Attn: Nonprofit Directors – Overview Points of Engagement
By: Eugene Fram
Any nonprofit organization has a series of critical points of engagement. The nonprofit board has to make sure it is carefully over-viewing the most important ones. >
Nonprofit board stucture
Are Powerful CEOs Right for Nonprofit Organizations?
Are Powerful CEOs Right for Nonprofit Organizations?
By: Eugene Fram
David Larcker and Brian Tanya, Stanford University Professors, have come to the following conclusions about CEO power and raise some pertinent questions the role of the board, based on research mainly centered on for-profit organizations.*
The research literature clearly shows that having a powerful CEO creates the potential for him or her to abuse this position to extract personal benefits or engage in excessive risks activities. At the same time, the research also shows that (CE0) power is often critical to the successful completion of tasks and the achievement of corporate objectives (and missions). To this end, powerful CEOs can ultimately be a success or a failure. Are shareholders (stakeholders of nonprofits) better or worse off with a powerful CEO?
While it is the role of the board of directors to oversee management, at some point the board must empower management to make decisions. Where should it “draw the line” between giving its CEO discretion and providing appropriate oversight? How much power is too much power?
My Response Related to Nonprofit Organizations:** (more…)
How does a president/CEO turn down advice about operations or internal structure from the board – Update & Reissue
How does a president/CEO turn down advice about operations or internal structure from the board.
by Eugene Fram
With difficulty. It all depends on the type of culture that has been established by the board. Ideally, the president/CEO should be comfortable saying, (more…)
Radio Program on Nonprofit Boards & Governance
Folks:
I thought my followers would like to know I am going to be interviewed by Tony Martignetti on Nonprofit Radio from 1 to 2 pm eastern on Friday, APRIL 26TH. If you would like to listen to the interview later at any time, starting next Monday April 29th, you can find it on iTunes (free), or the same link below will take you to the archive listing of the program.
Nonprofit Radio, April 26, 2013: A Conversation With Eugene Fram http://tony.ma/11AWzAj
Thanks for your interest in my views of nonprofit governance.
Gene
Management Knows All: What’s A Nonprofit Director To Do?
Management Knows All: What’s A Nonprofit Director To Do?
Your nonprofit board has a management ‘dream team” in place. The team collective has superior knowledge and in-depth understandings of internal processes and issues. Without attempting to micromanage the nonprofit, what role should a director play … assuming h/she serves on the board for a purpose.
Nonprofit boards provide critical policy compliance & financial overviews of organizational issues and actions. Regardless of the board’s overview actions and perceived excellence of management personnel, board members also must be poised and positioned to:* (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…)
Management Expectations of the Board – The Nonprofit Story – Part II
Management Expectations of the Board – The Nonprofit Story – Part II
I am indebted to Dr. Richard Leblanc of York University for the action headings used in this blog. The blog uses headings developed by Dr. Leblanc for his blog: “What a Board Expects from Management, and What Management Expects from a Board, January 27, 2013, York University Governance Gateway Blog. (rleblanc.apps01.yorku.ca) For reading simplicity, Dr. Leblanc’s specific quotations, which can apply to either FP or NFP boards, are noted in italics.
1. Candor
The board should speak with one voice and not send mixed messages to management (and staff when dealing with nonprofits). Nonprofit boards are usually composed of people with widely diverse backgrounds, as compared with for-profit ones. (more…)
Nonprofit Management 