Management Strategies

Executive Succession Planning

2009-11-13T05:00:00Z

According to the 2006 CompassPoint nonprofit leadership study, Daring to Lead, three out of four executive directors were expected to leave their jobs within five years. While this alarming prediction did not come true to the extent expected, the largest concentration of executives is in the 50-59 age group and will be pursuing retirement.

So if you serve on a voluntary board you will likely find yourself in pursuit of a new director. Since this is one of the most important responsibilities a board can undertake, it makes sense to approach this likelihood in a thoughtful, deliberate manner.

The following resources are provided to assist nonprofit organizations with executive transition management (ETM) or excutive succession planning (ESP) or whatever specific title you want to give it. This is not an all inclusive resource list, but does represent significant research by the author on this topic.

Background Data

Two books are considered classics in leadership transition:

Gilmore, T. (1988) Making a Leadership Change: How Organizations and Leaders can Handle Leadership Transition Successfully. San Francisco: Jossey-Bass. Gilmore’s classic is currently out of print. However, in it he discusses keys to a new leader’s effectiveness, contributions to long-term success and advice on preparing for transitions.

Bridges, W. (1991) Managing Transitions: Making the Most of Change. Boston: Addison-Wesley Publishing Company. Bridges makes a distinction between change which occurs externally and transition which is the emotional process people go through as a result of change. He also splits the transition process into 3 stages: ending, neutral zone, and new beginnings. The ending is an important part of transition, people must acknowledge the end and loss; the neutral zone is the turbulence people feel between the old and new; new beginnings truly occur when people let go of the past, move through uncertainty and begin to focus on the future.

Two national studies in 2004 and 2006 brought to light the planned departure of a surprising number of executive directors who were surveyed. This raised the question of how well prepared organizations, and the sector at large, were for the projected wide-scale transitions that were projected.

Nonprofit Executive Leadership & Transition Survey 2004, Research by Managance Consulting in collaboration with TransitionGuides, funded by Annie E. Casey Foundation. http://www.aecf.org/uploadPublicationFiles/executive_transition_survey_report2004.pdf

Provides results from a web based survey of over two thousand executive directors from nonprofit organizations with the following key findings:

· One third of executives are either long-time executives or founders.

· Most (60%) are first time executives and less than a quarter plan to take another executive position in the nonprofit sector.

· Women rule the nonprofit sector in terms of numbers but run smaller organizations and make less money than men.

· There is limited leadership diversity in the sector.

· The sector is moving from relative stability to instability.

· Transition will likely occur in two waves (the first by 2010 and then a second by 2020).

Daring to Lead 2006 – A National Study of Nonprofit Executive Leadership, A joint project of CompassPoint Nonprofit Services and The Meyer Foundation www.compasspoint.org

Key findings of this report:

· Annually 9% of executives leave their jobs.

· Three out of four executives expect to leave their current jobs within five years.

· One in three executives is eventually fired or forced out of the job – an unexpectedly high percentage.

· Just 29% of executives have discussed a succession plan with their board.

· Even when executives do leave their jobs, most will stay in the nonprofit sector, 70% say that another nonprofit, a grantmaking organization or consulting is their ideal next job.

Web Resources

Significant contributions to the growing body of knowledge of executive succession were made in a series of Monographs. This series is managed jointly by CompassPoint Nonprofit Services, TransitionGuides, and the Annie E. Casey Foundation, and underwritten by the Annie E. Casey Foundation and the Evelyn & Walter Haas, Jr. Fund. These organizations are leaders in research and practical application of principles related to successful succession planning. I warn you when you go to the Casey Foundation site be prepared to stay awhile as it is rich with reports and monographs on multiple topics.

Capturing the Power of Leadership Change by CompassPoint and TransitionGuides Volume 1

https://www.compasspoint.org/assets/63_etmono1capturing the power.pdf

Interim Executive Directors: The Power of the Middle by Tim Wolfred

Volume 2

https://www.compasspoint.org/assets/64_etmono2interimeds.pdf

Founder Transitions: Creating Good Endings and New Beginnings by Tom Adams Volume 3

https://www.compasspoint.org/assets65_etmonofoundertransitions.pdf

Up Next: Generation Change and the Leadership of Nonprofit Organizations by Frances Kunreuther

Volume 4

https://www.compasspoint.org/assets66_etmono4upnext.pdf

Staying Engaged, Stepping Up: Succession planning and executive transition management for nonprofit boards of directors.

Volume 5

http://www.aecf.org/uploadPublicationFiles/staying%20engaged%20up.pdf

Building Leaderful Organizations: Succession Planning for Nonprofits by Tim Wolfred

Volume 6

https://www.compasspoint.org/assets/526_buildingleaderful organiza.pdf

Resources - National

CompassPoint Nonprofit Services established their Executive Transitions program in 1997 in response to seeing so many organizations struggle with their leadership turnover. They offer a number of resources, workshops and a full range of consulting services. Tim Wolford, Senior Projects Director is a nationally recognized pioneer and leader in the field of executive transition. On a regular basis they offer 3 day workshops for a limited number of consultants who work in this area. www.compasspoint.com

Wolfred, Tim (2009) Managing Executive Transitions, CompassPoint Nonprofit Services

This book shows how a state of transition can give board and staff members a chance to put things together in new and creative ways –to discard some old pieces and to bring in fresh elements. He recommends a three phase process Prepare, Pivot, and Thrive.

ISBN 978-0-940069-57-2
Order no. 069572
184 pp
7” x 10” softcover
$29.95

Order from bookstores or publisher Fieldstone Alliance

1-800-274-6024

TransitionGuides

Offer tools, ideas and services to strengthen organizations during leadership changes. They are dedicated to sustaining and strengthening nonprofits through better managed leadership transitions and related organizational development. They offer a full range of publications, consulting services and webinars and in-depth workshops for executives planning to leave their organizations. Tom Adams and Don Tebbe are recognized leaders in this field. www.transitionguides.com

Tebbe, Don( 2008 ) Chief Executive Transitions: How to Hire and Support a Nonprofit CEO

This is a comprehensive guide to help boards navigate the hiring process and oversee a successful leadership transition. It includes checklists, key questions board members will need to answer as they go through the process, and practical real-life examples. 118 pages with an accompanying CD-ROM that includes 13 helpful documents, including a resume scoring sheet, sample timeline, sample interview questions, and a sample 90-day entry plan to help ensure the success of the newly hired chief executive.

Winner of the 2009 Terry McAdam Award – Available from BoardSource

http://www.boardsource.org/Bookstore.asp?Item=1086

Book w/ CD-ROM
Number of Pages: 118
Item Number: 348

Board Source member price $34

Regular Price $51

Third Sector New England

Since its founding in 1959, Third Sector New England has focused on building the knowledge, power and effectiveness of nonprofits, so they can better help communities leverage resources, solve problems, identify opportunities – and thrive. They provides executive transition and search services. www.tsne.org

Resources – Local

Now that I have pointed out the national leaders in this field. I would be remiss if I didn't at least mention my own interest and expertise in this area.

Management Strategies www.management-strategies.org or 716-483-6939.

Established in 1992, provides consulting and capacity building services to non-profits including interim agency management and transition. Patricia Smith, President has served as interim executive director for seven different Chautauqua County non-profits including Family Service, Literacy Volunteers, YWCA, Cornell Cooperative Extension, Joint Neighborhood Project, Chautauqua Blind Association and the Lucy-Desi Center. Each interim position lasted from 4-6 months and included three phases – Assessment, Visioning and New Beginnings.

Having an interim provides a board with the opportunity to really think about their future and then identify the skill set, characteristics, experiences they need in a new director to help the organization get there. I tried to capture the essence of the experience in the article cited below that I wrote for Charity Channel. The other articles are ones I have written over time related to hiring the executive director and are available on this blog or my website.

Charity Channel Nonprofit Boards and Governance Review March 14, 2007.

The Interim Director: Place Holder or Catalyst for Organizational Change? By Patricia A. Smith,

Management Strategies Blog February 2008

In Pursuit of the Executive Director – Part One & Part Two, By Patricia A. Smith

www.management-strategies.net

Management Strategies Blog November 2009

The Future By Patricia A. Smith

www.management-strategies.net

RESOURCES section of Management Strategies website www.management-strategies.org

Ready Reference for New Directors by Patricia A. Smith (undated)

There are additional publications on executive transition from various journals and publications including:

Axelrod, Nancy. (2002) Chief Executive Succession Planning. Washington, DC: BoardSource

Brinkerhoff, Peter.(2007) Generations: The Challenge of a Lifetime for Your Nonprofit: Fieldstone Alliance

The Nonprofit Quarterly. Winter 2002. “Departing? Arriving? Surviving and Thriving: Lessons for Seasoned and New Executives.” Volume 9, Issue 4.
This issue is sold out, but a compendium of articles from the issue is available for purchase.

Karen Gaskins Jones. Spring 2007. “Preparing an organization to sustain capable leadership.” The Nonprofit Quarterly, Volume 14, Issue 1.

Blue Avocado Newsletter www.blueavocado.org

Succession Planning for Nonprofits of All Sizes by Tim Wolfred and Jan Masaoka, 2/17/09

Sustaining Great Leadership: Succession Planning for Nonprofit Organizations by Tom Adams, First Nonprofit Foundation www.firstnonprofit.org

Support Center for Nonprofit Management Making the Most of the Internal Interim Directorship, by Robert I Goler, Assistant Profession in the Arts Management Program, American University

For a good “how to” booklet that identifies steps and issues and provides some tools, see Managing Executive Transitions (1999) by the Neighborhood Reinvestment Corporation's Community Development Leadership Project. While this booklet is several years old, it does provide a basic blueprint of how to manage an executive transition. And while it is referred to as a booklet, it is over 50 pages long!

I hope you find the above resources helpful, as your organization navigates the transition process.

Until next time,
Pat

P.S. If there are any formatting errors, I apologize in advance, as I pasted most of this blog from the resource list I had developed and sometimes the blog format and WORD don't see eye to eye.

Resources compiled by Patricia A. Smith, President Management Strategies,

1385 Whitetail Lane, Jamestown, New York 14701 716 483-6939 Manst542@aol.com

Website www.management-strategies.org Blog www.management-strategies.net

89 P: 617.523.6565 | F: 617.523. Sector New England

The future

2009-11-03T20:43:00Z

One of the benefits of being slightly sick and home-bound is that it provides an opportunity to catch up on journals and newsletters. Additionally, there is ample time for Internet research and really delving into topics of interest. So, last week thanks to laryingitis and a head cold, I was able to immerse myself in topics ranging from executive succession planning, to generational leadership differences, to broader issues confronting the nonprofit sector as a whole.   I also registered for two webinars on the above topics. So while I had to bow out of facilitating two focus groups, the week was by and large productive thanks to the wonders of technology.

I had done some previous research regarding executive succession planning and was familiar with the statistics from the Daring to Lead 2006 publication, which found that 75% of the more than 1900 executives polled were planning to leave their organization within 5 years. Whenever I present a Building Better Boards workshop, I touch on this study and recommend that boards start to put together a succession plan; but I have not worked with any organization on such a plan. A request to do so just prior to my self imposed seclusion was the impetus for several hours of research.   I have now compiled a pretty thorough list of resources, checklists, etc. on this topic and will be included that list in a future blog.

One of the pluses and minuses of Internet research is that often it is like going down a long hallway and each door leads to another door and another door. One of these doors did not include information on how to successfully navigate an executive transition so the organization emerges stronger and more focused, but rather recommended a broader view than attention to the leadership pipeline and replacement process.

