Leading a nonprofit and running a for-profit business are two different jobs; one is centered on mission, the other on margins. The context is different, but many principles remain aligned. The most effective leaders in both spaces operate with similar mindsets. They build strong cultures, stay curious and move with intention.
Whether you’re leading a nonprofit or a private company, the core responsibilities look similar. Both leaders must answer the same fundamental questions: Who are we? Where are we going? How do we get there? Without clarity, teams in any sector will struggle with strategic direction and employee engagement.
As I’ve discussed in previous columns, a healthy culture remains the key ingredient. Great organizations are built on strong cultures. Leaders must create environments where people feel valued, aligned and empowered.
Revenue is necessary for both entities to be sustainable. For-profits generate revenue through sales. Nonprofits generate revenue through fundraising, events and donors. Without enough revenue, goals will not be met, staff capacity will be maxed out and a scarcity mindset takes hold. When revenue goals are met, teams solve problems creatively, they innovate and spur organizational growth.
While the foundation is similar, execution looks different. For-profits measure success through profitability and growth. Nonprofits measure success through mission impact and community outcomes.
For-profit leaders can pivot pricing or markets quickly. Nonprofits often navigate restricted funding and donor intent, requiring more relationship management and creativity.
Often, nonprofits operate with leaner resources and must have a compelling purpose to attract and retain talent. For-profits may have more flexibility in compensation but face pressure to perform and scale.
We learned about these similarities and differences at our most recent Leading with Impact session in April, where we hosted Heather Shotton, president of Fort Lewis College, alongside John Harper, COO of the Durango & Silverton Narrow Gauge Railroad.
Two very different organizations. Nonprofit and for-profit structures. Different challenges, different business models.
Both leaders emphasized that organizational success starts with investing in your team. Leadership has evolved to recognize that people don’t separate their personal and professional lives as cleanly as we once expected. Leaders must evolve to meet the needs of today’s workforce.
Heather and John reinforced similar principles:
The Durango Chamber launched our Leading with Impact quarterly series to provide a platform for those leaders in our community who get it right. They lead with purpose. They create win/win situations for their stakeholders. They design healthy cultures that drive organizational success.
This series brings together nonprofit and for-profit CEOs for real conversations about leadership philosophy, decision-making and priorities.
Our next session will feature two outstanding leaders:
Join us from 11:30 a.m. to 1:00 p.m. May 20 at the Fort Lewis College Center of Innovation. If you’re looking to grow as a leader, learning from those who have a proven track record is a great place to start. Click on the calendar at durangobusiness.org to register for this event.
Jeff Dupont is CEO of Durango Chamber of Commerce.