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The Leadership Balancing Act: Establishing an Effective Partnership Between the Executive Director & Board
Break for LunchDecember 17, 2009
© Copyright 2009, NorthSky Nonprofit Network. All rights reserved.
Workshop Objectives
• What forms board behavior• Refresher: Nonprofit Life Cycle Stage• Discuss when & who takes the lead• Discuss how to improve a dysfunctional working
relationship• Outline how to establish a strong working
relationship
What Drives Board Behavior?
• History• Habits• Stage of organizational development• Founders/ leaders• Strengths of Individual Board Members
Organizational Life Cycle Stage CharacteristicsConception/ Infancy Voluntarily coming together to solve a
problem; high energy & enthusiasm
Infancy Founder in charge; work expands beyond what the founder can do
Puberty Org. expands but is awkward in dealing with coordination & external affairs; professional management emerges
Young Adulthood More formal management, policies, and procedures; emerging politics
Adulthood Mastering environment; serving clients; established management;New ideas contemplated; high energy; risk- trying to be everything
Organizational Life Cycle Stage CharacteristicsLate Adulthood Excitement beginning to wane;
Past valued over innovation;Complacency; no sense of urgency or need
Old Age Diminishing ability to serve others;Lack of cohesion among leaders;Little energy available for renewal and reversal of situation
Revitalization Revitalization of mission; re-defining service niche
Whose Job Is This?• Develop the strategic plan• Implement the strategic plan• Create the annual operating budget• Create financial reports• Developing financial policies & procedures• Recruit new board members• Develop the board agenda• Fundraising• Meeting with and cultivating donors
Board Duties & Responsibilities
Duties explain how the board BEHAVES when fulfilling the Roles and Responsibilities.
Roles and Responsibilities are what the board DOES.
Standards of Conduct: Legal Duties
There are three broad “legal duties” that form the standards of conduct that all nonprofit boards are expected to adhere to:
– Duty of Care– Duty of Loyalty– Duty of Obedience
Assigned Duties Ten Basic Responsibilities
1. Determine the organization’s mission and purpose.
2. Select the chief executive. 3. Provide proper financial oversight.4. Ensure adequate resources. 5. Ensure legal and ethical integrity and maintain
accountability.6. Ensure effective organizational planning. 7. Recruit and orient new Board. 8. Enhance the organization’s public standing.9. Determine, monitor, and strengthen the organization’s
programs and services.10. Support the chief executive and assess his
or her performance.
Primary Roles of the BoardDirection- Guards mission and through guidelines
steers the organization
Oversight Monitors activities, health, and ethical behavior
Resources Ensures that the organization is equipped to fulfill its mission
Primary Roles of the Executive Director
Daily management
Regular communication to Board about issues, progress, activities
Implement Board directives
OversightBoard/ Executive Director
BOARD
Drafts board policies to protect organization, board & staff
Monitor legal requirements
Hires E.D.
Expects regular and objective reports
EXECUTIVE DIRECTOR
Oversees daily operations
Hires staff & delegates to them
Monitors staff
Shares good & bad news with board
Planning & EvaluationBoard/ Executive Director
BOARD Adopts a strategic mindset by focusing on what matters most
Actively participates in strategic sessions & retreats
Evaluates the E.D.
Evaluates its own performance
Using staff reports assess NPO progress against goals
EXECUTIVE DIRECTOREnsures strategic planning happens with board’s involvement
Leads operational planning and approves plans for staff
Ensures a process for staff performance evaluations
OversightBoard/ Staff Roles
BOARD
Makes sure adequate financial expertise on board
Sets fiscal policies & ensures internal controls
Approves annual budget and monitors financial reports
Hires an auditor; reviews audit reports
EXECUTIVE DIRECTOR
With help of financial staff, prepares annual budget
Provides board with regular financial statements
With staff support, handles daily financial operations and monitors cash flow
Defines financial policies & procedures for daily transactions
FundraisingBoard/ Staff Roles
BOARD Drafts gift acceptance policies and personal giving guidelines for board
Actively participates in fundraising as directed by development staff
During capital campaigns takes a lead in securing campaign success
EXECUTIVE DIRECTORWith development staff, drafts fundraising plan
Acts as main representative of the organization and when there is no development director communicates with funders
Board developmentBoard/ Executive Director
BOARD Ensures board composition reflects NPO’s needs
Actively cultivates recruits
Develops board policies
Review bylaws
Incorporates board training into board calendar
Conducts board orientations
EXECUTIVE DIRECTORAssigns staff to work with board committees
Assigns staff to work with board on meetings, orientation, & retreats
Identifies potential new board members
Nonprofit BoardsBlurry Lines
• Board and staff roles- the line is drawn differently in each life stage
• Representing the interests of members versus the organization
• Serving multiple roles: committee member, volunteer and board member
Nonprofit BoardsDoes this sound familiar?
• Board members are unaware of issues/ problemsthat challenge the nonprofit.
• Individual board members meddle in work of staff.
• Individual board members ask for detailed back-up reports or custom reports –and then don’t do anything with the information.
Nonprofit BoardsDoes this sound familiar?
• The Executive Director becomes defensive when asked to provide reports.
• The Executive Director “handles” action items (develops the strategic plan, recruits new board members, etc.) without board involvement or input.
• The Executive sets the board agenda and creates board packet without input from the board chair.
Constructive PartnershipMutual respect for distinct roles
Trust
Candor
Frequent communication
Support
Encourage E.D. to pose questions, offer answers, & share bad as well as good
Evaluate E.D. performance annually
Encourage E.D. to sharpen skills
Set fair and competitive compensation package
How to avoid problems• Clear, written role descriptions including committee
descriptions
• Orientation for every new board & staff member
• Board training: roles and responsibilities
• Relationship building activities: social, one-on-one with E.D., one-on-one with board chair
• Discuss areas that aren’t clear
Learn how to lead a good meeting
Build a strong relationship with E.D.
Nurture agreement & understanding of where the organization is going
Make sure the right board structure is in place
Know the organization- particularly understand its finances
Help secure resources for the organization
Recruit talent to the board
How to avoid problems:The Board Chair
Build a good and working relationship with the board chair
Build a relationship with the entire board
Learn how to plan a good board meeting
Encourage strong board/staff relationships
Work with the board chair to nurture agreement and understanding of vision and goals
Communicate regularly with the board
Keep an eye on the finances
Become a good fundraiser
How to Avoid Problems:The Executive Director
Resources that will assist you
• www.northskynonprofitnetwork.org• www.boardsource.org • www.independentsector.org• www.boardcafe.org
Thank You
Contact NorthSky at:231.929.3934
Pam Evans231.929.3934, x [email protected]
Special Thank you to: