Phillip Smith

phillipadsmith / Phillip Smith

Phillip is the "Simplifier of Technology" at Community Bandwidth, a Canadian consulting practice that works with non-profits and social-mission organizations to explore the thoughtful use of technology toward creating a more just and sustainable society. You're currently reading entries from Phillip's blog on non-profit technology, social innovation, and independent media.

From entitlement to enterprise

A certain amount of my work — more than none, but less than all — is dedicated to helping organizations explore the deeper questions of organizational strategy. Sure, they contacted me because they had a technology initiative in mind, or wanted some help with improving their online activities — but, more often than not, I come back to the fundamental realization that technology can’t solve inherently human problems.

And it’s here that I have to admit some vanity: quite simply, I’d rather invest my time in projects that have a chance of succeeding, surviving, and sustaining themselves for the years to come. So, on occasion, I sense that a client is asking themselves “why is Phillip asking all these tough questions about how our organization works, and what our role — as staff, directors, board members, etc. — is in relation to the problems at hand.” The questions are tough and at times uncomfortable, but they are necessary to get to the root of the issue (and to unearth the real opportunities).

Well, it was in one of those sessions recently, that I stumbled on something new (to me anyway). A staff member of this organization proclaimed “… it’s because we run it like a non-profit, and not like a…” — and, no, the next word wasn’t business (I’m tired of hearing that too). What came after was the real epiphany; she went on to describe the organization’s “sense of entitlement” as one of the bigger issues for her.

For me, a light went off. If entitlement is at one end of a spectrum of change (not the end that we want our example organization to be at), then what’s at the other end? Enterprise.

Don’t get me wrong. I’m not a social enterprise buff. I’m not all goo-goo eyed about the “social economy.” I certainly don’t feel that non-profits should all sign-up for an MBA, or start hiring CEOs to keep things running. But what I do feel is this: Enterprise doesn’t mean “business,” it means moving away from entitlement and toward bold new ideas.

That may mean exploring revenue diversification or earned-income activities. But it could just as easily mean taking the bold action necessary to move from crisis management into strategic leadership, or from ad-hoc budgeting to a solid financial plan. And, more importantly, from a sense of entitlement (the “please help us because we have a mission”) to one of enterprise (the “we are creating the change we want to see in the world — join now.”).

The face of change is evolving quickly in our networked world. Organizations like Ashoka, Echoing Green Foundation, Knight Foundation, and the J.W. McConnell Family Foundation are funding “innovation,” and innovative strategies for addressing social problems. New ideas are emerging all around us and unexpected players — social entrepreneurs and new types of mission-based organizations — are changing the field of change.

Entitlement is not the strategy that I’d be betting on.

Submitted by Michele Martin (not verified) on March 27, 2007 - 3:15pm.

Great post, Phillip. I like the idea of a continuum of change ranging from entitlement to enterprise. I've been doing a lot of thinking lately about scarcity thinking in nonprofits and a sense of entitlement is part of that, I think. Taking an enterprise approach, on the other hand, is more of an abundance type of thinking that is more compatible with the way the networked world seems to be moving.

Your experience with your nonprofit staff person reminds me of a client I worked with a few years ago who informed me, "We're the government. We know how to SPEND money, not make it." And therein lies the problem.

Submitted by Melanie Redman (not verified) on March 29, 2007 - 10:20am.

Hi Phillip. Having worked extensively with non-profits and ngo's in both Canada and the U.S., I find your recent post extremely insightful. I wanted to toss in a thought about the role of evaluation in all of this. As you're well aware, most funders require that our organizations KNOW what the outcomes will be before we even start the work. There is no space in this model for real learning. The organizational mental and operational shift from "entitlement to enterprise" requires a shift in how we think about and evaluate our work. "Developmental Evaluation" is an interesting approach to explore. "Getting to Maybe: How the World is Changed" by Frances Westley, Brenda Zimmerman and Michael Quinn Patton does an amazing job explaining how developmental evaluation can facilitate the type of shift in thinking you describe.

The great news is that many of the funders you list above are not only funding innovation, but they are moving toward ways of evaluating that facilitate real learning and positive change.

Submitted by brian (not verified) on March 29, 2007 - 11:09am.

we have had parts of this conversation but i just waned to reflect back that i completely agree. i think this paradigm of entitlement must be removed from some enterprises completely, not just at some levels. if it remains in the back of the minds of the board or volunteers even though staff are ready for the shift, then it has a way of permeating back into the decision-making processes. As a result the decisions being made become increasingly complex to sort out - necessarily complex, yet messy at times.

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