(Is An) Exodus of Executive Directors Expected?

Here is another take on the recently released Daring to Lead 2011 report of 3000 nonprofit executive directors from www.PhilathropyJournal.org. The findings would indicate that a significant number of nonprofit executives will be leaving their roles over the next five years due to frustrations with funding, boards, and lack of work/life balance.

Highlights or Lowlights:
· Sixty-seven percent of executives plan to leave their jobs within five years, down from 75 percent in in similar studies in 2006 and 2001.

· With one in six leaders age 60 or older, for example, 22 percent of that group said a loss in their retirement savings contributed to a transition delay.

· Forty-five percent of respondents said their boards had not reviewed their performance within the past year and only 18 percent said their performance review was useful.

· Thirty-three percent of current executives followed a leader who was fired or forced to resign, "indicating the frequency of mis-hires and unclear expectations between boards and executives across the sector," the study says.

· Nonprofits are not prepared for executive transition.

· Satisfaction with board performance was lowest among leaders on the job between one and three years.

· Only 17 percent of organizations surveyed have a documented succession plan, and just 33 percent of executives were very confident their boards will hire the right successor when they leave.

· Eighty-four percent said the recession had had a negative impact on their organization. Forty-six percent said their organizations had operating reserves of less than three months of expenses.

· The study offers a series of recommendations to improve transition planning, understanding of financial sustainability, professional-development options and performance and composition of boards.
In my work, I am seeing fewer nonprofit executives targeting the traditional retirement age of 65 as their date. Even those who are ready to step out of full-time leadership roles in their late 60’s are looking for another paid role – some for the financial aspect and almost all because they value the work and the people in the nonprofit sector. If your organization doesn’t have at least a written Emergency Succession Plan, we can do a short session with your Executive Committee or board to generate some good thinking and draft a plan. Bryan 752-7153

Read the full article here.

Get Them While They are Still in Hard Copy! Board Training Booklets being discontinued - Save Now!

Eight years ago, I wrote the first version of "Welcome to the Board" as a training handout for participant's in LLA's first 'Get on Board' - board member recruiting event. Theresa Rhodes at LLA was kind enough to cover the copying costs for me. It was a family project to fold and staple 100 booklets. Unexpectedly, the new board members who took those booklets back to their boards prompted orders "for every board member" and we were in the publishing business.

Over the following two years, I wrote three more short booklets, "Finance for Every Board Member", "Fund Raising for Every Board Member", and "Planning for Every Board Member" with the same intention, to make board information accessible to expanding numbers of new board members. We wrapped all four titles under the label of "Too Rushed to Read" to further convey the short length.

Since that time we have sold more than 25,000 copies, total, of these four booklets - probably in every state. We have sold them in sample packs of one of each title and we have sold them by the hundreds for conferences and even university classes, but we have mainly sold them 10-20-30 at a time to nonprofits who use them as they recruit and/or train new board members or work to expand the perspectives of longer term board members.

As part of Charitable Advisors continued evolution, we see much of this type of information moving on-line and will be exploring options to develop our next generation of training and education. Right now, we have just over 1,000 booklets left in inventory and all four titles but we know that some titles will run out before others.

Save 20% plus get a FREE Training CD and Facilitator Guide, while they last!

I guess I am old school, but I still like to hold books in my hands and know many of your current and future board members feel the same way. We want to clear off our shelves and give you a chance to purchase them at a good price - only $4-5 a copy. Go to: http://www.charitableadvisors.com/ordercdbooklets.html and enter code "Promo7" and then hit apply and it will show a 20% discount on everything you purchase on that page. With each order, we will also include a free Training CD and Facilitator Guide, a $55 value.

Feel free to e-mail me with any questions at Bryan@CharitableAdvisors.com.

Bryan Orander, President
Charitable Advisors and Not-for-Profit News
www.CharitableAdvisors.com
www.NotforProfitNews.com
317-752-7153

Get on Board 2011 – Does Your Board Need New Energy? New Perspectives? New Contacts?

A couple new board members can bring much needed energy to a nonprofit board. I have been excited to be part of the Get on Board event in Indianapolis since it started in 2003. Hosted by the Lacy Leadership Association(LLA), it brings more than 60 nonprofits together each year in one energetic setting to provide current and aspiring community leaders with an opportunity to meet board and staff members from nonprofits of all kinds – arts, education, youth, health, social services and more. The goal for exhibiting organizations, and attendees, is to find that special connection of interest, skills, and motivation to make a difference. Since its inception, this premier community event has infused more than 1,800 new board members, committee members and volunteers into the community as they have become involved with hundreds of nonprofits. This year’s event is on Monday, October 3 from 4 p.m. – 6:30 p.m. at Conseco Fieldhouse. If you attended last year, you will be pleased to hear that the floor plan is being expanded and there will be plenty for room for attendees.

