionals may have major role in d/m Tendency for “defensive centralization” Need for “linking pins” and buffer roles

10. Some NFP Strategies Strategic piggybacking (requires) –Having something to sell –Critical mass of management talent –Entrepreneurial attitude & skills –Trustee/board/sponsor support –Venture capital Strategic alliances Mergers