V Managing the nonprofit organization (Principles and practices) by Peter Drucker
* This outline only extends to level 5 so some of the topics are not complete or self explanatory—you'll need to buy a copy of the book. Main page
V Preface
V NPOs are central to American society and are indeed its most distinguishing feature
* America’s largest employer
* 2-3% of GNP. Same as 40 years ago.
V NPOs “product” is a changed human being
* Cured patient
* A child that learns
* A young man or woman grown into a self-respecting adult
* A changed human life altogether
V Business supplies goods and services
* Has discharged its task when
V Government …
* Has discharged its function when its policies are effective
V Need management so they can concentrate on their mission
V Work together on their…
* mission
* leadership
* management
* Need management because they do not have a conventional “bottom line”
* Need to learn how to use management as their tool lest they be overwhelmed by it
* There is a “management boom”
V Little that is so far available to the NPO help them with their leadership and management has been specifically designed for them. Little of it pays any attention to the distinct characteristics of the NPO or to their specific central needs
* Their mission
* What are “results” in non-profit work
* Strategies required to market their services and obtain the money they need to do their job
* Challenge of introducing innovation and change in institutions that depend on volunteers and therefore cannot command
* The specific human and organizational realities of NPO
* The very different role that the board plays in the NPO
* The need to attract volunteers, to develop them and to manage them for performances
* Relationships with a diversity of constituencies
* Fund-raising and fund development
* The problem of individual burnout, which is so acute in NPOs precisely because the individual commitment to them tends to be so intense.
V Need materials that are specifically developed out of their experience and focuses on their realities and concerns
* Bob Buford of the Leadership Network
* Get audio tapes. Leadership and Management in the Non-Profit Institutions (“The Non-Profit Drucker”) .
V NPOs — America’s resounding success in the last 40 years
V In many ways it is the “growth industry” of America
* Health-care institutions
* Community services
* Fast growing pastoral churches
* Hospital
* Many other NPOs that have emerged as the center of effective social action in a rapidly changing and turbulent America
* Has become America’s “Civil Society”
V Face very big and different challenges
V Convert donors into contributors
* Need more money to do vital work
* Giving is necessary above all so that the NPOs can discharge the one mission they all have in common
* To satisfy the need of the American people for…
* To make contributors out of donors means that the American people can see what they want to see—or should want to see—when each of us looks at himself or herself in the mirror in the morning:
V Give community and common purpose
* People no longer have exposure to community
* NPOs are the American community
V The mission comes first (and your role as a leader)
V The commitment (of the NPO) (What we really believe in.)
V Introduction
* NPO exists to bring about change in individuals and in society
* What missions work and what missions don’t work
* How to define the mission
* The ultimate test of the mission is right action
* The first job of the leader is to think through and define the mission of the institution
V Setting concrete action goals
* Workable examples
* Unworkable examples
* Has to be operational, otherwise it’s just good intentions
* Has to focus on what the institution really tries to do
* Task of the NPO manager is to try to convert the organization’s mission statement into specifics.
* Common mistake is to make the mission statement into a kind of hero sandwich of good intentions.
* It has to be simple and clear
* Have to think through
* Constantly look at the state-of-the-art
* Look at the opportunities in the community
* Things that were of primary importance may become secondary or even totally irrelevant.
* Watch this constantly
V Three “musts” of a successful mission
* Look at strength and performance
* Look outside at the opportunities, the needs
* What do we really believe in (committed to)
* Summary
V Leadership is a foul-weather job
V Crisis leadership
* Depend on a leader when there is a crisis.
* The problems of success
* Hard choices
* Innovation
* People who will do what the situation calls for (p15). This is effective crisis leadership.
V How to pick a leader
* Try to match the strengths of an individual with the needs of the institution
* Look for integrity or character
* Mediocrity in leadership shows up almost immediately.
