Monthly Archives: September 2014

2 Marketing Worldviews

Today’s new topic will compare two worldviews, marketing and third sector.  Worldviews, sometimes called mindsets, refers to the often unexamined assumptions we make about the world.

In the UK, for example, our worldview makes clear distinctions between statutory, private and third sectors. This can be helpful but like a lot of helpful models there comes a point where the model constrains thinking.

These powerful distinctions are not held universally. Outside the UK people don’t see things in the same way.  I first became aware of this in the early 1980s, while studying with the Urban Theology Unit in Sheffield, UK.

Can Community Groups and Businesses be Natural Allies?

I read about community development during that year and I remember one text in particular (although I cannot remember what it was). It argued that in the US, community organisations and private businesses are natural allies. Businesses took up and developed further participative methodologies that began in community groups. As businesses developed new models, they shared them with community groups. Many of these groups, eg the Industrial Areas Foundation, were church-based and so Gospel paradigms can be traced through many of these methodologies.  Community groups, churches and businesses are natural allies in the US.  When I read management text books I can see approaches to strategic thinking shared across these sectors.

I’m sure the resulting relationships are healthy and in the US businesses have tax incentives to fund community organisations through charitable foundations. We have no comparable legislation in the UK, where community groups see the statutory sector as more natural allies.  There have been some exceptions but when community groups need money they turn first to government funds, next to charitable trusts and at a distant third, to businesses.

In both countries community organisations have to follow the money. But in the UK at a time of so-called austerity, there may be an opportunity to re-appraise these relationships. If so, online marketing is going to play a major role. We may not yet be clear about that role but this blog is a contribution to working out the direction this re-appraisal might take.

I’m going to start with a basic review of approaches to marketing and then review the marketing worldview before moving onto examining third sector worldviews.

How do you understand relationships between private, statutory and third sectors?

2 Why the Local Economy?

It’s good to be back! Over my break I’ve taken this site in new directions. You will see major changes over the coming weeks and this blog will keep you up to date with them.

Today I’m starting a major new strand – the local economy. On Mondays I explore topics under the heading “Mutuality”. This strand focuses on the third sector. My particular interest is community development although I’ve explored a range of topics you can find here:

I reviewed:

• relationships between the third, private and statutory sectors
• the types of third sector organisation
• approaches to working participatively, and
• partnership theory.

(These links will take you to my new cornerstone pages, where you can see these posts laid out in an accessible format. See this Friday’s post for more detail!)

The Local Economy and the Third Sector

The third sector, understood as everything neither private nor statutory, needlessly drives a wedge between the local economy and community organisations.  Misapplied grant aid separates community-based initiatives from the local economy.  Once the money runs out, community activities die back and the local economy remains unchanged.  Whilst I’m sure there are examples of good practice, I believe this happens too often.

Why?  It’s largely to do with values. Business people work for their own benefit in contrast to the altruistic values of the third sector. Reality is more complex. I have several times argued the two sectors complement each other more than many realise.

Many business people start out with altruistic values; they understanding businesses are the most effective way to commit their time to their goals. Others discover, even though they seek personal profit as a priority, they are best positioned when providing something of real value. A good reputation is of massive value to their business. Similarly many in the voluntary sector eventually understand they need income to keep going; they find the constraints in the sector on trading arbitrary and frustrating.

Further, business people can find the third sector judgemental about their values and hopelessly tied into bureaucratic rules and regulations. Often self-employed people leave employment to set up on their own because they’ve had enough bureaucracy from their employers.

Third sector people can find business people distant and not interested in their cause. They’re busy and don’t have time to commit to good causes.

Is this beneficial to anyone? The third sector, working so closely with statutory funding bodies, achieves relatively little in the most disadvantaged communities. Where they set up commercial enterprises for charitable purposes, they are often poorly conceived.

In my next post I shall look at a few examples.  My purpose is to highlight some of the issues, not to deny that a lot of good work is taking place in voluntary organisations and small businesses.  I’m particularly interested in good examples of collaboration across the private and voluntary sectors.  Leave a note about any you know in the comments box.