Nonprofit board communcations

Are Nonprofit Organizations Really Dysfunctional? Critical Thinking from a Viewer

Are Nonprofit Organizations Really Dysfunctional? Critical Thinking from a Viewer

Forwarded by Eugene Fram

By: Liz Swanson, Trusted Consultant to Non-Profit Leaders

I believe a good reason for nonprofits (being viewed as dysfunctional) is due to the scarcity mentality that many non-profits and their boards have. There is a mindset out there that non-profits are to be lean or intentionally do with less—or even the “joyful sacrifice” around pay. Our communities also embrace this mentality with the thinking that “overhead” is bad. Scarcity thinking drives the attitude of leadership, which then drives the behavior and ultimately the results we see (dysfunction, low or no growth.) If you don’t think you have enough time or resources, then you don’t. But if you believe you do, then you act differently and make different decisions about the investment of your time and resources.

Dysfunction in the Nonprofit Sector—Reality or Myth?

Dysfunction in the Nonprofit Sector—Reality or Myth?

By: Eugene Fram

Judging from the vast literature on dysfunctional nonprofit boards and organizations (my own posts included!) one might conclude that the majority of nonprofits are struggling, incompetent and/or in crisis. I argue that this is not the case. Decades of experience lead me to believe that nonprofits have the same functional variables as profit making organizations—dysfunctional at times like Target or GM; efficient like Apple or Whole Foods; adaptable like Del Monte and Cisco. Everybody doesn’t get it right all the time. (more…)

Time-Compressed Non Profit Directors – Recruit & Retain Them!

Time-Compressed Non Profit Directors – Recruit & Retain Them!

By: Eugene Fram

Every nonprofit board has had the experience of having board positions open and being unable to fill them with highly qualified people. The usual response from qualified candidates is that they are too busy to be accept a board position. However, the real reasons, never voiced if speaking privately, are that they perceive the nonprofit decision process to be too slow, board agendas loaded with minutiae, presentations that take up more time than they should, unfocused discussion, etc. (more…)

Nonprofit Policy Development & Operations Management – Crossing Boundaries?

Nonprofit Policy Development & Operations Management – Crossing Boundaries?

By: Eugene Fram

“Nose in- fingers out,” is the commonly used guide for nonprofit directors’ relationships to operations. Translated into terms of governance-management relations, it means that boards have an obligation to overview management impacts and outcomes, but they need to avoid micromanaging the operations of the nonprofit. This is a particular danger with nonprofits because micromanagement often seems to be in the DNAs of nonprofit boards.

On the operations side, strong experienced nonprofit CEOs can tend to be overly impatient and can easily make strategic or policy decisions that are the responsibilities of the board. In fact, I have seen a few CEOs step over the boundary and develop and execute board style policies. (more…)

When Should Nonprofits Consider Making A Transformative Change?

When Should Nonprofits Consider Making A Transformative Change?

There is no “quick fix” to some nonprofit problems. A new hire, a board retreat, another task force—all good nonprofit “fixers”—are simply not equal to major challenges that call for transformative change. The evidence of more than one of the following signals suggest the necessity for different and possibly radical action:

• Lack of progress stemming from director micromanagement
• Mission creep or irrelevance of original mission
• Poor morale on board, staff and/or management
• Inadequate outcomes
• Struggle to compete with other similar organizations
• Divisive internal conflict
• Continuing financial and/or client deficits

Over the years I have seen nonprofits bravely taking on transformative change to keep their organizations alive and healthy. In every case, the process has been slow, frustrating and yes, messy! But the rewards have been significant. Here are a few “real world” examples that come to mind: (more…)

Strong Culture & Leadership Critical for Nonprofit Board Strategic Success

Strong Culture & Leadership Critical for Nonprofit Board Strategic Success

By Eugene Fram

The National Association of Corporate Directors (NACD) is conducting a series of sessions focusing on board “challenges and opportunities expected in the next five to seven years.”
http://bit.ly/1wuW8Wt

Following is how I perceive one of the session’s results (in bold) could apply to helping nonprofit boards focus on culture, leadership and achieve strategic success: (more…)

Dysfunctional Levels in Nonprofit Boards & Organizations.

Dysfunctional Levels in Nonprofit Boards & Organizations.

By: Eugene Fram

Article and studies from a Google search on “ Dysfunctions in Nonprofit Boards & Organizations,” yields 445,000 items in .32 of a second. These items show dysfunctions on charter school boards, church boards, healthcare boards, trade associations, etc.

Rick Moyers, a well-known nonprofit commentator and nonprofit researcher, concluded:

A decade’s worth of research suggests that board performance is at best uneven and at worst highly dysfunctional. ….. The experiences of serving on a board—unless it is high functioning, superbly led, supported by a skilled staff and working in a true partnership with the executive – is quite the opposite of engaging. (more…)

Nonprofit Risk and Crisis Management: Challenges for the 21st Century

Nonprofit Risk and Crisis Management: Challenges for the 21st Century

The nonprofit leadership literature recommends that every nonprofit organization have a comprehensive crisis management plan, but it has little focus on risk. Perhaps nonprofit boards are too risk averse and are really unable to maximize their resources to assist clients? Is it that nonprofit boards see little personal gains from taking reasonable risks fearing potential reputation and financial losses? I reviewed over 300 nonprofit articles related to nonprofit crises and related risks; only a handful centered on how a nonprofit board can respond to handling risk and crises in a strategic manner. A great deal seemed to depend on the position of organization of the nonprofit board and its culture, provided in these principles: (more…)

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

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

By: Eugene Fram

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

Better Board Governance. Is it the same for both business & nonprofit organizations?

Better Board Governance. Is it the same for both business & nonprofit organizations?

Both BoardSource in 2012 and the Charted Global Management Accountant (CGMA) in 2012 have issued reports on improving board governance. The former group focuses on nonprofit boards and the latter focuses on business boards globally.* Both the nonprofit and business organization reports listed the following prime areas for board improvement or focus:The CGMA report called for improved strategy development & risk analysis; better boardroom behaviors; better relationships between board & management. The BoardSource report asked for improved focus on strategy, with much less emphasis on operations; more board commitment, engagement, & attendance; better self-assessment, recruitment & development. (more…)