Due to the high demand for exhibitor space, non-profit organizations are chosen to exhibit through a comprehensive application process. Applications are now available online at www.surveymonkey.com/s/GOBexhibitor. Deadline to submit an application is August 5 at 5 p.m.

In order to be eligible to be selected for this year’s event you must:
Complete the on-line application in full by August 5. http://www.surveymonkey.com/s/GOBexhibitor
Submit payment to LLA for the $75 exhibitor fee (Your payment will not be processed unless you are selected to exhibit).

Commit to having at least one representative attend a mandatory exhibitor orientation in early-mid September. Date TBD

Once all applications are submitted they will be reviewed by a selection committee. The review and selection process will ensure a cross-representation of all areas of service. You will be notified in late August if you have been chosen to exhibit.

If you would like to attend as an individual and find opportunities to become a board member, you can register at http://www.lacyleadership.org/GetOnBoard.html, then the Attendees tab. There is no charge to attendees for this event. Please note that this is not a forum for seeking a job or soliciting business from these nonprofits.

If you have any questions about Get on Board, the exhibitor application or selection process, please contact Susie McKenna at 317.631.6542 ext. 133 or susiem@cicf.org

Lead People

Earlier this month I shared some insights from Lee Cockerill, a former Disney executive and author of Creating Magic about the difference between staff training and staff development. I wanted to share some additional notes that should get you thinking more about how we can only lead when we connect with people - Lee says leadership is a “contact sport”.

· A leader’s job is… to do what has to be done, when it has to be done, in the way it should be done, whether you like it or not and whether others like it or not.
· Everyone is important – tell them that they are!
· Your role as a leader is to create an environment where employees want to come to work
· The right people, well-trained, require fewer managers
· Leadership is a contact sport
· Trust is the key
· Know what you stand for and what you won’t stand for.
· Bond early with new employees (and board members?)
· Be brave enough to have the hard conversations – employees build trust with managers who give them feedback on the good and bad and are willing to help them get better.
· Empower the front line with the financial and common sense authority to serve the customer
· If you can’t trust your people to do the right thing, YOU have hired and trained the wrong people in the wrong way
· Start the day by making rounds with your people

His top 3 priorities around getting the right people in the right roles:
1) Crisp systems to recruit and hire staff. Use on-line questionnaires and view videos before completing applications. You can’t train people to have good attitudes and be nice and happy.
2) Training and development of staff – train and test before you “turn them loose on customers”. Use staff managers as training resources in their areas of expertise.
3) Ensure that every employee knows they matter

Think about how you grow people in four areas of competency:
· Technical – skills needed to do their specific job
· Management – controlling, getting things done
· Technological – creating leverage and possibilities
· Leadership – Building trust, being a person people want to work for, challenging and holding accountable.

Leadership > Staff Environment > Customer Satisfaction > Business Results … The customer does not come first: Leadership comes first. This is the way that ensures excellent customer service which translateds to improved results.

Staff Training does not equal Staff Development (Part I)

I am a huge fan of the team at the Foellinger Foundation in Fort Wayne (unfortunately, they fund in Allen County only). They recognize that it takes strong nonprofit organizations to deliver quality programs and to create meaningful results. Their refrain is that they support effective organizations who are “Well-managed, Mission Driven, Results-Oriented”.  To that end, Foellinger Foundation brings in a nationally known speaker each year to present to an opening session audience of 100’s of board and staff leaders followed by a workshop that delves deeper into the subject – but that’s not all.  Following the workshop, they offer the opportunity for many organizations to receive a grant to implement the ideas and strategies that have just been explored.

This year their guest was Lee Cockerell, former Disney executive and author of the book “Creating Magic”. This week, I wanted to focus on his theme that stood out most for me – “Staff Training is not the same as Staff Development”. Lee highlighted that these concepts tend to be lumped together, even thought of as the same thing. He emphasized that they are dramatically different and how your organization approaches them could determine whether you are creating “Disney Memories” or Delta Airlines Baggage embarrassments.

