Knowledge@ASB: Challenges of Not-for-profit Leadership

Arguably, Third Sector – or not-for-profit (NFP) – leaders need to be more skilled than their counterparts in the public and private sectors. That's because socially innovative organisations face greater complexity. They must be more tightly managed and disciplined as they balance an extraordinary diversity of stakeholder interests. A not-for-profit chief executive is at risk of being crushed under the weight of goodwill as he or she drives an organisation's strategic direction and manages well-meaning expectations. In particular, successful Third Sector leaders must be exceptional communicators, says Peter Shergold, head of the Centre for Social Impact at the University of New South Wales.