Nonprofit board communcations

A Nonprofit Board Balks at a CEO’s Proposal – How to Try to Move Forward

A Nonprofit Board Balks at a CEO’s Proposal – How to Try to Move Forward Move Forward*

By; Eugene Fram

A small nonprofit whose work was receiving positive community attention was suddenly resistant to its CEO’s most recent proposal, according to a staff member I encountered.
The Board, a conservative one, was unwilling to provide leadership for a proposal that would move the organization in a somewhat new direction in assisting community clients.
The CEO and staff provided arguments that showed ample need for the program’s services and even access to sufficient financial support.
Yet, the Board had rejected the suggested foray into moderately uncharted waters. (more…)

Nonprofits Must Monitor Diversity Opportunities

Nonprofits Must Monitor Diversity Opportunities

By Eugene Fram

Diversity on the boards and staffs of nonprofit organizations is no long a choice; it is a mandate. American demographic trends are clear. The US population is rapidly becoming more diverse, and increased global migrations will require nonprofits and NGOs to serve broader populations. In a 2011 analysis, two Harvard professors have made the following observations: (more…)

What Nonprofit CEOs Think of Their Boards – Some Projections

What Nonprofit CEOs Think of Their Boards – Some Projections

By Eugene Fram

Governance articles frequently cover issues related to relationships between the CEO and board. A comprehensive report was recently published in a recent Harvard Business Review* citing what for-profit CEOs readily think of their boards. Following is a projection of how some of the article’s conclusions can apply to nonprofit CEO’s thinking, based on my decades of experience with nonprofit boards.

• “[T]he best leadership partnerships are forged where there is mutual respect (between CEO & board), energetic commitment to the future success of the enterprise and strong bonds of trust. … Great boards support entrepreneurial risk taking with prudent oversight, wise counsel and encouragement.”

These statements should be the gold standards for nonprofit CEO- board relationships. Unfortunately, not many nonprofits have the gold standard or even reach for it. Too many nonprofit boards, because of long traditions, see the CEO-board relationship as a “parent–child” one. This leads to mistrust, board focus on operations and missed strategic opportunities for growth. Many nonprofit boards are very careful with risk related decisions, but the gold standard does allow nonprofit boards to assume reasonable risks. (more…)

Program Reductions Are Mandated—What Can A Nonprofit Do?

Program Reductions Are Mandated—What Can A Nonprofit Do?

The word from management is that the board of directors has decreed there will be program cuts. Regardless of the rationale, be it financial or mission-related, the proposed loss is a source of concern to directors and is a common nonprofit board challenge in the 21st century.
Reactions are varied and I invite you to share your board experience on the topic; here are some deliberations that I have encountered in the past: (more…)

Markers For An Open Culture Within Nonprofit Boards

Markers For An Open Culture Within Nonprofit Boards

By Eugene Fram

Board Culture is really about having chemistry that works. Is there transparency, and by that I mean openness? It is very intangible but critical. Is there a spirit of inquiry? That means, for example, that a director can disagree with another director or with the CEO without actually being hostile or being viewed as hostile. All should be able to have civil but active discussions. Does the board have a few really insightful board members who spark real dialog? I’m talking about people who have an ability to smell and “opportunity” or “problem” or “roadblock.’ Do the organization exude creativity – from the CEO and from board members? (more…)

Why Are Some Nonprofit Boards Missing the Mark? What to Do?

Why Are Some Nonprofit Boards Missing the Mark? What to Do?

By Eugene Fram

Stephen Miles of the Miles group (http://milesgroup.com) recognizes that many business boards are coming up short in performance. As founder and CEO of a strategy and talent development agency, Miles has identified five areas of potential improvement for commercial boards. I believe these categories are also quite relevant to nonprofit board operations in the following ways: (more…)

Does A New Nonprofit Board Director Really Understand Your Organization? – Reissue

Does A New Nonprofit Board Director Really Understand Your Organization?

By: Eugene Fram

The careful nurturing of a 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.* (more…)

Retaining Excellent Nonprofit Board Members by Keeping Them Meaningfully Involved – Part II

Retaining Excellent Nonprofit Board Members by Keeping Them Meaningfully Involved – Part II

By: Eugene Fram

Board members will stay interested and involved in their nonprofit organizations if they are convinced that their activities have a purpose and serve the organization. This is what I call meaningful involvement. And as a side note, being pertinent and time-limited is especially applicable for younger individuals building a career, only because this group is now used to immediate gratification and to projects that last no longer than the equivalent of a semester. When board members feel their involvement is meaningful, they will often remark, “Assignments are interesting and well organized.”

Following are some hypothetical examples: of meaningful involvement: (more…)

Retaining Excellent Nonprofit Board Members by Keeping Them Meaningfully Involved – Part I

Retaining Excellent Nonprofit Board Members by Keeping Them Meaningfully Involved – Part I

By: Eugene Fram

In the 20th century, it was not unusual for nonprofit boards to grapple with operational questions related to buying new equipment, firing a custodian, hiring a new program director, choosing new furniture for the reception area, revising budget forms, revamping the accounting department, etc.

In order to retain desirable directors in the 21st century, the board only needs to be generally aware of these types of operational decisions, not make them, and then needs to focus its meeting times on questions such as: (more…)

Nonprofit Boards Can Drive Organizational Innovation & New Strategic Directions

Nonprofit Boards Can Drive Organizational Innovation & New Strategic Directions

Recently, Marla Capoozzi, Senior innovation Expert at McKinsey Company, provided some guidelines to assist business directors to help drive organizational innovations and lead to new long term strategic planning.* Following are my suggestions how nonprofit boards can adapt her guidelines.

1. Have a Defined mission A mission statement guides most nonprofits. However, few if any, have innovation as an inherent part of that statement. For example, a counseling nonprofit will want its staff to work with the latest treatment modalities. But few boards will want their staffs to actively seek ways to improve on these modalities. Budget constraints, related to staff costs, interfere. However talented staff members may develop new innovative practices within the confines of regular contacts with clients. These can lead to new strategic directions. To drive innovation, boards will need to stay on message to management and staff that innovation is desired outcome to support the mission statement. (more…)