The Annie E. Casey Foundation Generational Monograph Series entitled NEXT SHIFT - Beyond the Nonprofit Leadership Crisis.   highlights many of the statistics surrounding the impending crisis and the need to identify and attract new leaders, but it takes it a step further. It suggests that the nonpfoit sector itself is in crisis and the emphasis on leadership transition reinforces rather than challenges the prevailing issues facing nonprofit organizations. This monograph was the result of interviews, focus groups and meetings with current and emerging nonprofit leaders in their 20s, 30s and early 40s. And guess what? They rejected the idea of taking over nonprofit leadership. "They did not identify the executive director/CEO job with excitement, challenge, creativity, and innovation. The message younger leaders are receiving is that heading a nonprofit is a thankless job requiring great sacrifice with few visible rewards. Rather than feeling they could effect larger change if they took on more leadership, they seemed to believe that these top positions actually offer fewer opportunities to have an impact on the issues the organization was meant to address."

As a former executive director and often interim director, and someone who works with many executive directors, I have seen and experienced first hand the "sacrifice" part. As to the "few visible rewards" there is no denying that either. So why did I ,and why do many of my contemporaries serve in these positions? I always felt it was part of being involved with something greater than myself, something for the common good and there was satisfaction in that. Seeing an abused woman and her children safe or watching a teen mom get a high school diploma, or securing a foundation grant to ensure that programs like these would continue were the moments, the events that made it seem worthwhile. But was it something else? I remember after being hired as executive of the YWCA driving by the beautiful but slightly shabby four story building and thinking - OMG - I'm responsible for everything that goes on or doesn't in that building. It was a challenge I wanted and enjoyed. After eight years, I knew it was time to move on and have more control of my life and time and less stress. And this was before wide-scale budget cuts, increased expectations for transparency and accountability, the downward economic slide and increased client needs and expectations.

Younger leaders want more of a work/life balance and that is a good thing, but it means we have to think differently about the structure of our organizations and our expectations of executive directors. "Younger leaders are more interested in co-directorships, flattened hierarchies(pushing down responsibility and authority),networked organizations, and participatory approaches."

As an interim director where I help with the transition from the old to the new (usually for a four to six month period), I often do not see agency staff and board at their best. These short but intense assignments are challenging and reinforce the myriad responsibilities, stresses and sometimes seemingly insurmountable obstacles that executive directors face every day.
In conversations with current executive directors they talk about being at their desks at 7 am to get "their" work done before other staff arrive and the phones and meetings start. They also talk about the ongoing challenges they face every day. They would probably echo the call for a different structure. What do you think?

I urge you to read the monograph which is available at http://www.aecf.org/KnowledgeCenter/PublicationsSeries/ExecutiveTransitionMonographs.aspx.

It offers several thoughtful recommendations for knowledge development and individual action. Let's begin a dialog on this fascinating topic!

The next few blogs will be focused on succession planning and executive transition management.

Until next time,
Pat

Source
Kunreuther,Frances and Patrick A. Covington, NEXT SHIFT: Beyond the Nonprofit Ladership Crisis
(Baltimore, MD: Annie E. Casey Foundation, 2007).

How'd We Do? - Meeting Evaluation

2008-08-25T00:39:00Z

The work of any non-profit board is governance and determining matters of strategic importance to the organization. The board's work is accomplished at meetings. Successful and productive meetings are every board member's responsibility so it is important for all members to be on time, be prepared, engage in open, honest communication and help create an atmosphere where it is okay to disagree.

Earlier posts have focused on meeting tools such as consent agendas, norms and indicators or metrics. If you have used any of these techniques I trust you are seeing more focused and productive board meetings.
To continue the conversation about effective board meetings, I'd like to discuss meeting evaluations. There are a number of meeting evaluation tools available, or you can create your own. Since every organization has a unique culture and way of working, it is important to identify an evaluation tool that "fits" your group.

Did your group accomplish what you set out to do in your agenda?; did the process make sense?; and what about relationships - how do people feel about how members treat one another?

One simple and very effective technique is to take 5-10 minutes at the end of the board meeting and ask board members to rate the meeting on a scale of one to ten, with one being awful and ten being superb. The chair simply does a round-robin and everyone verbally gives their number and why they gave the meeting that ranking. Someone might say, "I rate it a 6 because while we accomplished a lot, we did stray from the agenda and there were side-bar conversations."

Again, if your group's comfort level is with verbal evaluations, there are other questions that can be asked in a round robin at the end of the meeting, such as:
    What did we do that really worked well?
    Did anything happen that we do not want to repeat?
    Are there bad habits we seem to fall into?

If your group prefers a written evaluation format, you can periodically distribute a written meeting evaluation form which includes statements like:
                                                                                                                             Good                   Needs to Improve

Meeting started on time.

Meeting was business like, results-oriented and we functioned like a team.

Members were prepared for discussion of agenda packet material.

Discussion was confined to agenda items only.

Policy issues, rather than daily management issues were discussed.

Controversial items were handled successfully and to the satisfaction
of all members.

Printed materials were easy to understand and use.

Meeting was appropriately guided by board chair who did not
dominate the discussion.

Members were able to differ without losing
regard for the right of each to have his or her own views.

Board members listened to one another.

When action was taken, assignments were made and accepted.

Meeting room was comfortable and conducive to board activity.

For items that members indicate need to improve, it is helpful if they are asked to include suggestions for what those improvements should be.

Regardless of the type of evaluation you use, the key point is that you assess your board's meeting behaviors and eliminate the time wasters, the drifting off topic and concerning yourselves with matters that are the executive director's responsibility. And remember that the meeting should take place at the meeting and not in the parking lot afterward.

Until next time,
Pat

www.management-strategies.org

Tools for Board Meetings

2008-08-07T00:17:00Z

The majority of the work of any board is accomplished at and through meetings. A board member's time is one of his or her most valuable contributions, so structure your meetings to make the best use of that time. As a follow up to an earlier post about meetings and using a consent agenda, I'd like to talk a little about other tools to help ensure that board meetings are focused and productive.

