Harnessing The Potential Of Nonprofit Leadership: Meeting Expectations And Achieving High Levels Of Performance Yvonne D. Harrison, PhD July 27 th, 2012

Session Topic and Purpose Expectations for nonprofit leadership are very high. Expectations extend beyond the CEO to the board, the board chair, and all those who serve as leadership volunteers. This session will explore nonprofit leadership in the governance context, what is nonprofit leadership and how it differs from for-profit, nonprofit leadership competencies, and how to help nonprofit leaders meet expectations and achieve greater levels of performance.

Session Overview What is leadership? –Org, nonprofit/for-profit, and governance What do effective nonprofit leaders do? –Leadership competencies Why are some leaders more effective than others? How can nonprofit leadership be managed? –Competing Values Approach

Warm-Up True or False –Once a leader always a leader. –Great leaders can lead in any situation. –The secret to being a great leader lies in possessing a lot of personal charisma –If you want to succeed as a leader, “speak softly and carry a big stick”

Emerging Area of Leadership ers_how_to_start_a_movement.htmlhttp:// ers_how_to_start_a_movement.html

What is leadership? “Leadership is the process (act) of influencing the activities of an organized group in its efforts towards goal setting and its goal. There must be a group with a common task or objective, and at least one member must have responsibilities that are different from the other members. If all members perform the same role there is no leadership” (Stogdill, 1997, p ).

How is nonprofit leadership different from for-profit? Not for Profit CEO and Chair are different people Shared leadership Paid Executive and Unpaid Directors Focused on top line Inputs less predictable Less certainty and control organizationally For Profit CEO and Chair can be the same person Hierarchical leadership Paid Chief Executive and Directors Focused on bottom line Inputs more predictable More certainty and control organizationally

What about leadership in the context of governing? Different types of governance interactions and theories of leadership: –Interference Interactions Informal and collaborative (fluid, dynamic interactions to solve problems) Leader more influential than interaction (entity perspective) –Interplay Interactions Horizontal and collective (balance, equity, loyalty to mobilize people) Leaders establish a connection, provide incentives for rewards (process perspective) –Interventionist Interactions Formalized and hierarchical (skill of leader in shaping dynamics and complexity to advantage within system) Leaders create opportunities to cope with complexity, use for advantage to influence (political perspective) (Kooiman, 2003) Follower perceptions are shaped in governing interactions

What do effective nonprofit leaders do? Leadership Competencies in the Governance Context

Effective Chief Executives Facilitate Interaction in Board Relationships; Show consideration and respect toward board members; Envision change and innovation for the organization with the board; Provide useful and helpful information for the board; and Promote board accomplishments and productivity. Herman and Heimovics, 1991; 2005

Effective Boards Actively works to achieve role clarity (e.g. job descriptions) Ensures all members are oriented and trained for their role (orientation, retreats, workshops etc); Seeks to build team and motivates all members to work toward team goals (e.g. team-trust building etc.); Emphasizes full and clear communication on issues brought to the board (e.g. general and specific issues); and Focuses on performance by asking tough questions and using evidence to support decisions (e.g. being strategic, organizing around what matters etc.) Axelrod, 2005

Effective Board Chairs Do not distract boards from their goals Create a safe climate where issues can be discussed Look for and acknowledge the contributions others make to the board and organization Confront and resolve inadequate performance in a respectful way; Are open to new ideas and information; Are fair and impartial; Provide the right amount of autonomy and independence for the board and CEO Make people feel like a valuable member of the team Harrison and Murray, 2012

Effective Board Members (Leadership Volunteers) Motivated to Serve (e.g. Recruited for the right reasons, empowered for the service of mission/others) Create, Share Vision, and Align Strategically (e.g. Is informed, considers best practices, contributes to the development of and commitment to a shared vision that provides meaning and direction) Develop Effective Relationships (e.g. Nurtures a healthy organization and work environment, is socially aware and maintains effective relationships) Create Value (e.g. open to innovation, creativity, and change; translates theories into action; is responsive and accountable) National Learning Initiative, 2003

Why are some leaders more effective in their role than others? Leaders lack competency for the role Right competency but they exert too little or too much influence in the role Leaders lack experience of leadership in nonprofit governance context Leaders lack information and support Leaders don’t know they are ineffective Lack of performance evaluation and development

How can nonprofit leadership be managed for higher performance? Implement system of performance feedback Performance assessment in context of governance is complex –Diversity of leaders, leadership roles, and interactions –Different leaders contribute effectiveness in different dimensions of governance and organizational effectiveness –No one leader/actor contributes all that is required for effective nonprofit governance Method of aggregating the value of nonprofit leadership contributions

Competing Values Approach Quinn et al., (2011). Becoming a Master Manager: A Competing Values Approach, 5th edition 16 Internal External Control Flexibility

