ccsboardroom blog

The Harvard ‘Service profit chain’ (SPC) outlines the connection between ‘employee capability’, satisfaction, loyalty & productivity to ‘business and profit growth’. This connection through ‘customer satisfaction and loyalty’!
The question arises … Can the model be used in ‘not for profit’ or government organisations, where ’sustainability’ replaces ‘profits’?

In a recent workshop conducted in Canberra, attended by several people in the non business sector, skepticism was high regarding the SPC principles. In my opinion, the drivers to success are no different in this sector. The outcomes may be different. All organisations, to function effectively, require good leadership and management. Committed and loyal personnel are the core to any operation that delivers services. Therefore similar to a commercial profit focused business, not for profits and government should follow similar best practice management principles.

Why does the doubt exist? Reasons may vary from historical, practical to emotional; Ingrained culture. The nature and style of management that not for profit & government agencies attract. Changes in the mission. Lack of experience to drive ‘effective’ change.

The key finding from working in many sectors seems always to come back to two things; Leadership and Management! Any organisation, from any sector, that provides its people with the tools & resources on both a physical and emotional levels will be effective. Providing people with an understanding of ‘why we do what we do?’ and ‘teaching them better ways of doing things’ ensures the people are happier, provide better service which in turn achieves desired outcomes! … in what ever form you choose to describe it.