ANZTSR 1.16
Leadership in the Not-for-Profit Sector – Past Theories and Future
Frameworks
Changing times has meant new challenges and growing requirements for those
working in third sector. Responsibilities have shifted and partnerships
arrangements have changed in light of funding agreements and a growing
concern for transparency. Increasingly, regulation and compliance requirements
of charities have risen as the Federal and State governments de-centralise and
contract services out that were traditionally delivered directly. The findings
published in the Australian Government’s Productivity Commission Research
Report: Contribution of the Not-for-Profit Sector, January 2010, highlight the
changing and complex role of the Third Sector in Australia.
This paper presents some of the findings of research that are part of my doctoral
studies soon to be submitted. Forty-one CEO’s of Australian charities that
undertake social and community services in Australia have been interviewed
about their perceptions of change occurring in the Third Sector. The focus of my
PhD study is to reflect on CEOs perspectives on contemporary expectations, in
light of the pressures from stakeholders who demand strict compliance and
regulation requirements. The aim of this paper is to discuss leadership theories
that have been highlighted across the literature and the findings of my PhD
thesis.
Leaders in the nonprofit sector must hold mission and values as key drivers.
They lead with a vision for a better world, mandated to change or improve a
certain social condition. In spite of challenges, they believe they can make a
difference, transform lives and generate public wealth (Blake et al. 2006).
The literature in the non-profit sector has much to say on servant leadership and
faith-based leadership. Charismatic leadership is often explored, and mainly
associated with the founding leader whom can not only inspire trust and resolve
conflict but has much drive and determination (Northouse 2012, Tschirhart and
Bielefeld, 2012). As well as inspiring people to work, nonprofit managers have
systemic inter-dependencies, multiple stakeholders and much tension in
reducing mission drift and keeping a sustainable organisation in light of complex
challenges. An almost commercialisation like approach to the sector is leading to
much change. There is an expected sophistication at all levels of the
organisation.
It has become the obligation of the leaders of these organisations to be
innovative and creative in broadening social capital and mobilising volunteers
and donors despite the complexities. Whether the public and government fully
understand the dynamics of the non-profit sector is up for debate and how far
has the third sector has caught up with the management and leadership
practices of the corporate sector will also be discussed.
In addition to highlighting leadership theories in the third sector from the past,
this paper will look at practical ways to lead that have emerged from the analysis
of the data from the PhD thesis and look at the different and emerging
approaches to leadership in the latest literature. It is evident that a limited
conception of leadership would be an injustice to such a vibrant and multidimensional sector and new ways of thinking are required if leaders and their
organisations are to resolve complex problems.