policy vs. paper clips

Reflections on Nonprofit Success Stories

Reflections on Nonprofit Success Stories

By: Eugene Fram

As a veteran business professor, former students occasionally contact me to recount how I may have impacted their lives. Some have become senior executives in Fortune 500 companies, others have become attorneys, have founded profitable businesses and a few successfully have followed in my footsteps into the academic world after some years of business experience.

I recently reviewed the comments on my book, Policy vs. Paper Clips, listed on Amazon.com and thought my blog post viewers might like to see some abstracted comments, showing successful use of the governance model in my book. Eight out of ten reviews were top “five star” ratings.

My boards recognized the danger of fiddling with paper clips while strategy burns.

We had no board turnover (because) of the change (moving to the Corporate Model of Governance.)

The model is intended to convey a sense of professionalism, discipline and organizational skill.

We were able to start acting on the core idea (focus on policy not operations) immediately.

The board’s most important job is to find the best possible person to manage the organization, then stand back and let the person manage.

An added benefit is that a Leader’s Guider is available (free from the author) to facilitate discussion.

But he (the author) gets you to think about things the board needs to address.

After 15 years, the board members love (the model) because they are engaged at a strategic level.

For more details see: http://amzn.to/eu7nQl

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…)

Two Nonprofits Merge: Synergy or Collision Course?

Two Nonprofits Merge: Synergy or Collision Course?

By: Eugene Fram

Having led a merger committee that resulted in a successful merger with another nonprofit, I thought my field observations might be of interest to others contemplating a merger. These comments center on a merger of two equal partners, which plan to form a new organization, not the acquisition of one nonprofit by another.

Assuming both organizations have merger committees that meet frequently, over an extended time period, the following initial issues need to be reviewed: (more…)

Once Again: What Makes for a Successful Nonprofit Board?

Once Again: What Makes for a Successful Nonprofit Board?

By: Eugene Fram

Successful nonprofit boards come in a variety of organizational structures and sizes, largely determined by the their mission, vision and values. However, Carter Burgess, Managing Director & Head of the Board Practice at RSR Partners, an executive recruiting firm, suggests three of the most prominent success factors. Although his article is directed to for-profit boards, there are many suggestions that apply to nonprofit boards. (more…)