Threat to core values or positive force for reform? The application of commercial and business models among small to medium third sector organisations in western Australia
Colin Penter and Paul Rajan
Matrix Consulting Group
Contact Email:   cpmatrixeon.net.au

Third sector community agencies are being urged to be more “commercial and business like”. Commercial and business ideas are increasingly central to the ways in which small to medium size third sector organisations are managed. The language of the marketplace, of business and commercial management is an increasing feature of third sector organizations.

But how widespread are business and commercial models in small to medium third sector organisations and what leads small to medium agencies to adopt such ideas and models? How appropriate are these ideas and models for third sector organizations who have a different operating logic where a sole focus on the financial bottom line is not appropriate and accountability and relationship with customers and stakeholders are far more complex? And what impact are these business ideas and models having on service delivery, management and operations and the broader community? How do agencies balance a “business focus” with their more traditional values and practices?

This paper will discuss early findings about these questions from an applied research project into the adoption of commercial and business ideas and models in small to medium size third sector organisations throughout Western Australia. Data will be presented from interviews, focus groups and forums involving leaders and managers in third sector organizations and key government agencies in metropolitan and rural WA. Data from agency case studies will be presented.

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Paper125.ppt

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