Nonprofit Board Discourse: a Meeting of the Minds??
By: Eugene Fram Free Digital Image
Several years ago, a nonprofit board member complained to me that there was too little “conflict” at board meetings. Too few hands were raised to challenge or simply question the efficacy of certain important agenda items. Having participated in hundreds of nonprofit meetings, I have observed that this laissez-faire response still typifies a significant number of board member’s attitudes, especially for items that deserve vigorous discussion. Why is that? And why can the term conflict be perceived as an asset to an organization that is determined to move forward?
Below are some answers based on my own experience in the nonprofit environment.
Identify Nonprofit Staff Groups To Help Drive Organizational Change
By Eugene Fram Free Digital Image
Nonprofit executive directors tend to think of the staff professionals as individual contributors. These individuals are persons who mainly work on their own and but increasingly also have to contribute as team players – for instance, counselors, health care professionals, curators and university faculty. However, many executive directors fail to recognize that these individual contributors can be grouped according to identifiable types, with differing work-value outlooks. Each group needs to be motivated differently to drive change in today’s fast moving social, political and technological environments. Nonprofit board members, working with the ED, can use these groupings in their oversight responsibilities to better understand the bench strength of promotable staff.
Once Again! Should Nonprofit Chief Executives Should Have Title: President/CEO?
By Eugene Fram Free Digital Image
This post, over several years, has developed a record of continued viewing or comment interest. Rarely a day passes in which the data doesn’t include several views. 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 full-time 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:
Must Nonprofits Develop Employee Benefits That Substitute For Annual Raises?
By: Eugene Fram Free Digital Image
An analysis in the Washington Post reports that a tsunami-style change has been taking place in the manner in which United States employees are being paid—benefits are being offered in place of annual salary increases. (http://wapo.st/1MwoIBZ) Driving the change are the needs of a substantial portion of millennials who appreciate immediate gratifications in terms of bonuses and perks, such as extra time off and tuition reimbursement. Employers like the arrangement because they can immediately reward their best performers without increasing compensation costs. Example: One sales employee spent weeks reviewing dull paperwork, was very diligent in the process and was given three extra days of paid leave. She said, “I think everybody would like to make more, but what I liked about it was the flexibility.”
Does A New Nonprofit Board Member Really Understand Your Organization? The New Board Member Nurturing Challenge!
By: Eugene Fram Free Digital Image
The careful nurturing of a new board member, whether for-profit or nonprofit, is critical. The pay-off of a robust orientation process is an informed and fully participating board director. The following are very similar occurrences in both for-profit and nonprofit boards:
The CEO of a transportation firm agrees to become a board director of a firm developing computer programs. He has risen through the transportation ranks with a financial background, but he knows little about the dynamics of the computer industry.
A finance professor is asked to serve on the board of a nonprofit school serving handicapped children. She has no children of her own and has never had any contact with handicapped children, social workers or teachers serving handicapped children.
In these similar cases, the new board member needs to become reasonably conversant with a new industry or a new human service field in order to be able to better apply policy development skills, strategic planning skills and to allow generative thinking.
On nonprofit boards, the problem is exacerbated when the new director often is asked to immediately join a specific board committee without being able to understand the board perspectives and the organization’s mission vision and values. Following are ways in which the nonprofit board can resolve this problem:
Don’t appoint the new board member to a committee until she/h has completed a board orientation program including a review of board procedures, attending several board meetings, has had visits with the staff, as they normally operate, and becomes alert to the major trends in the field. This ideally should take about six months assuming the board member is employed full-time elsewhere.
During this time, the chief executive and board president should be available to visit with the new director as frequently as she/h wants in order to respond to questions.
Hopefully, the chief executive would informally meet the new director (and each established director) quarterly to review current issues and opportunities. In addition to the information presented at the board meetings, this will provide a better perspective of the board’s mission, vision and values.
Ideally, the board volunteer should attend one staff meeting and one outside professional meeting to acquire a feeling for the topics reviewed at these gatherings and the field terminology.
During the first year, a senior board member needs be seated next to the new person at meetings to act as a “host” for the new director
If most of these actions can be accomplished within a six-month period, major blind spots are removed, and the new board member can then join a standing board committee. Now, reasonably understanding the organization and her/h own participation on the board, she/h has a background to make a substantial contribution for years to come.
Do Today’s Business Leaders Make Effective Nonprofit Directors?
By: Eugene H. Fram Free Digital Image
The names of the new board nominees have been announced. They include several outstanding recruits from the business community. Will these new formidable board members perform well in the nonprofit environment? William G. Bowen, a veteran director in both the for-profit and nonprofit environments, raised the following questions about such beginnings in a 1994 article:* Is it true that well-regarded representatives of the business world are often surprisingly ineffective as members of nonprofit boards? Do they seem to have checked their analytical skills and their “toughness” at the door? If this is true in some considerable number of cases, what is the explanation?
How Is Your Nonprofit Board Adjusting To “The Great Resignation”?
By: Eugene Fram Free Digital Image
An article in The New York Times (12/23/2021) reports, In Louisville Ky, nonprofit groups are losing social workers to better-paying jobs at Walmart and McDonalds. *With 34.5 million American job resignations reported by, August 31, 2021, it’s reasonable to estimate that by the end of 2021 about 46 million Americans will have left their current jobs during the past year. This is about 25% of the American work force. ** The movement has been named “The Great Resignation.”
Reasons for change range widely. Beyond salary, some families may have found living on one salary acceptable, others may have moved to rural areas for quieter living, still others may have used a lay-off bonus to have time to get away from an authoritarian boss. ***
It appears this robust employment turnover will continue. As a result, nonprofit boards, within theiroverviewingresponsibilities, must focus on recruiting and retaining organization talent, like few nonprofit boards have done in the past. (more…)
CEOs Need To Develop Partnering Relationships With Board Members
By Eugene Fram Free Digital Image
When a CEO publicly introduces a board member as “my boss,” (as I have overheard more than once) there is a problem. It’s true that both parties—CEO and board member—have specific roles in the success of a nonprofit organization. But the hierarchy of authority should be deemphasized when it comes to interpersonal connections. The most effective mindset for CEO and directors is to view each other as partners in working to achieve the organization’s mission and their impacts.
The CEO’s efforts to cultivate such relationships are key. The following are some initiatives that he/she can utilize: *
The Nonprofit Board’s New Role In An Age of Exponential Change
By Eugene Fram Free Digital Image
Most nonprofit boards are being faced with huge pressures—reduced financial support, challenges in integrating new technologies, recovering from Covid impacts and difficulties in hiring qualified personnel who will consider “nonprofit” wages. To survive long term, board members need to be alert to potential opportunities. These may be far from the comfort zones of current board members, CEOs and staff.
It’s no secret that some nonprofit board members cruise through their term of board service with minimal involvement. McKinsey Company, a well-known consulting firm, has suggested five steps that can be used to counteract this passivity in for-profit boards. * With a few tweaks, McKinsey suggestions (in bold) are relevant to the nonprofit board environment where director engagement is often a challenge.