Friday, April 26, 2013

Is your nonprofit ready to join the lean start up movement?

Are you starting a new program and want to use the lean start up process. Be prepared for lean's consequences. Your nonprofit business model eventually leads to a set of implicit rules, norms, and metrics that govern its operation. Following the lean start-up methodology can require making rapid decisions about funding a particular venture; quickly killing ideas that hit too many roadblocks; or launching an idea before it has gone through the typical quality control process.

Nonprofits with rigorous annual-planning processes or ones with very deliberate, consensus-based decision mechanisms (warning to most nonprofits) will struggle to truly embrace the lean start-up approach because it will run counter to many of these systems. Leaders have to carefully ensure that their resource allocation, portfolio management, and incentive systems encourage the rapid-fire experimentation that characterizes a lean start-up.

The lean approach can help launch a new program. Is your nonprofit ready?

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