V Your personal leadership role
* Have maybe a year to establish yourself
* The role the leader takes has to fit
* All of us play roles
* To work the role the leader takes has to fit in three dimensions
* Two things to build on
* No such things as “leadership traits” or “leadership characteristics”
* Never say “I.” Think “we” and say “we.”
* You are visible.
* To every leader there is a season
V The balance decision
* One of the key tasks is to balance long range and short range, the big picture and the pesky little details
* There are always balancing problems in managing non-profits. This is only one example
* Balance between concentrating resources on one goal and enough diversification
* Balance between being too cautious and being rash
* Timing: expect result too soon or wait too long
* Opportunity and risk
V The don’ts of leadership
* Just announce decision and leave it to everyone else to understand
* Be afraid of the strengths in your organization
* Pick your successor alone
* Hog the credit
* Knock your subordinates
* Keep your eye on the task, not on yourself
V Setting new goals — interview with Frances Hesselbein (Girl Scouts)
V The Daisy Scout program
* Only 20% of the councils were enthusiastic about the new program. Another 10% were waiting in the wings
* Summary #1
* Ready but not competent
V Increase in number of volunteers
* Deserved and required superior learning opportunities.
* Summary #2
V Minority communities
* Look at the population projections
* Most thoughtful kind of planning and including those community leaders in that planning
* Working on the target of opportunity
V More than one customer
* Girls
* Volunteers
V General conclusions
* Carefully construct a marketing plan
* Understand all the ways there are to reach people and use them
* Need people in the marketing chain
* Continuing evaluation
V What the leader owes — interview with Max De Pree (Herman Miller, Inc. & Fuller Theological Seminary)
V The leader is indebted to the organization
* A volunteer nation
* Owes certain assets
V People development needs to be oriented primarily toward the person, and not primarily toward the organization.
* When you take the risk of developing people, the odds are very good that the organization will get what it needs.
* Building on what people are—not about changing them
* Goal achievement vs. realization of our potential applies to organizations as well
V A leader
* Primarily future-oriented
* First duty—Define reality
V Have to deserve the person who works for us
* They are committed to us by choice
* Opportunity
* Young people
V Building a strong team of colleagues
* Team held together by a common mission & common vision
* Understand the task
* Selecting people
* Assign the work very clearly with a lot of interaction
* Agree on what the process is going to be for getting the work done
* Agree on timetables where those are appropriate
* We agree on how we’re going to measure performance
* The way we judge the quality of leadership by the tone of the body
V Summary
* Leader as the servant of the organization
* Indebtness of the leader
V Summary: The action implications
V The mission
* Comes first
* If you lose sight of your mission, you begin to stumble and it shows very, very fast
* Needs to be though through. Needs to be changed
* The mission is always long-range. It needs short-range efforts and very often short-range results.
V Leadership
* First task is to make sure that everybody…
* The leaders’s job
* Leadership is doing
* Leadership is also example
V You are a leader
* We are creating a society of citizens in the old sense of people who actively work, rather than just passively vote and pay taxes
* Each is doing a responsible task
* Tomorrow’s society of citizens. Everybody…
* Mission and leadership
V From mission to performance (effective strategies for marketing, innovation, and fund development)
V Converting good intentions into results
V Results (Until these things have happened the NPO has had no results; only good intentions)
* The NPO is not merely delivering a service
* It wants the end user to be not a user but a doer
* It uses a service to bring about change in a human being
* It creates …
* It attempts to become a part of the recipient
V NPOs need 4 things
* Plan (part one)
* Marketing (this section)
* People (parts 4 & 5)
* Money (this section)
V Strategies that convert the plan into results
* How do we get our service to the “customer,” that is to the community we exist to serve?
* How do we market it?
* How do we get the money we need to provide the service?
