Presented by: Frank Martinelli The Center for Public Skills Training

Transcription

1 Presented by: Frank Martinelli The Center for Public Skills Training

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4 Assuring long term financial sustainability Alliances, partnerships and strategic restructuring Board and staff leadership succession planning Measuring mission impact Nonprofit advocacy and public policy work

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7 The What, Who, and How

8 The Dynamic Board McKinsey & Company

9 Shape the mission and vision Engage actively in strategic decision making and policy decisions Monitor & improve performance Oversee financial and risk management Monitor performance & ensure accountability Improve board performance Select, evaluate, develop the Executive Director Ensure adequate financial resources Provide expertise and access Enhance reputation of organization

10 Profile of the Future-Focused Board

11 Visionary and futurefocused Entrepreneurial spirit Risk-takers Strategic decision makers Effective communicators Systems thinkers Partnership and alliance builders Diverse Source: The Center for Public Skills Training

12 Richard Chait, William Ryan & Barbara Taylor

13 Fiduciary Mode Key Questions "How are we doing to date?" Are we in compliance? Anything wrong? Strategic Mode Key Questions "What should we be doing? "Where are we going? What s the plan? Generative Mode Key Questions What are the new possibilities? What s coming next? What s the new question?

14 Fiduciary Mode a key question Did we get a clean audit? OR What can we learn from the audit? Strategic Mode a key question Does the audit pinpoint any issues that are strategic in nature? Generative Mode a key question Does the audit hint at any emerging developments that could significantly challenge our enterprise model or financial condition long term?

15 Type I Fiduciary Type II Strategic Type III Generative Board s role Steward/ Watchdog Strategist Sense Maker Key question What s wrong? What s the plan? What s the key question? Problems are to be Spotted Solved Framed Way of deciding Reach resolution Reach consensus Reach understanding

16 1. Governance Committee leads the effort 2. Engaging the board in strategic thinking and planning 3. Aligning board recruitment with your strategic plan 4. Incorporating strategic deliberation into every board meeting 5. Board committees as "powerful engines of governance" 6. Building a board leadership talent pipeline

17 Leading the Effort

18 Continuous focus on identifying, preparing and recruiting future board leaders. Plan board education including new member orientation, ongoing training and board retreats. Assess board, chair, individual directors, and board meetings. Annually review governance practices and recommend changes.

19 Engaging the Board

20 Strategic Planning is the process by which the guiding members of an organization envision its future and develop the necessary plans, procedures and operations to achieve that future.

21 Planning as a Journey Vision of Intended Impact Today s Reality

22 The mission, vision and goals your organization will pursue Whom you will serve Your organization's role in the community The kinds of programming, services or products you will offer The resources needed to succeed How to best combine these resources, programming and relationships for mission impact

23 Actively Managed Board Composition

24 Review the strategic plan. Identify the skills, knowledge and relationships needed by the board to advance the strategic priorities. Set clear strategic recruiting priorities.

25 Balancing DIVERSITY Diversity AND COMMONALITY and Commonality

26 Diversity in demographics Diversity in linkages to different communities and groups Diversity in expertise Diversity in thinking

27 Commonality in board members belief in the nonprofit s mission Commonality in board members depth of commitment Commonality in terms of focus on strategic work of the board

28 An advance program of orientation and training to prepare prospective/new board members Focus on the strategic plan. To inform and engage. Speed up the learning curve. Increase confidence and productivity of new board members.

29 Incorporate training into board meetings. Study groups. Committee rotation. Publications and conferences. Online resources. Mobile learning.

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31 Effective recruitment people who are passionate about the mission, have needed skills, knowledge, values, contacts Solid board chair/executive director partnership Functioning committee and workgroup structure A strategic plan that the board has had a hand in creating and to which it is committed Thinking about board meeting process

32 Traditional Approach Board meetings emphasize transmission of information and reports Same agenda structure Focus on the past and present New Approach Emphasis on participation and action Focus on critical issues Use meeting for strategic and generative thinking Meetings are outcome driven Focus on the future

33 Incorporating strategic and generative as well as fiduciary mode thinking Use mission and vision as the basis for dialogue and decision-making on emerging issues. Look for and discuss future trends. Provide opportunities to share strategic information at board meetings.

