For Profit v. Non-For-Profit Turnarounds

I was recently asked, “What is the major difference in turnaround for-profit vs. non-for-profit organizations?”  To the surprise of the audience, it was not the drive for the bottom line (EBIDTA / EVA) – it was the team and the environment.

  • Turnover
  • Continuing Education and Career Development
  • Long Term Challenging Career Path
  • Opportunity for advancement based on Performance
  • Skin in the Game – Entrepreneurial Spirit is not rewarded
  • Pay increase has no correlation to merit
  • Manager / Bosses are too political or “appointees”
  • Temporary custodians
  • Constructive evaluation process
  • Cannot fire the “bad” Superintendent / Mayor as one could with a CEO

It is interesting that in comparison that many non-profit organizations do not aspire to treat the employee like a team member.  When you consider that the costs (both direct and indirect) associated with turnover for a non-profit employee is 150% of their total compensation package per year, from a purely practical and selfish perspective one would expect that employee would be considered a true investment.

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