Has Business Strategy become a Cargo Cult?

Imagine it’s 1946 and World War 2 has just ended. Both Japanese and allied forces have withdrawn from many small Pacific Islands. Military aircraft no longer drop supplies to their soldiers on remote islands, and the flow of goods to natives has ended. Local shamans have inspired their followers to build “pretend” airfields, control towers, and straw soldiers. Some of the more inspired local leaders have dressed their followers in imitation uniforms and now parade the fake soldiers on runways. A cargo cult has been established in an effort to trick airplanes to land and drop supplies. This is ritual mimicry married to a poor understanding of what is really going on.

It is no surprise that most strategic planning processes closely resemble cargo cults and these misunderstood rituals tend to be unsuccessful and provide little value to companies. In this article from June 2012, Dr Roger Stewart and I discuss both the failure of strategy and what organizations can do to improve their strategies.

What exactly is a social enterprise?

The emergence of the phrase “social enterprise” is a positive sign of change. However, the term is often defined in varying ways. In this article from June 2012, Dr Roger Stewart and I define “social enterprise” and discuss how traditional charities can start the journey to becoming social enterprises.

Stop the begging: thoughts on the potential closure of Rape Crisis

Here is my letter that was published in the Cape Times in October 2008 in response to an article on the potential closure of Rape Crisis. The letter discusses how this is part of a larger phenomenon. It proposes how non-profit organizations need to learn to think and operate differently.

Strategic Acumen: Natural Talent or Something You Learn in an MBA?

Have you ever wondered why some organizations fail to succeed, despite hundreds of hours of strategic planning sessions and a multitude of ambitious MBA minds behind the steering wheel? We already know that these organizations need capable leadership. New research also suggests that organizations need leaders with strategic acumen, and that strategic acumen is much more like an innate ability, than something one learns at college.

This article from August 2008 dispels various myths about strategy and emphasizes the need to choose talent carefully.

The business model of nonprofit organizations is flawed

This letter was published in the Cape Times in May 2008 in response to a letter by Sheilagh Gastrow. It acknowledges that it is difficult for non-profit organizations to find the funding they need to fulfil their purpose, and to sustain their operations while complying with their donors’ requirements.

However, emphasizes that the business model embraced by traditional non-profit organizations has some fundamental flaws. It discusses these flaws and what non-profit organizations can do to overcome them.

What nonprofit organizations can learn from the closure of the Nonprofit Consortium

This letter of mine was published in the Cape Times in May 2008. It reflects on the sad irony of the closure of the Non-Profit Consortium – that an organization that worked so hard to create an environment where non-profit organizations can thrive and find the income they need, has itself not been able to find sufficient funds to enable it to continue to fulfil its own purpose. It discusses the lesson and opportunity for other non-profit organizations.

BEE-ing Out of The Box

Read my letter to Business Day in April 2008 in response to the interesting and seemingly counterintuitive business deal was recently concluded between Ikamva Labantu, a Cape Town-based non-profit organization (NPO) that builds crèches and shelters and supports foster mothers, and ITEC Holdings, a supplier of office automation.

It discusses the important precedent of this deal, and reflects on the various parties will be able to derive a strategic benefit. I expect we will see many more such deals in the future as the B-BBEE codes become more embedded in the way we do business.

Nonprofit organizations need to demonstrate value

Here is my letter to People’s Post in April 2008 in response to the disbanding of the Fairest Cape Association due to lack of funding. It once again highlights how the plight of many non-profit organizations (NPOs) that rely on the mercy of their funders for survival.

It suggests that this is clearly not the way to sustain a non-profit organization, especially since there are over one hundred thousand non-profit organizations competing for the same pool of funders. The closure of the Fairest Cape is clearly part of a larger trend that will shake the foundation of the non-profit sector in South Africa.

The coming recession: What does this mean for South African nonprofit organizations?

The global economy is on the brink of a downturn, possibly a recession. Turbulence and opportunity lie ahead; our currency is under pressure and may continue to devalue. What does this mean for South African non-profit organizations? How should they respond?

This article from March 2008 provides several recommendations for non-profit organizations to consider.

Nonprofit Organizations: Do you Account for Your Social Impact?

Nonprofit organizations readily embrace the value of financial accounting. They understand the need to keep careful financial records, have them audited independently and send copies to their investors. Because these financial statements are prepared and audited according to accepted standards, they are in turn accepted as an accurate reflection of an organization’s finances – and can indicate opportunities for improvement. The question that non-profit organizations should be asking themselves is: “Do we account for our social impact?”

In this article from February 2008, Dr Roger Stewart and I examine why organizations need to start accounting for their social impact. We introduce the concept of social accounting and its value to non-profit organizations. We also examine the different steps in the social-accounting procedure.

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Musings of a management consultant trying to make a difference to the world

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