nonprofit executive director

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…)

Gold Standards for a Strategic Mission Focused Nonprofit

Gold Standards for a Strategic Mission Focused Nonprofit
By Eugene Fram

The following is Google’s mission statement:

To organize the world’s information and make it universally assessable and useful.

This twelve-word expression of purpose should serve as a shining example to nonprofit boards that wrestle with the development of their own mission statements. Typically the process takes huge amounts of time as boards struggle to accommodate a wide range of viewpoints.* Too often the resulting statements tend to be complex and hard to understand.

Here are some approaches that are of fundamental importance to building strategic strength in a mission-focused nonprofit: (more…)

Recruiting a Nonprofit Digital Board Director: Limitations & Alternatives

Recruiting a Nonprofit Digital Board Director: Limitations & Alternatives

By Eugene Fram

Both FP and NFP organizations are feverishly looking to add persons with digital experiences to their boards in order to be able to understand policy and strategic issues related to their organizations. Betsy Atkins, a veteran director with extensive FP and NFP experiences, makes the following observations about what is becoming a “digital director recruitment chase.” (more…)

McNamara/Fram Discussion on Nonprofit Bylaw Changes

NcNamara
I disagree with you a bit 🙂

Fram
Carter: Thanks for your comments below. I really appreciate your comments, as they force me to rethink and reconsider my viewpoints.

My replies are in bold

McNamara
You and I have been around the nonprofit world for a long time. We’ve seen where lawyers did Board trainings in the ’70s and early ’80s. Everything back then was determined by what was in your bylaws. If you wanted to change how the organization operated, then a change in bylaws was supposed to accomplish that 🙂 (more…)

When is the Right Time to Change a Nonprofit’s Bylaws?

When is the Right Time to Change a Nonprofit’s Bylaws?

By Eugene Fram

In listening to a recent Nonprofit Quarterly webinar, I was again reminded that the habit or long standing culture could hinder the capacity building function of a nonprofit organization. One example cited was the tendency of nonprofits to procrastinate in a review of their corporate bylaws. Original board standing committee structures and board/management relationships remain in place long after they are needed to drive mission growth and to improve client services and impacts. (more…)

What Nonprofit Boards Are Not Doing – But Should!

What Nonprofit Boards Are Not Doing – But Should!

By Eugene Fram

A recent New York Times article* reports that public company directors are coming under scrutiny this proxy season based on what they are not doing. Based on my experiences with dozens of nonprofit organizations, the litany of complaints cited in the Times article, can easily apply to nonprofits, whether they are professional organizations, trade associations, educational institutions or charitable organizations. (more…)

Wanted: Nonprofit Board Candidates With Passion

Wanted: Nonprofit Board Candidates With Passion

By Eugene Fram

Dr. Richard LeBlanc of York University raised the following question to ask those seeking nonprofit board positions: “Do you have an inner passion for what the organization does and stands for (its mission, vision and values), and whom it serves?”
His very pertinent question led me to think of how nonprofits may more easily identify this style of inner passion. Following are my suggestions: (more…)

How is trust developed between the nonprofit board chair and the chief executive? – Upated & Ressiued

How is trust developed between the nonprofit board chair and the chief executive?

By Eugene Fram

First, in order to maintain trust between the board chair and CEO, the chair must be certain that the evaluation of the organization and the performance evaluation of the CEO are inclusive, i.e., cover a balance of the most relevant outcomes. Otherwise, the evaluation outcomes have the potential to damage the trust relationship that’s necessary to drive organizational growth. (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…)

Should The CEO Lead or Follow the Board in Development? Updated & Reissued

Should The CEO Lead or Follow the Board in Development?
By Eugene Fram

The CEO is the advance guard when it comes to fund-raising. First and foremost, he/she has to be alert to all places where the CEO can raise funds on his/her own initiative. (more…)