PERFORMANCE INDICATORS
Some boards use the dashboard indicator concept to quickly assess their organization's performance. They look at a few metrics or indicators that tell them if the organization is on track in a number of areas.

In order for this concept to work board members must come to agreement on some targets for finance, human resource, program etc. For example under finance the board would make a determination that they have an operating reserve of cash equal to XX month's of expenses. For program they might look at a target of XX number of new clients per year, or an average client satisfaction rating of 4.2 out of 5. The board can also set some targets for themselves in terms of board attendance or board member contributions. For example, the target might be that board members attend 85-90% of the scheduled board meetings or that there is 100% participation by board members in terms of an annual gift. Targets can be identified in terms of new donors or % growth in endowment or new revenus sources. There is no limit to the number of targets that a board can set. The basic question is what do we need to look at monthly or quarterly that will tell us how the organization is doing and help us fulfill our governance responsibilities.

Once targets are set in the various areas, board members receive a performance indicator sheet either monthly or quarterly or semi-annually that would look something like this:

FINANCE
Days of cash on hand                                                                Target: 4 months        Current status: 6 weeks

Days after month end of preparation of financial statements    Target:   5 days           Current status: 10 days

PROGRAMS
Programs are self- sustaining                                                    Target: 85%                Current status: 90%

HUMAN RESOURCES
Staff turnover rate - annually                                                      Target: below 15%     Current status:   10%

This type of report allows board members to quickly zero in on what's important and where they should focus.   If we take the days of cash on hand example, there is a considerable stretch between the target of 4 months and the actual of 6 weeks. Clearly action needs to be taken to meet the target.

NORMS/GROUND RULES
Many boards find it helpful at their organizational meeting to discuss how things are going to be, so that everyone understands what is expected of them. They do this by establishing norms which are standards of behavior for the group.  They are designed to increase meeting productivity and effectiveness while creating safety for members. The norm for setting norms is that there should be a reasonable number (4 - 6), clearly understood and supported by the group and posted as a reminder. Each board and organization has its own culture and way of work, so the norms will vary from group to group, but I am listing a few examples below:

EXAMPLES OF NORMS
Meetings start on time
One person talks, everyone else listens
Stick to the agenda
Confidentiality is observed
No cell phones, lap tops, etc.
The meeting takes place at the meeting, not in the parking lot!

Effective meetings are every members responsibility. So I encourage you to take advantage of these and other meeting effectiveness tools like the consent agenda. There will be future posts on other meeting tools, so if you have specific questions send them along and I will try and incorporate the answers into my next post.

Until next time,

Pat

www.management-strategies.org

Meetings With Meaning

2008-07-12T11:30:00Z

It has been said that meetings are events at which minutes are taken and hours are wasted. Yet for those who serve on non-profit boards, meetings are where and how they carry out their governance responsibiities, so it is imperative to have well-run meetings which facilitate reasoned and effective decision making .

Does your board suffer from any of these symptoms of board meeting problems?

lack of a quorum
meetings start later and later
no agenda exists, or the agenda is not distributed in advance
few members speak
members are hesitant to vote in opposition to the majority thinking
individuals resign before their board term expires
there is lack of clarity about who is going to do what based on decisions made
majority of decisions are made by the executive committee
actions taken get rehashed and revisited
meetings seem to go on and on

If so, it is time to make some changes. A good starting point is a brief board survey asking board members to identify your organization's top three priorities based on your mission, vision and strategic plan.
Are the top three priorities of the board the same as they are for the organization?
How much time does the board spend on the above priorities at your board meetings?
How much time at board meetings is spent talking about things that have already happened?
In thinking about recent board meetings were there agenda items which could have been better handled by a committee or the executive director or senior staff?
Results of this survey should give you a starting point for actions you might take to ensure that the board spends more time on priority matters.

There are a number of tools to keep meetings focused. I am going to talk about the most important tool - the agenda - and how this really is the blueprint for success of any meeting.

AGENDAS are necessary for effective meetings and every board member should be able to have input in terms of what goes on the agenda. Every board member should also be expected to review the agenda and all supporting materials in advance of the meeting.

Many boards have adopted a consent agenda format where routine items and resolutions are grouped together and voted on with one vote. These should be issues that do not need any discussion before a vote. Often included in a consent agenda would be approval of committee or previous board meeting minutes, minor changes in a procedure, or routine revisions of a policy. Any board member may request that an item be removed from the consent agenda and discussed individually. What I have observed with boards using a consent agenda is that initially members want to remove items from the consent agenda and discuss them. As the boards learns to work in a more focused way, they quickly adapt to the consent agenda concept and use their board time for discussing strategic issues.

Agendas should be forward looking and focused on matters of strategic importance. Many board agendas are backward-looking and this encourages second guessing and drifting into management.  The priorities identified in your survey or strategic plan should be the priorities addressed at your board meetings. Planning and evaluation of programs and services, acquisition and management of resources, assurance of integrity and accountability and the future are governance issues to be addressed by the board.

It is also helpful to stage the agenda and wise to not begin or end the meeting with an issue known to be controversial. Table major issues if you don't have consensus. Avoid drift and when members are off-topic have a process for quickly returning the group to the priorities at hand. A parking lot process - where important but off topic concerns are posted on a flip chart can be an effective tool for capturing the concerns and then including them in future agendas, or at the end of the meeting if there is time and the group wants to address them.

Write an "anticipated action" for each agenda item such as approval, discussion, information, refer to committee. Some groups also like to include an estimated time for each item.

At the beginning of the year identify a number of educational topics that can be included on a long term agenda and then every other month or so include a 20 minute presentation or discussion. Topics can range from changing client profiles to emerging competitor organizations to board composition & diversity topics.

There are a number of other tools including establishing norms, key metrics to monitor, meeting evaluation tools and a variety of decision making options that will be discussed in later posts.

