Non-profits & Startups — Doppelgangers?

Internet is flooded with images of celebrity lookalikes — Doppelgangers, (literally “double-goer”) a look-alike or double of a living person. Interestingly, the phenomenon is not restricted to just celebrities but camera phones and social media has helped even ordinary people to find their lookalikes or doubles. It is interesting to note how 2 individuals so distant and with no common connections can be so similar in their appearances and style.

While thinking about it, it stuck me that the idea of a Doppelgangers is not restricted to just people but is fairly applicable to organisations as well.

It is easy to visualise that companies operating in same sector, geography will be very much like each other — All ecommerce companies would be or rather are almost similar, all Cola companies are not much different either. But what would be fun is when two disparate entities resemble each other.That is where I found an interesting overlap between Non-profits/NGOs and Startups.

A Non-profit is very much a startup for perpetuity.

Having worked in both sectors, i am sharing my observations that make a case for these 2 entities to be perfect Doppelgangers.The article also kind of gives a context or a primer to the people who may be keen to work in either kind of organisations.

1. PURPOSE: While it can be safely assumed that almost all non-profits originate to solve a pressing social issue and have a larger unselfish purpose at the core, majority of the startups, especially successful ones, are also driven by a mission that is beyond fame and money for founders.This zeal to address or solve a challenge that affects millions of people is what is common to both organisations.

2. PEOPLE:(many of these are aspects unique to India or more prominent here)

ATTRACTING TALENT: Bring onboard like-minded people is always a struggle — getting someone hooked to your vision and the larger cause amidst the allure of a safer, better paying and conventionally well accepted job is always a test. Both non-profits and startups have a tough time dealing with this and this is also a test of the ability & commitment of founders to create an institution.

RETAINING TALENT: For people who have come onboard — they have a tough time continuously explaining to their families, friends what you do and why are you doing it? Lower salary, Longer hours and an uncertain future outlook in terms of a corporate career makes people question your choice. Reminders from wise folks keep coming your way to change course. While interestingly many of these wise folks are themselves frustrated with their own jobs and would quit it next instant, if not for their EMIs.

3. OPERATING CULTURE: Frugality is the key operating mantra for both startups and non-profits. With each resource being highly valued, doing more with less is key to success and sustainability.

The stronger connect with the larger cause helps the team to work together more cohesively and many of the short-comings are overcome owing to this tribal mindset.

4. STAKEHOLDERS:

INVESTORS/DONORS: Both non-profits and startups face pressure from donors/investors to optimise cost, deliver and improve impact. Most of the donors/investors are intelligent, understand the sectoral dynamics and add value beyond their investment. But it is not unusual to find some donors/investors who are difficult partners and whose Expectations:Investment ratios are highly distorted. They are short-term oriented and wouldn’t want to invest in building capabilities, foundation and would rather expect results from Day 1 thus putting undue stress on the organisation and also spoiling the ecosystem dynamics with negative influence on other investors/donors.

BENEFICIARIES/CUSTOMERS: Continuous engagement with beneficiary/customer and a strong feedback loop is a common trait across successful Nonprofits & Startups. Iterations, continuous innovation is critical to ensure you are delivering the value that they deserve and need.

5. FAILURE & PIVOTS: Both sectors experience high rate of fatality and a lot many social initiatives and startups shut down in their infancy itself. While the founding premise of a startup or nonprofit is an emotionally charged connect with the cause; the common feature of successful Change Makers and Entrepreneurs is to not to develop emotional attachment with the ‘means’ (organisation) but keep an eye on the ‘end’ (cause) and improvise or completely shift their approach, if required.

There are also some aspects which are unique to non-profits such as lack of or minimum negative externalities or commitment to non-paying customers and these factors differentiate them from any other kind of organisations.

But that is what Doppelgangers are all about — Different yet Similar.