Strategic planning

Can Nonprofit Boards Strategically Reinvent Themselves?

Can Nonprofit Boards Strategically Reinvent Themselves?

By: Eugene Fram      Free Digital Image

Not many nonprofit boards look to strategic renewal/reinventing as viable options. Dedicated to a specific mission, boards may merge with related organizations as their prospects decline or simply declare victory. March Of Dimes has been a classic case of redefining its mission when The Salk Vaccine limited widespread polio epidemics. Today, the nonprofit’s programs serve people with disabilities: children, adults, seniors, military personnel and veterans.

Basic Motivation Problems

Board Turnover & Leadership – According to the 2015 BoardSource report, Leading with Intent, “ Board leadership is not a lifetime commitment, with boards chairs and other officers being subject to term limits.” In the study, sixty-nine percent of board chairs only had terms of one or two years, not a great deal of time to lead strategic changes.

Numbers of clients are declining and/or the opportunities for growth are limited — Those offering psychological counseling services have faced declining client populations for a number of years, as new medications have become more useful. Some have combined with other nonprofits offering a wide range of human services while others have closed. A few of the nonprofits might have survived if they had anticipated the potential impact and had developed viable services, for example, offering counseling services to private or public school systems.

Need But No Market – In the human services arenas, there are always fundamental needs on which to base a mission. Working within a structure where the clients for the nonprofit’s service are not the funders, these needs are often unmet. Example: Early childhood education is a well-known need, but securing sufficient funding remains a significant barrier to delivering the services.

Guide to Nonprofit Strategic Renewal – An Underused Option http://bit.ly/1mQKMGi

1. Select growth applications that connect with people emotionally. – The Easter Seals renewal focused on people with physical disabilities and special needs, a natural outgrowth of working with polo victims. The nonprofit organization was well aware of the emotional reactions and public appeals that resonated with the mission focused staff and volunteers.

Anticipated success can also be a motivator for staff and volunteers. The ALS Ice Bucket campaign in 2014 is an example of drawing attention to a challenge through a gimmick with a substantial emotional appeal. It provided significant additional funding that enabled the organization to rethink its research prowess. Whether or not the appeal can continue to be utilized in coming years remains to be seen. At the least, it is added evidence to the power of emotional appeals to generate the potential for strategic renewal.

2. Treat strategy as a dialogue as opposed to a ritualistic, documented-based planning process. – Strategic renewal in the nonprofit environment often occurs under crisis conditions. Consequently, starting with a ritualistic strengths and weakness analysis is not the way to begin strategic planning at these times – complete decline is probably at hand. The issue has to be what resources can be salvaged from the current mission to enhance the new one.

If the strategic process is one that is reviewed every three to five years, every nonprofit organization should be honest about answering this generic question or similar ones: Who would miss our organization if we ceased to exist? Broad considerations of the responses and subsequently investigation can lead to open discussions to consider future opportunities for strategic renewal. As noted before, there are many new missions to address unmet human needs.

3. Use experiments to explore future possibilities. – Nonprofit organizations often shy away from using financial and human resource assets for experimentation. A field ethic that prevents a nonprofit from experimenting is an unrelenting focus on directing resources to current client services. Where strategic renewal is required, or seen as an opportunity, outside funding needs to be developed, except when the organization has unusual reserves available for experimentation.

4. Engage (external and internal) leadership (communities) in the work of renewal. – “Successful strategic renewals … need to be broadly based so they can engage managers (and staffs) … in the organization. Creating (internal and external) leadership communities around the renewal project allows (board) leaders to learn about the future by doing and win over potential resisters.” The support of the chief operating officer is critical. If he/s is not behind the renewal, the board will have to make a forced change or wait until a planned succession takes place.

 

Nonprofit Chief Executives Should Have Title: President/CEO

 

Nonprofit Chief Executives Should Have Title: President/CEO

By Eugene Fram

This post, over several years, has developed a record of continued viewing interest. Rarely a day passes in which the data doesn’t include one or two views, or occasionally a day in which the viewer’s data can rise to five. For example, when previously updated in 2016 there were 525 post views and counting.  Perhaps the controversial nature of topic causes the longevity of interest

When nonprofit organizations reach a budget level of over $1 million and have about 10 staff members it is time to offer the chief operating officer the title of PRESIDENT/CEO. In addition, the title of the senior board volunteer should become CHAIRPERSON OF THE BOARD, and the title of EXECUTIVE DIRECTOR needs to be eliminated. Experience has shown that with a reasonably talented PRESIDENT/CEO at the helm, he/she can provide the following benefits: (more…)

Two Nonprofits Merge: Synergy or Collision Course?

Two Nonprofits Merge: Synergy or Collision Course?

By: Eugene Fram     Free Digital Image

Having led a merger committee that resulted in a successful merger with another nonprofit, I thought my field observations might be of interest to others contemplating a merger. These comments center on a merger of two equal partners, which plan to form a new organization, not the acquisition of one nonprofit by another. (more…)

Are Your Board and Staff Ready For Change?

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Are Your Board and Staff Ready For Change?

By: Eugene Fram

“Ideally, change takes place only when is “a critical mass of board and staff want … it. A significant … portion of leadership must realize that the status quo won’t do” * Based on my experiences, this ideal is rarely achieved because:

  • The CEO needs to support the changes being suggested and/or mandated by a majority of the board.   But, if not fully invested in the change, he/s can accede to board wishes for action but move slowly in their implementations. The usual excuse for slow movement is budget constraint.

