Good to Great in the Social Sector a Summary of Key Points

Good to Great in the Social Sector – a summary of key points

1.  Business principles cannot be applied to social sector without modification.

2.  Both share issues about moving from good to great – but the concept of greatness may be different in the social sector.

3.  Same five step approach is applied – but with contextualisation:

(a)  Going beyond simple business metrics to determine greatness

(b)  Leadership in a diffuse power structure

(c)  Getting the right people on the bus within public sector constraints

(d)  Rethinking what the economic engine is without a profit motive

(e)  Building momentum by building the brand

4.  Concentrate on outputs not inputs – it’s not just about recruitment levels or budgets – what are we trying to produce? Greatness for us could be value-added, NSS ratings, DHLE etc - in other words it is defined by reference to our mission. We can opt to use outputs that defy measurement e.g. “most admired”. The key here is to have descriptors of what greatness looks like. In any event we need to assemble evidence, qualitative and/or quantitative of what we believe the signifiers of greatness to be.

5.  On this basis the inputs of greatness would be:

Inputs / Outputs
Disciplined people – level 5 leadership and the right people on the bus / Superior performance – evidence of mission achieved with efficiency
Disciplined thought – face the facts – decide on the one thing that drives you / Distinctive impact – LSBU would leave a significant gap if it disappeared
Disciplined action – consistent action and perseverance in driving towards goals / Sustainability – greatness not dependant on one person, product, or programme

6.  Level 5 leadership in the social sector.

Social sector leaders are not less decisive than business leaders, they simply work within a more complex decision making structure. The approach has to be more legislative than executive – persuading, influencing etc. But it should not be confused with being ‘nice’ ‘soft’ and ‘inclusive’ - the key point is that colleagues know the level 5 leader is doing what is right for the organisation – not just for him or herself. Leadership is not the same as simply exercising power – leadership requires persuasion of others so that they believe in what is being put forward and agree to support it regardless of the power relationship.

7.  Getting the right people on the bus.

In the social sector we tend to be ‘humane’ employers. We cannot throw money at employee problems. So getting the right people on the bus and removing the ‘fare dodgers’ takes time. Key steps are:

(a)  More care in the hiring process – only hire people committed to the concept of greatness;

(b)  Invert the probation process to create a presumption that colleagues will not be kept on unless they can demonstrate the right qualities for greatness – and extend probation for much longer periods – use the process rigorously. Gradually the culture of a department will change – the good driving out the bad.

(c)  Don’t waste time incentivising those who cannot be motivated or who are undisciplined. Work towards only having self-motivated and self-disciplined people.

(d)  If we have a clear social mission we can tap into the idealism of candidates – then move towards being more selective (not ‘how did you end up at LSBU’, but “Wow, so you work at LSBU!”).

(e)  In the social sector having the right people can attract third stream funding – but money of itself will not attract the right people.

8.  The Hedgehog concept – what drives us?

(a)  What is LSBU deeply passionate about?

(b)  What can it be best at?

(c)  What drives its economic engine?

The ‘economic engine’ issue is problematic – it could be corporate surplus, but it makes more sense to talk about a sustainable resource machine that allows us to deliver on our goals – Collins identifies this as comprising time (staff input at below market rates); money (cash flow); and brand (the extent to which people have goodwill for the organisation and its mission).

The skills needed to support this ‘economic engine’ will vary according to the organisation's reliance on state funding as opposed to revenue generation or charitable giving.

LSBU clearly has exposure on a number of fronts – the aim has to be that LSBU comes to be seen as the pre-eminent HE institution for providing professional advancement to a wide range of individuals capable of benefitting from those opportunities – donors/funders then give money, not simply because they are sympathetic, guilty or altruistic, but because they believe in what we are doing and know that we are the best at doing it. LSBU needs to develop (repair??) its brand reputation for being the widening participation and life changing HE institution – first in London, then the region – then in UK.

In due course LSBU becomes an institution that has:

(a)  a clear core purpose;

(b)  consistent and enduring values

(c)  operating practices, strategies and business models that change from time to time as required to deliver on (a) in a way that is consistent with (b).

(d)  the ability to say ‘no’ to activities and ventures that divert resources away from (a)

9. We could do it if only……..

Social sector organisations often bemoan sectorial constraints as the reason more cannot be achieved. LSBU needs to look at similar organisations that have made progress and look at how that has been achieved – we need a commitment to persevere in building greatness come what may – then bit by bit join up the pockets of success. Waiting for the conditions to be ‘right’ means it will never happen – it’s up to us.

Mike Molan

Executive Dean AHS

19th May 2009