Nonprofit board communcations

What to Expect When The New Nonprofit CEO Is A Millennial!

What to Expect When The New Nonprofit CEO Is A Millennial!

By: Eugene Fram   Free Digital Image

The nonprofit’s CEO, a baby boomer or genXer, is about to retire or leave for another position. The board has engaged a new CEO a millennial person born after 1980. * His/h age is probably late 30s or possibly early 40s. What changes can the board expect from this new professional?

Following are my estimates based on some suggestions from psychologist, Dr. Jon Warner, http://bit.ly/1IFXK7u plus my 10 years experience collegiate teaching millennials. (more…)

The Nonprofit CEO Exceeds The Authority Boundary – What Happens Then?

 

The Nonprofit CEO Exceeds The Authority Boundary – What Happens Then?

By: Eugene Fram

Viewer Favorite   Updated & Revised

It happens!  When it does, it’s the board’s job to inform the CEO that he or she has taken on too much authority.  As a board chair of a human service nonprofit, I encountered such a situation. The CEO signed a long-term lease contract on his own that should first have been approved by the board.   The financial obligations involved weren’t significant. When the CEO recognized his error, I then asked for formal board ratification. None of us does out jobs perfectly.  But a CEO has to recognize the board’s ultimate authority for long-term contracts and similar issues, even when the financial obligations are insignificant. Obviously, if the CEO continually takes such actions, there is a serious communication problem. (more…)

Eliminating the Nonprofit Board’s Addiction to Micromanaging

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Eliminating the Nonprofit Board’s Addiction to Micromanaging

By: Eugene Fram

Micromanaging is the DNA of many nonprofit boards. It all starts with the community model culture of start-up periods. Board members have to assume staff roles to drive the nonprofit operations. But it often continues long after an adequate staff is in place. By habit, the board still focuses on operational details—also known as “reviewing the weeds.”   I recently observed a board that was making a policy decision about the change in timing of an annual development event.   Once the decision was made, the directors continued a “weed type” discussion about about table locations, invitations and other issues that were in the job of management to implement. The nonprofit is about 50 years old and has a budget of $10 Million with a 100 person staff. (more…)

When a CEO Exits (or should)—what are the Board’s Succession Options?

When a CEO Exits (or should)—what are the Board’s Succession Options?

By Eugene Fram                  Free Digital Image

CEOs of for-profit and nonprofit organizations typically come and go. Those executives that for an extended period may be highly valued for their demonstrated skills and accomplishments. One CEO I know has reached a 30 year anniversary and is still innovating. Other CEOs, including organization founders, may remain on the job past the point of growth. The nonprofit environment can be a comfortable workplace—a board member I once interviewed remarked that his long-serving CEO had a great “deal.” He meant the nonprofit wasn’t even close to its potential   I’ve even encountered CEOs who admit that they can run the organization on automatic, convinced that new challenges will be similar to those of the past. (more…)

Lifestyle & Behavioral Information – Some New Ways To Seek High Performance Nonprofit Directors

 

 

 

Lifestyle & Behavioral Information – Some New Ways To Seek High Performance Nonprofit Directors

By: Eugene Fram            Free  Digital Image

Viewer Favorite—Updated & Revised

Over the last several years, I have conducted nonprofit board recruitment projects. The boards with which I worked had rather similar challenges.
• They had concerns recruiting sufficient numbers of board members to fill their needs.
• Current board members, largely composed of younger people, in the 30-40-age range, had significant problems balancing work and family obligations and attending board and committee meetings.
• Attendance was sporadic. Although the boards were small, directors really did not know each other, and another director sent a subordinate to attend board meetings. In one case, a well-regarded director never attended meeting and only occasionally met with the ED to offer advice. One director, with decades of experience on a board, admitted she did not know other directors. In both instances EDs and board chairs had significant power. One ED complained she was doing the work of operating the organization and operating the board, and She had too much potential liability.
• Although these organizations, with budgets in the $8-$10 million range were operating successfully, the EDs involved realized that they were in line for long-term problems if board recruiting didn’t change. (more…)

Is Your Nonprofit’s Mission Disruptable? Remove “Rose Colored” Glasses!

Is Your Nonprofit’s Mission Disruptable? Remove “Rose Colored” Glasses!

By: Eugene Fram

The missions of many in independent book stores have been disrupted in recent years, although a few with unique offerings seem to be making a comeback. Nonprofit board members and managers may feel their missions are immune to disruption. They come to the following conclusions, using the proverbial rose-colored glasses.*

  • Our board is doing a great job!
  • We have no worries—we have (or just hired) a great CEO or Executive Director!
  • When push comes to shove, our board can raise big dollars!
  • Our board of directors is like a good family!

But nonprofit realists know it can happen—they point to Easter Seals that successfully modified its mission when polio vaccine was introduced. In contrast, many nonprofits offering face-to face counseling services failed to understand the impact of new pharmaceuticals, the number of counseling agencies declined. (more…)

Too Much Information Can Cloud Nonprofit Board’s Decision Making–Tread With Care

Too Much Information Can Cloud Nonprofit Board’s Decision Making–Tread With Care

By Eugene Fram            Free Digital Image

In this age of information overload, nonprofits need to continually scrutinize the quality and source of the material received in preparation for major decisions. Since directors often come without broad enough experience in the nonprofit’s mission arena, they may not be prepared to properly assess its progress in moving forward–and not equipped to make relevant comparisons with similar nonprofits.  In addition, naive or unscrupulous CEOs and highly influential directors may inundate their boards with information and data as a  distraction tactic to keep them busy in the “weeds,” reviewing what has been presented.  Board members need to avoid donning “rose-colored glasses” when assessing proposals from these sources.

I once encountered a nonprofit whose board was about to acquire a for-profit organization, headed by its founder.  Pushing for the “deal” ere the nonprofit CEO and an influential board member who were not, it turned out, capable of the due diligence needed for a project of this complexity. But the board accepted their work without question.  When the acquisition was consummated, the founding CEO of the subsidiary refused to take directions from the CEO of the nonprofit. In addition, although the normal financial settlement of the project requires that a portion of the price be withheld pending adequate performance, the nonprofit had paid cash for the acquisition.  Based on  a lack of performance, the operation was finally closed with a substantial loss. (more…)