LEADERSHIP EFFECTIVENESS HUMAN RELATIONS COLLABORATE to sustain commitment and effort LEADERSHIP ROLES: FACILITATOR MENTOR OPEN SYSTEMS CREATE to produce higher quality goods and services at lower cost LEADERSHIP ROLES INNOVATOR BROKER INTERNAL PROCESS CONTROL to increase coordination and control LEADERSHIP ROLES: MONITOR COORDINATOR RATIONAL GOAL COMPETE to achieve mission and goals LEADERSHIP ROLES: DIRECTOR PRODUCER Quinn et al., (2011). Becoming a Master Manager: A Competing Values Approach, 5th edition E C F I

ASSESSMENT OF NONPROFIT LEADER ROLES AND COMPETENCY DIMENSIONS COLLABORATE ROLES: FACILITATOR, MENTOR CEO CHAIR BOARD BOARD MEMBERS CREATE ROLES: INNOVATOR, BROKER CEO CHAIR BOARD BOARD MEMBERS CONTROL ROLES: MONITOR, COORDINATOR CEO CHAIR BOARD BOARD MEMBERS COMPETE ROLES: PRODUCER, DIRECTOR CEO CHAIR BOARD BOARD MEMBERS Results (Competency 3- Adapted from Quinn et al., (2011). Becoming a Master Manager: A Competing Values Approach, 5th edition

ASSESSMENT OF NONPROFIT LEADER EFFECTIVENESS Decisive, Directive, Provides structure Task oriented, Initiates action Unaware Unskilled Unpolished Dependable, Reliable, Maintains structure Technical expert, Well prepared, Collects information Politically astute, Acquires resources Creative, Clever, Envisions change Process oriented, Facilitates interaction Caring, Sympathetic, Shows consideration Skeptical, Cynical, Stifles progress Unimaginative, Tedious, Neglects possibilities Overly democratic, Too participative, Slows production Soft hearted, Permissive, Abdicates authority Apathy Indifference Belligerence Hostility Unrealistic, Impractical, Wastes energy Opportunistic, Overly aspiring, Disrupts continuity Overachieving, Individualistic, Destroys cohesion Unreceptive, Unfeeling, Offends individuals Rigidity Chao s NEGATIVE POSITIVE NEGATIVE Adapted from Quinn et al., (2011). Becoming a Master Manager: A Competing Values Approach, 5th edition POSITIVE NEGATIVE

COMPETENCIES TO MANAGE LEADERSHIP COLLABORATE Understanding Self and Others Communicating Honestly and Effectively Mentoring and Developing Others Managing Groups and Leading Managing and Creating Creative Conflict CREATE Fueling and Fostering Innovation Implementing/Sustaining Change Using Power Ethically/ Effectively Championing and Selling Ideas Negotiating Agreement/Commitment CONTROL Organizing Information Flows Measuring and Monitoring Performance and Quality Encouraging and Enabling Working and Managing Across Functions Planning and Coordinating COMPETE Developing and Communicating a Vision Setting Goals and Objectives Designing and Organizing Motivating Self and Others Managing Execution and Driving for Results for Results (Competency 3- Quinn et al., (2011). Becoming a Master Manager: A Competing Values Approach, 5th edition

BEST PRACTICES TO DEVELOP THEM COLLABORATE ORIENTATION SKILL BUILDING TEAM-BUILDING CONFLICT MANAGEMENT PERFORMANCE FEEDBACK CREATE STAKEHOLDER ANALYSES FORMING ALLIANCES DISCUSSION, CREATIVITY EXERCISES IDEA GENERATION BARGAINING, NEGOTIATING CONTROL DEVELOPING INFORMATION RESOURCES MANAGING MEETINGS RECORDS PROCESS FLOW DIAGRAMS SUPPORT SYSTEMS FOLLOW-UP ASSIGNMENTS COMPETE PREPARING MEETING AGENDAS STRATEGIC PLANNING FISHBONE DIAGRAMS PERFORMANCE ASSESSMENT SWOT ANALYSES : 1-5 Adapted from Rohrbaugh, J. (2010).

Summary Be clear on leadership roles, role relationships and competencies. Recruit and select the best leaders for the role. Develop them and assess their effectiveness. Recognize leadership strengths and contributions. Link assessment results to development efforts. Choose strategies that reduce the challenges. Manage leadership to achieve and grow. Recognize leadership is one influence of many.

InfluencesGovernance Process Effectiveness Influences Governance Process Effectiveness Leadership Structures & Processes Composition and Development Culture FiduciaryFiduciary PlanningPlanning PerformancePerformance Assessment Assessment FundraisingFundraising Governance Effectiveness Organization Effectiveness WHAT WHO and HOW WHY Influence of Leadership at the Governance Level Meetings

Thank-You Questions