Nokia CEO Stephen Elop wrote an internal memo recently that’s been making the rounds. In a nutshell, he writes that Nokia — the long-time market leader in mobile — is in danger of losing its position, and that it needs to change or die.
His memo is remarkable for its urgency and candor. It reminded me of a pivot I got to witness first-hand in 1995, when Microsoft admitted that it had missed the boat on the Internet. In the ensuing six months, it ended up dominating a market that it had been completely ignoring.
Reading the Nokia memo got me wondering about nonprofits and foundations. Has there ever been a similar pivot by a philanthropic foundation or a large, well-established nonprofit? Will we ever see one?
My guess is that the answer is no, although I’m anxious to hear stories to the contrary. There are no widely agreed upon ways of measuring accountability in the social sector, and thus, there is no accountability. The platform is burning, but everyone is on the same platform.
In contrast, in the for-profit world, winning and losing is defined by market share. Revenue may be problematic as a proxy for value, but it keep the whole system moving. Companies are accountable for what they’re doing now, and those that get complacent eventually lose.
In the absence of structural incentives for change, leadership becomes even more critical. Institutional philanthropy is in a wonderful position to be these leaders, and, by and large, they’re taking a pass. Foundations are wonderful at thinking deeply about very hard problems, but they are very poor at modeling change. (Last year, Monitor Institute published a great report suggesting how foundations can start doing this.) This is a sector that badly needs it.
I had an interesting Twitter exchange on this topic with Jeff Lindsay and Philip Neustrom, which motivated me to flesh out my thoughts here. Philip pointed me to Van Jones’s 2007 keynote speech at the Craigslist Foundation’s Nonprofit Boot Camp, where he talked about the importance of brutal honesty in the nonprofit sector. Read the whole speech; it’s wonderful.