V Marketing in a NPO is quite different from selling
* More a matter of …
* Have to know …
* Selling an intangible
V Basic strategy tasks
* Design of the right marketing strategy
* Fund development strategy
V Winning strategies
V Introduction
* Good intentions don’t move mountains; bulldozers do
* In the non-profit management, the mission and the plan—if that’s all there is—are good intentions
* Strategies are the bulldozers
* About Strategies. They …
V Brown University (a marketing strategy)
* Excellent faculty
* No distinction
* Question: What do we have to do to become a leader despite the tough competition?
* Two focuses (goals)
* Had strategies for each of these goals
* Has become the “in” university for bright kids in the East
* This is almost a textbook case of a successful marketing strategy
V Improving what we already do well
* A clear strategy for improving
V To work systematically on the productivity of the institution
* Need a strategy for each of the factors of production
* Need productivity goals—and ambitious ones
V Constant improvement also includes …
* Abandoning the things that no longer work
* The innovation objective
V Strategy development structure
* Example: How does a pastor set a strategy?
* Example: Public library
* Steps in strategy development
* Process of strategy development
* The best example of a winning strategy: The Nature Conservancy
* Strategy don’ts
V How to innovate
* Introduction
* Refocus and change the organization when you are successful
* Best rule for improvement strategies is to put your efforts into your successes.
* Responsibility of top management
* The search for changes
* The requirements for successful innovation
* The common mistakes (In doing anything new)
V Defining the market — interview with Philip Kotler (Northwestern University)
* Strategic Marketing for Non-Profit Institutions 4th edition by Philip Kotler
V Many institutions confuse marketing with hard selling or advertising
* Most important tasks in marketing
* Advertising and selling are afterthoughts
* Marketing is finding needs and filling them. It produces positive value for both parties
* Marketing starts with customers, or consumers, or groups you want to serve well
* Selling starts with a set of products you have, and want to push them out into any market you can find
V But isn’t the need the NPO serve obvious?
* Many organizations are very clear about the needs they would like to serve, but they often don’t understand these needs from the perspective of the customers. They make assumptions based on their own interpretation of the needs out there
V Different marketing efforts
* Money raising
* Recruiting students
* Attracting and holding first-rate faculty
V The problem marketing has to solve
* How do I get the response I want?
* The answer marketing gives is that you formulate an offer to put out to the group from which you want a response
* The process of getting the answer is called exchange thinking
* Reciprocity and exchange underlie marketing thinking
V Institutional differentiation
* Competition Examples
* How important is it?
* How do you do it?
* Marketing is now thought of as a process of segmenting, targeting, and positioning (STP marketing)
* As opposed to LGD marketing—lunch, golf, and dinner, which has its place
* Positioning raises the question
* So most organizations engage in the search for their own uniqueness, what we might call a competitive advantage or advantages
V First steps in marketing
* Define its markets, its publics
* Before you think through the message
* Church example
* Market orchestration
V The mission may well be universal. And yet to be successful …
* the institution has to
V This applies to fund-raising
* Careful identification of the appropriate sources of funds and the giving motives
* Why does that donor give money?
* To whom does the donor give money?
* Consumer research is important in the process of trying to direct your efforts
V The extent to which a NPO has to mold what they are, do what they can for the market (p 78)
* Church example
* “Boutiques” are very successful for NPO
* Translate boutiques into niches
* Route of niching versus mass production
* Do you want to satisfy one type of audience deeply or do you want to satisfy a number of audiences more superficially?
* Museum example
* More and more niching
* We need product differentiation in NPO as much as we need it in business
V Why does the NPO have to be interested in marketing and have to be engaged in marketing?
* Is it to be sure that it really fulfills the need?
* Will it satisfy the customer?
* Is it to know what it should focus its energies on?
* What are the real reasons for doing marketing for a non-profit institutions?
V Who should really do the marketing job in the NPO?
* CEO is the CMO
* Yet the CEO can’t do the marketing
* The work has to be delegated to someone who is skilled in handling marketing
V How can we tell whether marketing is making a genuine contribution?
