ATTN: Nonprofit Directors & Trustees – Find Value From Business Successes.
By: Eugene Fram
According to a blog appearing in the September 22, 2012 issue off Board Member. Com, Value Bridge Advisors identified only 34 of 500 S&P members who, “had growth over 3% plus year average annual revenue growth over 10%.” For this highly successful group, the blog also identified what they had in common to achieve a top rating. Following are only the board related items that may be readily adapted by nonprofit and trustee boards.
• Probe management understanding of (the) environment until you are sure your (nonprofit) understands it better (than its peers.)
• Repeatedly ask, “ What if?” until you are confident you have anticipated ugly surprises. What is the meaning of a management (“bump in the road”)? If (the cause is not is not sought), risk may not be managed.
• Watch for warnings based on “what if?’ Be sure management knows what warnings actually look like and can proactively recognize patterns before it is too late.
• Review the quality of your Plan B for the inevitable. Be sure your (nonprofit) is ready to act to seize opportunity or avoid dangers in the face of a constantly changing world.
• Starting with the board, set the expectation that every (major decision must be risk- (mission & financial) return balanced.
• Ensure risk management is powerful and agile enough to take on a complex and changing world, (especially when people become fatigued.)
• Ask-are our decisions consistently better than (our nonprofit peers locally and nationally) to produce consistently better (outcomes and impacts)?
Use some of these questions in a nonprofit board environment.
Source: Brian Barnier, Value Bridge Advisors
My blog site: http://bit.ly/yfRZpz