34 Bundle routine items together Eliminates the need to vote separately on many routine items Expedites routine business Frees up time to address critical matters

35 Committee and previous board meeting minutes Minor changes in a procedure Routine revisions of policy Updating documents, for example: office address change Standard contracts regularly used Confirmation of conventional actions required in bylaws (ex: signatory authority for a bank account)

36 Display up-to-date information about key success factors Increase the effectiveness of board decision-making Maintain board focus on governance Corrective action can be taken before a crisis erupts

37 Total Cumulative Costs/ Average Unit Costs Compared to Target Unit Costs

38 Dollars Ratio End-Year Ratios 16,000,000 14,000,000 12,000, ,000, ,000,000 6,000,000 4,000,000 2,000, Assets Liabilities Ratio Can we cover current obligations?

39 Key Board Performance Indicators Status Actual Goal Key Attendance at Board meetings 80% 90% Green 90% Yellow 80% Red 70% Participation in committees, work groups, task forces Board meeting time devoted to strategy and generative issues Board action follow-up completed 70% 90% 75% 75% 80% 80% Green 90% Yellow 80% Red 70% Green 75% Yellow 60% Red <50% Green 80% Yellow 70% Red <60%

40 - Doug Eadie

41 Committee participation as an expectation Help the board do governance work Structure aligned with strategic plan Standing committees - the fewer the better Use of task forces and workgroups Committee accountability linked to strategic plan

42 Committee accountability linked to strategic plan Foremost critical Issues worksheet Critical issue briefing papers Other planning approaches

43 Strategy Assigned to Committee EXAMPLE: Increase the effectiveness of the board and its committees Action Objective EXAMPLE: The Governance Committee will design a board member evaluation process, submit for board approval, perform the first annual board/board member evaluation and report results by October 1, Quarterly Committee Progress/Results EXAMPLE: Evaluation process designed and approved by Governance Committee; submitted for board approval.

44 Foremost strategic issues and challenges that needs to be addressed over the 1-3 years (How to frame the issue?) What roles would be appropriate for the board to play in addressing each issue listed in Column 1? Clarify the board's need for information and education re: this issue. (To make good decisions in response to this issue, what will the board need to know and be able to do?) What resources can the Board access to help address this issue?

45 Opportunities and threats for the organization How are other associations are responding? What major choices, decisions and/or shifts in direction does this issue challenge us to consider? What are high leverage strategies that will help us respond to this issue?

46 Key to Long-term Sustainability

47 How would we carry out our responsibilities if a key board leader position suddenly became vacant? Do we select people to the board based on tactical and strategic thinking? Do we know TODAY who will replace current board leaders when terms end? Do current board leaders feel they have benefited in a meaningful way from their board service?

48 Succession Planning is the use of a planned program to ensure that board leaders are developed to successfully replace board leaders whenever needed to carry out the mission, vision and goals of your organization.

49 Adapted from the Society for Human Resource Management

50 Key Leader Position Chair Chair Elect Treasurer Secretary Chair, Executive Committee Chair, Governance Committee Chair, Finance and Risk Management Committee Chair, Audit Committee Incumbents Potential Successors

51 Position Current Leader 2016 Projection 2017 Projection 2018 Projection President Vice President Treasurer Secretary Committee Chair Committee Chair Committee Chair

52 BoardStar BoardSource The Center for Public Skills Training Board Development Resources Visionary Board Leadership Assessment -

53 Appearing in YOU and Your Nonprofit Board: Advice and Practical Tips from the Field's Top Practitioners, Researchers, and Provocateurs, just published by CharityChannel Press. Order at:

54 Frank Martinelli The Center for Public Skills Training