* Marketing is supposed to build up “share of mind” and “share of heart” for the organization
* The cost side
* It is very hard to gauge the impact of marketing without setting objectives
* Hospital example
V Haven’t really gone into marketing in the right order
* Do some customer research to understand the market you want to serve and its needs
* Develop segmentation and be aware of different groups that you’re going to be interacting with
* Develop policies, practices, and programs that are targeted to satisfy those groups
* Communicate these programs
V Hospital who resist to the bitter end the kind of communication their market research shows them the public wants
* How many of the people who come in to have hip replacement can walk after six months. Because not everybody does. If we (see page 83)
V Adopting marketing
* NPO with little or no marketing takes 5 to 10 years to really install effective marketing procedures and programs if they’re fully committed to installing them. Many organizations give up after 1-2 years, especially if the early results are so good that they think they are already there.
* More than a department
* Everyone in the organization pursuing one goal
* Getting everyone to understand…
V Marketing becomes effective when the organization …
* is very clear about what it wants to accomplish
* has motivated everyone in the organization to …
* has taken the steps to implement this vision in a way which
V Marketing is …
* the work—and it is work—that brings the needs and wants and values of the customer into conformity with the product and values and behavior of the supplier, of the institution
* a way to harmonize the needs and wants of the outside world with the purposes and the resources and the objectives of the institution
V Building the donor constituency — interview with Dudley Hafner (American Heart Association)
V Fund development
* Recognizing that your true potential for growth and development is the donor, is someone you want to cultivate and bring along with your program
* Not simply someone to collect this year’s contribution from
* Reduces the cost of getting the money, when you have a donor base that is already sold
* You’re going to help them increase their support to the organization
V Tools used by the local organization
* Acquaint donors with what you are as an organization
* What you are trying to get accomplished
* So they can identify with your goals
* Need a very clear mission
* Very clear goals that relate to our mission
* Process
* Development means
* Development requires a long-term strategy (rather than putting together an annual campaign to go out and collect money.)
* Donor segments
* Materials / tools for creating constituency
V Summary
* Focus your message on what in marketing we would call the values of the potential customers
* Very clear goals for a marketing campaign in which you market the American Heart Association to potential investors, to people willing to commit themselves, if only in the beginning to a token donation just to get rid of the collector
V Door to door fund raising
* Don’t go Sunday afternoon during pro football games
* How much do you want so I can go back to my TV
* Ability to answer questions I get
* Leave material
* Next year
* That literature you left was very interesting
* Last year you gave …; how about 2.5X (or a target goal based on ability) this year? 50% success rate
* Appeal to the rational in the individual as well as the emotional part of the individual
V In building local campaigns
* Think of the person who does door-to-door
* Opportunity to educate those potential donors about
* Your greatest opportunity to create a long-term strategy
V Competition for funds
* Well ahead of inflation
* Cannot afford to create a strategy that will cause one of them to do better at the expense of another NPO.
* Figure out how to get new monies that have not been previously given
* Have a long-term really positive impact on the good that the NPO are trying to do.
