WHAT NON PROFITS CREATE: Changed Lives

CHANGED LIVES: WHAT NON PROFITS CREATE

I was attending a Drucker Re-Union in Claremont.  It was a casual and warm day in Claremont, California.  At this, Drucker Day at Claremont, I overheard Peter Drucker talking about the nature of non-profits. We were seated in a row waiting for the group photo session to end and enjoying some time conversing or just listening.

He was talking about a discussion he’d had with a friend.  His friend was struggling with the notion of zero profit and the definition of such enterprises called nonprofits.  His friend was more accustomed to the "for profit side" and free enterprise and business definitions such as market and business segments.  Often enterprises that are “non-profits” are all lumped together.  His friend found the “zeros” on the balance sheet were not satisfying his need to comprehend the motive of the non-profit.  More than motive is the question "What are your results?".

He said “The purpose of the non-profit was to change lives”.

( and a "For-Profit enterprise the purpose was to create a customer".)

It’s not just about accounting magic leading to a balance of income and outgo that leads to zero profit.  In these days when nonprofits are being urged more to operate like a business, this is a good reminder.

Like so many other things I heard in the classroom with Peter Drucker from 1973 until I completed my MBA in 1977, it stuck.  It was such a simple thing yet it was like turning on a light.  It wasn’t obvious until it was.

Peter Drucker is often referred to as “The Father of Management”.  He preferred the term “social ecologist”.  He saw business as a co-habitant in our society along with government and a host of non-profit social providers.  He equally could be viewed as the father of non-profit management.

Like many of his students, his ideas changed my life.  I found it obvious yet challenging that when seeking answers to the tough challenges in business; you must begin with the right questions.  I often found his ideas not only very insightful and inspiring, but also very challenging.  Like a student of Mozart, I found his lessons could make you work very hard, but the results were worth it and what my employer needed.

As a professional product marketing manager dealing with technology based products, I found his insight useful.  I hope to continue this blog, perhaps monthly.  I have other experiences to relate and lessons learned.  Feedback is appreciated.

David Barnard

Drucker MBA 1977