(more…)

Reversing Traditional Nonprofit Board Barriers

 

 

Reversing Traditional Nonprofit Board Barriers

By: Eugene Fram          Free Digital Photo

Clearly the purpose of a nonprofit board is to serve the constituency that establishes it—be it community, industry, governmental unit and the like. That said, the “how” to best deliver that service is often not so clear. An executive committee, for example, can overstep its authority by assuming powers beyond its scope of responsibility. I encountered this in one executive committee when the group developed a strategic plan in an interim period where there was no permanent ED. The board then refused to share it with the incoming executive. In another instance, an executive committee took it upon itself to appoint members of the audit committee—including outsiders who were unknown to the majority on the board.

The fuzziness of boundaries and lack of defined authority call for an active nonprofit system of checks and balances. For a variety of reasons this is difficult for nonprofits to achieve:

  • A typical nonprofit board member is often recruited from a pool of friends, relatives and colleagues, and will serve, on a median average, for four to six years.   This makes it difficult to achieve rigorous debate at meetings (why risk conflicts with board colleagues?). Directors also are not as eager to thoughtfully plan for change beyond the limits of their terms. Besides discussing day-to-day issues, the board needs to make sure that immediate gains do not hamper long-term sustainability.
  • The culture of micromanagement is frequently a remnant from the early startup years when board members may have performed operational duties. In some boards it becomes embedded in the culture and continues to pervade the governmental environment, allowing the board and executive committee to involve themselves in areas that should be delegated to management.
  • The executive team is a broad partnership of peers –board members, those appointed to the executive committee and the CEO. The executive committee is legally responsible to act for the board between meetings–the board must ratify its decisions. But unchecked, the executive committee can assume dictatorial powers whose conclusions must be rubber-stamped by the board.

Mitigating Oversight Barriers: There is often little individual board members can do to change the course when the DNA has become embedded in the organization. The tradition of micromanagement, for example, is hard to reverse, especially when the culture is continually supported by a succession of like-minded board chairs and CEOs. No single board member can move these barriers given the brevity of the board terms. But there are a few initiatives that three or four directors, working in tandem, can take to move the organization into a high-performance category.

  • Meetings: At the top of every meeting agenda there needs to be listed at least one policy or strategy topic. When the board discussion begins to wander, the chair should remind the group that they are encroaching on an area that is management’s responsibility. One board I observed wasted an hour’s time because the chair had failed to intercept the conversation in this manner. Another board agreed to change its timing of a major development event, then spent valuable meeting time suggesting formats for the new event—clearly a management responsibility to develop.
  • “New Age” Board Members: While millennial directors may be causing consternation in some legacy-bound nonprofit and business organizations, certain changes in nonprofits are noteworthy. Those board members in the 40- and- under age bracket need some targeted nurturing. I encountered a new young person who energized the board with her eagerness to try to innovative development approaches. She was subsequently appointed to the executive committee, deepening her view of the organization and primed her for board chair leadership.

Board members who understand the robust responsibilities of a 21st century board need to accept responsibilities for mentoring these new age board people, despite their addictions to electronic devices.

  • Experienced Board Members: Board members who have served on other high-performance boards have the advantage of being familiar with modern governance processes and are comfortable in supporting change. They are needed to help boards, executive committees and CEOs to move beyond the comfortable bounds of the past. They will be difficult to recruit, but they are required ingredients for successful boards.
  • NEW Projects: Boards and the CEO must be bold and try new approaches to meet client needs. For example instead of going through a complete planning process for a new program the board must ask management to complete a series of small experiments to test the program. When a series of results are positive, the nonprofit can work on a plan to implement the program.

Conclusion: Individual board members working alone will probably become frustrated in trying to contend with the three overview barriers discussed. But working with three or four colleagues, over time, on a tandem basis, they can make inroads on the barriers. Meetings can become more focused on policies/strategies, new age board members can become more quickly productive, experienced board members can become role models and new programs and other projects can be more quickly imitated via the use of small scale experiments.

Can A Nonprofit Find Strategic Ways To Grow in Unsettled Times?

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Can A Nonprofit Find Strategic Ways To Grow in Unsettled Times?

By: Eugene Fram                                Free Digital Image

 

Nonprofits have always had to struggle to meet their client needs, even when economic conditions and social turmoil were much less constraining than today  and they have dim prospects for the immediate future.   How can mid-level nonprofits uncover growth opportunities in the present environment? (more…)

A Special Relationship: Nurturing the CEO-Board Chair Bond*

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A Special Relationship: Nurturing the CEO-Board Chair Bond

By Eugene Fram              Free Digital Photo

Viewer Favorite – Updated & Revised

Here are tips to assure the best possible partnership between the board chair and CEO.

Keeping boards focused on strategic issues is a major challenge for nonprofit leaders.  This leadership crisis is intensified by the fact that board chairs tend to have short terms (according to BoardSource, 83% stay in office only one or two years). Thus, nonprofit CEOs  and board chairs need to bond quickly. For the good of the organization, they must come together swiftly and create a partnership that works. Here are golden rules for the CEO and board chair to follow: (more…)