* Most say “We want people who give to nobody but us”
V Market research
* Because we feel a commitment to the volunteers who go out as our ambassadors
* We give them the best possible materials
* Kind of knowledge about the market is relevant
V Asking for a specific gift dramatically improves the return in our campaign
* Level of income you should give so much
* They are usually flattered
* Once a donor has given a gift that falls into the suggested amount they should be cultivated (pay special attention): The long-term strategy of upgrading that gift
V The long-term strategy of upgrading that gift
* First target of opportunity
* Increase the size of the gift you ask for each year form those people who have given the suggested amount. Gently nudges them to a higher level
* Building the relationship
V Market research tries to identify
* Market segmentation
* Market value expectations
V Fund development
* Go where the money is
* Look upon fund development as an educational campaign
* Justification for having a broad-based annual campaign
* Larger givers, you have one strategy and one expectation
* Smaller givers, another strategy and another expectation
* Strategy definition
* Strategy development for a segment
* Information provided to fund-raisers
* Emerging for the future (p 95)
* Critical factors
* Volunterism
* Applies to all NPOs (big & small, local)
V Summary
* The central importance of the clear mission
* The importance of knowing your market, not just in generalities, but in fine detail
* Enabling those volunteers of yours to do a decent job by giving them the tools that make it almost certain that they can succeed
* Don’t appeal to the heart alone, and you don’t appeal to the head alone
V Do you really need volunteers? p97
* Computer
* TV
* Telemarketing
* Many organizations facing a crisis
* When you lose your volunteer base, you lose your constituency, the course of strength and growth in the organization
* Technology as a way of helping the volunteers do a more effective job
V Summary
* Fund development is people development
* Both for donors and volunteers
* You are building …
* That is the way …
* It is based on
* This applies to purely local and small organizations as well
V Summary: The action implications
V About strategy
* Strategy converts mission and objectives into performance
* Strategy ends with selling efforts
* Strategy begins with knowing the market
* The whole point of strategy is not to look at recipients as people who receive bounty, to whom the non-profit does good.
V Three strategies
* Needs a marketing strategy that integrates the customer and the mission
* Needs strategies to improve all the time and to innovate
* Needs a strategy to build its donor base
V All three strategies begin with research and research and more research
* Organized efforts to find out
* The important person to research
V Training your own people
* Everyone in the hospital must be patient-conscious.
* That’s a training job—not just preaching.
* It isn’t attitude, its behavior
* Behavior training. This is what you do
* Train the volunteers (may be even more essential)
V Need to organize itself to abandon
* What no longer …
* If not built in …
V The question always before the non-profit executive
* What should our service do for the customer that is of importance to that customer?
* Think through how the service should be
* Nuts and bolts
V Strategy
* Begins with the mission
* Leads to a work plan
* End with the right tools
* The last thing to say about strategy that it exploits an opportunity,
V Strategy
* Commits the non-profit executive and the organization to action
* Its essence is action
* The tests of strategy are results
* Begins with needs and ends with satisfaction
V Managing for performance (how to define it; how to measure it)
V What is the bottom line when there is no “bottom line”?
* NPOs tend not to give priority to performance and results
V Yet performance and results are far more… than in a business
* important
* difficult
V In a business, there is a financial bottom line
* Profit and loss are not enough by themselves to judge performance
* but at least they are something concrete
V A NPO E faces a risk-taking decision when you try to think through your performance
* First think through the desired result
* Then the means of measuring performance and results can be determined
V How is performance for this institution to be defined?
* Examples
* Not enough to say we serve a need. Really good ones create a want.
* As NPO E begin to define the performance that makes the mission of their institution operational two common temptations have to be resisted
V Planning for performance
* Performance in the NPO must be planned
* This starts with the mission
* Then one asks: Who are our constituencies, and what are the results for each of them?
* Integrating constituency goals into the institution’s mission is almost an architectural process, a structural process.
V Moral vs. economic causes
* Illustration
* Thinking through what results will be demanded of the non-profit institution can protect it from squandering resources because of confusion between moral and economic causes.
* NPO — almost impossible to abandon anything
* Have to distinguish between moral causes and economic causes
* Have a duty toward its … to allocate its scarce resources for results rather than to squander them on being righteous.
V NPO are human-change agents
* Their results are therefore always a change in people—in their…
* The NPO has to judge itself by its performance in creating
* NPO need to set specific goals in terms of its service to people
* NPO needs to constantly raise these goals—or its performance will go down
V Don’t’s and Do’s — The basic rules (Disregarding them will damage and may even impair performance)
V The Don’t’s
* Seeing the institution as an end in itself
* Feuding and bickering
* Tolerate discourtesy
V Do
* Build the organization around information and communication instead of around hierarchy
* Delegation
V Standard setting, placement, appraisal
* Standards
* Placement
* Appraisal
V The outside focus
* Force you people, and especially your executives, to be on the outside often enough to know what the institution exists for
* Get out in the field and actually work there again and again
* Try to simulate being a customer
* Don’t let people stay forever in a staff position in the office
V The effective decision
V Everything comes together in the decision
* Make or break point of the organization
* Either make decisions effectively or render themselves ineffective
* On decisions
V What is the decision really about?
