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© 2011 PlayBook Consulting Group 1 Board Development Healthy Executive - Board Relationships presents the Fundamental Five+ Non-Profit Training Series Grants Central Station Leslie Mullens PlayBook Consulting Group January 11, 2011
© 2011 PlayBook Consulting Group 2 Mahalo to our Sponsors! Office of Hawaiian Affairs - Community Building Economic Development Grant Tri-Isle Resource Conservation & Development - Fiscal Sponsor Grants Central Station PlayBook Consulting Group - Producer GCS Board: Susie Thieman, Richard Kehoe, Keith Wolter, and Faye Cummings
© 2011 PlayBook Consulting Group 3 What if…? …you could get your board and executive director to agree on a clear roles and responsibilities? …you could get quorum for all of your board meetings? …you had an easily repeatable, low-impact orientation that gave board members and potential board members realistic expectations of their commitment? …you could guarantee that all meetings started and ended on time and provided significant value to those in attendance? …you had a roadmap and a way to motivate your board & staff while also holding them accountable for results and committed goals?
© 2011 PlayBook Consulting Group 4 Today’s Objectives Identify characteristics of healthy, high-functioning boards Describe effective Roles & Responsibilities of healthy nonprofit Executives, Boards, and Staff Address Common Issues boards & ED’s face Develop foolproof processes and materials to recruit, train, and retain engaged, effective board members Understand the steps to build a Strategic Roadmap Learn to use PlayBook’s Board Development Game Plan and worksheets
© 2011 PlayBook Consulting Group 5 Agenda 8:30amWelcome, Introductions, & Pre-Quiz 8:45amThe Future’s So Bright…Envisioning Success 9:15amOrganizational Roles & Responsibilities 10:00amNETWORKING BREAK - 15 mins. 10:15amRoles & Responsibilities, cont’d 11:15amNETWORKING BREAK - 15 mins. 11:30am Recruiting, Training & Retaining Quality Board Members
© 2011 PlayBook Consulting Group 6 Who’s in our Hui? GroupTh!nk’ers? Kind of agencies represented (i.e. Health & Human Services, Arts & Education, Civic) Roles here (Exec. Dir., Board, Staff, Volunteer) Board Roles (Honorific? Social? Start-up? Governance? Fundraising? Operations?) Board’s Health Assessment (High- functioning, Adequate, Distracted, “Comatose”, Absent)
© 2011 PlayBook Consulting Group 7 What Do You Want To Create? Think from the end Visioning exercise Write it Down! Share it!
© 2011 PlayBook Consulting Group 8 The Trend “A lot of boards aren’t working anymore… …and it’s not necessarily anybody’s fault.” ~ Holly Henderson Executive Director, Weinberg Fellows Source: “Nonprofit Boards: Confused or M.I.A.”, Hawaii Business, Nov. 2010
© 2011 PlayBook Consulting Group 9 BOARD OF DIRECTORS UNHEALTHY Extremes in Effectiveness EXECUTIVE DIRECTOR / STAFF HEALTHY Tremendous source of strength, solace, support, and inspiration. Provide vision, raise money & political support, offer advice. Safety net for organizations in crisis. Vital partner - a critical and effective link between community and agency. Inconsistent/absent micromanagers. Uncertain of their role, burnt out. Feel irrelevant, ignored, confused, uninformed. Send staff unrealistic or conflicting tasks. Seen as meddling or ineffective, not doing it’s job - mostly around fundraising. Understand organization’s vision, mission, and strategic goals, and make consistent progress towards those goals. Regularly communicate status & needs in ways the boards can easily digest and respond as needed. Unorganized stressed-out “fire fighters” focused on repetitive crisis clean-up. Feel burnt out, under- appreciated, confused, frustrated. Spend precious time citing board dysfunction & compensating for it. This relationship is the most important factor in your organization’s success
© 2011 PlayBook Consulting Group 10 Who Can Change the Course? ANYONE! Anyone willing to invest the time to: Truly understand all the complex dynamics at play Ask lots of questions Keep the organization’s best interests at the forefront Facilitate the Organization’s “Get Well” Game Plan
© 2011 PlayBook Consulting Group 11 If You Learn Just One Thing… “The responsibility for the board's effective work -- both governance and support -- is ultimately the responsibility of the executive director.” ~ Peter Drucker
© 2011 PlayBook Consulting Group 12 Practical Reality Not true in your agency? It feels true! Executives shoulder responsibility for success or failure of the organization -- every part of it “In a business, no executive would shrug, do nothing, and blame the program director or the administrative director for failure” The executive would act to improve performance
© 2011 PlayBook Consulting Group 13 1. Assess the Team 2. Analyze Gaps; Set Metrics 3. Roles & Responsibilities (Job descriptions for all org roles) 4. Systems, Policies & Processes 5. Develop the Board to meet the organization’s needs So…Take Action!
© 2011 PlayBook Consulting Group 14 No Time for This? “Board Development” is in 100% of nonprofit organizations’ Critical Success Factors Standard Return on Investment: Immediate, Long-lasting, Cross-Functional Improved Staff & Board Satisfaction Increased Organizational Productivity Goals attained, on-budget, on-time, meeting/exceeding metrics/expectations More Effective Meetings (that start & end on time) Less workplace stress, friction, conflict
© 2011 PlayBook Consulting Group 15 Interlocking Strategic Focus Organizationa l Includes the company or non-profit’s vision, mission, trends/market conditions, competitors, strategic partners, and market position Operational Programmatic The overarching administrative systems, policies, processes, & personnel who support organizational & programmatic strategies Programs & activities that will address specific strategic outcomes related to the target market
© 2011 PlayBook Consulting Group 16 ED’s Want Boards to Know… 1. I’m EXHAUSTED! 2. I’m burnt out and often feel alone in trying to keep this organization afloat 3. I feel like you’re either not hearing me when I tell you what needs your attention or you’re simply not going to help me resolve our agency’s challenges - I NEED YOU TO ENGAGE MORE, to roll up your sleeves & help 4. Please be sensitive to how much work the staff does when you suggest that we “just put a gala on” or “build a social media presence” - Trade-off’s 5. Acknowledge that a critical role for you is to FUNDRAISE and start now!
© 2011 PlayBook Consulting Group 17 Boards Want ED’s to Know… 1. We are confused about what our role is supposed to be - what are we responsible / liable for? 2. Even though we don’t have time for it and think we don’t need it (we have our own businesses!), we need more training to perform our role well 3. Our intention is to serve the best interests of the organization 4. We earnestly desire to make a meaningful contribution, and are each weary of trying to find a way to help (we don’t know how to…) 5. Your messages to us are often conflicting
© 2011 PlayBook Consulting Group 18 Mismatched Messages “Do this menial labor for us.” “Stop micro-managing us.” “Set our direction.” “Just rubber stamp what we want to do.” “Respect everyone by showing up to meetings on time.” “We don’t have quorum, so let’s wait - SOCIAL!” “You’re not informed enough about our agency or issues.” “The staff doesn’t have time to create a board orientation binder.” “You’re responsible for fundraising.” “There’s no development plan & we can’t train you.”
© 2011 PlayBook Consulting Group 19 Organizational Assessment
© 2011 PlayBook Consulting Group 20 Organizational Assessment Take 15 minutes to consider the assessment questions E = essential or basic requirements to the operations of all nonprofit organizations. Organizations which do not meet the requirements of these indicators could place their organizations in jeopardy. R = recommended as standard practice for effective nonprofit organizations. A = additional indicators which organizations can implement to enhance and strengthen their management operations and activities
© 2011 PlayBook Consulting Group 21 Organizational Assessment Organizations can respond in one of three ways: Needs work - Work has been done towards achieving this goal. The organization is aware of the need for this indicator, and is working towards attaining it. Met - the organization has fulfilled essential management need. However, review these indicators in the future to be sure that management remains healthy in view of the many internal and external changes which constantly occur. N/A - can mean several things, including: indicator is not applicable to operations of this organization not sure of the need to meet the requirements of this indicator has not met, nor is working on this indicator presently, but may address it in the future
© 2011 PlayBook Consulting Group 22 NETWORKING BREAK 15 minutes Next up: Organizational Roles
© 2011 PlayBook Consulting Group 23 Agenda 8:30amWelcome, Introductions, & Pre-Quiz 8:45amThe Future’s So Bright…Envisioning Success 9:15amOrganizational Roles & Responsibilities 10:00amNETWORKING BREAK - 15 mins. 10:15amRoles & Responsibilities, cont’d 11:15amNETWORKING BREAK - 15 mins. 11:30am Recruiting, Training & Retaining Quality Board Members
© 2011 PlayBook Consulting Group 24 Organizational Roles
© 2011 PlayBook Consulting Group 25 ORGANIZATIONAL BOARDS “Garage Band” Small, informal, dominated by founders & friends. Often take change personally, so resist it. ORGANIZATIONAL BOARDS “Garage Band” Small, informal, dominated by founders & friends. Often take change personally, so resist it. GOVERNING BOARDS Larger, more independent, more settled and stable. Start formalizing rules & procedures. Less start-up mentality, more long-term sustainability focused GOVERNING BOARDS Larger, more independent, more settled and stable. Start formalizing rules & procedures. Less start-up mentality, more long-term sustainability focused INSTITUTIONAL BOARDS Larger organizations, more sophisticated structures (very formal policies, procedures, roles & responsibilities), standing committees (that work). Larger staff to support them. Often honorific with representative stakeholders INSTITUTIONAL BOARDS Larger organizations, more sophisticated structures (very formal policies, procedures, roles & responsibilities), standing committees (that work). Larger staff to support them. Often honorific with representative stakeholders Three Nonprofit Stages
© 2011 PlayBook Consulting Group 26 The Golden Triangle Governance Management Operations
© 2011 PlayBook Consulting Group 27 Your Unique, Beautiful Board Extent to which your org depends upon board members for program delivery Extent to which the focus of the org is on fundraising vs. direct service Level of risk involved in the service / degree of clientele vulnerability Stability of income and how it’s generated Stability of social, political, and economic environment in which you operate Extent to which the org is subject to external oversight Skills of ED & Staff Diversity of community & clientele
© 2011 PlayBook Consulting Group 28 Formal Board Roles Ensure the organization stays in compliance with laws & regulations Determine organization’s mission, strategies, and program priorities Ensure organization uses its resources toward fulfillment of it’s tax-exempt purpose Hire and oversee an executive director or CEO Maintain control of important decisions and have adequate knowledge of the organization’s operations
© 2011 PlayBook Consulting Group 29 Other Board Roles Fully participate in board meetings, deliberations, and decisions Read, evaluate, and ensure accuracy of all reports, including minutes, financials, and evaluations Ensure the organization has sufficient resources, including people, funding, and other key assets Prepare and review policy documents Replace and orient new board members Act in the best interest of the organization
