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Lindsay McMillan, CEO MS Society PDF Print E-mail
Written by Lindsay McMillan   
Thursday, 30 November 2006

The not for profit sector, or as it is now referred to, the Social Enterprise Sector, has for a number of years seen itself as a poor cousin to the for profit environment – particularly in regard to upscaling skills and competencies of its personnel.

For too long, managers in this field have focussed on achieving ‘mission’ interests. Some would say ‘at what cost?’ the cost of maintenance versus development, management versus leadership. In the meantime the environmental constraints of improving the efficiencies, building strategies, business planning, resource management and developing innovative approaches, along with increasing competition for ‘hearts and minds’, demanding and increasing legislative frameworks, increasing community need and changing governance requirements are critical to address if we are to remain vibrant and achieve our strategic outcomes.

The need for an increasing competence base for social enterprise leaders has become a matter of urgency. Entrepreneurial boards have reacted by upskilling their executive team. In order to do this many leaders have had to travel overseas to achieve this educational opportunity.

For me attendance at the Harvard Strategic Perspectives for Non Profit Management proved to be an outstanding first step to addressing the clearly defined differences in managing a social enterprise organisation – recognising that the environment we operate in is becoming more complex and demanding. Subject areas such as “the strategic challenge, evaluation and performance, leading change, leadership strategy and execution in the social enterprise environment” were covered, utilising case studies, small living group experiences, lectures and seminars. The benefits of formal management education that recognises and responds to the efficiencies of managing and leading a social enterprise are critical if we are to develop quality social enterprise leaders here in Australia.

Peter Drucker, the father of modern management practice, recognised that “it is more complex to run a not for profit than a for profit company”. He believes formal management training builds confidence, refines competencies and addresses the growing demands of managing a social enterprise. Improved management skills, leads to improved efficiencies, better resource management, business design and quality organisations.

Here in Australia we need to contextualise the leadership and management education programs for social enterprise leaders. As the burgeoning Third Sector begins to create a force of its own, it too needs to develop a core and strong leadership education program. The benefits would be substantial. The quality of leadership will grow. Continuous learning and education is a desire we all strive for in this field. We have come of age. We now need to act.
 
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