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Purpose

Since nonprofits operate without the feedback provided by profits and losses, their need for a vision is acute.

Design/methodology/approach

McKinsey & Company consultants report on their experience facilitating vision development in nonprofits. They extrapolate best practices.

Findings

Most effective visions comprise a compelling, easy‐to‐understand description of how the nonprofit would like the world to change in the next three‐to‐five years, what role the organization will play in that change, and how the nonprofit will measure the success of its role.

Research limitations/implications

The sample of cases described is small. Surveying a larger sample of nonprofit leaders to ask whether their vision has had positive results would provide valuable insight.

Practical implications

Developing a vision can keep an organization focused, increase the ease of performance measurement, help track successes and identify early warning signs of ineffective programs. Clear visions also highlight gaps in talent, funds, or facilities. Finally, staff members operating with the help of a clear vision often are more efficient and happier.

Originality/value

The experience of one of the world's foremost consulting firms with developing nonprofit organizations’ vision is an example of best practice.

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