Keep growing. How many times have we heard that?
Numerical growth is only one example of growth. Is it the right one for your favorite nonprofit? It is the most popular measure because it is the most important measure to retail operations and retail is the most visible business activity around us. However, other growth measures can be more important.
Emphasizing the right growth factors creates an environment where everyone wins.
Think about doctors for a moment. Whether in a sole practice or part of a large group patient growth is minimally important. There are only X patients that can be served in a day. Numerical growth is unimportant to the individual doctor after he or she reaches capacity.
Knowledge growth is critical to the patients. They want the best possible care. It is important to the doctor because he or she wants to provide the best possible care. It is also important to the doctor if he or she wants to remain relevant. For a doctor in the rapidly changing field of medicine knowledge growth is the key to having a sustainable, relevant, and vitality filled practice.
What dimension of growth is most important to your nonprofit? Is it donor growth? Volunteer growth? Referral source growth? Client growth? Increasing client success? Knowledge growth? Geographic growth? Program growth? Reputation growth?
When the board and the leadership talk, do they talk about the most advantageous type of growth?
Have you listed all of the types of growth available to your nonprofit? Which one drives growth? Which ones change as a collateral benefit of success in the primary area?
Think about an addiction treatment center. If their client success rate grows from 50% to 60% over the next 5 years, their reputation for success will grow. Client referrals will grow. The proven success will improve their grant competitiveness and funding will grow. For them client success is the critical growth factor. Growth in the other areas is a collateral benefit.
Client success is growth with a purpose. Increasing the number of clients served is just numbers. Client success inspires the staff and volunteers, provides donors with gratification, and meets a critical need in the community.
Emphasizing the right growth factors creates an environment where everyone wins.
What are the relevant growth factors for your favorite nonprofit? Which is the primary? Which are collateral growth factors? What is the plan for driving growth in the critical area?
As always, if you want help contact us.
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