Not-for-Profit Marketing


Non-for-Profit organizations encounter a special set of characteristics that influence their marketing activities. Like profit making firms, not-for-profit organizations may market tangible goods and/or intangible services. One important distinction exists between not-for-profit organizations and profit oriented companies. Profit-seeking businesses tend to focus their marketing on just one public—their customers. Not-for-profit organizations, however, must often market to multiple publics, which complicates decision-making regarding the correct markets to target. Many deal with at least two major publics—their clients and their sponsors—and often many other publics, as well. Political candidates, for example, target both voters and campaign contributors. A college targets prospective students as clients of its marketing program, but it also markets to current students, parents of students, alumni, faculty, staff, local businesses, and local government agencies.

A second distinguishing characteristic of not-for-profit marketing is that a customer or service user may wield less control over the organization’s destiny than would be true for customers of a profit-seeking firm. A government employee may be  far more concerned with the opinion of a member of the legislature’s appropriations committee than with that of a service user. Not-for-profit organizations also often possess some degree of monopoly power in a given geographic area.

Perhaps the most commonly noted feature of the non-profit-organization is its lack of a bottom line—business jargon referring to the overall profitability measure of performance. Profit-seeking firms measure profitability in terms of sales and revenues. While not-for-profit organizations may attempt to maximize their return from specific services, they usually substitute less exact goals, such as service-level standards, for overall evaluation criteria. As a result, it is often difficult to set marketing objectives that are aligned specifically with overall organizational goals.

A typical aspect of a non-for-profit organization is the lack of a clear organizational structure. Not-for-profit organizations often respond to constituencies that they serve, but these usually are less exact than, for example, the stockholders of a profit-oriented corporation. Not-for-profit organizations often have multiple organizational structures.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

The Chief Executive Officer


The chief executive officer (CEO) is the person ultimately responsible for setting organizational strategy and policy. Even though the CEO reports to the chair of the board (who has the most legal authority), in a real sense the CEO is the most powerful person in the corporation because he or she controls the allocation of resources. The board of directors gives the CEO the power to set the organization’s strategy and use its resources to create value. Often the same person is both chief executive officer and chair of the board. A person who occupies both positions wields considerable power and directly links the board to corporate management.

How does a CEO actually affect the way an organization operates? A CEO can influence organizational effectiveness and decision making in five principal ways:

  1. The CEO is responsible foe setting the organization’s goals and designing its structure.
  2. The CEO selects key executives to occupy the topmost levels of the managerial hierarchy.
  3.  The CEO determines top management’s rewards and incentives.
  4. The CEO controls the allocation of scarce resources such as money and decision making power among the organization’s functional areas or business divisions.
  5. The CEO’s actions and reputation have a major impact on inside and outside stakeholders’ views of the organization and affect the organization’s ability to attract resources from its environment.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Decision-making in Crisis Situations


Corporate transformation often occur in situations of crisis. Classic studies of crisis decision making have highlighted the tendency to focus on the short term, and to concentrate upon fewer options, when the ‘going gets tough.’ There is a danger that a sense of balance and perspective might be lost just when it is most needed.

Members of board can experience a tension between the requirement to become more deeply involved in order to demonstrate commitment, and the desirability of maintaining a distance in order to preserve a degree of independence and objectivity. A corporate change program can increase this schizophrenic pressure upon the individual director.

In situations of crisis there is a tendency to cut out information and individuals who do not fit, and to concentrate power in the hands of a smaller group of people. This prospect can pose problems for directors who have genuinely reservations which they feel duly bound to express.

A chairman should think twice before ‘wielding the knife’. It is important to probe the reasons for hesitency. Enthusiasm could be the product of sycophancy, and caution the result of thought. Team players are not those who just go along without thinking. Some colleagues are cautious. They are not obstructive. They are realistic.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Lectures, Line of Sight

Hypergrowth in Companies


Hypergrowth is not just a feature of private companies with a profit motive. The public sector can also undergo hypergrowth, often providing growth opportunities for private companies. In the main, however, the days of big government appear to be over. Current trends for the state to be less of an actual provider of services and more a facilitator and purchaser of them from the private sector.

Companies and corporations welcome hypergrowth because of the perception that they will make more profit and thus be more attractive to investors. This is a reasonable perception provided that the hypergrowth is managed efficiently. If, however, it is poorly managed the company may well end up in trouble despite rapid growth.

It is also true that the larger an organization is the more power it can wield and the more it can dictate to its suppliers in order to obtain the discounts the economies of scale can offer. If a company buys 9 percent of one supplier’s product, the company is highly dependent on that supplier to deliver on time. If it buys 90 percent, it can dictate the terms because of it withdraws its business then the supplier will have a major problem. Many suppliers often express delight at gaining a huge contract with a large corporation only to be dismayed later on as that corporation begins to drive down the price. No organization should ever be completely dependent on another.

Just occasionally there are companies that do not want to grow – their owners are happy with them as they are. The danger is not growing, however, is being a target for acquisition by those who are. Hypergrowth is normally presented as a positive thing. For the individual who has not considered its implications it can be threatening. In a hypergrowth situation, change can occur rapidly and change is often uncomfortable. Senior managers should be aware that hypergrowth may produce fear in employees as well as pleasure and pride.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Social Butterflies as Connectors


Connectors are people who have a large number of social connections. They are individuals in the organization who seem to know everyone. In management jargon, they are well-networked individuals who have contacts with people from a variety of backgrounds.

 Connectors are pretty unique individuals. Not everyone is a connector. Connectors have a large number of acquaintences, not necessarily their close friends. These are what are known as ‘weak ties’—friendly yet casual social connections. In an organization, connectors wield enormous influence and clout because of their contacts—both within and outside it. This is what makes connectors crucial in change management. If connectors become convinced about the change effort and are enthusiastic about it, they will pass on their enthusiasm to all their contacts, thus spreading the message of change very effectively. Therefore, an organization needs to identify its connectors first, and enlist their support for change.

 My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight