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If you wait for tomorrow, tomorrow comes. If you do not wait for tomorrow, tomorrow comes. Malinke people.

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Presentation on theme: "If you wait for tomorrow, tomorrow comes. If you do not wait for tomorrow, tomorrow comes. Malinke people."— Presentation transcript:

1 If you wait for tomorrow, tomorrow comes. If you do not wait for tomorrow, tomorrow comes. Malinke people

2 Building and managing a strong and legitimate nonprofit: how to use governance and management tools to perform, advocate and deliver as you promise? Kristina Mänd, Urmo Kübar Network of Estonian Nonprofit Organizations (NENO)

3 PURPOSE Demonstrate the practices and experience of a strong and recognized advocacy membership organization that makes effective use of sustainable management principles, board governance techniques and member involvement procedures. Discuss with the participants how these experiences, skills and knowledge can be put into practice in other membership associations. Provide participants with background information on opportunities and challenges that any association who wants to be successful works and what measurements are used to assess reliable and good partners. Provide participants with background and knowledge of management, governance and participation methods in developing an organization into a functioning, sustainable and recognized association.

4 Sub Theme: political justice Cross-cutting Theme: enhancing legitimacy, accountability and transparency of civil society organizations This workshop will increase the political justice by providing background information, opportunities and challenges for us to consider and learn from and it enhances legitimacy, accountability and transparency of civil society organizations by providing forum for discussion and tools to practice.

5 GOOD ORGANIZATION … achieves success in ways that honor ethical values and respect people, communities and the natural environment.

6 GOOD ORGANIZATION … addresses the legal, ethical, commercial and other expectations society has for an organization and makes decisions that fairly balance the claims of all key stakeholders.

7 WORLD 2006 More people Less resources Mobilization and globalization Active competition Social responsibility (CSR > OSR) Strong success > sustainability

8 If you understand the beginning well, the end will not trouble you. Ashanti people

9 SUSTAINABLE MANAGEMENT PRINCIPLES Strategy Legitimacy Accountability Transparency

10 STRATEGY 2006 Society and environment centered Preventive and future-oriented Process-oriented Value creating Effective and efficient

11 STRATEGIC QUESTIONS What must our organization and me/leader do to turn challenges into favorable opportunities for our organization and our publics? What is the value that our organization brings to our people and our target groups?

12 GOALS OF STRATEGY For the organization – helps to identify market opportunities and achieve its vision and goals. For the target groups (clients) – helps to satisfy the needs or satisfy them better than now.

13 Ants Sild STRATEGY HOW TO GET THERE? WHERE DO WE WANT TO GO? WHERE ARE WE? WHAT HAPPENS AROUND US THAT FAVORS OR STOPS US?

14 RESULTS OF STRATEGY Staff’s common and shared understanding of the organization’s objectives and consecutive activities Strategy plan and consecutive action (operational) plans and budgets Suggestions for the development of the organization (statues, structure, processes, other strategies etc) Implemented projects Public’s clear understanding of organization’s purpose, role and activities ???

15 RESULTS OF STRATEGIC PLANNING Improved overall management Improved financial performance Reduced operating costs Enhanced brand image and reputation Increased members loyalty Increased productivity and quality Increased ability to attract and retain employees and volunteers Reduced regulatory oversight Access to capital Early identification of potential liabilities Marketplace advantages Decreased risk of adverse publicity Improved organizational effectiveness

16 STEPS OF SUSTAINABLE MANAGEMENT look at your mission, vision, value statements and cultural values to map anything contradictory and potential conflicts of interest look at your governance and management structures to map where to put that activity and what resources it needs look at your existing activities (e.g. traveling, accommodation, IT etc) programs and services to map which are of potential value for businesses and can be developed into plans and bring the greatest value to an organization as well define and engage other stakeholders

17 STEPS OF SUSTAINABLE MANAGEMENT design a strategic plan for your organization develop formal internal and external communication mechanisms set standards (if existing ones do not provide enough space) for general accountability that the organization will not lose its reputation design criteria for performance monitoring, reporting and evaluation analyses the use of influence of your organization seek strategic resources and develop fund engage members and other stakeholders introduce and communicate the strategy

18 Wolof people know: „Know yourself better than he does who speaks of you”

19 CHALLENGE The more organizations gain power and recognition, the more accountable and legitimate they must be.

20 GOVERNANCE The system by which an organization is governed. Governance derives from Latin “gubermare” and Greek “kebernon” and means “to steer from a position of authority”. In other words, it refers today to the system or process of how an organization’s governing body exercises its authority over an organization.

21 BOARD Board is “an organized group of people with the authority collectively to control and foster an institution that is usually administered by a qualified executive and staff” Cyril O. Houle Organized meaning that the board needs to structure itself, its operations. It must consider bylaws, statutes, basic procedures of the organization. Authority means the formal right of a board to exercise power may be, delegated by members, specifically stated in the statutes or may be derived from law. Collectively means that a authority to govern the organization rests in the board as a whole. It is a complex group phenomenon.

