Evolving Beyond “Non” in Nonprofits
Jung-Ho Pak, Artistic Director and Conductor
San Diego Chamber Orchestra
and
2008 Salute To Excellence
NMS Legacy Award Recipient
Exerpts from Luncheon Remarks
December 2, 2008 | Bahia Hotel
Some of us in the non-profit sector provide a valuable service like health care, shelter, or guidance. Some are in the arts. In most cases, our reason for existing is to provide access to these services. We are all different in our missions, yet we share one common need … we need money to do good.
We’re all “for profit” in the sense that we cannot exist without sufficient funds to operate. The subtle difference is that we treat our “profit” differently from for-profit companies. In many cases, non-profits are able to either lower the cost of their services to our customers or improve the quality of those services.
For-profits usually pay out dividends to their investors, their employees, or reinvest into research and development or other capital investments.
For non-profits, “Profit” has become a dirty word and something to be ashamed about. Discussing a balance sheet that is “in the black”, is thought best to never be discussed in profitable terms. “Deficit”, on the other hand, is less of a dirty word … even part of an accepted non-profit culture. However, given our radically catastrophic financial environment, potential deficits are well beyond “business as usual”.
It is good time to discuss why we must consider the “for” profit model and why the two worlds can co-exist.
For some you, this discussion is not a new concept. Indeed some of you work in the “for profit world” and at some point, those of us in the non-profit world may have had this mid life crisis epiphany that we are vying for the same time, attention, and resources of a for-profit marketplace that is becoming increasing distracted by technology and now a failing economy.
So what separates us from other non-non-profits? Only our tax status? For the average public, they don’t always perceive us as non-profits. When they sit down to buy a ticket or use our service, they don’t always see our service as a public good, but rather something that’s meeting their needs at that moment… physically or spiritually.
First we have to acknowledge that just because we are non-profits, we don’t exclusively own the moral upper hand. We are not the only ones who do “good”. Are we about saving lives? Pharmaceutical companies save lives. Are we about expressing human emotion in an artful way? Independent filmmakers and many individual artists who do not seek out donations do that as well. YouTube and the Internet in general has become the great frontier of individual expression without subsidies. Beethoven and Picasso, while they had patronage, worked on commission, not on consistent government support.
Secondly, we have to acknowledge what disadvantages we have placed upon ourselves.Mistakes non-profits make--
1. Thinking like non-profits.
2. Assuming they have a right to exist. Expecting funding and support and recognition.
Philanthropy has changed and we need to see donors not only as donors, but as individuals looking for an experience. That could mean seeking recognition or feeling good about themselves. Yes, there are some selfless and invested donors, but there is another kind of donor coming down the pike, the late baby boomer who is no longer part of the “greatest generation” of post WWII Americans who understand sacrifice. Also, many immigrants are coming from cultures where individual philanthropy is uncommon...
...The next [thing] is to ask some very tough questions about ourselves. In other words, what are the intrinsic “emperor clothes” questions that will a for-profit company must ask when they enter into a marketplace or request a loan from a bank.
Do we have the right paradigm? Where do we find ideal models in our individual industries? Do we that cling onto past models based upon those who are afraid to change because it’s too hard to convince donors, employees, and clients or audiences that change is necessary?
Look for models in the for-profit world. Read management books (and there are a lot out there). Talk to successful business people about their strategies. Surf the web to discover how other businesses position themselves. Ask your investors (staff, customers, board) how they would run things if they had the keys to your kingdom.
Ask yourself as if you were a new born babe asking “why, why, why?” and “What if?”. Ask dangerous questions like:
What if non-profit boards were paid like for-profit boards? Would it change their personal investment in your company?
What are your staff’s dreams? When you walk into the office, do you see a dream fulfilled in their eyes? If not, how can you begin to make that a reality?
What if the employees pay increased if the organization made a “profit”? Why would think what works in our capitalistic for-profit system not work for non-profits?
What can transform your volunteers into active foot soldiers instead of passive resources?
Here’s a tough one: What if you didn’t exist? Why do you exist? To bring great music to the great unwashed masses? To pay an executive director and staff? Some well-meaning non-profits have become a self-perpetuating organization concerned with existence rather than purpose...
...Change begins with ourselves. How keen is your vision? Is it the inspiring engine of your company or is it something that moves people or is it only good enough for a grant application? Look at other ways people lead and interact for possible answers to find new answers.
I’d like to share with you an example of how I and my colleagues interact musically. This is part of a much larger presentation we make for for-profit companies on management and leadership, but it seems even more appropriate for non-profit organizations. This message is about allowing the genius in everyone, including ourselves, to flourish, and how to manage that genius. One problem is that musicians often don’t seem themselves as being particularly extraordinary. Oh, they know they’re good, but they’re surrounded by so many other musicians in the world and the competition is so keen, the miracle of making music is often lost to them, especially when they are conducted. So my journey has been to discover how to unlock that childlike enthusiasm when they first played their instrument or gave their first recital.
The first step for me was to realize that they know more than I do, and my own stupidity begins with acknowledging that a) they often can function better without me and b) my own personal blindness might prevent me seeing how to unlock their talents. Here’s a vivid example of that works. Here is a quartet from our orchestra that is performing the recapitulation to Mozart’s Divertimento in D, first movement.
Now it’s clear that they can play very well without me. Now the trick is for me to involve myself with my own vision without making it worse, and hopefully make it more unique. The secret is not only about my leadership, but their openness to receive that leadership. This has to do with to do with their personal self-confidence and generosity as well as stated expectations on my part. Let’s give it a try.
After reminding myself of this point every time I work with them, I’m able to begin to communicate with them on a much higher level… more efficiently, more creatively, and more emotionally.
Another important skill is to see people beyond how we initially perceive them. People are often able to exceed our expectations, so the trick is to not let our own expectations limit them. Here’s an example of utilizing people’s skill in a different way. In this case, we are switching two of our players to play different instruments, and notice that they are still quite wonderful. Different, but wonderful.
Now the trick is to merge yourself with their while still allowing them to be free and creative. A leader, like a conductor, can give courage, imagination and even joy. Here’s an example with me leading this already wonderfully functional group. And hopefully it will not be worse.
I know I sound a bit like Susie Orman when suggesting that you embrace the concept of talking candidly about money and debt. (I won’t however, like Susie, ask everyone to stand and proudly and cathartically proclaim to the people next to them how big their deficit is), but like her mantra of “people first, then money, then things”, I think it’s time that we come out of the shadow of non-profit shame of deficits and the word “non”, and embrace the word “business”.
For years now, I have defined myself not as “maestro” or as a conductor, but as a businessman who happens to be in the business of emotion. I share a similar concept with my musicians: we are not in the business of Mozart or Beethoven, but rather emotion. When you come to a concert, do you spend money on a ticket to hear notes or rather to feel something from those notes? And if you had a choice, would you like to see the people feeling the music or would you like to see them detached from the music?
The answers are simple to you, but not so simple to those in the industry trapped by their own expectations or experiences. The same thing might be said about your industry.
So I hope this message of imagination and courage is one that you can resonate with. The ancient Chinese curse of “May you live in interesting times” seems more a propos than ever, however, I do know this is an opportunity for all us to be more powerful and more meaningful in all that we do.
Thank you.
Jung Ho Pak
San Diego Chamber Orchestra
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