- May 22, 2013
- Posted by: Dr. Crystal J. Davis
- Category: Servant Leadership
Class Discussion Post. Enjoy!
Steinwall (2013) observed that exceptional managers realize the alignment of departmental growth and an organization’s values, beliefs, purpose, strategy, goals, and actions. This linkage results in a mutual vision. In the nonprofit industry, particularly in faith-based nonprofit organizations, the mission should drive every action. Senge (2007) believed that the mission is “purpose, reason for being” (p. 17) while Drucker (2008) clarified, “The mission statement is short and sharply focused. It must be clear and it must inspire (p. 14). Taken together, the mission and mission statement must drive the organization in its efforts to provide social services – to serve and heal their communities.
Like businesses managers, nonprofit organization leaders must strategize, design processes, allocate resources, and perform. Moreover, these leaders must be mindful of the contextual factors as outlined in Steinwall’s (2013) lecture; Key organizational characteristics, internal and external relationships, competitive landscape, strategic opportunities and challenges, and performance improvement systems.
As part of the organizational design, the systems perspective considers the three main departments within an organization; marketing, operations, and finance. As an experienced leader in non-profit management and administration of faith-based organizations, the finance department is of considerable importance. Elson, O’Callaghan, and Walker’s (2007) remarked that churches receive a significant portion of their support in the form of tithes, pledges, and donations. These being the case, religious and other nonprofit organizations have an obligation to their stakeholders; employees, congregants (customers), suppliers, and the community through transparency in carrying out its mission and fiduciary responsibility.
The success or failure of an organization depends upon the quality of leadership, specifically the quality of the decisions made by organizational leaders. Strong governance (especially in finances) is exhibited by ethical leaders with strong personal morals and values, who put aside personal interests (rewards), to respect the rights as well as the interests of stakeholders and shareholders. Leadership actions, as well as their inaction, can enhance stakeholder and shareholder wealth; however, self-serving behavior of managerial opportunism would counter the wealth maximization principle of the shareholders.
In the end, for faith-based nonprofits to remain sustainable and create organizational value, it must adopt entrepreneurial mindsets in their operations (finance), engage in innovative practices, and pursue innovative ways of delivering superior value to the target market in order to capture the competitive advantage.
References
Drucker, P. F., Collins, J., & Kotler, P., Kouzes, J., Rodin, J., Rangan, V.K.,
Hesselbein, F. (2008). The five most important questions you will ever
ask about your organization. San Francisco, California: Jossey-Bass
Publishers.
Elson, R. J., O’Callaghan, S., & Walker, J. P. (2007). Corporate governance in
religious organizations: A study of current practices in the local church.
Academy of Accounting and Financial Studies Journal, 11, 97-107.
Senge, P. M. L., Lichtenstein, B. B., Kaeufer, K., Bradbury, H., & Carroll, J. S.
(2007) Collaborating for systemic change. In Hickman (Ed.) Leading
organizations: Perspectives for a new era. (2nd ed., pp. 525-537).
Thousand Oaks, CA: Sage Publications, Inc.
Steinwall, M. (2013). Three-legged stools, boiled frogs, balloons, and
landscaping. MGT736-Contemporary Systems Management. Retrieved
from https://classroom.phoenix.edu/afm212/secure/view-
thread.jspa?threadID=54588270