I’ve watched many non-profits struggle because they have the wrong people on their boards. Even conscientious organizations with lists of criteria used to carefully recruit qualifying board members usually get it wrong. Yes, you need diversity. At the very least, that likely means you need to consider race, gender, and age. Depending on your focus, you may need diversity of experience and socio-economic representation as well. If you are a member organization, the diversity of your board must reflect your member base or desired member base.
When I work with clients on strategy, one of my greatest responsibilities is to shift their thinking so they can look at things in new ways, step up to a higher plane, and think big. Boards of Directors and staff alike are usually too mired in today’s challenges to envision a dramatically improved future, let alone a path that gets them there. Without a shift in thinking, most strategic plans are incremental at best with the biggest changes focused on internal operations that may save money, but won’t measurably increase the organization’s ability to make a difference. At the same time, I have to keep my clients grounded in reality. Blue-sky proponents lobby for lofty earth-saving missions without any concrete ideas about the specific products and services that will make a measurable difference. They shoot down dissenters and leave too many details for later. These grandiose plans are wrapped up in shiny binders and delivered with great pomp and circumstance. So how do you know a sensible and strong strategy from a bad one? Today’s list is geared toward nonprofits. Stay tuned for an equivalent list for businesses.
One of my great pleasures is working with sharp, knowledgeable, dedicated, and determined leaders and Board members of impressive non-profit organizations. These organizations are almost always doing amazing things, but too often I find them feeling totally strapped and constrained by resources. The staff is overworked and underpaid. Most non-profits walk a fine line between hope and despair. Financial limitations, and the insecurity that creates, lead to way too much focus on money and the wrong metrics. When you focus on money, you devote most of your time to boosting donations, memberships, and attendance. You constantly brainstorm new schemes to attract more of each. Meanwhile, you don’t care who donates, joins, or attends, as long as those numbers are going in the right direction. The problem is it does matter where the money comes from. That money, and your considerable efforts to acquire it, control how you use your limited resources. Typical consequences of chasing money include:
Whether you are an executive or a member of a Board of Directors, I bet you recognize at least one of these situations: The executive sees little or no value in the board. I’m not talking about the quality of the board here; I’m talking about the attitude of the executive. Relations are strained and no one is happy. The executive respects the board, but doesn’t know what to do with them. I’ve seen many cases where the executive wastes days every single month preparing for the board meeting. It’s a major production bent on entertaining and impressing the directors. Nothing substantive is accomplished. In other cases, they all plod through a very boring and lengthy meeting that also accomplishes nothing. The executive has a really close relationship with one of the directors and it isn’t the chairperson. The result is serious trust and power issues. It’s like having a spy on the board who will run to the executive with confidential board business. Even when confidences are not being violated, an executive can’t risk having his board think they are. The executive shares too much with the board and drags them down into operational weeds. As a result, the executive unwittingly loses control of decisions and the board’s time is wasted. The executive shares personal fears and insecurities with members of the board. It doesn’t take long before the board loses confidence in the executive and the executive loses his job. An executive is supposed generate confidence, not erode it. The executive doesn’t think the board is taking on enough responsibility. This is particularly true of non-profits and fundraising responsibilities. Undercurrents flow and resentment builds for all. The board doesn’t show up. More resentment. Decisions are made without appropriate expertise, input, and oversight. The board isn’t completely happy with… read more →
I don’t respond to RFPs. I have in the past, but I’ve learned my lesson. Nonetheless, I still receive them. This one just arrived and it seems a perfect opportunity to explain: Why I will ignore it Why no one should use the RFP process First, you need to know that this RFP is totally typical. I’ve changed nothing but identifying information to protect the innocent. THE RFP We are seeking proposals from Vendors with expertise and experience in conducting organizational culture assessments. Specifically, we want to determine what cultural changes will be required to align the entire organization with the Strategic Plan. Also, we expect that the feedback from this assessment will provide valuable insights about skills and behaviors (e.g. leadership; management; and communication) the Executive Team and Board of Directors may need to exhibit in accomplishing the Strategic Plan and leading the desired changes. Note: Proposals are due by Dec 26 Project Description and Deliverables 1. The Vendor will facilitate a strategic planning meeting with HR and/or Executive Team to ensure that the key expectations and objectives will be met. 2. The Vendor will develop a customized on-line assessment to be reviewed by HR and/or Executive Team. 3. Once the data has been collected, the Vendor will analyze it and identify where we have opportunities to move the culture in the desired direction. 4. The Vendor will prepare a draft report of outcomes and recommendations. 5. Once the draft report has been finalized, the Vendor will meet with the Executive Team and the Board of Directors’ Human Resources and Compensation Committee to review outcomes and recommendations. WHAT’S WRONG WITH THIS PICTURE? Let me count the ways!