* The most important part of the effective decision
* Very rarely is a decision about what it seems to be about. That’s usually a symptom
* Examples
V Opportunity and risk
* Opportunity: If this works, what will it do for us?
* Risk
V The need for dissent
* They should be controversial
* Acclamation means that nobody has done the homework
* What is right? Not who is right?
* Each see a different reality
* Instead of arguing what is right, assume that each faction has the right answer. But which question is each trying to answer?
* Creates mutual respect
* Honest disagreement
* Any organization needs a nonconformist
* Enables NPO to brush aside the unnecessary, the meaningless, the trivial conflict
* Enable concentration on the real issues
V Conflict resolution
* You use dissent and disagreement to resolve conflict
* Ask the two most vocal opponents to sit down and work out a common approach
* Defusing the argument
V From decision to action
* Causes for decisions that remain pious intentions
* Follow up
* Decisions will turn out to be wrong more often than right. At least they will have to be adjusted
V How to make the schools accountable — interview with Albert Shanker (American Federation of Teachers)
V A leader in the crusade to
* improve performance in the classroom
* make teachers and schools accountable for performance
* build the school around the classroom teacher
V Performance in the school
* What kind of human being are we trying to produce?
* Performance dimensions
V Assess achievement
* longer range
V Learning
* Not memorization & instant forgetting
* Something that becomes part of you
V Teaching
* Should be done on an adult level
V Public may have given up on many of our public institutions
* The employees have
* They are just doing … whether it works or not
V Summary: the action implications
V Performance is the ultimate test of any institution
* Exists for the sake of performance in changing people and society
V The temptation to downplay results
* To say … is not enough
* Wasting resources on non-results
V Results
* How well are you doing in terms of the resource you spent?
* What return do you get?
* Parable of the Talents in the New Testament: Our job is to invest the resources we have — people and money — where the results are manifold. And that’s quantitative term
* Kinds of results
* Defining results in such a way that one can ask
* Results are always outside the organization, not inside
* The right allocation of resources to the mission, to goals, to results
V Start with the mission (That is exceedingly important)
* What do you want to be remembered for as an organization—but also as an individual?
* The mission transcends today, but guides today, informs today
V From the mission, one goes to very concrete goals
* Only when a non-profits’s key performance areas are defined can it really set goals
* In a non-profit institution, where people want to serve a cause, you always have the challenge of getting people to perform so that they grow on their own terms. They are then accomplished and fulfilled, and that makes its way down to the performance of the organization.
V Results are achieved by concentration, not by splintering
* The courage to say (strength concentration analysis)
* Need alone does not justify our moving in. We must match our strength, our mission, our concentration, our value
V Good intentions, good policies, good decisions must turn into effective actions
* This is what we are here for
* This is how we do it
* This is the time span in which we do it
* This is who is accountable
* This is the work for which we are responsible
V The ultimate question, people in NPO should ask again and again, and again (major feedbacks)
* What should I hold myself accountable for by way of contribution and results?
* What should this institution hold itself accountable for by way of contribution and results?
* What should both this institution and I be remembered for?
V People and relationships (your staff, your board, your volunteers, your community)
V People decisions (hire, fire, place, promote, develop, teams, personal effectiveness)
V Introduction
* People decisions are the ultimate—perhaps the only—control of an organization
* People determine the performance capacity of an organization
* No organization can do better than the people it has
* Can only hope to recruit and hold the common run of humanity (unless it is a very small organization—a string quartet)
* Effective NPO E must try to get more out of the people he or she has.