22 BOARD Governance is NOT management. Governance involves leadership, mission, vision and strategy. Management deals with daily operations of the organization. Good governance is “a transparent decision-making process in which the leadership of a non-profit organization, in an effective and accountable way, directs resources and exercises power on the basis of shared values” CEE Working Group on Non-profit Governance

23 BOARD Authority to make decisions on behalf of the organization is granted to the governing body. In turn, the governing body is accountable to the sources of its authority. Good governance ensures that: The mission of the organization is realized (MISSION; VISION) Financial and human resources are properly mapped, developed and managed (RESOURCES) Programs and services are effective and efficient (OVERSIGHT) Good relations with interest groups are maintained and promoted (OUTREACH)

24 BOARD Governance principles 1. The organization is committed to the highest level of accountability. 2. The governing body serves as a transparent link to stakeholders. 3. The governing body articulates the ethical standards of the organization.

25 When the drumbeat changes, the dance changes Hausa people

26 DRUM BEAT 2006 Ethics – legitimacy and accountability Involvement of members and communities Investments into members and communities Environment and “green” service/product Governance Human rights Media attention Market and demands Transparency and openness

27 LEGITIMACY Actions that are considered legal, acceptable and justified: Laws Values Activities (people, competencies and relations, achievements, reputation) Legitimate as an institution. Legitimate to deal with the topic/issue.

28 ACCOUNTABILITY Processes through which legitimacy is created and maintained: 1. What are you accountable for? 2. Whom are you accountable to? 3. How do you measure? 4. How do you communicate? 5. How do you learn? Legitimacy and accountability go hand in hand.

29 MEMBERS Why do you need them? legitimacy expertise information messenger membership fees etc Why do they need you? advocacy information consulting training belonging offers etc

30 MEMBERS’ INVOLVEMENT Activity of an organization, the goal of which is to better implement and activate its membership for executing and making decisions about its objectives Why? Information, expertise, alternatives, potential impacts – thus better decisions Coherence, members’ loyalty Accountable, transparent and open organization

31 PRINCIPLES OF INVOLVEMENT Open, transparent, clear and flexible Access to information at the early stages Access with “low costs” Wide and balanced Continuous and structured dialogue Feedback Assessment and learning

32 MEMBERS’ INVOLVEMENT To achieve results, involvement must be the way of thinking, not just a series of actions Members’ involvement practices: proactive strategies reactive strategies The more you concentrate on former, the less you have to deal with latter.

33 PROBLEMS conflicting or parallel interests of members strategic choices vs. members’ interests limited resources (time, people, money, etc) efficiency vs. legitimacy When you deal with strategic issues with wide impact – consult with members When you deal with tactical issues with narrow impact – inform members

34 INVESTMENT IN MEMBERS Your members are your partners – maintain permanent and personal contacts with them Know their needs – different members expect different things Efficiency of involvement depends on their knowledge and preparation Offer possibilities for participation – challenges develop your members Develop your and members’ strengths Don’t be limited to what members ask from you, offer them also what you think they need Use every opportunity for feedback and learning

35 HOW TO WORK SUSTAINABLY? Define the vision, mission and objectives/goals Define values and follow them Define the process Revise and monitor existing activities and programs/projects Revise existing management and governance systems Involve the Board, members and stakeholders Plan strategically – do the right things; plan tactically – do things right Use your influence with responsibility Report your social and environmental impact

36 How to run a sustainable project or service? Think through the whole life cycle of your project or service Implement full cost bookkeeping Check the recycling opportunities of the materials and products you use

37 TRIPLE BOTTOM LIME Economic capital, human and social capital (relationship between people, communities and institutions) and natural capital

38 PEOPLE Management challenges for 21 century Leader’s task is to change every person’s strengths and knowledge productive. Only these organizations and states that invest in the training and valuing of knowledge labor, are successful. Peter F. Drucker

39 ENVIRONMENT Environmental (natural) challenges for 21 century Although the environment does no vote or pay taxes, it is the source of our opportunities and well- being, not the human. A human can only maintain or destroy it, depending on her/his culture, knowledge and upbringing. Lester Brown

40 WELL-RUN ORGANIZATION IN 2006 … that does NOT feed from the coming generations Where objectives and visions are higher than drive for power and ambitions Where everyone gives her/his best Which practices collective thinking and contributing Where the authority is accompanied with responsibility Which acknowledges and knows its roles and place in the world WHERE WE WANT TO AND CAN WORK

41 If you wait for tomorrow, tomorrow comes. If you do not wait for tomorrow, tomorrow comes. Malinke people


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