Why is there an increased need for Youth to take up management roles in the Social Sector?

The Indian Development Sector is purportedly one of the largest and most active social economies globally. And yet, despite the millions of Non-Profit Institutions and Philanthropists spending close to 55,000 Crores (close to 7.6 Billion USD), the social challenges continue to grow at a disproportionately greater pace when compared to the rate at which these challenges are getting addressed. 

Globally, it is estimated that there are 15 million millionaires and close to 2000 billionaires, while 10 percent of the world’s population live on less than 1.90 USD a day. In India, in the last year alone, 230 million were pushed back into poverty due to the lockdowns following the Covid-19 pandemic in 2020. Where then is the problem?

Today, 53.6% of the world lives with just 1.4% of the world’s wealth. This rising inequality between the rich and poor translates into inequality in education and health, where there are fewer educational opportunities and poor people living much shorter lives. Social Purpose Organisations (SPOs) represent these least empowered billions of those who have little or no agency, with the endeavour of making the world just, equitable, humane, and sustainable. For decades, the onus of helping the underserved has fallen on these SPOs. The SPOs continue to do an amazing job, often with limited resources and a lack of systemic support. Unfortunately, this is only part of the problem.

The big issue facing society and the planet is the inability to have an impact at the population scale. While some issues have been tackled at the population scale, arguably, a vast majority of social issues remain unaddressed to the huge disadvantage and denial of the billions at the bottom of the pyramid. For a sector of this scale and size to realise appropriate social impact for scale, the requirement is exceptional organisations that can drive impact at scale. This requires Organisation Building and Leading abilities, which is sorely missing in the sector. Like the professional MBAs in the world of business and the Public Administration (MPA) professionals who lead and manage the State, the social sector requires a cadre of professional leaders and managers. And this is exactly what is missing. The ability to build and lead organisations in the sector remains a huge lacuna. There is a crying need to build this domain and a cadre of professional managers with the right knowledge, attitudes, skills and tools. Investments in building this domain and a cadre will create the necessary force for good and galvanise the sector to have impact at population scale, and a multiplier effect on the billions of dollars being spent, and the millions of people working in the sector. 

Like the professional MBAs in the world of business and the Public Administration (MPA) professionals who lead and manage the State, the social sector requires a cadre of professional leaders and managers. And this is exactly what is missing. The ability to build and lead organisations in the sector remains a huge lacuna.

Development in a progressive social, economic, and political climate involves the interaction of the State, Markets and Civil Society, deemed to be the key pillars. Witnessing how management has played a mammoth role in the way states and markets (businesses and state bodies) are managed, has led to creating operations and impact on an unimaginable scale ever since the Industrial Revolution. It is over 140 years since the first MBA Program (1881) and over 160 years since the first MPA Program (1859). At the same time, evidence shows that there has been very little work globally for leading and managing SPOs.

The idea of management, especially coming from the capitalist world, being the root cause of societal issues with a one-track mind of profitability and exploitation of the weak, has been continually rejected or rather viewed with caution by the sector. This has led to SPOs remaining small players and losing their place at the table with more influencing stakeholders from the State and Markets dominating conversations around societal issues and environmental sustainability. Despite working diligently for the common good, the lack of professional leadership and management skills in the social sector has reduced their impact, and making them small and, in some cases, invisible and silent stakeholders.

What can be done to solve this and help the billions of underserved truly access what they deserve?

An ecosystem facilitating the development of a cadre of reflective professionals, trained to take on Development Leadership and Management roles in the Social Sector. Leaders and managers who can respond with understanding and empathy to the systemic and cultural issues of communities, while not losing sight of impact, scalability, and sustainability. These are specific and complex societal issues that demand leaders who can skillfully respond with strategic thinking and sustainable solutions. This is where the concepts of Development Management and Development Leadership come in.

Development Management will need to unite the two domains of management principles and development praxis. To mainstream Development Management there is a need to create a whole new ecosystem of ideas (knowledge), individuals (talent), and institutions. This domain is deeply rooted in universal values of equity, compassion, and justice, and driven by effective and appropriate leadership practice. This cadre of professionals will be adept at doing deep dives into understanding complex societal issues, designing appropriate strategies and interventions, along with building impactful organisations that can also work adeptly with both state and market stakeholders. These practitioners will lead social purpose organisations to create sustainable and scalable impact.

If Development Management acts as a force of good and revolutionises the Social Sector the same way Business Management did to the many business establishments in the 1800s, we can surely expect that millions and billions move out of poverty in the coming decades. The aim is to deliver change so that every individual can lead a dignified and meaningful life. SPOs transitioning into equal, powerful, and balancing roles in managing inequality will surely drive impactful social change in the development leadership and management sector.

About the author

Ravi Sreedharan is teh Founder and President of Indian School of Development Management