* The yield from the human resource really determines the organizations performance
* That’s decided by the basic people decisions
* The quality of these human decisions largely determines whether … rather than just public relations and rhetoric
V Rules for making good people decisions (Objective: To place people who perform in assignments that match their strengths)
* See measuring “Management Performance”
* Not judges of people
* A diagnostic process
* The selection process
* 90 days later (A reminder)
V How to develop people
* Introduction
* Developing people
V Building the team
* The more successful an organization becomes, the more it needs to build teams
* Teams don’t develop themselves—they require systematic hard work. They require a team approach to management
* Team Building Process
V Personal effectiveness on the job
* Once the right match is made between key activities and strengths.
* Enable
* As the organization grows
V The tough decision
* A competent staff wherever performance is needed
* Repotting the bored executive
V The succession decision (at the top)
* Most critical, hardest to undo
* What not to do
* Positive ways
V The key relationships
* NPOs have a multitude of constituencies and has to work out the relationship with each of them
V The board
* To be effective, a NPO needs a strong board, but a board that does the board’s work
* Board duties
* Board must
* A nominating process is the best way to get people on the board. See p 158
* Membership on this board in not power, it is responsibility
* Age limit
* The badly split board
V Two-way relationships
* Only two way relationships work
* Bringing out problems into the open
V Relations with the community
* NPOs serve one specific community interest
* Have to maintain relations with
* Not PR (but you need good PR). Requires the service organization live its mission
V From volunteers to unpaid staff — interview with Father Leo Bartel (Social ministry of the Catholic Diocese)
V From “helpers” to “colleagues” or “unpaid staff”
* Now in leadership positions in the Church and in Church work
* Formal training program
* Quality control
* The biggest difficulty in asking people to serve is that they are painfully aware of their lack of experience and lack of preparation
* We must
V Management and development of people
* Inspiration. How to excite and motivate folks who are apathetic
* Organization: Getting board and council members to do the sort of paperwork, the sort of planning work, they really must do in order to be effective in their roles on councils or boards?
* Guiding principle you have in managing a heterogeneous group of volunteers, and a rapidly growing one?
V The effective board — Interview with Dr. David Hubbard (Fuller Theological Seminary)
V The functions of the board
* A partnership between the board and the professional staff
* Organization chart
* Board’s role
* Active board members
* Time commitment
V Creating the partnership
* The way the mission of the institution is stated
* Need people who are open to that mission
V The investment of the CEO and the staff in servicing the trustees
* Making the board effective and keeping it effective: A priority task
V CEO’s two primary areas of service
* Care for the vice-presidents
* Care for the trustees
V Balancing board involvement with the possibility of board meddling
* Meddling
V Playing games with the board
* Don’t
* Share the bad news first at 110 percent
* Share the good news at 90 percent
* No surprises
V Getting the board to change its position
* To adopt a change in an old, outmoded, but cherished policy
* Work for a win situation
* Try to help the trustees change their minds or to expand their vision without feeling that they are letting go of their cherished goals.
* Avoiding the board splitting into factions (p 176)
V Working with outside boards
* Don’t try to be clever & outsmart them
* What do we all have in common
V Summary
* It is to the benefit of an institution to have a strong board
V Summary: The action implications
V Complexity of relationships
* Paid staff and “volunteers”
* Donors
* Board
V People (volunteers, board, employed staff) need clear assignments for which they themselves take responsibility
* Need to know what the institution expects of them
* The responsibility for developing the work plan, the job description, and the assignment should always be on the people who do the work
* Think through their contribution
* Evolve by joint discussion
V Must be information based
* Structured around information
V Learning organization?
* Emphasis on managing people should always be on performance (They owe performance, and the executive owes them compassion.)
* Must also be compassionate (People work for non-profits because they believe in the cause)
V Learning and teaching responsibilities
* Learning (CEO only?)
