Coaching and Leadership Development in NonProfit Settings Dr John Zelcer June 2010 0 Overview Characteristics of the Nonprofit sector Leadership and volunteering in nonprofit organisations Framing and focus of coaching context for coaching, role, focus of coaching Three interactive explorations: executive leaders volunteer leaders coaching models 1
The Nonprofit sector A nonprofit organization is one that does not distribute its surplus funds to owners or shareholders, but instead uses them to help pursue its goals. Examples include charities, trade unions, and public arts organizations. The notforprofit, or social, sector in Australia: is a major part of the national economy, comprises more than 59,000 economically significant organisations, employs almost 890,000 people (around 8% of all employment), is supported by a further 4.6 million volunteers, and contributed about $43 billion to Australia s GDP in 200607. Spectrum: Large & small wellstructured (eg, National Heart Foundation, Beyond Blue), loosestructured (eg, local youth football team), small unstructured (eg, ad hoc committee planning a school fundraising function) 2 For Profit vs Nonprofit 1 For profit: Measuring success widely agreed financial metrics of performance money is both an input (ie, means) and output (ie, measure of success) Leadership governance structure & hierarchy are clear executive power is concentrated and explicit power can be a substitute for leadership Nonprofit: Measuring success Fewer widely agreed metrics of performance money is only an input performance relative to mission is the primary definition of success Leadership governance often has more components & inherent ambiguity executive power is more diffuse and less clear true leadership (and followership) are keys to effectiveness when people have the freedom not to follow 3
For Profit vs Nonprofit 2 For profit: Right people Candor hard to tap idealistic passions & secure full creative potential use substantial resources to attract & retain talent can remove people who are not performing or don t fit competitive market pressures force businesses to confront brutal facts faith that the market works supports the notion that skill, effort and best performance leads to success Nonprofit: Right people Candor can easily tap idealistic passions (nobility of service, meaning beyond money) often lack the resources to attract & retain talent tenure systems, volunteer dynamics can complicate the ability to remove people culture of niceness can inhibit candor systemic constraints can erode faith in ultimate success 4 For Profit vs Nonprofit 3 For profit: Culture of discipline profit mechanism makes it easy to say no pressures for growth, executive greed, short term financial pressures can drive undisciplined behavior Economic viability profitdriven focus makes it easy to source capital, manage cash flow, use profits for further growth competitive advantage (products, services, brand) provides basis for further market success (= revenue) & capital raising capacity Nonprofit: Culture of discipline desire to do good, pressure of funders & donors can drive undisciplined behavior Economic viability dependence on sporadic grants and donations creates intermittent uncertainty regarding cash flow, most nonprofits unable to create ongoing revenue streams to ensure sustainability mission success (services) and brand are critical to attracting funding 5
Financial viability of Nonprofits 6 Framing discussion 1 Context for coaching Community norms and expectations etc Organisation mission, workplace culture etc Team effectiveness, dynamics, cycle of performance etc Interpersonal effectiveness, skills, behaviours etc Individual personality, IQ, EQ, values, cultural norms, family of origin etc The coach coaching model, impact of client & system on coach, unconscious processes etc The system porous boundaries, dynamic changes over time, impact up & down the chain etc 7
Nonprofit organisations as complex systems Nonprofit organisations are commonly embedded in a complex systems multiple stakeholders, blurred boundaries, direct and indirect reporting and influencing, supporting messy and complex causes etc Leadership in such systems is largely about facilitating and guiding, rather than controlling and determining In complex systems, effective leaders : provide a strong sense of direction broad goals help explain and navigate boundaries their limits, what to avoid source and enable resources people and financial provide space for innovation giving permission to do things differently while staying effective in achieving the mission model key behaviours reflecting, exhibiting and maintaining the organisational values 8 Implications for personal and professional development Nonprofit organisations frequently source people on the basis of their availability & interest, with skills being less rigorously assessed especially for volunteer leaders and leadership behavior being even less of a focus Yet organisational effectiveness is heavily dependent on the skills and behaviors of key leaders leaders abilities to help set goals for themselves and others capacity to manage relationships effectively and maturely (in all directions) ability to deal effectively with conflict and tension across their complex system In this context, leadership development and coaching require thoughtful and specific approaches 9
Dysfunction Founder's syndrome A pattern of behavior on the part of the founder(s) of an organization that, over time, becomes maladaptive to the successful accomplishment of the organizational mission Occurs where there has been one person leading the organization since its inception, who then seeks to maintain disproportionate power and influence Conflict is between newcomers seeking effective involvement with organizational development and the founder(s) who seek to dominate the decision making process. Negative effects include Exclusion of newcomers Identification of the organisation with a single person Nepotism from subtle to rampant Organisational stagnation or failure 10 Exploration 1 Executive leaders What are the distinctive aspects of Nonprofit organisations that most challenge executive leaders? What types of coaching support do nonprofit executive leaders most need? 11
Framing discussion 2 Role Employed: Formal Fulltime or parttime Volunteer Formal Informal Fulltime or parttime 12 Employee (and volunteer) engagement Gallup Q12 I know what is expected of me at work. I have the materials and equipment I need to do my work right. At work, I have the opportunity to do what I do best every day. In the last seven days, I have received recognition or praise for doing good work. My supervisor, or someone at work, seems to care about me as a person. There is someone at work who encourages my development. At work, my opinions seem to count. The mission or purpose of my company makes me feel my job is important. My associates or fellow employees are committed to doing quality work. I have a best friend at work. In the last six months, someone at work has talked to me about my progress. This last year, I have had opportunities at work to learn and grow. 13
Satisfaction from corporate volunteering UK research on corporate volunteering has found a majority of participants developed both their business and personal skills: Communication skills (66% of respondents asserted that their skills had undergone some development or significant development in this area) Their ability to help others (65%) Adaptability (54%) Influencing / negotiating skills (45%). Team working (43%) Leadership skills (41%) Willingness to continually improve (41%) Planning and organisation (40%) Decision making (39%) Problem solving (39%) Ability to build relationships and networks (39%). Ref: Volunteering The Business Case 14 Dysfunction Emotional drivers and/or reactions Overengagement finding meaning in the mission Overreaction noncoping in the role or organisational context 15
Exploration 2 Volunteers What types of interventions may be triggered/required in settings where there is high incumbency of volunteers? What are the implications of the high degree of emotionality and emotional investment by volunteers in nonprofit organisations? What other unique considerations might apply for volunteer leaders or major participants? 16 Framing discussion 3 Focus of coaching Professional and personal development strategic, broad approach focus on intra and interpersonal skills and behaviors Performance enhancement focus on tangible objectives enhanced performance over a specified time frame Skills improvement detailed, highly focused on a specific skill set short timeframe 17
Exploration 3 Coaching models What types of coaching model or framework are most effective or least effective in the nonprofit setting? Why? Explore via: System framework Psychodynamic framework Group process framework Adult learning framework 18 Thank you 19