In a previous blog, Co-Opetition at 20-Something, I gave myself a memory jog for the book of the same name. One of the reasons I was re-reading this book was to know what the concept has to say about Co-Opetition and Non-Profits [1].

A More Complex Value Net

It turns out, not much. I was surprised that no one had tried to apply the Co-Opetition concepts to the seemingly less competitive environment where profit does not rule [2]. So, if you want thought leadership done right, you have to do it yourself!

The above graphic is a variation of the Value Net which is at the core of Co-Opetition. What has changed is the addition of the Funder/Donor in the top left corner and Client/Member/ Society at the top right. Everything else remains the same including the concept of Customer. Money and resource flows (vertically) and the horizontal Competitor-Complementor gradient remains the same.

Funder/Donor

A Funder/Donor is an entity that provides resources to Non-Profit typically without an economic exchange. This does not mean there are no interactions with the non-profit. A donor gives away their treasure because they believe in the work the organization is doing.

The Funder/Donor may also have interactions with the Non-Profit’s Customers, Clients, Members or Society at large. For example, a government may grant a non-profit funds to provide an outreach program to the homeless. The same government may interact with these individuals through social workers, mental health professionals and emergency workers such as the police.

Customers, Clients, Members, & Society

Many Non-Profits have customers. A folk festival earns the lion share of its income from paying guests. A bicycle club that runs rides for its Members is similar to a bike-shop that runs a club to maintain a strong customer base. Of course, the bike club is run by volunteers whereas the bike-shop probably pays its staff to support the cycling activities.

There is a divergence when the individuals consuming the services do not contribute to the cost of the service. Thus, a homeless outreach program has clients but not customers. Sometimes the consumers are even less distinct. A playground built by a service club is used by an entire city. In this case, the beneficiary is Society or small portions of it. [4]

It is true that some for-profit organizations perform some of the above functions (e.g. a Corporate event working at a food-bank). Nevertheless, who is receiving the benefits of a service and who is paying for them is profoundly different

Impact on Competitors and Complementors

Returning to Co-Opetition, co-operation comes more naturally to most Non-Profits. Resources are constrained so they may share space or volunteers. In addition, the nature of these organizations encourages altruism. Nevertheless, there are competing elements. Donors or funders have a fixed amount that can be distributed and often the pie cannot be increased by expanding or extending markets as in the for-profit world.

The resource constraints of the sector also means that organizations operate with fewer reserves. Even if one organization wants to share, they lack the people, processes or technology to overcome the transaction costs of sharing. There is also a great deal of passion on the part of the staff, donors or volunteers. While this allows for great things to be done, sometimes this passion creates fiefdoms, Us/Them conflicts or other perverse behaviours [5].

Why Co-Opetition is More Important than Ever

Co-Opetition comes naturally to Non-Profits and in many ways they can teach the for-profit world or thing or two about the subject. That does not mean it is without costs or challenges. Nevertheless, donors and funders (e.g. governments) are themselves constrained for resources and are looking to get the biggest bang for the buck. Competing Non-Profits are an affront to the sensibilities of a would-be donor or a beleaguered tax payer.

There may be historical reasons why Non-Profits A and B don’t play nice – but get over it and move on.

Notes and Further Reading

1. It is worthwhile familiarizing yourself with the Co-Opetition concepts before reading this blog. They are straightforward and easy to understand.
2. I suspect that someone-somewhere has done some thinking about Co-Opetition and the non-profit but I simply could not find references in a basic search. Alas, the topic is not THAT interesting to spend a few weeks in the library confirming this. My research discipline is based on … SQUIRREL … [3].
3. In case you don’t get the above reference, watch the wonderful 2009 Disney movie, UP.
4. Get it, small… as in children… hmm, a tough audience.
5. These sentiments can be defined as an ethos. The healthcare ethos is one such descriptor.
6. Alberta Board development : maximize your time and efforts – collaborate! A detailed and practical guide to developing a collaboration strategy with another organization.