* Aspirations, opportunities, threats, good & bad performance, improvements (for executives)
* How I help or hamper you? (for executives)
* May need clear information about the results of your organization’s work
V Take responsibility for making it easy for people to…
* Do their work
* Have results
* Enjoy their work
* Make sure that people get results.
V Developing yourself (as a person, as an executive, as a leader)
V You are responsible
V First priority for the NPO executive is to strive for excellence
* Brings satisfaction & self-respect
* Workmanship counts
* Without craftsmanship there is neither
* Be remembered for being a first-rate … (occupation)
* Avoid the temptation to just get by and hope nobody notices
V Self-development
* Deeply meshed in with…
* Pay serious attention to self-development — your own and that of everyone in the organization (is not a luxury for NPO executive)
* Well-run, results-oriented organization
V The key to building an organization with such a spirit is organizing work so everyone feels essential to a goal they believe in
* Goal is that everyone work at the equivalent level of a minister in the church
* The letter
V To make a difference
* The person with the most responsibility for an individual’s development is the person himself.
* Encourage everyone to ask themselves:
* Creating a record of performance
* Review what you have done once or twice a year
* PFD’s review. Focusing on where he can make a difference
* Making Personal Vision productive
* Self-development summary
V Setting an example
* A constant relationship between the performance and achievement of the leaders, the record setters, and the rest
* Executives lead by example
V What do you want to be remembered for?
V To develop yourself, you have to be doing the right work in the right kind of organization.
* Where do I belong as a person?
V “Repotting” yourself
* Sometimes a change—a big change or a small change—is essential in order to stimulate yourself again.
* 10-12 years with one organization is enough for many volunteers
* The switch
* When you begin to fall into a pleasant routine, its time to force yourself to do something different.
* “Burnout” often is just boredom
* Perhaps all that is needed is a small shift
* The excitement is not the job—it is the result
* To build learning into your work, and keep it there, build in organized feedback from results to expectations.
V Summary to this point. It’s up to you to:
* Manage your job and your career.
V Doing the right things well
* Effectiveness
V Self-renewal
* Work on your own self-renewal
* Create the excitement, the challenge, the transformation that makes an old job enriching over and over again
* Three most common forcing tools for sustaining the process of self-renewal
* Focus efforts to have the greatest ability for self-renewal.
V What do you want to be remembered for?
* Early exposure to the question will make all the difference, although you aren’t likely to really understand that until you are in your forties
* At age 25, some began trying to answer it, foolishly
* If you still can’t answer it by the time you’re fifty, you will have wasted your life
* Keep asking the question over and over
* Pushes you to see yourself as a different person—the person you can become
V Non-profits: the second career — interview with Robert Buford (Leadership network & PFD Foundation for Non-Profit Management)
V Learning required to make the transition from business to NPO
* Reallocate sense of identity
* Same values. But major change in proportions and behavior
* Real sense of clarity about mission and goals and about what comes first
* Do same things but to a different purpose and to a different drummer
* Need self-knowledge
V Experiences that helped you either to do the right things or avoid doing the wrong ones?
* An outside interest
* Avoid becoming a victim of own organization
V Self-development
* Stay in touch with your constituency
V The woman executive in the non-profit institution — interview with Roxanne Spitzer-Lehmann (St. Joseph Health System)
V Keeping track of progress
* List major undertakings that I have to do
* List things that are in process
V Differences between NPO & business
* Bottom line oriented
V Self-development
* Developing others
V Summary: The action implications
V Joshua Abrams
* Start all over again
* I don’t learn anything anymore
* I’ve done all I can do
* I’m still young enough so that I understand … and old enough to have experience with most of the things they are going through.
* I’m no longer young enough…
* Decide then act two years later
* You are responsible for allocating your life. Nobody else will do it for you
* Self development means two things & two quite different tasks: Developing the person. Developing the skill, competence, and ability to contribute.
* What will you do tomorrow as a result of reading this book? And what will you stop doing?