Rescue Mission Management Course 304
 Study Guide

Managing the Nonprofit Organization by Peter Drucker



Questions from Drucker

Part 1  The Mission Comes First:  and your role as a leader

Chapter 1  The Commitment

1.      What is the task of the non-profit manager in regards to the organization’s mission statement?  Turn _________________________ into specifics (p.5)


2.      As a non-profit organization adds on to what it does, meaning services and programs, what must it also do?                                                                      (p.6)



3.      According to Drucker, what are the three “musts” of a successful mission (statement) of a non-profit?                                                                              (p.8)


Chapter 2  Leadership Is a Foul Weather Job

1.      According to Drucker who was the most successful leader of the 20th century? 

                                                                                                           (p. 9)


2.      According to  Drucker what is the most important task of the organization’s leader?           



3.      Non-profits need what discipline more than even for profit businesses (answer to this question is not innovation which is covered in next question)?             (p.11)


4.      Drucker devotes a significant portion of this chapter to the topic of innovation.  He believes non-profits need innovation as much as business or government (p. 11).  Where does an executive of a non-profit look for change that leads to innovation (3 areas)?  (pgs. 10- 13)



5.      What are the three characteristics to look for in picking a leader? (p.16)


6.      What are the four basic competencies for a leader to work on? (p. 20)




Chapter 4  What the Leader Owes—Interview with Max DePree

1.      According to Max DePree, interviewed by Drucker, what is it a leader needs to see him or herself as? (p.37)



Part 2 From Mission to Performance:  effective strategies fro marketing, innovation, and fund development

Chapter 1  Converting Good Intentions into Results

1.      Non-profits need four things, according to Drucker, what are they?  (p. 53)



2.      Drucker states “A business earns its money on its own.”  The money of the non-profit is owned or controlled by what group or groups to achieve results? (p. 57)




Chapter 2  Winning Strategies

1.      Drucker gives a  5 step process for improving what a non-profit already does well, starting with the goal must be defined well (p.63), what are the other four steps?



2.      According to Drucker, what is the best rule for improvement strategies? (p. 67)



3.      The two places executives of innovative organizations look and in what order?  (pp. 67-68)



4.      According to Drucker some common mistakes in doing anything new are (name at least three):  (p. 69-70)




Chapter 3  Defining the Market-Interview with Philip Kotler

1.      Explain the difference according to Philip Kotler between sales and marketing? (p.74)



2.      Kotler sees most organizations clear on what needs they would like to serve, but what are they unclear on?  (p. 75)



3.      Kotler calls marketing an STP approach, what does STP mean? 



Chapter 4  Building the Donor Constituency—Interview with Dudley Hafner

1.      Why call fund raising, fund development instead?  (p. 85)



2.      What does Dudley Hafner state as the two factors crucial to fund development?  (p. 96)



3.      What is a “major disappointment” Hafner has with non-profit organizations?  (p. 96)




Chapter 5  Summary:  The Action Implications

1.      What does Drucker say converts a non-profit’s mission and objectives into performance?  (p. 99)




Part 3  Managing for Performance:  how to define it; how to measure it

Chapter 1  What is the Bottom Line When There is No “Bottom Line”?

1.      What are “far more important and far more difficult” to non-profits than businesses, yet non-profits do not give priority to them)?  ( p. 107)



2.      By defining performance for a non-profit, what does it make the mission? (p. 108)



3.      The first and toughest task of a non-profit executive is to get all the constituencies to agree on one thing?  (p. 110)



4.      In the last analysis, according to Drucker the non-profit instution must judge itself by what performance issues?  (p. 112)




Chapter 2  Don’t and Do’s—The Basic Rules

1.      A danger for non-profits is to become inward looking and see themselves as what?  (p. 113)



2.      Drucker sees “feuding and bickering” as a symptom of what in an organization?  (p. 114)



3.      What is the social lubricant that overcomes interpersonal conflict?  (p. 115)



4.      What are the two most important things to build in an organization?  (p. 115)



5.      What should one not build an organization around?  Hierarchy, p. 115


Chapter 3  The Effective Decision

1.      What type of decisions do effective executive focus on?  (p. l21)



2.      Drucker see decision making always entails risk taking, what are the three kinds of risk? p. 123



3.      Drucker states, “far too many decisions remain pious intentions”, what are the four reasons he sees that keep decisions from becoming action?  1-try to sell the decision instead of market it, 2-go systemwide immediately with the new policy or service, 3-no one is designated to carry it out, 4-nobody thought through who had to do what



4.      Any decision will have to be bailed out, what are the ways to bail out a decision when the time comes?  1- think through the alternatives to fall back on ahead of time and have them ready and 2-build into the decision the person responsible for bailing it out when the time comes


Part 4  People and Relationships:  your staff, your board, your volunteers, your community

Chapter 1  People Decisions

1.      What is the only control of an organization and its performance capacity?  p. 145



2.      Drucker gives four steps of employee selection, what are they?  p. 146



3.      Once you have selected a person what is the second stage necessary of the selection process?  p. 146



4.      Drucker believes any organization develops people, the question is it will either do one of two things to them?  p. 147



5.      Drucker has several principles for developing people.  What are they?  1- do not try to build on people’s weaknesses, schools can but you cannot (p. 147), 2-Don’t take a narrow and short sighted view of the development of people, it is for a career and for life (p. 147), 3-don’t establish “crown princes” look at performance, not promise or potential –very poor correlation between the high performer at 23 and 45 (p. 148), 4- place people according to strengths, 5 After focusing on strengths make stringent demands and take the trouble (it’s hard work) to review performance (p. 149), 6 develop people and use them as teachers (p. 151), and 7- Push them outside of the organization (p. 151)

6.      What are the two key issues for a person’s effectiveness in the organization? p. 153

7.      According to Drucker, an effective non-profit executive owes it to the organization to have what type of staff when performance is needed?   p. 154



8.      Allowing non-performing staff to stay on at a non-profit does what to an organization?  p. 154



9.      The most critical people decision Drucker sees for an organization, is what?  p. 154



10.  In the end for a non-profit, it’s success or failure is determined by what ability? p. 155




Chapter 2-The Key Relationships

1.      Which has more key relationships according to Drucker, a for profit business or a non-profit organization?  p. 157



2.      To be a effective, a non-profit board needs to be strong and focus on what?  It’ own work, the board’s work—thinks through the mission, guardian of the mission and makes sure the non-profit follows through on its basic commitment  p. 157



3.      The board is responsible for what type of management for the non-profit?  p. 157



4.      What are the board’s three roles in regards to fundraising according to Drucker? p. 157-158



5.      Drucker would like to put a sign over the door over every non-profit’s board room that says what?   p. 158



6.      Does Drucker favor any limits to board membership and if so what?  p. 159



7.      What age does Drucker say for board members to permanently retire?



8.      According to Drucker what are the only type of relationships that work?   p. 159




Chapter 4-The Effective Board (is this title an oxymoron,…only kidding)

1.      What are the four functions of a board member according to the late Dr. David Hubbard?  p. 173



2.      According to Hubbard what are the two areas of the CEO’s service at a non-profit?  P. 174



3.      Hubbard makes a word play of the role of trustees to imply a dual role what is the dual role of a trustee?  p. 178




Part 5  Developing Yourself

Chapter 1  You are Responsible

1.      Drucker states the first priority for the non-profit’s executive development is what?  p. 189



2.      Who has the most responsibility for personal development of the non-profit staff, the boss or the individual?  p. 190



3.      What is your first responsibility to the non-profit that you work for?  p. 191



4.      One of the critical success factors for non-profit executives and staff is holding themselves individually accountable for their actions (p.192) and Drucker refers to this as doing what to the job?  p. 192




Chapter 2 What do you Want to Be Remembered For?

1.      What are three ways a person can build learning into their work? p 197



2.      The first step towards effectiveness according to Drucker is? Decide what the right things are to do—effectiveness.  Efficiency is doing things right but is irrelevant until you find the right things to do,  p. 198



3.      According to Drucker what are strengths of an individual, skills or capacities or both?  Capacities, p. 199



4.      The most effective road to self-renewal is to do what?  Look for unexpected successes and run with it, p. 200



5.      The three most common tools for forcing self renewal are what? 1—teaching something you know to colleagues, 2-going outside the organization, it opens alternatives, 3-serving down in the ranks, p. 201


Chapter 5  The Summary Implications

1.      Drucker quotes St. Augustine regarding what question do you ask yourself at the beginning of adulthood?  p. 223



2.      Effective self development must proceed according to what two parallel streams? p. 223



3.      When is the best time for change in your life or career path according to Drucker at the point of success or trouble?  p. 223



4.      When you are very achievement minded and successful, immersed in your tasks and the urgent what can be helpful to your development?  p. 224



5.      The best nuts and bolts of self development according to Drucker is the practice of what?  p. 224



Rescue Mission Management Course 304

 Study Guide

The Making of a Leader by J. Robert Clinton


1.      What are the six phases of Christian Leadership development in Clinton’s model and a brief description of each?

a.       Phase 1—Sovereign foundations—God providentially works through family, environment, and historical events beginning with a person’s birth.  God is developing the leader by laying the foundations of their life p. 44

b.      Phase 2—Inner Life Growth – The leader learns the importance of praying and hearing God.  As he/she grows in discernment, understanding, and obedience, he/she is put to the test.  These early tests are crucial experiences that God uses to prepare the leader for the next steps in leadership.  Leadership potential is identified and God uses testing experiences to develop character  p. 45

c.       Phase 3—Ministry Maturing—The emerging leader reaches out to others.  Through ministry the leader can identify his gifts, skills, and use them with increasing effectiveness.  The leader will also gain a better understanding of the Body of Christ as he/she will experience the many kinds of relationships it offers (both positive and negative lessons)  p.45

d.      Phase 4—Life Maturing—The leader has identified and is using their spiritual gifts in a ministry that is satisfying.  The leader is gaining a sense of priority concerning the use of gifts and understands what not to do is as important as what to do.  A mature fruitfulness is the result.  Isolation, crisis, and conflict take on new meaning and principle of “ministry flows out of being” has new significance.  The key to development during this phase is a positive response to the experiences God ordains   p. 46

e.       Phase 5—Convergence—God moves the leader into a role that matches his or her gift mix and experience so that ministry is maximized.  Leader uses the best he/she has to offer and is freed from ministry for which they are not suited.  Life Maturing and Ministry maturing peak together.  Many leaders do not experience convergence for various reasons.  The key development task for the leader at this phase is guidance into a role and place where he/she can have maximum effectiveness pp. 46-47

f.        Phase 6 –Afterglow or Celebration--  The fruit of a lifetime of ministry and growth culminates in an era or recognition and indirect influence at broad levels.  Leaders in Afterglow have built up a lifetime of contacts and continue to exert influence on these relationships and others will seek them out for their consistent track record in following God  p. 47


2.      Phases I, II, and III are or are not focused on fruitfulness, why or why not?  These phases are not focused on ministry fruitfulness rather God is primarily working in the leader, not through the leader pp. 45-46



3.      The three challenges of effective Christian Leadership according to Clinton are the following:

a.       Each leader personally must be what God wants him or her to be.

b.      Each leader must be involved in raising up other leaders.

c.       Leaders must be in tune with God’s purposes for them.