A sample agenda follows:


                                                                        SAMPLE AGENDA

There are a number of ways to focus board attention on priorities. How the agenda is structured is key to that process. This agenda begins with the mission statement as an ongoing reminder of work of the organization. It begins with a consent agenda to save time and deal with routine items which do not need discussion. The format alerts board members to what will be expected of them regarding each item. Some organizations also like to indicate how much time will be devoted to each item. The meeting ends with a review of actions taken and assignments made and a quick evaluation of perceptions of the meeting.

                                                                     ABC PUBLIC LIBRARY
                                                                           JUNE 1, 2008
                                                                        7:30 PM – 9:30 PM

Mission: ABC Public Library fosters and enhances family literacy through access, information and instructional services.

Call to Order

ACTION TIME

A. Consent Agenda                                                                                    approval
    a. Approval of Minutes of May 4th meeting
    b. President’s Report
    c. Librarian’s Report

B. Treasurer’s Report review, file for audit

C. Finance Committee………….Jeff Brown
          Proposed change in insurance carrier                                             approval

D. Expand Educational Program……Susie Smith
       Documentation of need (Program Committee)                                   approval

E. Board Assessment                                                                                 discussion
                                                                                                                  approve use of new
                                                                                                                  evaluation tool

F.  Establish “Friends of Library” Group                                                     discussion/appoint committee

G.    Presentation by Allen Case – Libraries                                               discussion/reaction
       of the Future.

H.    Other business

I. Announcements

J. Meeting Evaluation

K. Action Review

L. Adjourn

Until next time,
Pat

Best Practices( or just common sense) to Enhance Board Effectiveness

2008-05-31T23:53:00Z

During the past 16 years as a consultant working with non-profit organizations and foundations, I have read countless articles, books, white papers, columns, and journals focused on the non-profit sector. I have attended workshops, seminars and conferences. For the last several years I have included a number of what I have termed "best practices" as part of every Building Better Boards through Strategic Governance Workshop I have presented. At this stage, it is hard to pinpoint where each practice came from. Some are original with me, others I know are not, but I have been including them for so long, it's hard to remember their point of origin.

Are they in fact 'best practices' based on emperical data and longitudinal studies? No. Yet there is a certain logic and sense to them. I believe they help boards to be more effective and after all isn't that one of the ultimate goals of every not-for-profit? You have nothing to lose by implementing them and much to gain. So here they are in their simplicity with a blanket thank you and acknowledgement to other practitioners, presenters and authors for their contributions to this list.

Encourage board members to tell each other what motivates them to serve.
Educate board members about your organization and their responsibility.
Hold each other accountable for the board's performance.
Ensure that the board continually plans for the future.
Ask thoughtful questions and keep asking.
Ensure that meetings have meaning.
Avoid a policy vacuum.
Understand the value of diversity
Develop and sustain a synergistic board-executive director partnership.
Determine the board's role in the overall fund development strategy.
Recruit board members intentionally and understand generational differences when recruiting.
Set term limits.
Develop an executive succession plan.
Engage in regular self evaluation and assessment.
Celebrate.

Feel free to add your own best practices, common sense maxims or simple truths to the list.

Until next time,
Pat

P.S. I hope you like the new background for the blog. I have fond memories of my first Parker fountain pen and this template spoke to me. However, if I had to write out each post in long hand, even with an elegant fountain pen, my blogging days might never have come to be.

How is Your Board Performing? - Part Two - Group Performance

2008-05-26T20:47:00Z

Last week's post focused on individual board performance and assessment. This post will focus on assessing the entire board along a number of dimensions. Hopefully, your board has an annual work plan spelling out what you hope to accomplish in a given time period.

There are a number of assessment tools ranging from the simple to the complex and validated by published research. You may want to check out Carter McNamara's free and very extensive nonprofit management library at www.managemementhelp.org or go to BoardSource www.boardsource.org for samples or examples. The Upstate Alliance for Nonprofit Excellence also has a number of assessment tools, but when I go to what used to be their web address www.upstatealliancenp.org, all I get are advertisements from Go Daddy. It appears the computer gremlins are hard at work again, but maybe you will have more success in getting to the site than I did.

What makes the most sense for your organization?   What questions need to be asked and answered in order to determine if your board is governing effectively? A possible starting place might be looking closely at the key responsibilities of nonprofit governing boards, which include planning & evaluation, financial development and management, human resources, community connection, and board development.

If you are going to develop your own assessment tool, use a 5 point scale - Excellent 5, Good 4, Average 3, Fair 2 and Poor 1, or use a Yes, No or Needs Improvement scale with an additional column for suggestions for improvement. Have each board member complete the assessment form and then the Board Development Committee can tabulate the results and present them to the board for discussion.


Under Planning & Evaluation
    Does the organization have an ongoing process to examine internal and external community trends, to make forecasts and to systematically plan for its future?
    Does the organization have a current strategic plan with an updated and concise
    mission statement? vision and values statements?  clearly articulated goals?
    Are organizational policies consistent with the values statement?
    Is the board's work, and current programming moving the organization toward its vision?
    Are the quality and quantity of programs consistent with the plan and the mission?
    Is there a framework of accountablity for the organization?
    Have dashboard indicators for governance been developed so board members can quickly assess how the organization is doing?
    Do board members actively participate in the planning process?

Under Financial Development & Management
    Does the board approve an annual budget and fund raising goals?
    Do all board members make an annual contribution that is significant to them?
    Do all board members support special events and campaigns?
    Is there an audit committee?
    Is there a system for ensuring that resources are managed effectively via monitoring systems that assure executive and organization accountability?