© 2011 PlayBook Consulting Group 30 Board: Governance & Support Governance Objective: Represent the community’s interests within the organization* Process for action: The Board acts as a single body** Responsibilities: Direction (Mission, Strategies) Legal Compliance Safeguard Finances Select, monitor CEO Fundraising (approve, monitor) Program Prioritization, monitoring Ensure Efficiency & Impact Governance Objective: Represent the community’s interests within the organization* Process for action: The Board acts as a single body** Responsibilities: Direction (Mission, Strategies) Legal Compliance Safeguard Finances Select, monitor CEO Fundraising (approve, monitor) Program Prioritization, monitoring Ensure Efficiency & Impact Support Objective: Represent the organization’s interests within the community* Process for action: Board members act as individuals or through communities** Responsibilities: Fundraising (assist staff in actively raising funds: donate, volunteer at events, network, solicit) PR & Community Contacts Recruit Volunteers Advise in Area of Expertise Lend name & reputation to cause Support Objective: Represent the organization’s interests within the community* Process for action: Board members act as individuals or through communities** Responsibilities: Fundraising (assist staff in actively raising funds: donate, volunteer at events, network, solicit) PR & Community Contacts Recruit Volunteers Advise in Area of Expertise Lend name & reputation to cause Source: CompassPoint Board Model
© 2011 PlayBook Consulting Group 31 What is Governance? Governance = processes & structures that an organization uses to direct and manage its general operations and program activities Structures, functions, processes/practices, traditions used to ensure mission accomplishment “Good Governance” = achieving the desired results in the “right way” (aka ways that are consistent with normative values)
© 2011 PlayBook Consulting Group 32 What is “Good Governance”? United Nations 1997: Good Governance Characteristics Participation in decision making & reaching consensus on what is in the best interest of the organization Accountability & Transparency Responsive, effective, and efficient performance Equity & sound rule of law Strategic Planning
© 2011 PlayBook Consulting Group 33 “Good Governance” Elements Vision. envision the future, develop a mission that’s flexible & responsive to future challenges & opportunities Direction. set goals for the organization Resources. secure resources to achieve desired results Monitoring. review relationship between resources & org’s vision, strategic plan, programs, ensuring realistic scope and achievability. Adjust as necessary. Accountability. ensure efficient use of resources and report progress to stakeholders
© 2011 PlayBook Consulting Group 34 “Good Governance” Game Plan Mission & Strategic Planning Transparency & Communication Organizational Structures Roles & Responsibilities Fiscal Responsibility Human Resources Implement Assessment & Control Systems Plan for Succession; Diversity in Board
© 2011 PlayBook Consulting Group 35 NETWORKING BREAK 15 minutes Next up: Keys to an Effective Board
© 2011 PlayBook Consulting Group 36 More Free Workshops! Feb 22Legal & Insurance Issues March 8Fundraising & Development Upcoming Fundamental Five+ Workshops from Grants Central Station
© 2011 PlayBook Consulting Group 37 Agenda 8:30amWelcome, Introductions, & Pre-Quiz 8:45amThe Future’s So Bright…Envisioning Success 9:15amOrganizational Roles & Responsibilities 10:00amNETWORKING BREAK - 15 mins. 10:15amRoles & Responsibilities, cont’d 11:15amNETWORKING BREAK - 15 mins. 11:30am Recruiting, Training & Retaining Quality Board Members
© 2011 PlayBook Consulting Group 38 The Golden Triangle Governance Management Operations
© 2011 PlayBook Consulting Group 39 The Role of the Executive The CEO or Executive Director provides leadership and management to: Ensure funding levels are equal to approved annual budget needs Foster strong collaborative community partnerships, especially with funding sources Ensure full compliance with all grant contracts Ensure staff & program oversight and support Develop new programs to ensure growth & stability
© 2011 PlayBook Consulting Group 40 The Role of the Executive Program Development & Administration - Design, recommend, fund/resource, monitor, adjust, report Communication - Board, Stakeholder, Community, Team Staff Relations - Hiring, firing, training, development, supervision, evaluation Budget & Finance - Design/prepare, recommend, maintain official records, assure controls, report, Fundraising
© 2011 PlayBook Consulting Group 41 The Golden Triangle Governance Management Operations
