October 2, 2009 | Read Time: 2 minutes
While saying that he is not an expert in philanthropy, the management guru Jim Collins offered suggestions for how a philanthropist can strive past being mediocre at a session at the Philanthropy Roundtable meeting in Colorado.
Mr. Collins is author of Good to Great, which looked at what distinguishes successful businesses from others, and a new book, How the Mighty Fall And Why Some Companies Never Give In, which examines how companies excel even in a crisis.
Organizations that thrive in tough times have an established “culture of discipline” and do not use an uncertain environment as an excuse to not push forward with missions.
Given the economic downturn, foundations should not “waste the opportunities for impact” and should set BHAGs — big, hairy, audacious goals.
But to achieve widespread social change it takes small, consistent steps that pay off over decades, he said. He pointed to Wendy Kopp, the founder of Teach for America, which recruits college graduates to work in urban schools.
“She’s building an army of citizens,” who in the near future can help guide the country’s education policy.
He said Ms. Kopp and other great nonprofit leaders, like their corporate and military counterparts, have a “strange blend” of humility and ambition. They strive for success because they believe in their cause, not for personal gain, whether it is profit or social standing, he said.
However, he did say that highly effective nonprofit executives unlike their peers often demonstrate a “legislative” skill; that is, an ability to build consensus among a diverse group of people.
In terms of grant making, he suggested that foundations provide small grants to a broad range of charities until they find a good one; then they should make a big award to that group. A process he compared to firing bullets at a target to calibrate a cannonball shot.
Good organizations “don’t fire an uncalibrated cannonball.”