Under Human Resources
   Does the organization provide orientation, training and evaluation for staff, volunteers and board members?
   Is the Executive Director/CEO evaluated annually against preset goals?
   Are personnel policies, including a grievance procedure current and understood by all?
   Does the organization have a wage and salary administration plan designed to attract and retain competent staff?
    Are board and staff viewed as working cooperatively as a team, and is each recognized by the other as having a distinct and important role to play?
   Is the board's relationship with the Executive Director one of mutual trust and respect?


Under Community Connection
    Does the organization publish an annual report?
    Does the board represent the organization to the community
    Does the organization have a system for obtaining input from individuals and groups affected by its planning of services, its methods of service delivery and its service results?

Under Board Development
   Are board members and officers carefully recruited and selected?
   Does the board operate under a clear and up-to-date set of by-laws with which all members are familiar?
   Does the board have diversity in terms of experience, skills, ethnic, racial, gender and age groups?
   Does the nominating committee use established criteria to recruit board members based on the needs of the board?
   Are there term limits?
   Does the board have an appropriate committee structure?
   Do at least eighty percent of board members attend meetings?
   Does each member of the board feel involved and interested in the board's work?

This post is not meant to be an exhaustive and all inclusive listing of assessment questions. Think of it as grist for the mill in terms of some of the dimensions you may want to assess. The results will point out areas where the board can be more effective and suggest possible topics for board development activities.   Common sense would suggest that you have to know where you are in the present to make plans for the future.   Organizations committed to self-improvement are more likely to perform at or near peak capacity, add value and help the organization to evolve to the next level of effectiveness. Is it time for your organization to take this important step?

Until next time,
Pat

How Is Your Board Performing? - Part One - Individual Performance

2008-05-16T21:38:00Z

One of the recommendations in the recently published brief by Francie Ostrower, BOARDS OF MIDSIZE NONPROFITS: THEIR NEEDS AND CHALLENGES was to "Institutionalize a procedure for the board to regularly monitor its own performance." Going on to say "in order to identify and correct weaknesses in their performance, boards must regularly examine that performance and find find ways to train board members and implement changes as needed", the publication is one of many stressing the importance of board self-assessment.

While the literature on this topic is growing and a number of board assessment forms are available, many boards do not engage in the self-assessment process. Why? Probably for a number of reasons ranging from:

they don't know they are supposed to,
they think they are doing fine, so why bother,
they are so busy dealing with one crisis after another that there isn't time to devote to this endeavor,
they have talked about it but no one has taken the initiative to make it happen.

For unaware board members, let this post be a wake up call that self-assessment should be on your board's yearly agenda. Having said that, what is it you want to evaluate - the overall performance of the board or how well individual board members meet their governance responsibilities?  Hopefully, both. So where do you start?
It might be easiest to start with how well individual board members fulfill their duties. This presupposes that board members have job descriptions, and have participated in board orientation and training so they are clear about what it is they are supposed to be doing in terms of their governance role.

INDIVIDUAL BOARD MEMBER SELF-ASSESSMENT
As a proponent of Steven Covey's "habits", I also recommend beginning with the end in mind. What is it that you want to know? I would not presume to tell you what to ask but rather offer some ideas for consideration. Questions that might be asked of individual board members could center around attendance, understanding of their responsibilities, whether or not an annual contribution has been made, their understanding of the organization's finances, their involvement with special events, willingness to serve as an officer or committee chair, how frequently they recommend potential candidates for the board or secure volunteer, in-kind or material donations for the organization and their satisfaction with how meetings are run. Open ended questions - in terms of what support they need to be more effective, personal goals they hope to accomplish for the organization through their board service or skills they feel they bring to the organization - can provide a treasure trove of information.

If you have a Board Development Committee they would have responsibility for researching or developing and/or adapting questionnnaires, distributing the questionnaires and summarizing the responses which are then presented to the board for discussion. Or, if you are working with a non-profit consultant they would develop/adapt/distribute/summarize questionnaire responses and facilitate a discussion of results at a board meeting.

How well individual board members fulfill their responsibilities plays a major role in how well the board works together as a collective body. If you are not ready for a full board assessment, begin with the individual board assessment. Maybe you will find that a majority of board members think your meetings are too long and boring or too short and not substantive, or that very few board members really understand the financial statements or that several board members have specific untapped skills. Additionally, the discussion following the assessment provides an excellent forum for board members to better understand one another's perceptions and concerns. Further, the survey results can help identify topics for further board training to help improve performance and add value to the organization, while gaining assurance from what is being done well.

In this time of heightened concern about governance, it makes sense to assess how well your board is doing. Next week's post will focus on assessing the entire board and will include suggestions on how to gauge performance along a number of dimensions.   If your organization follows the practice of having an annual board "work plan" outlining specific activities the board will undertake in its areas of responsibility, then you are well positioned to carry out a board assessment because your benchmarks for performance will already be in place. If not, well there's a little more work you'll have to do.

Until next time,
Pat

The Business of Blogging

2008-05-10T18:48:00Z

When I started blogging in January, I was determined to post weekly - every week - and so far I have done so. The blogging program or the little gremlin who resides in my blogville keeps a record of every article view. So at any time I know how many people have looked at any post. This is in addition to the individuals who subscribe. They don't get counted here, but a separate gremlin keeps track of how many subscribers there are, but will never reveal their names. Maybe it's a HIPPA gremlin and he/she is protecting their privacy.

After working part of last weekend to complete my post on The Troublesome Executive Director, it was intersting to note that for the first few days fewer than 20 people read that post, while more than 350 read Questions to ask before joining a non-profit board. Blog readers clearly pick and choose and do not necessarily read in the order in which posts are published. Maybe it's like real estate where buyers tell you if your house is priced correctly by making an offer somewhere near your asking price or not. Blog readers tell you if you have hit on a topic that is of interest or not. So maybe my "guesser" needs a little fine tuning or I need some feedback from readers. If you have specific topics of interest, please let me know.

So..... would anyone notice if I skipped a week? Maybe not, so I am going to chance it and spend the rest of today in the garden. Unfortunately, I don't have any gardening gremlins and if the weeds are going to go, I have to be the one to ensure that happens.

