Development Business – a business or a mission?
The dilemma of whether a development company, an NGO or a for-profit, should be
categorized as a “business” is like one of those elephants in the room…. It has
always struck me as odd, that as the time went on, the people who built stock
markets across Central and Eastern Europe and Asia, introduced the concept of
privatization and capitalism and set off the Soviet block on a new path are no longer
considered “development” professionals. Because, money, evidently, lacks
empathy.
But until you can pay your rent and feed your families by taking money from a
magical hole in your back yard, money is still what makes you get out of bed on a
cold morning to get to the office. It is with money that we can do good and help
others. Just ask the people you are helping.
This is a long intro to this topic of project management and running your company
efficiently to make sure you stay in business, provide return on investment and
continue to do good.
Spending every dollar on “good” is no longer an option. 40% of foreign aid projects’
budgets are spent on compliance and risk coverage, another 20% on security. Dare
not to take those seriously, and you will be doing “development” in your dreams.
Making your development company a business serves both your stakeholders, the
owners, the employees and the beneficiaries. So, stop it with the useless moral
argument conversation.
There are in my view two things that are important to understand when setting up a
project management structure for longevity and sustainability (you see how these
words can be used in a business context?).
Structure
Flat A, B,C
Clear Authority, Responsibility and Process