© 2011 PlayBook Consulting Group 42 The Role of the Staff Operations Mission Fulfillment Board Support Program Management & Implementation
© 2011 PlayBook Consulting Group 43 Role Evaluation - Team Exercise Where is your board in their role in your organization’s success? What needs to change? What’s going well? Where are the gaps in your board’s governance, support, training, and expertise? 20 minutes
© 2011 PlayBook Consulting Group 44 Board Development
© 2011 PlayBook Consulting Group 45 Keys to a Healthy Board RecruitTrain Retain
© 2011 PlayBook Consulting Group 46 Board Recruitment Form a Board Development Committee Do a Board Assessment What Roles & Expertise are needed to achieve your mission and 1-5 year strategic goals? Perform a Gap Analysis Brainstorm Potential Recruitment Targets Do your Research! Recruit
© 2011 PlayBook Consulting Group 47 Board Recruitment Determine characteristics of your ideal candidate Create an application and selection process Recruit several candidates Interview & Rate them Recommend to the board & ED 2nd Discussion with candidate: expectations (pre- orientation) Invitation Recruit
© 2011 PlayBook Consulting Group 48 Board Training Form a Board Development Committee Do a Board Skills & Knowledge Assessment What kind of training or orientation are needed to achieve your mission and 1-5 year strategic goals and to ensure the board’s effective performance? Create a training calendar Seek funding and experts if needed Train
© 2011 PlayBook Consulting Group 49 Board Training Training vs. Orientation Timing & Frequency Suggested Participants Content Organizational Overview Orientation to Board Manual Roles & Responsibilities Overview of Board Structure / Committees Overview of Board Operations (policies, etc.) Strategic Plan Review Train
© 2011 PlayBook Consulting Group 50 What’s in a Board Binder (online) ? 1. Welcome Letter 2. 1-page Organizational Overview 3. 1-page Strategic Checklist 4. Corporate/Historical Documents (annual report, bylaws, incorporation docs, latest 990) 5. Rosters - board, committees, staff, org chart 6. Meeting & Event Calendar 7. Responsibilities & Key Policies 8. Financial Info - budget, latest audit report & statements, list of funders & individual contributors 9. Tools - membership for, letterhead, collateral
© 2011 PlayBook Consulting Group 51 Board Maintenance Annual Satisfaction Assessments Appreciation Events & Tokens Pair Passion with Participation Form, Function, & Fellowship Valuable Meetings Reinforce Personal Enrichment/Benefits Meaningful Impact “Clean out the Closets” Retain
© 2011 PlayBook Consulting Group 52 Tips for Effective Meetings 1. Start on time; End on time 2. Prepare an advance agenda & materials - one week ahead! 3. FOLLOW THE AGENDA - keep on track & on time! 4. No Rat holes! - “Send it to committee” 5. Avoid acronyms unless everyone knows them 6. Facilitate! Facilitate! Facilitate! 7. Have Meeting Agreements - enforce them 8. Only share active committee reports 9. Don’t overdo Robert’s Rules 10. Controversy? Go back to Meeting Agreements & Checklist 11. Formal Votes & Close out with Action Items/Accountability
© 2011 PlayBook Consulting Group 53 Resources That Will Help Board C@fe - www.blueavocado.orgwww.blueavocado.org Board Source’s Knowledge Base & Tools - www.boardsource.org/Knowledge.asp www.boardsource.org/Knowledge.asp PlayBook Consulting Group’s “PlayBook Pages” - www.ThePlayBookGroup.com www.ThePlayBookGroup.com Free Management Library - www.ManagementHelp.org/boards/boards.htm www.ManagementHelp.org/boards/boards.htm Hawaii Alliance of Nonprofit Organizations - www.hano-hawaii.org www.hano-hawaii.org Hawaii Community Foundation - www.hawaiicommunityfoundation.org www.hawaiicommunityfoundation.org
© 2011 PlayBook Consulting Group 54 Wrap-Up
© 2011 PlayBook Consulting Group 55 Test Your Knowledge Our funder (and we!) want to know how effective this workshop was for you. This 5-minute Post-Workshop Quiz helps us gauge your progress and our success. Mahalo.
© 2011 PlayBook Consulting Group 56 Help Us Serve You Better! Please take 5 more minutes to complete the Workshop Evaluation so that we can improve this and future offerings from Grants Central Station Mahalo.
© 2011 PlayBook Consulting Group 57 More Free Workshops! Feb 22Legal & Insurance Issues March 8Fundraising & Development Upcoming Fundamental Five+ Workshops from Grants Central Station
© 2011 PlayBook Consulting Group 58 Mahalo For More Information or to Register for an Upcoming Workshop Leslie Mullens (808) 875-0500 or Leslie@ThePlayBookGroup.com Grants Central Station www.GrantsCentralStation.org
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