He explained that staff training is what you do to equip and prepare a staff member to successfully and effectively perform the basics of their job and then keeping them current on the skills needed to perform the role. Small nonprofits, in particular, struggle with this aspect of appropriate staff training and will sometimes wear “we do on-the-job training” as a badge of honor. Lee noted that at Disney, no employee (cast member) is turned loose on the public until they have been trained and tested on it.  What would it take for your organization to excel at equipping your people to do their current jobs well?

In contrast, Mr. Cockerell shared that staff development is individualized, one-to-one, focused on potential (expanding their job or on preparing for another role), and usually manager initiated. In too many organizations, nonprofit and business, this thinking is relegated to an annual performance evaluation exercise that often results in employee’s feeling that their supervisor doesn’t care enough about them to put real effort into helping them improve. Lee emphasized that many of his best relationships are with former employees that he was candid with about their weaknesses and how they could improve. What would it take for your organization to excel at preparing your people for additional opportunities or increased impact?

Share your insights.

Bryan

Cross-sector Hiring – Will It Become More Common?

I was recently meeting with the successful, long-term CEO of a large nonprofit and we were discussing the increasing numbers of people who have had careers in business that are now interested in working in the nonprofit sector. I commented that on several of the recent searches that I have supported, more than half of the prospects were from the business sector and had little nonprofit experience beyond serving on a board for a few years.

He shared an exchange with me that he recently had with a successful corporate executive (I am paraphrasing):

Corporate Executive to Nonprofit CEO: I have been successful in business and now I think I am ready to lead a nonprofit - to give back to the community and really make a difference. How do I go about getting a job in the nonprofit sector?

Nonprofit CEO to Corporate Executive: I’ve been very successful in my work as well. How likely are you to hire me to work as an executive in your company?

Corporate Executive to Nonprofit CEO: Not to be critical, but you don’t have any experience in our business and there are many people in our company and in our field that we would consider ahead of you.

Nonprofit CEO to Corporate Executive: Ditto.

Personally, I think the interest of Boomers in business roles moving into nonprofit leadership roles is a very positive thing and could ultimately help in filling both leadership and skill gaps as the older edge of the boomer generation retires. At the same time, there are incredible differences around scale, budgets, organizational culture, multiple stakeholders, and the nonprofit structure that are not an easy transition for many business people.

These business leaders need a path to prepare themselves for these roles. The current route would be to serve on nonprofit boards, volunteer, and get involved in giving back while you are still working in the business sector to develop enough of a network and reputation in the nonprofit segment you aspire to work in that your resume is a match for nonprofit role.

Please share your thoughts.

Four Ways to Remove a Board Member

Once again Jan Masaoka from the Blue Avocado offers interesting thoughts on a difficult board issue. I have summarized this great article below and encourage you to share the link with your Board Chair and Governance Committee. Let us know what you think about this topic.

Bryan

Occasionally, a board member needs to be removed from the board. In some cases, a conflict of interest or unethical behavior may be grounds to remove an individual from the board. In other cases, the behavior of a board member may become so obstructive that the board is prevented from functioning effectively.

The best boards often have strongly felt disagreements and heated arguments. Challenging groupthink and arguing for an unpopular viewpoint are not grounds for getting rid of a board member. But if a board member consistently disrupts meetings or is otherwise destructive and demoralizing, it may be appropriate to consider removing the individual from the board:

1. Personal intervention
One-to-one intervention by the board president or other board leadership is a less formal solution to managing problem board members. If a board member has failed to attend several meetings in a row, or has become an impediment to the board's work, the board president can meet informally with the board member in question. The conversation can occur in person or on the telephone; the board president can specifically request a resignation.

2. Leave of absence
Make it possible for individuals to take a leave of absence from the board if they have health, work, or other reasons why they cannot participate fully during the current term. A board member can take, for instance, a 6-month "disability leave," or a 3-month "busy with new job" leave.

3. Term limits
Most boards (62%) establish not only board terms but also term limits, such as two-year terms with a limit of three consecutive terms. In such a situation, a board member cannot serve more than six consecutive years without a "break" from the board. After a year off the board, an individual can once again be elected to the board.

4. Impeachment
Your organizational by-laws should describe a process by which a board member can be removed by vote, if necessary. For example, in some organizations a board member can be removed by a two-thirds vote of the board at a regularly scheduled board meeting. If you do not have a way to vote out board members, add this now to the bylaws, not when there's "a problem with a first and last name."

Bryan

Read the full article.