Until next time,
Pat

The Troublesome Executive Director

2008-05-03T17:32:00Z

I have waxed poetic in terms of disruptive board members calling them "mavericks"and been taken to task for the label, and for pointing out behaviors which I consider disruptive but that others believe are appropriate. If you remember my initial post, it was about board members who overstep their authority, cause executive directors to lose sleep and in general are problematic. In the non-profit sector these disruptive board members are not alone in wrecking havoc - some executive directors have been known to be troublesome as well.

While most of the executive directors I know are capable, hard-working, people-oriented, mission-driven individuals, every now and then you bump up against one who is self-aggrandizing, tyranical or simply inept. Executive directors who excel in their positions are expert tightrope walkers with an uncanny ability to balance volunteer and staff needs, attract donors and keep the organization and its programs mission driven. It takes a unique skill set to do this well and I tip my hat to the million plus men and women who perform this delicate dance on a daily basis.

While the board sets values and vision, the executive director is ultimately responsible for the success or failure of the organization. Earlier posts have outlined the characteristics and capabilities necessary to be an effective director(See - In Pursuit of the Executive Director - Part One) so I won't repeat them here because this post is about the lack of those characteristics. I would point out, however, that some boards hire the wrong person to begin with and this is the beginning of tension, trouble and turmoil.

A fairly common symptom of an ineffective E.D. is high staff and board turnover - almost a revolving door effect because at both levels individuals are unable or unwilling to work with this person. When assessing this for your organization remember it is not just a numbers thing as people leave for a variety of reasons - a better opportunity, a move, family responsibilities - that have nothing to do with the executive director. Exit interviews with departing board members would be one source for identifying problems at the board level.

Another symptom that there is trouble in paradise is if the executive director consistently withholds information from the board or makes decisions that rightfully belong to the board, or brushes aside questions posed by board members.  The board should never be blindsided by the executive's actions or commitments he or she has made for the organization.

Other indicators of a dysfunctional executive include declining funding, low staff morale, an absence of systems and procedures and a lack of timely information and financial reports. Troublesome executives often insert themselves into situations where they do not belong or take credit for the good works of others. They have been known to micro-manage or at the other extreme to offer little in the way of staff supervision.

One way to ensure that this doesn't happen, or to bring it to light sooner if it is happening, is through yearly performance goals and an annual performance evaluation. Many boards are lax in terms of communicating their expectations to the director, and don't always get around to the annual performance evaluation.  Then when the rumblings start, the evaluation becomes a high priority. Don't wait until there's a problem - ensure that goals are set yearly and the director is accountable for meeting them.

I can think of one director that was adored by her board, did and said all the right things to the board, but was a tyrant when it came to dealing with staff. It took a long time for this particular board to understand the damage that was going on behind their backs. Since the executive works for the board and the rest of the staff work for the executive it can be difficult for board members to really understand the executive/staff dynamics. Typically all of the board's information comes from the executive and if he or she is the culprit you are not going to hear it from them. Some organizations bring in an outside HR firm to assess the organization's work environment through confidential staff interviews. The outside firm reports to the board and the results can not be shaded by the director.

Unfortunately, inept executives can remain in place for a long time. If the agency's cause is especially worthy, some funders may hold the organization to a lower standard and let them "skate" as it were on required reporting.    When faced with the issues identified above, boards are reluctant to take action as the prospect of open conflict with the executive director is dismaying.   It may take months or even years,  but eventually a board member or group of board members will say - "This isn't right and we have to take action to remedy the situation."  Recognizing the problem is the first step in solving it and there will be further posts on possible strategies once the board decides to act.

This post, and everything written in this blog, is not intended as legal advice. I am merely expressing my thoughts and opinions and offering suggestions on how to avoid the problems in the first place.

Until next time,
Pat

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NATIONAL VOLUNTEER WEEK - Does it matter?

2008-04-27T18:44:00Z

At the risk of sounding flippant, whether National Volunteer Week (April 27th - May 3rd this year) matters depends on who you ask. Do the individuals that are often described in recognition ceremonies as "dedicated, compassionate, dependable" volunteer for the certificate, the plaque, the pin, their name and/or picture in the paper? I think not; they volunteer because they care and truly want to make their part of the world better. Many are embarassed to be publicly recognized and feel that what they do doesn't warrant all the attention they are getting. For many a simple thank you - from the guests at the soup kitchen, or the pre-schoolers who snuggle in their laps for special stories, or the harried executive directors who are grateful that they agreed to chair the auction, the golf tournament, the spaghetti dinner - is all the thanks they need or want.

Why do we dedicate a whole week each year to recognizing volunteers? Is this some subtle plot to increase sales of cards, plaques, flowers and other trinkets? I think not, yet the economic impact that volunteers have cannot be denied. According to Independent Sector, a Washington, D.C.-based coaltion of nonprofits and foundations, the value of each volunteer hour in 2007 rose to $19.51. Think about that in relation to America's 1.4 million charitable organizations. If only one volunteer provided only one hour per year in each of the million plus charities that's over $27,000,000 in donated services. And we know that volunteers spend way more than one hour a week and any charitable organization worth its salt has way more than one volunteer!

Hospitals, nursing homes and established organizations excel at volunteer recognition and have one year, five year, ten year - you get the idea - awards. For volunteer coordinators this is a busy time of year, planning the recognition event, figuring out who gets what and trying to ensure that everyone gets recognized and no one gets slighted. It's really quite stressful. So I guess it matters to them because it is in their job description that they are responsible for planning, organizing and implementing an annual volunteer recognition event.

So while I personally could do without the staged recognition events, I know unequivocally that our community and our nation cannot do without our volunteers. So to all of you who deliver the meals, visit the elderly, transport patients, tutor students, serve on boards and committees, share your passion for the outdoors with young campers, serve as scout leaders and docents, and the thousand other kindnesses and ways you share your time and talent as a volunter - THANK YOU SINCERELY.

