Non-profits are evaluated based on how well they follow their founding mission, as should every for-profit company.  If employees don't come to work every day knowing the one reason their company exists and how they each play a part in fulfilling that mission, the company is bound for trouble.  Non-profits focus on the good they provide society; the more good they provide the higher their membership, public awareness, and longevity.  They know that if they focus solely on revenue, their services will suffer and the organization will fail.  For-profit companies who focus solely on the bottom line also lose sight of their core services, and the bottom line bottoms out.

Whether a non-profit is a food shelf serving the poor or a business association serving professional members, their concerns mirror that of the for-profit sector.  It was because of this that I took so much from Seven Measures of Success.  Frankly, the business owner who takes advice only from those in the same industry is missing out on a wealth of knowledge; every business is just like every other business.  It was easy to see how the teachings in Seven Measures would apply to any business (read the book for a more thorough breakdown), but-as with most wise advice-understanding something and actually putting it into practice are two different things.

Using the methodology of Good to Great, the researchers for Seven Measures compared what highly successful non-profit organizations and associations do that their counterparts don't.  For instance, there are hundreds of organizations that service senior citizens, but AARP is by far the largest and most successful.  What does AARP do that the others don't?  To start, they follow the first Measure of Success; they are data driven rather than assumption driven.  You're probably thinking, "Duh.  Doesn't every business do this?"  The answer is a resounding, "No!"

Sadly, most companies are governed by assumptions.  Decisions are made based on hunches, even when those hunches are either backed by zero evidence or fly directly in the face of opposing facts.  Every profession-law, health care, retail, marketing, real estate, education, what have you-is primarily managed on the this is the way we have always done it principle.  This isn't because we are all close-minded and unwilling to learn, it is a product of human evolution.

Doing the same thing the same way each time generally leads to high productivity, which makes us feel good.  Doing something a different way risks a drop in productivity, which feels bad, especially if it leads to the ultimate in non-productivity; being fired.  So it is natural to be skeptical of new ideas.  Only a fool would immediately drop a practice that carries even average results to adopt an untested method that could yield disastrous outcomes.  This is why managers and leaders were invented.  It is their job to say, "We're going to try this, and it is okay if things are shaky for a while.  No one's head is on the guillotine."  Leaders with a command of risk help employees enter untested waters with less fear.

The challenge comes when it is the company's leadership itself that can't adjust to new data.  One of the reasons AARP is so successful is that the organization has a firm policy about trusting feedback.  They are constantly surveying members.  AARP surveys its members about every issue, every policy, and every law that could affect a senior citizen.  And the rule for accepting feedback is, "It doesn't matter if we agree with the feedback, or are surprised by it, we simply must act in accordance with the needs of our members-as the members state them.  This isn't easy.  It is much easier to decide what the customer should want instead of listening to what the customers say they want.  Imagine how much better you would feel buying a new car if you knew the salesperson was focused solely on giving you the car you want instead of on what they need to move off the lot before the end of the month.

Besides our pattern-loving brains, there is another obstacle to following the first Measure of Success; ego.  It is incredibly difficult to put what you know aside and be willing to listen.  I was conducting a workshop for a group of corporate executives.  As we discussed effective means of managing teams, including how top-down-only leadership is fundamentally flawed, Paul spoke up.  I had been warned about Paul by the organizer of the session.  Apparently Paul was close to retirement and suffering from the "Why doesn't everyone recognize my wisdom" syndrome.  This didn't bother me too much, I knew I would be sitting where Paul was soon enough, and I already wonder why people don't recognize my genius.

After one of my comments about team management, Paul raised his hand and said, "You know what I think?  I think you wouldn't last very long in the military."  I was a bit taken aback, since I hadn't expressed any desire to join the military.  When I asked why, he said, "Because a team needs someone to just tell them what to do.  I can't imagine a platoon going into battle with all this mumbo jumbo."  At that point, one of the other facilitators stood up and helped me out.  He said, "Paul, did you know that the Navy SEALS, one of the most elite fighting forces in the world, has adopted a new leaderless pod system?  Decisions in the field are made with full input from the team before any action is taken.  In this way they minimize the risk of a single person's fear or ego getting the entire team in trouble."

Paul sat stunned for a moment.  He finally said, "I was in the Army.  I can't imagine something like that ever happening in our military."  I bit my tongue so I wouldn't say, "Things were probably different when you were still using muskets."  Paul kept objecting until the facilitator stopped the conversation by saying, "Paul, I have given you new information.  It is up to you what you do with it.  You can ignore it all you want, but it doesn't make the information go away; it just means you refuse to use it."

My wife and I love to watch the Food Network.  She loves to cook, I love to bake, and we do our best to share the kitchen.  If my step-daughter is in the kitchen, she gets to be in charge of everyone.  One of our favorite shows is Restaurant Impossible where the host, Chef Robert Irvine, has two days and $10,000 to turn around a failing restaurant.  The entire business is turned inside out; menu, décor, staff, and management.  I think business owners should watch the show because no matter how basic the mistake is on the part of the restaurant owner, you can apply the same lessons to your business.  (And you can never get enough reminders about the basics of business.)

In every episode Chef Irvine tastes a number of dishes on the menu.  They usually make him gag, why else would the restaurant be failing?  He tells the owners, "This food is terrible.  How can you serve this?"  Invariably the owners say, "But we are told all the time how much people like our pasta" or "That is one of our best selling dishes."  Robert replies, "Then why is your business failing?"  Even in the face of impending bankruptcy, people will defend their decisions while ignoring facts.

Look at your company.  How do you gather data?  How often do you ask for it?  How willing are you to forgo what you know and listen to the facts?  Where do you put your ego when examining data?  Sure, everybody should develop an intuition about their profession, that is what makes the work an art, but take time to learn from the facts given to you by your customers, or you'll make Chef Robert very unhappy.  Gotta go, my step-daughter just finished making dinner and I have to wash the dishes.

Stevie Ray is a nationally recognized corporate speaker and trainer, helping companies improve communication skills, customer service, leadership, and team management.  He can be reached at www.stevierays.org or stevie@stevierays.org

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