A frank discussion of the overhead myth may impact the very survival of nonprofits. Article in the September-October issue of Nonprofit World?
nonprofit strategic planning
Nonprofit Board/Staff Relationships: An Uncomfortable Partnership?
Nonprofit Board/Staff Relationships: An Uncomfortable Partnership?
By: Eugene Fram
I have always been of the opinion that nonprofit directors don’t give sufficient consideration to the relationships between the board and staff. The following passage reasserts the complexity of such relationships and why misunderstandings might occur on either side of the fence. (more…)
Focusing the Nonprofit Board on Strategy – Same for For-Profit & Nonprofits? Updated & Reissued
Focusing the Nonprofit Board on Strategy – Same for For-Profit & Nonprofits? Updated & Reissued
By: Eugene Fram
Writing in the third quarter, 2012, of Board Member.com, Peter Dailey begins with the following conclusions about for-profit company’s strategic process (es):
As directors become increasing involved in their company’s strategic process, it’s evident that some fail to have the competencies to meaningfully contribute. Some deficiencies may result in only benevolent dabbling. … But at the extreme, deficiencies can result in destructive deliberative processes and the adoption of faulty strategic decisions. Often these scenarios operate with the context of by well meaning directors – not within hostile environments. * Skill matrices related to specific director experiences are needed. But they fall short in addressing how a director might behave.
For example, I once observed two influential directors establish complex “management by objective” programs for which the staff was forced to focus on process minutiae rather than program outcomes and impacts. The organization suffered. Large company executives can be a problem source when they force extensive discussions on minor operational items. These are items that they would never allow on their own board agendas. Why this happens is a decades old mystery for those of us who have observed it (more…)
Is Your Nonprofit Board Fundraising Committee Strategically Oriented? Reissued & Updated
Is Your Nonprofit Board Fundraising Committee Strategically Oriented?
By Eugene Fram, Professor Emeritus, E. Philip Saunders College of Business, Rochester Institute of Technology
Nonprofit boards have struggled for years to develop effective board fundraising committees and strategies. According to the BoardSource 2012 Governance Index, 46% of nonprofit CEOs gave their boards “D” or “F” grades for their fundraising efforts and fundraising is the lowest ranked of 10 board board responsibilities.
Simone Joyaux in a current NPQ Newswire* raises some pertinent questions related to the “struggle to get the board to carry out its fund development role.” I have listed her questions below in italics. My overall response to her questions is that fundraising committees are not always necessary for effective fund raising! Where the committee is doing a poor job (graded average or below), it is best to cultivate and support a few board members to drive fundraising. After all, not all nonprofit directors have a strategic orientation. (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
Is Your Nonprofit Strategically Deprived?
Is Your Nonprofit Strategically Deprived?
By: Eugene Fram
A vital concern to the future of any nonprofit organization is frequently neglected. Responsibility for the lack of strategic planning must reside with the chief executive, board members and the tactical challenges that inevitably flow to the board.
Before a nonprofit board can begin successful strategic planning, it must: (more…)
Strategic Planning: Nonprofit Board Orphan??
Strategic Planning: Nonprofit Board Orphan??
According to a 2012 BoardSource study, nearly half of over 1300 nonprofit chief executives gave their boards a C, D or F grade in strategic development efforts. This is further evidenced in the frequent absence of long range planning items on nonprofit board agendas. What are the root causes of such a deficit in an area that is of critical importance to the future of the organization? One or more of the following challenges may apply: (more…)
Who is Primarily Accountable for Long Term Planning – Board or CEO?
Who is Primarily Accountable for Long Term Planning – Board or CEO?
By: Eugene Fram
THE QUESTION
Can you further clarify whom you see as accountable for making what decisions in relation to the various aspects of corporate strategy creation and execution? If the board approves the CEO’s decisions do they not become board decisions? Where is the scope for the CEO to be accountable for making his or her own decisions?
MY ANSWER
“(My model)… promotes accountability. It requires the board and the CEO to work together to paint the big picture for the organization. It then holds the CEO accountable for implementing that vision. The (board’s) planning and resource committee (also) plays a major part in painting this picture by helping the organization and the CEO to look ahead to look to the future.” <!–more–>
Now for some details also found in “Policy vs. Paper Clips. * (http://amzn.to/eu7nQl)
The CEO is asked, in addition to heading operations, to be looking ahead in the organization’s mission focused field. This is very important where the board is largely an eclectic group of volunteers. The CEO should be thinking about these issues 24/7 and bringing what S/he considers the important ones to the board’s planning and resource committee, from which the board has a process for selecting those that have potential for further study by a board-staff ad hoc committee or task force. Where the board is composed of field professionals, like the Associated Press, the CEO still has an obligation to be on the frontiers of field changes and opportunities, obviously very important to the AP.
* Board members from all backgrounds have an obligation to bring GENERATIVE, out-of-the-box, thinking to the board. Where this often falls short with nonprofit boards is that many attempt to acculturate directors to the culture of the organization, instead of being open to the person’s expertise and culture. For example, if a director has expertise in financial planning, nonprofits often will ask the director to be involved with immediate accounting issues, instead of expanding the organization’s financial outlook.
Many of these field insights are covered in my blog site, now numbering a selection of over 100 current blogs. http://bit.ly/yfRZpz
See previous blog: Differences: Nonprofit Board Board Policy/Strategy Development vs. Management Operations
*PS: Recent Comment on the Model
Our Board applied the principles in Policy Vs. Paper Clips after the first edition came out many years ago. We were fortunate to have the author himself consult with us. I can unequivocally state that the Corporate model spelled out in this book works and is responsible for the incredible growth and success my not for profit has experienced over the last 15 years. More importantly the Board members love it because they are engaged at a strategic level that allows them to use their brains and contribute in a meaningful way. Every not for profit CEO and Board member should read this book regardless of size or scope of the organization. Its how Boards need to work in the 21st century.
Nonprofit Strategic Planning: Using Imperfect Metrics Well
Nonprofit strategic plans are most vulnerable not in their development, but in their implementation. And implementation often hinges on some measurable indication of progress. (more…)
Nonprofit Management 