Across Australia there are many high-performing NFP and commercial organisations, often with long, rich heritages. Individually these organisations are evidently doing a lot of things right. Indeed, some successful organisations have looked at their commercial or NFP counterparts for insights that could boost their businesses even further.

One person who can provide informed commentary on the strengths of both sectors is Steven Cole. He has form in multiple sectors, currently sitting on two ASX-listed company boards (one as deputy chairman) as well as chairing the Western Australian not-for-profit Brightwater Care Group and the statutory QEII Medical Centre Trust.

A strategic blend of the strengths of each sector is useful to consider, he says. Organisations should "think creatively and benchmark themselves beyond their own domain to identify areas for potential improvement." Cole lists 10 areas where he believes not-for-profits and for-profits can look to the other for benchmarking benefit.

Key characteristics of successful for-profit organisations:

1. Strategy

Dedicate appropriate time, resources and effort to long-term strategic issues, even if it’s at the expense of today’s charitable outcomes.

2. Board information

Enhance informed decision making by ensuring the timeliness, quality and adequacy of information flow to the board.

3. Consultants

External input from consultants is both necessary and valuable to supplement lean NFP executive teams.

4. Legacy programs

Jettison programs not central to the organisation’s strategic future, even if they fit the mission.

5. Project disciplines

Rigour in project planning, execution and accountability is non-negotiable.

Key characteristics of successful NFP organisations:

1. Stakeholder respect and engagement

Maintain accountability to, and earn support from, a broad and diverse stakeholder group.

2. Strong culture

Develop a strong, unifying and sustaining organisational culture.

3. Recognise the value of different skills sets

Optimise diversity among upper executives and leadership groups.

4. Team buy-in

Develop relationships and co-operative teamwork towards shared organizational goals.

5. Keep a tight rein on the purse strings

Being frugal yet remaining effective.

"In many ways," says Cole, "the commercial corporation’s strengths are ‘hard’ skills, whereas the NFP sector brings with it ‘softer’ skills. Each can be effective. A healthy blend of the two suites of skills can differentiate high performing organisations with sustained effectiveness, irrespective of the sector."

This post first appeared here on Company Directors blog.