And to the episodic volunteers, who are not affiliated with a charitable organization, but take their elderly neighbor for groceries, or provide respite for family members caring for the ill or frail, or babysit so young parents can have a night out, or participate in a neighborhood clean-up, or organize a fund raising event for a terminally ill child - THANK YOU SINCERELY.

I think National Volunteer Week matters because volunteers matter. It also provides a unique opportunity to raise awareness and encourage more people to give back to their community. And so as you go about your week volunteering or not, attending a recognition event or not, think about the men and women - young and old for whom volunteering is an important and integral part of their lives. And after you think about them, think about joining them in this uniquely American phenomenon.

Until next time,
Pat

For more about Management Strategies consulting services visit www.management-strategies.org

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Questions to ask before joining a non-profit board

2008-04-19T21:55:00Z

The last several posts have been written from the perspective of the organization in terms of strategically identifying, recruiting, orienting, training and sustaining board members. I'd like to switch gears and discuss board recruitment from the perspective of the individual who is being recruiting. Being a board member is a very important responsibility and no one should accept that responsibility without thoughtful consideration. So when the friend or stranger calls and asks if you'd like to serve on the ABC board, here are some pertinent questions you may want to ask before accepting that board nomination:

What is the mission of the organization? Why do they exist? Who do they serve?
What is the time commitment? How often does the board meet? What about committee assignments and or fund raising events?
Who currently serves on the board? What are the lengths of board terms? Are there term limits?
Is there an orientation and on-going training program for all board members?
How often do board members resign before the end of their term?
How often are meetings canceled because of a lack of a quorum?
How is the organization funded? Are they solvent, have a comfortable reserve or do they operate at a deficit with a declining funding base?
Does the board discuss and approve the budget annually?
Are financial reports reviewed at each meeting? Are they understandable?
Are board members expected to make an annual financial contribution? If so, how much?
Is there a strategic plan?
Briefly describe the relationship between the board and the executive director.

The answers to the above questions will give you a sense of how the organization operates. The next questions will help you evaluate your interest in serving.

Are you supportive of the organization's mission?
Do you have the time and commitment level to be an effective board member?
Is this a group you would be proud to join?

No one ever volunteers to do a poor job, but often board members join for the wrong reasons or the organization has a level of dysfunction that makes board service frustrating. So do yourself a favor and ask these questions, as well as others you feel are important, before saying yes. Remember "It's better to be overprepared than ambushed!"

Until next time,
Pat

For more about Management Strategies consulting services visit www.management-strategies.org

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The Board Building Cycle - Retaining and Renewing Board Members

2008-04-06T18:57:00Z

It is not enough to strategically recruit and orient board members. It is imperative that there be ongoing training/ support/development/recognition for these important administrative volunteers.

Effective organizations create continuing opportunities for board members to learn more about the agency and to develop their skills and abilities. How much is in your organizational budget for board training, recognition, social and networking activities or an annual board retreat?

The work of any board is carried out through meetings, so this is where special attention to detail is necessary.   Use a consent agenda and keep your attention on the future, not on the past. Ensure that board meetings focus on priorities and strategic direction not on trivial matters. At the end of each meeting, have board members rank the meeting in terms of both substance and process on a scale of 1 - 10.  With one being awful and ten being excellent each board member can give their rank and rationale.   This simple technique quickly pinpoints trouble spots and corrective action can be taken.  Many board members resign before their terms expire in frustration over meetings that are too long, too unproductive, too often, or too rubber stamped.  Don't lose board members over the "too syndrome".

The boards which seem to be most effective are focused but friendly; members care about one another and there is a sense of collegiality, camaraderie and moving forward.  In order to work together effectively board members must trust one another, senior staff and the reliability of the information they are given when deliberating policy decisions.  The Executive Director can help boards succeed by providing useful information in formats they understand and appreciate - pro and cons of specific policy decisions, trends, graphics, dashboard indicators etc.

To make the best use of board member's time streamline communication by using the latest technology - a list serv, e-mail, text messaging or password protected pages on your web site.   Is it feasible to participate in board and/or committee meetings via conference calls?

The executive director and the board chair have a unique opportunity to help board members quickly understand the culture and norms, to consciously create learning opportunities, systematically groom future leaders, nurture the entire board as a working group and identify and resolve problems quickly.

There are a number of board self assessment tools which measure everything from attendance to individual and group performance to meeting effectiveness. Learning organizations utilize these tools to identify issues and to better understand and improve performance.

How does your organization reward board members? Both formal and informal recognition opportunities abound from a simple thank you note or e-mail (and there's a whole other post on the lost art of the handwritten thank you note) to an article in your news letter about their achievements to a letter to their supervisors about the important work they are doing for your organization. Annual meetings provide an opportunity for more formal recognition. My only words of advice are to be sure you really personalize your comments. Not every board member who serves a three year term is created or participates equally and that should be reflected in what is said about them at the time of presentation. All board successes should be celebrated and documented.

If you have an underachieving board member, the board chair should have a heart-to-heart and find out why. Is is due to poor group dynamics, lagging energy, burnout or some personal or health reason? Is there some way short of board service this person can be involved and reconnect with the mission or would a new project or committee assignment energize this slacking board member? Or is there something wrong with your system itself? Was it the right fit to begin with? I had one board experience where I was asked by a friend and the cause was one that I supported, but it was a total mismatch of their culture and process and my expectations. I resigned after less than a year on the board and I still don't have warm and fuzzy feelings about the organization. When individuals leave your board, you still want them to be advocates and supporters for your organization.

In the same way that strategic identification and recruitment and comprehensive orientation are hallmarks of the board buiding cycle, ongoing renewal is equally important. By creating an environment of participation that encourages each board member to contribute their unique talents, you ensure a positive and rewarding experiece for them and added value for your organization.

Until next time,
Pat

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