Knowledge@Australian School of Business

Knowledge@ASB: Challenges of Not-for-profit Leadership


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Arguably, Third Sector – or not-for-profit (NFP) – leaders need to be

more skilled than their counterparts in the public and private sectors.
That's because socially innovative organisations face greater
complexity. They must be more tightly managed and disciplined as they
balance an extraordinary diversity of stakeholder interests. A
not-for-profit chief executive is at risk of being crushed under the
weight of goodwill as he or she drives an organisation's strategic
direction and manages well-meaning expectations. In particular,
successful Third Sector leaders must be exceptional communicators, says
Peter Shergold, head of the Centre for Social Impact at the University
of New South Wales.

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