"Billions are wasted on ineffective philanthropy. Philanthropy is decades behind business in applying rigorous thinking to the use of money"
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Porter’s line lands like a rebuke delivered in a boardroom voice: calm, confident, and engineered to make “good intentions” sound like a liability. Calling out “billions” isn’t just a statistic; it’s a moral provocation. If the sums are that large, then sloppy giving stops being a private virtue and starts looking like public negligence.
The intent is managerial and insurgent at once. Porter wants to drag philanthropy out of the realm of charity-as-identity and into the realm of capital allocation. “Decades behind business” is a loaded comparison: it flatters the business world as the adult in the room, while portraying nonprofits and donors as operating on vibes, tradition, or sentiment. The subtext is that philanthropy has been protected from scrutiny because it wears the halo of benevolence. Porter’s framing punctures that protection. If business can measure ROI, optimize processes, and kill failing projects, why does giving get a pass for being ineffable?
Context matters: Porter is the strategy professor who taught generations of leaders to treat competition and value creation as systems you can map, quantify, and redesign. Read in that light, this isn’t anti-philanthropy; it’s pro-accountability, and it’s also a bid for influence. By insisting on “rigorous thinking,” he positions strategic management tools as the missing technology of doing good.
What makes it work is the discomfort it creates. It forces donors to confront an awkward possibility: generosity can be self-serving if it prioritizes feeling helpful over being effective.
The intent is managerial and insurgent at once. Porter wants to drag philanthropy out of the realm of charity-as-identity and into the realm of capital allocation. “Decades behind business” is a loaded comparison: it flatters the business world as the adult in the room, while portraying nonprofits and donors as operating on vibes, tradition, or sentiment. The subtext is that philanthropy has been protected from scrutiny because it wears the halo of benevolence. Porter’s framing punctures that protection. If business can measure ROI, optimize processes, and kill failing projects, why does giving get a pass for being ineffable?
Context matters: Porter is the strategy professor who taught generations of leaders to treat competition and value creation as systems you can map, quantify, and redesign. Read in that light, this isn’t anti-philanthropy; it’s pro-accountability, and it’s also a bid for influence. By insisting on “rigorous thinking,” he positions strategic management tools as the missing technology of doing good.
What makes it work is the discomfort it creates. It forces donors to confront an awkward possibility: generosity can be self-serving if it prioritizes feeling helpful over being effective.
Quote Details
| Topic | Decision-Making |
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