Nonprofit mangement

The Succession Dilemma: Why Do Nonprofit Boards Fail to Plan Ahead?

The Succession Dilemma: Why Do Nonprofit Boards Fail to Plan Ahead?

By: Eugene Fram              Free Digital Image

There are many types of crises common to an organization. But one event seems to trigger a large proportion of the ensuing trauma. It frequently happens when a CEO or another top manager retires, resigns or leaves for other reasons.   The flow of leadership is about to be disrupted and there is no viable replacement for the departing executive.

This transitional panic happens in both for-profit and nonprofit organizations. The National Association of Corporate Directors (NACD) recently reported that 50 % of public company directors concede that CEO succession planning needs to be improved. * In the nonprofit environment, only 27% actually have succession plans to replace a suddenly departing executive. ** This demonstrates the low priority nonprofits place on over-viewing talent succession to prepare for unexpected vacancies.

Here are some insights (in italics) from the NACD report that are applicable to nonprofit succession planning, be it management talent overview or implementing the replacement process. (more…)

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Stress Test Your Nonprofit Strategic Plan With These Guidelines.

Stress Test Your Nonprofit Strategic Plan With These Guidelines.

By: Eugene Fram                 Free Digital Image

Strategic plans need to be reevaluated as they are implemented. Left routinely attended only at year’s end, a nonprofit board’s long-range plans can quickly grow old during implementation. Following are four potential changes that nonprofit boards and managers can use to consider stress testing practice changes: The changes require those responsible to move: (more…)

Guidelines For Developing Authentic Nonprofit Board Leaaders

Guidelines For Developing Authentic Nonprofit Board Leaders

By Eugene Fram               Free Digital Image

The problems of Enron, Tyco and WorldCom have provided negative examples for future leaders, according to William George, Senior Fellow at the Harvard Business School. As an antidote to these and others serious problems that have plagued business and nonprofits in the last several decades, he cites the movement towards Authentic Leadership. He further lists six guidelines to identify behaviors in such leaders. Following are my views on how his guidelines can be useful to directors and managers in the nonprofit environment. (http://hbswk.hbs.edu/item/authentic-leadership-rediscovered) (more…)

How Do Nonprofits Determine CEOs’ Productivity?

 

How Do Nonprofits Determine CEOs’ Productivity?

By: Eugene Fram

Nonprofit organizations can’t have bottom line profits. If they did, CEO productivity determination could be less complicated. Determining a fair CEO benefit, based on productivity, can be a complex issue for a nonprofit board. Providing too little or too much can be dangerous for the organization and possibly the board members. Although the spadework for benefits needs to be done by a small committee, the entire board needs to fully agree on the rationale for the final decision. (more…)

The Art of the “Ask”: Six tactics frequently ignored by nonprofit fund developers & CEOs

The Art of the “Ask”: Six tactics frequently ignored by nonprofit fund developers & CEOs

By: Eugene Fram       Free digital image

Most nonprofit board members and managers have acquired a measured of savvy when it comes to raising funds for their organizations. They have learned that building trust with current and prospective donors is the key to maintaining meaningful support. Here are some overlooked tactics to further strengthen relationships. *

  1. Show the donors “what’s in it for them:” Some development officers still lead by focusing on what is of interest to them—the construction of a new building, providing funds for the nonprofit’s strategic development plan, etc.   But they often lack certain perspectives.

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Attention Nonprofits: If You Want to Avoid “The Squeeze,” Here’s the One Strategy That Can Help

With a competitive landscape in which spiraling demands are offset by a financing squeeze, nonprofits organizations have entered an era where only the strongest and best run will flourish, Prof. Eugene Fram, an author, consultant and nonprofit expert said in an interview. But that “strength” is easily attained, with a simple-to-implement game plan that strategically integrates the nonprofit’s board and executive staff.

“It’s a threatening squall – one I often refer to as ‘The Squeeze’,” said Prof. Fram, author of Going For Impact,” a guide to nonprofit dominance. “Just think about what’s happening. On one hand, because of slashed government budgets, there’s a growing demand for nonprofits to solve community challenges and societal ills. On the other hand, there’s the escalating challenge that nonprofits face because of a funding squeeze. Declining tax receipts are crimping many government budgets. The merger wave has slashed the number of companies that were traditionally big sources of giving. Even the recent tax cuts are squeezing funding. The competition for those fewer dollars is brutal. And that’s just on the funding side. There are also new challenges that nonprofits must address – challenges ranging from cybersecurity to sexual harassment. The bottom line is that nonprofit boards – and their directors or trustees – must be more vigilant, more informed and more proactive than ever. The good news is that the nonprofits that embrace this will be the organizations that emerge as healthy, even dominant. And the strategy isn’t that tough to enact.”

Dr. Fram recently sat down with veteran journalist William Patalon III – ironically, one of his former MBA students – to talk about the “State of the Nonprofit Sector,” and to explore what philanthropic organizations can do to “beat the squeeze.”

Here’s an edited transcript of their talk. (more…)

Nonprofit Board Cultures Need To Be Defined

Nonprofit Board Cultures Need  To Be Defined

By: Eugene Fram     Free Digital Image

Over several decades of contacts with nonprofit boards, I have yet to find one that has spent any time trying to define the organization’s culture that delivers service. Yet every organization has one. It defines what the organization has done well and what needs to be changed. It can grow over years haphazardly or change quickly when new board members are elected or when a new CEO is appointed. Those newly appointed, for better or worse, can change the organization’s mission as well as its culture. Nonprofit staffs that work a few levels below the board and CEO organizationally are especially sensitive to cultural movements emanating from above. They know that a change in culture can affect their work and livelihood.

The reason that nonprofit boards rarely try to define the cultures of their organizations is that it is an amorphous subject. Ask a group of directors to define the culture of their board or the organization and quite different answers will be given. Yet there are commonalities that arise that can form the culture—conservative vs. liberal policies; legacy vs. future focused programs; operations are clearly defined vs. CEO dominance assumes board powers in a de facto manner; etc.  But cultures need to be defined:  Uber failed in the process, while  Microsoft has an ambition to transform Microsoft  from  “a know it all” to a “learn it all culture” *

I recently found a list of 12 attributes of a strong organizational culture. **  Following are six that I suggest that nonprofit boards should consider in assessing their needs of the organizations. My comments provide some practical ways that each can apply to nonprofit boards and organizations. (more…)