An Inside Perspective: MBAs Working at Nonprofits

Social Enterprise Newsletter, Spring 2002

What can a nonprofit employer and an MBA offer each other? To find out, Social Enterprise talked to Edward Geffner and Michael Everett-Lane (MBA '99), executive director and director of business development, respectively, of Project Renewal, which provides psychiatric, medical, drug, and alcohol treatment as well as housing and employment opportunities for homeless people in New York City.

Why did you decide to hire an MBA?

Edward Geffner: My training is in law, and I have long felt that the bulk of my responsibilities require business skills rather than clinical skills. I was recently advising a couple of our young employees about career paths and asked them if someday they wanted to manage a social-service organization. Although a clinical education is the routine pathway, I suggested that they consider applying to business school, since I thought that a greater familiarity with business analytic techniques would be useful. This pushed me to think about the possibility of hiring a person with those skills, particularly since we were expanding our social entrepreneurial activities. I also believe that a periodic, rigorous analysis of the efficacy of all our operations is important if we are to remain efficient and relevant.

Upon graduating from HBS, why did you decide to work at Project Renewal?

Michael Everett-Lane: I was looking for a stable, well-managed organization, and I was impressed with Project Renewal's 30-year track record, comprehensive approach to solving homelessness, and positive reputation in the community. The senior managers exhibit business savvy and good leadership, and I felt that I could learn from them. I was also impressed with the organization's willingness to take risks. Project Renewal has a history of starting new ventures, whether they are social programs or businesses. It had what I was looking for: impact, management, and an entrepreneurial spirit.

What does Mike bring to Project Renewal?

EG: I wanted Project Renewal to create small business ventures, which would accomplish two goals: first, to provide a place of employment for graduates of our programs, which would give them not only an income but also the kind of social supports that are important in a successful transition from living a transient existence to a stable working life; and second, to provide unrestricted income to help offset deficits in some of our service programs. In hiring an MBA, I wanted to bring in specific skills in market analysis, pricing, and the actual marketing of new services.

We now have several ventures under development thanks to Mike. I could not have undertaken these initiatives without him on board to direct the studies, formulate the plans, and submit the proposals. We are now engaged in serious efforts to secure funding for an aquaculture business as well as a wholesale baked goods operation. We have also reached breakeven on our catering business and are rigorously marketing ourselves to expand.

What advice would you give other graduates interested in a nonprofit career?

ME-L: Find an organization that fits your skills and that will value your experience in the corporate world. And figure out what issues motivate you. Ask yourself what makes you angry when you read the newspaper? Or if you had a large amount of money to donate, which organization or cause would you support? By taking a job in social enterprise, you may end up trading monetary rewards for psychic or spiritual rewards, so make sure your heart is in line with your job.

What advice would you give to other organizations interested in hiring an MBA?

EG: Be prepared to think about your organization and its goals in new ways, to see the potential for new development, and to build an understanding of what the unique training offered by HBS brings to your organization.