My professional project-management career spans mission-driven nonprofits and for-profit organizations. For-profit companies have the funding to hire strong professionals to lead projects, and they have resources that most nonprofit organizations cannot easily compete with. However, in a study I conducted about strategic business execution and project management, the result showed that the top 10% of nonprofits consistently outcompete everyone else.
Why are nonprofits outcompeting for-profit companies on projects?
Nonprofits have powerful missions and their employees believe in them. In project execution, these beliefs translate to enthusiasm, collaboration and a willingness to overcome obstacles. This strong belief in their cause can overcome gaps in resources. Take Vladimir Putin’s war in Ukraine. On paper, it is completely lopsided. Russia’s resources are superior by practically all measures. Yet, after a year and a half, Ukraine is still fighting, and rather successfully. Naturally, much of the credit goes to Ukraine’s allies who are providing military, humanitarian and political support. But the fact that Ukraine stands strong is a testament to the power of its mission.
Nonprofit organizations are full of highly motivated professionals striving to make a difference. When nonprofits execute their projects with the same degree of project-management dexterity as for-profit organizations, and with the added ingredient of mission or purpose, they can achieve higher performance.
I have seen firsthand the power of good business management, solid program and project management, and empowerment that comes from a collective mission. Sadly, I have never encountered such a caliber of teaming and project execution in the for-profit world. While there were many successes and high-quality teams with my for-profit clients, none had the same energy level, dedication and motivation.
Here’s what for-profit organizations can learn from nonprofits about project management:
Have a vision. There are few things more powerful than a shared vision, and it can spark an average team to high performance. People have to believe in what they do. While not every project is about changing the world, each of them can still be exciting if you find the “why” and mission in the project.
Communicate your vision and solicit team feedback. Developing an exciting vision is just the first step. Project sponsors and managers must share this vision with their team, and obtain their feedback and their collective buy-in. It is not enough to passively include the vision in the project charter or to discuss it in your kickoff meeting. This is also an opportunity to seek input leading to improvements.
Create an inclusive project culture. Businesses often favor quick starts, sometimes steamrolling over some details in the process. Nonprofits are more likely to be consensus driven and participative. A slower start may be best to prevent many later implementation problems. Benjamin Franklin famously advised fire-threatened Philadelphians in 1736 that “an ounce of prevention is worth a pound of cure.” There is a time for action and there is a time to be more inclusive.
Select the best people. When project managers can assemble their teams wisely, they have the opportunity to build highly capable and resilient groups. One of the best ways to increase success and mitigate threats is by building the best team you can afford. After all, strategic projects have many uncertainties. Capable people are a source of tremendous resiliency. Every project is different, and what qualifies as the “best people” depends on the circumstances. For example, if you are tackling a bleeding-edge technology project, technical acumen is likely to be the most important quality. If you are implementing an enterprise resource planning application that transforms business operations, technical competency may be secondary to softer skills.
Understand project, program and portfolio management. Achieving high project performance requires your organization to adopt good project management, not just for the implementation team but also for the complementary teams that support the project. These can include portfolio management for prioritization and governance, project management offices for methodology and performance support, organization changes for adoption, and risk management capabilities to provide guardrails in the face of uncertainties.
Te Wu is CEO and chief product officer of PMO Advisory, a project-management training and consulting firm in Montclair, N.J. He is also an associate professor at Montclair State University.
